The general secretary of the Uruguayan Federation of Mutual Aid Housing Cooperatives (Fucvam), Gustavo González, spoke this Monday on the Panorama 1410 program of the radio station La R, in which he exposed the situation that housing is currently going through nationwide.
González, referred to why Fucvam considers that housing in Uruguay is experiencing a crisis situation. “The first thing we start from is that the Ministry of Housing does not have the necessary economic resources to be able to promote a plan tending to overcome the housing deficit,” said the leader.
On the subject, he added: “In this I am going to be clear. This administration has suffered a cut both in the Budget Law and in the last rendering of accounts, which add up to approximately between 40 and 43 million dollars for housing. This is a first element that means that they will not be able to comply with the plans that had been committed”.
Along these lines, he also pointed out that “we have a housing and quantitative deficit of 70,000 homes and this has been agreed by the whole world. Opposition and ruling party, and the Faculty of Architecture. We all agree on this figure and we predict that if it continues like this, and if a significant amount of money is not injected into housing, the quantitative deficit will increase. That is why we say that the housing problem is in a critical situation.
Among various issues discussed, González referred to the existing differences with the Ministry of Housing for the 2% interest that cooperatives are charged for the loan granted, and which currently fluctuates at 5.25%. In this regard, he responded that “the last meeting we had with the National Director of Housing already raised for the third or fourth time that they are willing to give 2% to all housing cooperatives. Apparently, and it is being considered that in the next draw, which would be on December 19, the Ministry would announce 2% for all housing cooperatives, which is an absolutely fair, necessary and essential claim for cooperative families. Let’s hope that happens.”
Meanwhile, with reference to the promoted Housing Law, González was extremely critical. In this regard, he expressed that “this plan from which the construction industry has made fabulous profits to build one-bedroom homes for $108,000, two-bedroom homes for $130,000, and three-bedroom homes for up to $170,000, it must be said that these figures are official. Not that Fucvam says so. Those who are in a housing deficit cannot get to that house”.
In line with his argument, he stated that in the last year (2021), the construction industry had an exoneration of US$74 million in taxes. “Yes, the State lost receiving US$74 million with these exonerations. Among the taxes that they have exempted, they have VAT on the construction materials they use, and housing cooperatives have to pay VAT on construction materials. Something really inconceivable. This is another point of the platform”
The interviewee explained that another element that he understands is not only for housing cooperatives, but could benefit the entire country, is that Fucvam promotes a bill that would affect 0.25% to the wealth tax, and that would allow the Ministry of Housing to have more or less US$ 130 million per year”. He also said that the proposal was seen with good eyes by legislators from the Broad Front, but that it will not come out if it does not have the votes of the ruling party.
