THE MY HOME HOUSING PROGRAM BILL – THE GUIDE TO THE PROGRAM!

In her letter dated 24.8.2022 to the Prime Minister, in view of his announcement to the TIF, of measures on this matter, regarding her proposals for creating incentives increasing the supply of rental housing, POMIDA pointed out that a successful intervention by the State to renovate and offer to tenants, housing for use as a main residence, should include serious incentives to increase the number of landlords, improving the operating framework of the private sector, and the available houses on the market, essentially helping the energy and functional upgrading of existing houses that have gradually been put out of the market due to the inability of their owners to renovate them. Every other “rental type” measure, pointed out POMIDA in her letter, she will take us back 50 years, with the first victim being the tenants themselves, and especially their new generation!

K. Hatzidakis: Affordable and quality housing for young and vulnerable citizens

The following announcement was issued by the Press Office of the Ministry of Labor and Social Affairs on 25.11.2022 :

The four housing policy actions of the Ministry of Labor and Social Affairs, included in the Government’s Social Housing Strategy, are established by the bill entitled “My home – housing policy for young people, utilization of public property for social housing and other provisions”, which was submitted to a public consultation.

It is about the “My Home” programs ( granting of low-interest or interest-free loans for the acquisition of a first home), Social Compensation (utilization of State real estate to provide low-rent housing), “Coverage” (renting of private homes and making available to young beneficiaries the minimum guaranteed income) and “Renovate – Rent” ( subsidizing the renovation of private homes that will then be made available for rent), which emphasize the housing rehabilitation of young and new families as well as vulnerable groups of citizens.

With the the same bill establishes necessary urban planning and other regulations to remove obstacles and speed up the implementation of the housing policy.

The Minister of Labor and Social Affairs, Kostis Hatzidakis, noted:
“The provisions of the bill, which is put to public consultation, are part of the Social Housing Strategy “My Home!” which was recently approved by the Council of Ministers and includes a network of immediate and medium-term actions, with the aim of obtaining affordable and quality housing for thousands of young people, young couples and our vulnerable fellow citizens. Among these are interest-free or low-interest loans for young people and families with many children, new – for our country – tools such as the social compensation already applied in other European countries, the continuation of the leases of the “Estia” program for the housing of young people with low incomes, the financing programs for the renovation of existing old houses. They are actions funded by European and national resources that benefit both our fellow citizens who will acquire housing and, the property owners, the State that makes use of its property, as well as employment in the technical professions. With these arrangements, the state is reactivating housing policy – from which it has been absent in recent years – for the benefit of society as a whole”.

In particular, the basic provisions provide the following:

1. “My Home” program

Beneficiaries of interest-free or low-interest loans are people aged 25-39 with an annual income of 10,000 euros up to the limit provided for the granting of a heating allowance and who do not own a property suitable for their residence.

The properties must have a value of up to 200,000 euros, an area of ​​up to 150 sq.m. and at least 15 years old, while the terms of the loan stipulate the following:

a) The purchase of the property cannot be made by a first or second degree relative of buyer.

b) The property is acquired in full ownership by the buyer or, in the case of spouses or cohabiting partners, in ownership >50% for each of them.

c) The amount of the loan cannot exceed 150,000 euros and the duration thirty years.

d) The loan covers up to 90% of the value of the property (the rest is covered by the buyer).

e) The loan is 75% funded by DYPA. No interest is due for the percentage of the loan financed by DYPA, while the remaining 25% is granted by the banks (they will be selected after a public invitation by DYPA). This means that 3/4 of the loan is granted interest-free, with the result that the final interest rate paid by the borrower for the entire amount is a quarter of the cost of a normal mortgage loan.
f) For three children or If you have many children, the loan will be interest-free. The loan will also be interest-free for those who have 3 or more children during its repayment period.
g) The provision of a personal guarantee from a third party cannot be requested as a condition for granting the loan.

h) The loan is exempt from the contribution of par. 3 of article 1 of Law 128/1975.
It is recalled that the total budget of the program is 500 million euros (with a provision to be doubled in case of exhaustion of the available resources), while it is estimated that the beneficiaries will be 10,000 young people or young couples aged 25-39. The implementation of the program is expected in the first quarter of 2023.

2. Social Compensation

This is a new institution added to the “toolbox” of DYPA for housing policy. It is defined as:

“Partnership of bodies of the General Government, with private contractors, in which the contractor erects at his own expense a building on undeveloped property of the body and the exchange it consists in the exploitation of the property for a certain period of time with the parallel obligation to rent part of it to beneficiaries against a predetermined rent. After the end of the exploitation period, the contractor is obliged to hand over the property to the owner operator”.

