Casa Verde e Amarela will have a higher subsidy limit

The Jair Bolsonaro (PL) government issued a decree that increases the limits of economic subsidy to beneficiary families of the Casa Verde e Amarela Program.

By law, the new limits for production and acquisition of new or used properties are now R$ 130 thousand in urban areas and R$ 55 thousand in rural areas. The previous values ​​were R$ 110 thousand and R$ 45 thousand, respectively.

The program rules provide that the grants are guaranteed with resources from the Budget, from the FAR (Residential Rental Fund) or from the FDS (Social Development Fund).

Both funds are managed by Caixa Econômica Federal.

In a note, Palácio do Planalto said that the objective is to make the aid compatible with “the current costs of civil construction, in order to make the service lines in question viable, subsidized by the FAR and by budget allocations from the Union”.

Also according to the government, the changes will not have a fiscal impact, as they will be within the scope of the current budget law. “In the same way, it will not imply a reduction in the goal of the Casa Verde e Amarela Program, since the estimate fixed at the time considered only the service lines that do not require resources from the General Budget of the Union for implementation”, alleges the statement.

The subsidy limits were maintained for the requalification of properties in urban areas (R$ 140 thousand), for housing improvement (R$ 23 thousand) and for land regularization in urban areas (R$ 2 thousand).

Last week, the sheet showed that the increase in construction costs has represented a challenge for developers who build units for Casa Verde and Amarela.

The housing program has a ceiling on the sale value of the units – currently at R$ 264,000 in São Paulo, after a 10% increase in 2021. Thus, if the cost to build the apartments rises, it is necessary to reduce profit margins .