The Ministry of Housing and Territorial Planning (MVOT) and the Ministry of Economy and Finance (MEF) agreed that the financing of the housing plan Between Everyone – driven by the first- either through the National System of Guarantees (SIGA).
The Entre Todos program is an initiative of the MVOT that aims to build between 3,000 and 5,000 housing solutions that can be marketed through leases with option to purchase and state subsidies in the fee.
According reported in December the weekly Search, the draft of the operating regulations – of 14 articles – that the MTOV presented to the MEF proposed the creation of a financial trust by advancing budget credits that were planned for 2023, 2024 and 2025 at current value.
However, according to the weekly, the MEF did not approve the creation of the trust to avoid a accounting increase in public debta key point to which they pay close attention risk rating agencies. In this sense, the MEF proposal was offer state guarantees to loans taken by companies, leveraging the program through SIGA.
The Undersecretary of Housing and Territorial Planning, Tabaré Hackenbruchsaid to The Observer finally it was agreed to follow the proposal of the MEF and that this was the only point of the program presented by the MVOT that had modifications.
In turn, he reported that the program already has the approval of both portfolios and that he received some “grammar corrections” from Presidency. Along these lines, he indicated that corrections will be made and the regulation will return to the Presidency next week for final approval.
“Instead of having money, a guarantee is offered through SIGAthe rest of the plan, which has to do with the quota subsidy and public-private participation, still the same; it only changes the proposal of the financial trust”, explained the hierarch.
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According to Hackembruch, the idea is that private companies present projects in the MVOT inside the program Among all which has the peculiarity of havingcapped the price per square meter” as “It is oriented to the middle and middle-low socioeconomic sector of society.”. In the case of people whose income is not enough to be able to access that quota, the MVOT may subsidize up to 30% of it”.
The intention of the authorities is that the quota has a value between $10,000 and $15,000 and the price of the home is between US$60,000 and US$70,000.
“What would be bumped is the final price. That’s why suddenly it’s not so much per square meter but per home value. A two-bedroom house with a bathroom, living room, kitchen and dining room will cost around US$70,000, which, with the subsidized rate, will be between $10,000 and $15,000, which is the value of an average rental.”, commented the hierarch of Housing.
How will the plan work?
The Plan Entre Todos points to the construction of between 3,000 and 5,000 homes. The figure is reflected in the Five-Year Housing Plan in which it is projected to generate 23,728 housing solutions through the different programs of the ministry and counting the houses that were already in execution in the previous administration. At the beginning of his management, the Minister of Housing and Territorial Planning, Irene Moreirahad managed the figure of 50,000 homes during this government period, although he later admitted that this figure could not be reached.
The program will be created within the scope of the MVOT within the framework of the Law 18,795 with the purpose of promote and facilitate access to housing for sectors of the population with a low and medium socioeconomic level. The beneficiaries will be able to access the houses through sale, promise of sale and/or lease with option to purchase.
The MVOT will grant subsidies to the quota that these beneficiaries will pay. He can reach himself 30% of the financed price of the home. The minimum term for which this subsidy will be provided will be 5 years and may not exceed 25 years.
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In turn, create a Technical Evaluation and Advisory Commission (CETA) which will be made up of a representative of the MVOT, one from the National Housing Agency (ANV) and another from the Planning and Budget Office (OPP). This is will be in charge of analyzing and approving the different investment projects that are presented within the framework of the plan.
Once the projects are approved by CETA, investors may request SIGA to participate in the guaranteed credit program – which will be implemented for the Entre Todos plan – to access their financing. You can also ask CETA for the possibility of participate in a joint investment project with the MVOT. Another of the faculties that CETA will have will be that of set maximum prices for the sale of housing.
The MVOT Emphasis
According to Hackembruch, the MTVO is currently working with an emphasis on two themes: the trust for the Directorate of Social and Urban Integration (Dinisu) pointing to a accelerating the regularization of settlements at the national level and the already mentioned program Among all.
“These are the two fundamental legs that the Ministry of Housing and the intention is that they will be working no later than April or May”, he added.