According to the bill, eligible tenants are selected based on objective social criteria, while in addition to simply renting the houses at a low rent, it will also be allowed to sign lease contracts with an option to purchase them from the beneficiaries (rent to own). It is also provided that:

– The Social Compensation can also concern structured properties. In this case, the scope of the contract includes the demolition of the buildings, which is done at the expense of the contractor.
– The percentage of horizontal properties that are leased to beneficiaries corresponds to a percentage between 30% and 60% of the total property.
– The selection of the contractor is made following a public invitation in which at least the following are described:

a) the undeveloped property, any existing buildings located within it , and the characteristics of the building to be erected in it,
b) the horizontal properties that will be established and their permitted uses,
c) the criteria for participation and selection of the contractor,
d ) the basic terms of the lease contracts between the contractor and the beneficiaries, except the rent.

The goal of the program is the construction of 2,500 social housing for 5,000 young beneficiaries up to 39 years old.

3. Coverage Program

It refers to the renting by the State of private houses that participated in “Estia” program for the housing of immigrants, and their availability to vulnerable young people and young couples. According to the bill:

– Property owners rent them for three years to people aged 25-39, beneficiaries of the Minimum Guaranteed Income.
– The rent is paid by the General Secretariat of Solidarity and Combating Poverty, which also covers the costs of repairs to the properties before they are rented out as part of the “Coverage” program.

The goal is the utilization in the first phase of at least 1,000 properties, which will house 2,500 beneficiaries aged 25-39, beneficiaries of the Minimum Guaranteed Income.

4. Renovate – Rent

Aims to include vacant homes in the rental market with the subsidizing owners to upgrade them. The bill provides that homeowners with an annual income of up to 40,000 euros and real estate up to 300,000 euros participate in the program, while those who have joined energy saving or renovation programs for any of their properties in the last five years are excluded.

The property must have an area of ​​up to 100 sq.m. and located in an urban area, it must not have been declared as a first residence, or as rented but listed as vacant in the E2 of the last three years.

The participants in the program, repair and renovation costs up to 10,000 euros are subsidized (including materials and work).
The subsidy reaches 40% of the cost provided that the invoices are paid electronically and the property is leased for at least three years.

The Residential Housing Strategy

The Strategy, overall budget €1.74 billion, from which more than 137,000 citizens will benefit, was announced by Prime Minister Kyriakos Mitsotakis at the TIF, while in September the measures were presented by the co-competent ministers. The actions specified by the provisions of the bill concern low-interest housing loans, social compensation, as well as the “Coverage” and “Renovate – Rent” programs (for the “Save – Renovate” program, which is also included in the package of measures, there is no need legislation and the Guide was pre-published). In addition, the bill includes regulations aimed at freeing Public property from barriers, in order to use it for housing purposes, speeding up the relevant procedures and taking special care for the fire victims of Eastern Attica (Mati). 

Program for granting low-interest mortgage loans for the purchase of a first home

Regards the granting of low-interest loans to young people and young couples with co-financing of DYPA and Banks.

The program is aimed at young people and young couples (with a religious/political marriage or with a cohabitation agreement) aged 25-39 (one of two) and with an annual net income of 10,000 up to the limits provided, depending on family status, for the payment of the heating allowance. Borrowers should also not have another privately owned home that meets their housing needs.

Beneficiaries can acquire through the program a first home worth up to 200,000 euros, surface up to 150 sq.m. and year of construction until 2007 with an interest-free or low-interest loan. 

The loan can reach a maximum of 150,000 euros, covers up to 90% of the value of the property and will have a duration of up to 30 years. The final interest rate is euribor (quarterly) +1%, while for three and many children, as well as couples who have 3+ children during repayment, the loan will be converted into interest-free. It is also noted that:

– No guarantor is required for the approval of the loan.

– The a loan agreement should be signed within 8 months of pre-approval of the loan.

The budget of the program is 500 million euros with provision for doubling depending on demand that will manifest.

2. Social compensation

Regards the utilization of State properties belonging to entities of of the General Government, through partnerships with the private sector, for the construction of social housing.

On the one hand, DYPA participates in the scheme (and bodies of the General Government that are the property owners) and on the other hand the construction/technical companies as follows:

DYPA grants the undeveloped plot on which the contractor who will be selected after a tender , will undertake to construct, based on the specifications provided for in the announcement, modern residential and commercial buildings. The public body retains ownership of the properties while the contractor receives in return the concession of exploitation until the costs are covered and with the condition that a percentage of the houses will be made available at a reduced rent to the beneficiaries of the social benefit program.

