The Ministry of Housing and Territorial Planning (MVOT) and the National Housing Agency (ANV) presented this Friday housing plan Entre Todos – Dreams in Work which points to the creation of more than 4,500 housing solutions.
With the presence of Minister of Housing and Territorial Planning, Irene Moreiraand the Undersecretary of the portfolio, Tabaré Hackenbruchthe ministry launched the housing program within the framework of the 11th Construction Fair which is taking place in the Rural del Prado from May 18 to 22.
The National Director of Housing, Jorge Cerettaexplained that the general objective of the plan is the creation of alternative mechanisms for access to housing solutions in the framework of article 465 of the Budget Law 19,924. “This is a program that addresses the issue, provides solutions and impacts the reality of housing in Uruguay”, he expressed.
Along these lines, he reported that he is targeting the creation of more than 4,500 housing solutions by the end of the government period. “The number may be exceeded. since this is an estimate that we had made waiting a little to see what the proposal was and the projects that arrived. At first, we have set ourselves the goal that at the end of the period, between completed homes and homes that have started their execution, it can be said that the number of 4,500 was completed”, he added.
The number is reflected in 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 her administration, Minister Moreira had handled the figure of 50 thousand homes during this period of government, although she later admitted that this figure could not be reached.
The specific objectives of the program are, on the one hand, significantly increase the supply of housing, facilitate access to a broader segment of families Y promote housing construction throughout the country.
“We wanted to generate a program that, within the financial possibilities of the ministry generate housing or stimulate its creation. Also facilitate access to a broader segment, this has to do with the purpose of the ministry is to support families that are in an income range that today the market may not be giving them the solutions they were looking for to access housingCeretta said.
On the other hand, the hierarch stated that the aim is to encourage the construction of houses throughout the country. “Here we are not talking about promoting the interior but in some way democratizing housing investment at the national level”, he explained.
According to Ceretta, the financial participation of the MVOT “will depend on the projects and the budget possibilities” from the portfolio. Along these lines, he argued that there will be support for large projects and one “much more decisive in percentage matters” to small projects that, in his opinion, “They can be the way for this attempt to take construction to the whole country to be applicable to places where demand does not allow the generation of large projects.” and necessary “involve local businesses that are willing to adventure”.
On the other hand, it facilitate access to credit through a “new version of the National Guarantee System (SIGA)“what is”personalized to be program support” and that It will be operational shortly.
Another of the facilities that will be granted to private companies that present projects to the MVOT will be those of the “management support” that emerges from a coordination of the portfolio with the departmental administrations and public services related to construction. “Through the homologations that are necessary so that construction systems that today are not homologated to work with the State can be part of the projects that are presented in the MVOT“, Held.
The architect Eduardo Gonzalez will be the President of the Technical Evaluation and Advisory Commission (CETA) who will take care of analyze and approve the different investment projects that are presented within the framework of the plan.
González explained that the MVOT will be able to pparticipate in the projects presented “through an administration trust where funds will be invested as an investment partner”. In this sense, he pointed out that there are two types of projects. those who are from eight or fewer homes will have up to 80% support with MVOT funds with the objective of “reach locations that would not otherwise be reached and with small businesses”.
On the other hand, in the projects for more than eight homesthe subsidy “It will depend on each project” but will be “around 10%”. “That solution was found and also the Ministry of Housing can be a guarantor through the SIGA. The private party requests a loan and the ministry is the guarantor of up to 70% of that loan, so that it makes the investment quite easy.”, he pointed out.
González also reported that the private part “will be responsible for the management, execution, direction, development and eventual pathologies of the project” and, in return, “the benefit will also be for the company, minus the contribution from the ministry and a rate so that the portfolio does not lose money on that investment”.
The MVOT will grant subsidies to the quota that the beneficiaries will pay. He can reach himself 90% of the financed price of the home. The minimum term for which this will be provided subsidy will be for 5 years and may not exceed 25 years.
For constructions of two bedrooms price caps range from 420 thousand indexed units (IU) which are equivalent to about US$ 55,183 at today’s values until 660 thousand IU (US$ 86,715). In the case of four bedrooms, range from 770 thousand IU (US$101,168) up to 850 thousand IU (US$111,679).
“The idea is to target that middle strip that is a bit neglected and that is a strip that Today he rents but has no prior savings capacity. Two bedrooms at a base price of US$78,000 would remain —with the subsidy— in a fee of around $14,000 or $15,000, which is what they would pay for rent today”, he explained.
The rent with option to buy is another optionas long as the MVOT is homeowner. In that case, that option can be given to five years which may be more.
Regarding the conditions of the applicant, he must be able to pay with 25% of his liquid income 70% of the fee since there is a maximum of 30% subsidy.
“If 25% of net income allows you to pay 75% of the fee, you will have 25%. We are dividing by bands trying to be as generous as possible. When the account gives 0.1 to 5, it will be a 5% subsidy, if it gives 5.1 to 10, it will be a 10% subsidy, trying to favor the family as much as possible”, explained González.