“My house”: The new roof program in 10 + 1 questions and answers

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Questions and answers about the bill regarding the government’s new housing policy – What is provided for loans to new couples, who can join – What is the “Coverage” program, how will the “social compensation” work – Read in detail

The Ministry of Labor is advancing the specialization of the actions of the “My Home” program, which is the government’s housing policy for young couples and not only. In 11 questions and answers, the landscape is clarified both around the lending of new couples, and around the partnership program of the public and technical companies for social compensation.

Read in detail:

1. What does the mortgage loan program provide and what is the benefit for new couples who will join it?

In practice, those who join this program will pay a mortgage installment that will be much lower than the rent corresponding to the house they have chosen, as the interest rate will correspond to a quarter of the commercial interest rates. And anyway, it will be zero for families with three and many children. Most importantly, by repaying the loan they will acquire the ownership of the house. In addition, the loan will cover a higher percentage of the commercial value of the property (90%) compared to bank mortgages which usually cover up to 80%. This means that the private contribution that young people have to contribute is reduced to 10% of the value of the house instead of the 20% stipulated in bank mortgage contracts.
Also, with this program, households that under normal circumstances would hardly meet the bank’s financing criteria gain access to bank loans.

2. What’s new in the youth mortgage scheme?

Some new elements have been added in relation to the initial announcements that aim to speed up the implementation of the action but also to protect against potential abuse. Specifically:
– A ceiling of 200,000 euros was placed on the value of the residence that the beneficiaries can purchase. This prevents the possibility of buying luxury constructions with the program’s subsidized loan.
– The purchase of the property by a first degree relative of the borrower is prohibited.
– It is clarified that there will be no guarantor of the loan.
– There is an 8-month deadline (6 months initially with the possibility of an extension of 2 months) from the pre-approval of the loan until the signing of the loan agreement. This prevents delays that would bind the loan funds at the expense of other beneficiaries who have closed the agreement to purchase the property.

3. The housing loan granting program provides for a ceiling of 150,000 euros on the amount of the loan. Do you consider this limit realistic? Are there any houses at this price level?

In dozens of inner city areas and in the periphery there are properties available in this size class that can meet the housing needs of young people. Indicative: the objective values ​​in Agia Paraskevi range from 1500-2050 euros per square meter, in Marousi 1500-2300 euros, in Pefki 1300-2250 euros, in the 4th Municipal District of Thessaloniki (Toumba) 1250-1550 euros. It is recalled that the objective values ​​concern newly built properties while the mortgage loan program concerns properties built up to 2007, the values ​​of which are obviously lower than newly built ones.
Obviously there are much more expensive properties, but we must not forget that we are dealing with a social program to facilitate the acquisition of housing, which aims to free young people from significant costs, uncertainties and problems. The limit of 150,000 euros as well as the ceiling of 200,000 euros in the value of the property is the golden ratio between the limits set by the market and the need to join the program as many beneficiaries as possible.

4. What does the “Coverage” program provide and who can join it?

The “Coverage” program is based on the empty houses that will be released from the “Estia” program through which more than 1000 private houses were rented by the State and made available for a transitional period to immigrants. The “Estia” program ends on December 31. Immediately afterwards, these homes (provided of course that their owners agree) will be repaired if necessary at public expense and will be made available free of charge or at a very low rent to vulnerable young people aged 25-39, beneficiaries of the Minimum Guaranteed Income. Priority will be given to multi-child, three-child and single-parent families with objective criteria (scoring). The program will be implemented by the General Secretariat of Social Solidarity and Combating Poverty of the Ministry of Labor and Social Affairs.

5. How will the partnership between the State and technical companies work in “social compensation”?

The basic philosophy, as it has been announced, is that the public bodies (DYPA and others) will contribute undeveloped and unutilized land in which the technical companies after a tender will undertake to build houses and shops based on the specifications that will be defined in the tender notice . The companies will be repaid by the exploitation of the properties but will have the obligation to make available a percentage of the housing with low rents to the beneficiaries of the social compensation program. Also, the State body will retain ownership of the properties. The duration of the concession will be defined in the tender announcement as it cannot be uniform for all areas and land values. The aim is to house the beneficiaries in quality properties but also to ensure that the program will attract the interest of the private sector.

