The actions of the ministry have a cumulative budget of 726 million euros and are estimated to cover around 30,000 citizens
The 6+1 measures for cheaper housing included in the government’s social housing strategy (see detailed presentation with cards here) entitled “My house” which was presented by the Minister of Labor and Social Affairs, Kostis Hatzidakis, the Minister of Environment and Energy, Kostas Skrekas, the Minister of Education and Religious Affairs, Niki Kerameos, the Minister of State, Akis Skertsos and the Governor of the Ministry of Internal Affairs (Public Service Employment), Spyros Protopsaltis.
The aim is to address contemporary challenges in the housing market, especially for young people and young couples
These measures in summary are:
1. Interest-free or low-interest mortgages for young people aged 25-39
2. Mass renovation of empty houses
3. Utilization of real estate of the State through the institution of social compensation
4. Subsidy for the energy upgrade of an owner-occupied residence for young people aged 18-39
5. Housing renovation subsidy for long-term lease
6. Creation of new modern student residences
7. Increase in student allowance
The actions of the Ministry of Labor and Social Affairs have a cumulative budget of 726 million euros (600 million Ministry and 126 million euro bank loans) and it is estimated that they will cover about 30,000 citizens. Resources will be used from the DYPA reserve as well as funds from the new NSRF and the Recovery Fund.
The detailed measures are:
1. Interest-free or low-interest mortgages
-The measure concerns the granting of mortgage loans with a very low interest rate of 1% (compared to 4% which is the average interest rate in the market today)
in 10,000 young people or young couples aged 25-39. The low-interest loans will cover up to 90% of the commercial value of the property with a maximum limit of 150,000 euros, for the purchase of a first home. The program will concern the purchase of apartments up to 120 sq.m. and year of manufacture up to 2007.
For example, a young couple buying a house worth €100,000 will pay a monthly installment of €275-285 and the house at the end of the loan will remain
in the property of the borrower.
-The condition for receiving the low-interest loans will be that young people have an annual net income of 10,000 euros up to the limit provided for
the payment of the heating allowance according to the recently expanded criteria. So the potential beneficiaries are a large part of the taxpayers.
-The budget of the program is €500 million (€375 million from the DYPA reserve and €125 million from the banks). In the case of exhaustion of resources, the amount of loans granted is to be doubled.
-In order to further support three-child and multi-child families with the aim of addressing the country’s demographic problem, it is foreseen that housing loans will be granted interest-free:
a) when the applicant is a young couple (25-39) years old with three or more children on the date of submission or
b) when the applicant is young or a young couple, who during the repayment of the loan (e.g. 30 years) have three children.
– The implementation of the program is expected to start from the first quarter of 2023.
2. “COVER” Program
The program envisages the leasing – in the first phase – of more than 1,000 empty private homes of the ESTIA program in Athens and Thessaloniki to provide low-rent housing to young people and young couples. These houses that were granted to private individuals and
rented to immigrants will be available after December 31, 2022.
The Ministry of Labor will offer for another three years to the owners of these properties, the same low amount of rent they received from the ESTIA program, from the DYPA reserve. The owners who will offer their homes will have a guaranteed rent paid by DYPA.
Beneficiaries are 2,500 young people aged 25-39, beneficiaries of the minimum guaranteed income. Priority will be given to families with many children, three children and single parents.
The budget of the program is 21.5 million euros.
– Timetable: By December, the invitation will be published to the owners of the properties of the ESTIA program for the payment of
rents they received, for an additional 3 years, This will be followed (by February 2023) by the publication of the invitation to participate to the beneficiaries and from March the housing of the beneficiaries will begin after the completion of the repair work of the apartments,
wherever it needs.
3. European funds of 200 million euros for the utilization of existing empty private houses
The program concerns the financing of mass renovation and energy upgrading of 4,000 properties that have been vacant for a long time
period in collaboration with their owners, for their immediate availability as affordable housing for young people and young couples with social criteria. The
measure will benefit both the young people who will be housed in them, as well as the owners of the properties who will ensure a guaranteed income and
upgrading their properties. 10,000 young people and young couples, aged 25-39, are expected to benefit from the action.
The aim is to secure funding from the new NSRF (and discussions have already started with the European Commission – but also from the
Recovery Fund in the context of the upcoming review of the resources corresponding to the Ministry of Labor and Social Affairs. ΄
– Timetable: By the end of the year, the invitation to interested owners to grant their properties will be published and
to be followed in 2023 by the selection and renovation of homes as well as the selection of the beneficiaries.
4. Pilot action of social housing for vulnerable groups
Renovation of 100 apartments (70 in the Municipality of Athens and 30 in the Municipality of Thessaloniki) where at least 200 young people and young couples will be housed
up to 39 years old, with social criteria to be determined by the end of the year.
The action has already been included in the Recovery Fund with a budget of 1.5 million euros and is at the stage of signing program contracts with
the Municipalities.
The evaluation and selection of the houses will be completed in 2023, the renovation of the houses and the selection of the beneficiaries is planned for 2024.
5. Social consideration 1: Utilization of DYPA properties to provide low-rent housing
Utilization of the real estate of the former Workers’ Housing Organization (ÖK) to provide low-rent housing.
The goal is to build 2,500 social housing for 5,000 young beneficiaries up to 39 years of age.
The cost to the State is zero, as DYPA allocates its plots through a tender to technical companies that will build the properties. 50% of the apartments that will be built through this Public-Private Partnership are reserved by the private individual for commercial exploitation. The other 50% is used for the benefit of young people under the supervision of DYPA and with very low rents.
Instead of DYPA’s real estate remaining unexploited, the idea of ​​social compensation is implemented, which is successfully implemented
in countries such as Austria, the Netherlands and Spain.
The selection of plots will start this year while the tender for the selection of contractors is planned for mid-2023. The construction of the houses, the invitation and the selection of the beneficiaries will follow.
6. Social compensation 2: Real estate utilization of the Ministry of Labor and Social Affairs
Utilization of properties that belonged to the General Secretariat of Social Solidarity and Combating Poverty and are currently inactive.
The action concerns the renovation of 40 properties and their disposal as social housing for young couples and young people up to 39 years of age, applying as
disposal model either the rent (which will be low to zero), or the rent to own model.
The budget is 1,750,000 euros and is covered by DYPA resources. The schedule foresees the start of the distribution of the houses in the 4th quarter of 2023 after the upgrading of the properties and the selection of the beneficiaries are completed.
The action can be extended to additional available properties of the Ministry of Labor and Social Affairs after relevant mapping and determination of the condition of each property.
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