The maximum time of the concession will be defined by DYPA based on the corresponding European practices, while the contractor’s exploitation rate will vary between 30 and 60%, in order to ensure the public interest, but also the program to be attractive for private builders to build modern quality social housing. 

3. Program Coverage

Regards the extension of the lease for an additional 3 years, over of the 1,000 private homes that are already leased within the ESTIA program (and will begin to be released gradually from 31/12/2022) and their disposal as social housing, by the General Secretariat of Social Solidarity and Combating Poverty, to young beneficiaries of Minimum Guaranteed Income 25-39 years old. The State also undertakes the repair costs of these apartments, where necessary.

The Ministry of Labor will offer the same amount of rent to the owners of these properties for another three years. received from the ESTIA program, from the DYPA reserve and will provide the properties either free of charge to vulnerable Greeks (social housing), or at a low rent (affordable housing). Priority will be given to single-parent families, three-child families and especially those with many children who will be selected with objective criteria (scoring).

4. Renovate – Rent for Vacant Homes Program

Relates to subsidizing property owners for the execution of repair and renovation works of empty houses, which will then be made available for a lease of at least 3 years.

The program to be implemented by DYPA includes house owners area up to 100 sq.m. in urban centers, who have at least 50% of the usufruct or full ownership of the residence and with a family taxable income of up to €40,000 and real estate up to €300,000. The residence must be declared vacant in the E2 of the last tax year. It is also clarified that each beneficiary can apply for only one residence, while those who have joined the Save program are not eligible.

The subsidy concerns renovation/repair costs, which are proven by relevant invoices and reaches up to 40% of the expenditure, with a maximum limit of 10,000 euros.

In addition, the arrangements aimed at accelerating the utilization of the Public of property included in the bill are:

1. Planning use “Social Housing”

A new special use “Social Housing” is established, which can be included in most general uses (residential, urban center, public utility functions, etc.). It is provided that the properties belonging to the State automatically have the use of Social Housing, as long as the general use allows it.

The aim of the regulation is to allow unused properties of Public to be used as social housing.

2. Revocation of concessions of public properties that have not fulfilled the purpose of the concession

All the bodies of the General Government are invited to examine the real estate concessions they have made, by use or ownership, for the fulfillment of a specific public purpose. If the purpose has not been fulfilled within 15 years of the concession, then the entity is obliged to recall it, after a two -month deadline to the concessionaire to substantiate the need to continue the concession. Thus, they are released by the State who are now bound without prospects to exploit themselves as a social residence. 

3. Rapid procedure for determining compensation for targeted real estate when the public is involved

Plot areas where public real estate is defined, the rapid process of the old Code of forced real estate expropriations is defined to determine the compensation due to either side, in order to soon result in the new boundaries of the land.

In particular, a unit price will be temporarily determined by the One-Member Court of First Instance, the compensation will be paid by the State and so the State will quickly acquire the sections. :justify?” Start = “4”>

4. Introduction of arrangements for the housing restoration of the East Attica Fire (Eye)

The Ministry of the Environment and Energy undertakes, using the donation of the Republic of Cyprus, the construction of housing for the housing rehabilitation of the Eastern Attica fire and the Municipalities of Rafina-Pikermi and Marathon.

see here the presentation of the program. “> Guide with questions and answers to the bill on the new housing policy of the government has released the Ministry of Labor and Social Affairs, specializing in housing policy for the” My Home “program.

The mortgage loan will reach up to 150,000 euros, while there is a ceiling of 200,000 euros for the values ​​of the property. It is forbidden to buy the property by a first-degree relative of the borrower

beneficiaries, amounts and procedure-11 questions and answers

5. What does the mortgage lending program foresee and what is the benefit of the new couples to join it?

Practically those who join this program will pay a mortgage loan installing much lower than the rent corresponding to the home they chose as the interest rate will correspond to in a quarter of commercial interest rates. And it will be zero for three -and -large families. Most importantly, with the repayment of the loan they will acquire the ownership of the house. In addition, the loan will cover a higher percentage of the commercial value of the property (90 %) than the bank loans of banks usually covered up to 80 %. This means that the private participation that young people have to contribute is reduced to 10 % of the value of the home instead of the 20 % provided for in bank mortgage contracts. Also with this program they gain access to bank lending households that would normally find it difficult to meet the banking criteria. Start = “2”>

6. What are the new elements in the mortgage lending program? Some new elements aimed at accelerating the implementation of the action and shielding a possible abuse attempt has been added to the initial announcements. Specifically:

