Unauthorized Changes to Common-Area Uses in Apartment Buildings Can Draw Fines of Up to 300 Million Dong

Vietnam’s government has issued Decree 339, introducing administrative penalties for violations in construction, technical infrastructure, housing development and real estate business.

The decree focuses in part on how apartment developers manage buildings and maintenance funds. Fines of 80 million to 100 million dong apply to failures such as not opening a compliant payment account for common-area maintenance funds, failing to notify residents properly about the account, or neglecting required maintenance plans and responsibilities.

Penalties of 160 million to 200 million dong cover improperly determining maintenance contributions, recording incorrect account information, failing to transfer maintenance funds and accrued interest to an account managed by the building’s management board, and selling or leasing apartment car parking spaces contrary to regulations.

Fines rise to 200 million to 260 million dong for failing to provide or adequately allocate space for a community room, using maintenance funds improperly, failing to hold the first apartment-building meeting as required, or failing to prepare complete settlement documents for the funds.

The maximum fine of 300 million dong applies to more serious conduct. This includes changing the function or use of common property without authorization for a nonresidential purpose, improperly using shared areas or equipment, changing the use of service areas in mixed-use buildings without approval, and incorrectly determining which apartment areas qualify as private ownership. The decree also covers developers that fail to pay or fully pay required maintenance funds, or fail to hand over the relevant property and documents as required.