MINI APARTMENT BUILDINGS – LEGAL ISSUES AND RECOMMENDATIONS

The current reality in Vietnam demonstrates a notable increase in urbanization, accompanied by a growing trend of rural-to-urban migration among the populace. This context poses a significant challenge in addressing housing and infrastructure needs for a substantial number of the population residing in major urban cities such as Ho Chi Minh City and Hanoi, the two cities with the highest population densities nationwide. Alongside state-promoted social housing solutions, a housing model that has gained popularity as a solution to this issue is the "mini apartment buildings", which has been chosen by residents as a viable alternative.?

However, in recent times, state authorities have continuously found that numerous investors of mini apartment buildings are solely driven by profit motives, often disregarding regulations, safety standards, and criteria for firefighting and prevention. This has led to legal risks and, more significantly, impact on the lives of apartment buyers. This article shall serve as an awakening not only to state authorities but also to the public regarding the management and legal considerations associated with managing mini apartment buildings today.?

1. Legal Framework for the Management of mini apartment buildings?

Although the prevalence of mini apartment buildings is widespread, the current legal framework for managing this type of construction remains incomplete and contains significant gaps.??

?

2. Lack of regulations defining the concept of mini apartment buildings??

The legal framework in Vietnam currently only provides general regulations for apartment buildings, without specific provisions for mini apartment buildings. In other words, the term "mini apartment buildings" is commonly used in practice by people but is not formally defined in any existing legal documents.?

However, in terms of nature, this type of construction has been preliminarily recognized under Article 46.2 of the Law on Housing 2014 as follows: “In case the household or individual is permitted to build a multi-storey house whose each storey has two self-contained apartments or above satisfying minimum floor area standards, private areas and common areas in the apartment building as prescribed in this Law, each apartment shall be recognized the homeownership.”?

Inheriting the spirit of the Law on Housing 2014, Law on Housing 2023 also states similar provisions under Article 57.1 as follows:?

“1. Holders of land use right in accordance with Clause 3 Article 54 hereof shall, when building houses in the cases below, satisfy eligibility of developers of housing investment and construction projects, comply with construction law and other relevant law provisions in respect of housing investment and construction laws in investment and construction:?

a) Houses of at least 2 storeys where each storey accommodates dwelling units designed, built for sale, lease purchase, or a combination of sale, lease purchase, lease;?

b) Houses of at least 2 storeys and at least 20 dwelling units for lease”?

According to the spirit of the law, " mini apartment buildings " can be understood as individual residences with two or more floors, and comprising of multiple self-contained units internally. Regarding this concept, according to Delegate Nguyen Thi Thuy, there remains ambiguity as society commonly refers to these properties as mini apartment buildings —a term absent from official legal texts, where the Law on Housing does not clearly define standards, regulations, or management requirements, and even lacks a precise designation.?

3. Ownership rights concerning mini apartments units??

Regarding ownership rights over mini apartment units, Article 46.2 of the Law on Housing 2014 not only allows for the existence of "mini apartment buildings" but also formally recognizes the ownership rights and issuance of Certificate of Ownership for mini apartment units. The establishment of ownership rights in mini apartments must adhere to conditions, documentation requirements, and procedures for issuing the Certificate of Ownership as stipulated in relevant documents.?

However, few mini apartment owners are issued "red books" (Certificate of Ownership), because these constructions do not meet basic standards such as: minimum area requirements, construction permits, fire safety regulations, etc. Due to limitations and deficiencies in the legal framework, some households and individuals have taken advantage of managerial slack by state agencies to construct mini apartment buildings without adherence to legal provisions on construction, fire safety, technical standards, etc. Consequently, purchasers of mini apartment units are not granted "red books" —a legal document recognizing their lawful ownership rights over their apartments.?

?

4. Responsibilities regarding issuance of construction permit

Due to the absence of a clear legal framework, the process of applying for construction permits for these types of mini apartment buildings lacks consistency. At the same time, one of the reasons contributing to the consistently low construction quality and lack of safety in "mini apartment buildings" is the lack of regulatory agencies in conducting inspections, monitoring, and post-construction acceptance after issuing construction permits.??

