Eight interventions for Social Housing – See in detail the bill for the “My Home” program

The bill with which legal issues are dealt with in order to Social Housing Strategy (“My Home” Program) to take shape from the beginning of 2023, the Minister of Labor and Social Affairs, Kostis Hatzidakis, presented to the cabinet

The Strategy, as stated in an announcement by the Ministry of Labor, is a total budget €1.74 billion from which more than 137,000 citizens will benefit, was announced by Prime Minister Mr. Kyriakos Mitsotakis at the TIF, while within September the measures were presented by the co-competent ministers. The actions specified by the provisions of the bill concern low-interest mortgages, social compensation, as well as the “Coverage” and “Renovate – Rent” programs (for the “Save – Renovate” program, which is also included in the package of measures, there is no need legislation and the Guide was pre-published). In addition, the bill includes arrangements aimed at freeing Public property from barriers, in order to use it for housing purposes, speeding up the relevant procedures and taking special care for the fire victims of Eastern Attica (Mati).

In particular, in relation to the Social Housing Programs, the following are foreseen:

1. Low-interest mortgage loan program for the purchase of a first home

It concerns the granting of low-interest loans to young people and young couples with the co-financing of DYPA and the Banks.
The program is aimed at young people and young couples (with a religious/political marriage or with a cohabitation contract) aged 25-39 (one of the two) and with an annual net income of 10,000 up to the limits provided, depending on the marital status, for the payment of the heating allowance. Borrowers should also not own another home that meets their housing needs.
Beneficiaries can acquire through the program a first home worth up to 200,000 euros, with a surface area of ​​up to 150 sq.m. and year of construction until 2007 with an interest-free or low-interest loan.
The loan can reach a maximum of 150,000 euros, covers up to 90% of the value of the property and will have a duration of up to 30 years. The final interest rate is euribor (quarterly) +1%, while for three and many children, as well as couples who have 3+ children during repayment, the loan will be converted into interest-free. It is also noted that:
– No guarantor is required for loan approval.
– The loan agreement must be signed within 8 months of the pre-approval of the loan.
The budget of the program is 500 million euros with provision for doubling depending on the demand that will be manifested.

2. Social compensation

It concerns the utilization of State properties belonging to General Government bodies, through partnerships with the private sector, for the construction of social housing.
On the one hand, DYPA (and General Government bodies that are the owners of the properties) and on the other hand the construction/technical companies participate in the scheme as follows:
DYPA grants the undeveloped plot of land on which the contractor, who will be selected after a tender, will undertake to construct, based on the specifications provided for in the notice, modern residential and commercial buildings. The public body retains ownership of the properties while the contractor receives in return the concession of exploitation until the costs are covered and on the condition that a percentage of the houses will be made available at a reduced rent to the beneficiaries of the social compensation program.
The maximum time of the concession will be defined by DYPA based on the corresponding European practices, while the contractor’s exploitation rate will vary between 30 and 60%, in order to ensure the public interest, but also to make the program attractive for private manufacturers to build modern quality social housing.

3. Program Coverage

It concerns the extension of the lease for an additional 3 years, of more than 1,000 private houses that are already leased within the ESTIA program (and will begin to be gradually released from 31/12/2022) and their provision as social housing, by the General Secretariat of Social of Solidarity and Combating Poverty, to young people, beneficiaries of the Minimum Guaranteed Income aged 25-39. The State also undertakes the repair costs of these apartments, where required.
The Ministry of Labor will offer for another three years to the owners of these properties, the same amount of rent they received from the ESTIA program, from the DYPA reserve and will provide the properties either free of charge to vulnerable Greeks (social housing), or at a low rent (affordable housing). Priority will be given to single-parent families, three-child families and especially those with many children who will be selected with objective criteria (scoring).

4. Renovate – Rent for Vacant Homes Program

It concerns subsidizing property owners to carry out repair and renovation works in vacant homes, which will then be made available for a minimum 3-year lease.
The program to be implemented by DYPA includes owners of houses up to 100 sq.m. in urban centers, who have at least 50% of the usufruct or full ownership of the residence and with a family taxable income of up to €40,000 and real estate up to €300,000. The residence must be declared vacant in the E2 of the last tax year. It is also clarified that each beneficiary can apply for only one residence, while those who have joined the Save program are not eligible.
The subsidy concerns renovation/repair costs, which are proven by relevant invoices and reaches up to 40% of the cost, with a maximum of 10,000 euros.

In addition to these, the regulations aimed at accelerating the utilization of Public property included in the bill are:

1. Urban planning use “Social Housing”

A new special use “Social Housing” is established, which can be included in most general uses (residence, urban center, social functions, etc.). It is foreseen that the properties belonging to the State automatically have the use of Social Housing, as long as the general use allows it.
The aim of the regulation is to allow unused State properties to be used as social housing.

2. Revocation of concessions of public properties that have not fulfilled the purpose of the concession

All bodies of the General Government are invited to examine the real estate concessions they have made, by use or ownership, for the fulfillment of a specific public purpose. If the purpose has not been fulfilled within 15 years of the concession, then the entity is obliged to revoke it, after giving the concessionaire a two-month period to document the need to continue the concession. Thus, public properties that are currently tied up with no prospect of exploitation are released, to be utilized as social housing.

3. Rapid procedure for determining compensation for razed properties, when the State is involved

In the demarcated areas where there are public properties, the rapid procedure of the old Code of Compulsory Expropriations of Properties is defined, to determine the compensation due on both sides, in order to quickly determine the new boundaries of the plots.
In particular, a temporary determination of the unit price will be made with a rapid procedure by the Single-Member Court of First Instance, the compensation will be paid by the State and thus the State will quickly acquire the divided sections.

4. Introduction of regulations for the housing rehabilitation of the fire victims of Eastern Attica (Mati)

The Ministry of Environment and Energy undertakes, utilizing a donation from the Republic of Cyprus, the construction of houses for the housing rehabilitation of the fire victims of Eastern Attica and the Municipalities of Rafina-Pikermio and Marathonos undertake the management of the houses and their distribution to eligible residents.

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