Commune government given powers over housing and construction

Starting July 1, commune-level People’s Committees will be granted new powers related to construction and housing projects under Decree No. 140/2025/ND-CP, which was issued by the government on June 12.

The decree outlines the responsibilities and authority of local authorities in the fields managed by the Ministry of Construction under the two-tier local public administration.

Specifically, it defines the scope of authority in construction activities, the housing and real estate business, architecture, urban development, technical infrastructure, and transportation.

All procedures and processes must comply with the amended 2014 Law on Construction and Government Decree No.175/2024/ND-CP.

Under the new regulation, commune-level authorities are responsible for licensing and approving construction sites for projects within their jurisdiction.

They will also receive and review applications for social housing purchases, rentals, and lease-purchases submitted by resettled individuals.

These authorities will verify eligibility and compile lists of households and individuals who qualify for social housing.

Land registration offices, with their branches located in communes or inter-commune areas, will verify individuals named on land use rights certificates or property ownership documents.

The decree gives commune-level People’s Committees and Departments of Agriculture and Environment the authority to evaluate housing status, income levels, and eligibility for preferential loans.

Decisions regarding funding for such loans will be made by commune-level People’s Councils and can come from local housing development funds (if available), annual local budgets, bond proceeds, and other lawful sources.

Commune-level chairpersons are also authorized to set up enforcement teams to take back social housing in cases of violations.

These teams will be led by a People’s Committee chairman or vice chairman and include representatives from the inspection, construction, justice, and natural resources departments, as well as project investors and management boards.

The Vietnam Fatherland Front at the commune level will oversee the enforcement process. The commune-level People’s Committees are responsible for handling complaints related to enforcement actions, approving enforcement plans, and allocating the necessary budget.

In addition, commune-level authorities will carry out state management functions related to real estate business operations.

Decree No. 140/2025/ND-CP will take effect on July 1, 2025, and remain in force until March 1, 2027.