6. The opposition accuses you of giving away public property to large contractors with social benefits. What do you answer?

With the new institution of “social consideration”, the idle real estate of the public is available, without losing the ownership of the land, in long-term concessions to private individuals who ensure with contractual obligations the construction of modern houses which will be available at cheap rents. This is the most widespread practice of social housing which has ensured that 20-25% of properties in Austria or the Netherlands are available at regulated low rents. Similar initiatives have been taken in socialist Spain. Don’t those who criticize easily know this?
With the social compensation, the State contributes properties that it does not use and remain unused, the private individuals, after a tender, undertake, at their own expense and according to government specifications, to build houses with the obligation and allocate a percentage of them to the beneficiaries with low rents. In this way, cheap housing is ensured for those who join the program, the property of the State and especially of DYPA is utilized, the building is started and the practice of the “ghetto” of workers’ housing is abandoned. The State retains ownership of the properties in any case and the fastest supply of social housing is ensured.

7. What is the “Renovate – Rent” Program and how is it different from “Save?”

The “Renovate – Rent” program provides subsidies for the renovation of closed houses in order to make them available for rent. In other words, it aims to increase the supply of housing by providing incentives for empty properties to be used again, once they are restored to a condition that can be used. The “Save” programs in which thousands of homes have joined concern properties that are already used as a first home, owner-occupied or rented. It is recalled that through the “Renovate – Rent” program, subsidies of up to 40% (with a limit of 10,000 euros) are provided for the renovation of houses (works and materials), up to 100 sq.m. in urban centers in order to make them available for lease. The home owner must have a family taxable income of up to €40,000 and real estate up to €300,000 and the home must be declared vacant on the E2 form. The Program Guide has already been pre-published.

8. Why is it necessary to add a new special urban planning use for social housing?

This ensures that public buildings that previously had a different use (for example, hotels or schools, etc.) can be used as social housing without zoning barriers, as long as the general use that applies in the area (residential, urban center, public benefit functions, etc.) .etc.) allows it.

9. What does the regulation provide for the revocation of concessions of public properties?

It has been established that public bodies have granted their properties for the fulfillment of a specific public purpose (e.g. to house the services of a Municipality or to serve cultural purposes) without, however, while a long period of time has passed, this purpose has been fulfilled . The regulation that is being introduced provides that all the bodies of the General Government are invited to examine the real estate concessions they have made and if 15 years have passed without their purpose being fulfilled, to proceed with the revocation of the concession. The period of 15 years is judged to be more than sufficient in order to draw the conclusion as to whether there is the will and/or the possibility to fulfill the purpose. In addition, a two-month deadline is set in which the concessionaire can document the need to continue the concession if deemed necessary. In any case, it is not conceivable that State properties remain tied up and unused while they can be used for housing families.

10. What programs can property owners participate in?

Owners have multiple benefits. The owners e.g. who will participate in the “Coverage” program will have a guaranteed income from the rent paid by the state, for their homes, which will be allocated to new beneficiaries of the Minimum Guaranteed Income. The state also undertakes the repairs.
On the other hand, the program of mass utilization of closed private houses provides that their owners will grant them for at least 5 years to the state, which will undertake to renovate them and make them available to young people and new couples.
With the “Renovate-Rent” program, the owners of closed houses will be subsidized to renovate them on the condition that they make them available for a lease of at least 3 years.
Finally, the “Save – Renovate” program provides a combination of subsidy and interest-free or low-interest loans to young people for the renovation and energy upgrade of homes they own.

11. Why is the passing of a new housing policy bill necessary? Is the existing institutional framework insufficient?

It was already pointed out during the presentation of the programs that a number of new provisions will need to be passed to implement or accelerate the implementation of the government’s new housing strategy. After all, in recent years the state has been absent from the field of housing policy. New tools have been added, such as social compensation, which should be added to the DYPA “toolbox” in order to be implemented quickly and transparently.

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