A notable case is the mini apartment buildings on Khuong Ha Street, Thanh Xuan district, which was the site of a recent serious fire incident. Upon inspection, regulatory authorities verified that the construction permit issued to the homeowner explicitly stated "permitted to construct a detached residential building," but did not specify whether this individual residence comprised multiple apartments. In reality, the building was constructed with 9 floors on an area of 200 m2 plot of land, accommodating 45 apartment units and housing approximately 150 residents. This illustrates that regulatory agencies have not fully fulfilled their responsibilities in the issuance and assessment of construction permits, allowing instances of legal circumvention to persist.?

?

5. Responsibilities for fire prevention and firefighting management.?

?Current legislation requires certain construction projects to meet specific fire prevention and firefighting conditions such as design approval, fire prevention and firefighting acceptance, establishment of rules, prohibition signs, signaling boards, diagrams, or fire prevention and firefighting guidance signs; provision of transportation systems, water supply, and communication information for firefighting purposes, as stipulated in Decree No. 136/2020/N?-CP. However, one of the categories obligated to adhere to these fire prevention and firefighting regulations includes "apartment buildings, collective houses, dormitories." Therefore, the question arises as to whether "mini apartment buildings" are required to comply with these aforementioned fire prevention and firefighting conditions, given that their legal classification remains as individual residences.?

In reality, owners of mini apartment buildings typically apply for construction permits specifying them as individual residential structures, and thus stringent management and thorough scrutiny of fire prevention and firefighting conditions appear to be lacking. Given the limited building footprint, most investors strive to maximize land by converting spaces into rooms, often neglecting the construction of adequate fire exits. Many mini apartment buildings only have a single exit on the ground floor, with residents occupying upper floors creating obstructions to prevent theft. Firefighting equipment in these buildings serves primarily as "illustrative" means to meet formal requirements, but offer limited practical effectiveness in the event of fire or explosion.?

6. Recommendations for the management of mini apartment building?

Considering the deficiencies in current legal regulations and management mechanisms for mini apartment buildings, the authors wish to contribute some recommendations based on their personal viewpoint as follows:?

Firstly, enhance the legal framework governing the issuance of construction permits and post-permit management for multi-story residential buildings, particularly "mini apartment buildings". Regulatory authorities should clearly define technical construction standards and tighten the issuance of permits for these structures to mitigate the growing trend of "mini apartment buildings" that do not meet standard technical and safety requirements. Additionally, local government management mechanisms need strengthening through stricter measures to prevent the ineffective management in recent times.?

Secondly, consider supplementing and specifically regulating fire prevention and firefighting conditions for "mini apartment buildings". Point b of Article 57.3 of the Law on Housing 2023 has added requirements for individuals constructing residential buildings with two or more floors and fewer than 20 apartment units: "Comply with fire prevention and firefighting requirements as prescribed by fire safety laws for multi-story, multi-unit residential buildings." This indicates that the issue of fire safety for high-rise residential buildings in general, and specifically for mini apartment buildings, has been acknowledged but remains relatively general. Therefore, specific guidelines and explanations need to be developed and refined in the near future.???

As previously discussed, due to the limited land area of mini apartment buildings, fire prevention and firefighting requirements need to be stipulated at a feasible level that can be practically implemented. For instance, this could include provisions for emergency escape ladders, smoke masks, mini fire extinguishers, and other applicable measures to enhance safety practices.?

Finally, there is a demand to enhance awareness among investors and residents purchasing units in mini apartment buildings. Ultimately, mini apartment buildings have, to some extent, addressed the housing needs of low-income populations in large cities; hence, the policy direction should be "management rather than prohibition". In addition to refining legal regulations, raising awareness among investors and residents will significantly contribute to the effective management of mini apartment buildings.?

?

Conclusion?

It is undeniable of the benefits of mini apartment buildings which bring to their relatively affordable prices ranging from 100-600 million Vietnamese dong per unit, located at the central district locations, which have attracted numerous buyers and made them a popular real estate product both a decade ago4? and currently. However, the legal status and management mechanisms of this housing type still remain remarkable and require accomplishment to protect the rights of apartment buyers and ensure societal safety and welfare.?

ADK VIETNAM LAWYERS?

?