   – a maximum of 200,000 euros was set in the value of the home that the beneficiaries can buy. This prevents the possibility of purchasing luxury constructions with the subsidized loan of the program. Style = “Text-Align: Justify;”>- It is clarified that there will be no loan guarantor. ) From the pre -approval of the loan to the signing of the loan agreement. This prevents delays that would have committed loan funds at the expense of other beneficiaries who have closed the real estate market agreement. Start = “3”>

7. The mortgage lending program provides a ceiling of 150,000 euros at the loan. Do you consider this limit realistic? Are there houses at this price level?

size that can meet the housing needs of young people. Indicatively: The objective values ​​in Agia Paraskevi range from 1500-2050 euros per square, in Maroussi 1500-2300 euros, in Pefki 1300-2250 euros, in the 4th Thessaloniki Municipal District (Toumpa) 1250-1550 euros. It is recalled that objective values ​​are for newly built real estate while the mortgage program is for real estate made until 2007, whose values ​​are obviously lower than newly built. > Obviously there are much more expensive properties, but we must not forget that we are dealing with a social program to facilitate the acquisition of housing, which aims to free young people from significant costs, uncertainties and problems. The € 150,000 threshold as well as the 200,000 euro ceiling on the value of the property is the golden intersection between the limits set by the market and the need to join the program as many beneficiaries as possible.

4.What provides the” Cover “program and who can join it? Coverage ‘is based on empty houses that will be released from the’ Estia ‘program through which more than 1000 private homes were rented by the State and allocated to immigrants for transition. The “Estia” program ends on December 31st. Immediately afterwards, these residences (if their owners of course agree) will be repaired if needed at public expenditure and will be donated free of charge or with a very low rent to vulnerable young people aged 25-39, beneficiaries of the minimum guaranteed income. Priority will be given to large, three -parent and single parent families with objective criteria (scoring). The program will be implemented by the General Secretariat for Social Solidarity and Fighting the Poverty of the Ministry of Labor and Social Affairs. Start = “5”>

8. How will the Public and Technical Partnership work in “Social consideration”? “> The basic philosophy, as has been announced, is that public bodies (DBA and others) will contribute unstoppable and untapped land in which technical companies will be undertaken to build houses and shops based on the specifications set out in the notice. of the competition. Companies will be repaid by the exploitation of real estate but will have the obligation to have a percentage of low rents to the beneficiaries of the social consideration program. Also the State body will maintain the ownership of the real estate. The duration of the concession will be defined in the notice of the competition as it cannot be uniform for all areas and values ​​of the land. The aim is to housing the beneficiaries in quality real estate and to ensure that the program will attract private sector interest. Start = “6”>
9. The opposition accuses you of giving public property to big contractors with social consideration. What do you answer? Ownership of the land, in long -term concessions to individuals who secure the construction of modern houses with contractual obligations that will be available with cheap rents. This is the most widespread practice of social housing that has provided 20-25% of real estate, for example in Austria or the Netherlands, available with regulated low rents. Similar initiatives have been taken in socialist Spain. Don’t those who make easy reviews know it? Expenditure and by state standards, to build houses with the obligation and to have a percentage of them to the beneficiaries with low rents. This ensures a cheap shelter for those who join the program, utilize the property of the State, and in particular the DBA, the building moves and the practice of the “ghetto” of the working houses is abandoned. The State maintains in any case the ownership of the real estate and ensures the fastest supply of social housing. Start = “7”>
10. What is the program “Refrigerate- Rent” and what is the difference from “Save?”

Align: Justify; “> The program” renovate – rent “provides subsidies for closed housing renovations to be leased. That is to say, it is aimed at increasing the supply of residence by providing incentives in order to use vacant real estate again, as they return to a condition that can be exploited. The programs “ save in which thousands of homes have been included in real estate already used as a first residence, ownership or leased. It is recalled that through the “Renovate – Rent” program of up to 40 % (with a limit of 10,000 euros) for residential renovation (work and materials), area up to 100 sq.m. to urban centers in order to be made available for lease. The owner of the house must have a family taxable income of up to € 40,000 and real estate up to € 300,000 while the house must be stated as a gap in form E2. The program of the program has already been published. >

This ensures that public buildings that had different use in the past (for example hotels or schools etc.) will be used as a social home without spatial obstacles, since the general one of course the general Use in the area (residence, urban center, public benefits, etc.) allows. Start = “9”>

11. What does the arrangement for the revocation of public property concessions predict? That public bodies have granted their properties to fulfill a specific public purpose (eg to housing the services of a municipality or for the service of cultural purposes) without, but it has elapsed for a long time, that purpose has been fulfilled. The arrangement introduced provides that all general government bodies are called upon to consider the real estate concessions they have made and if 15 years have passed without fulfilling their purpose, to revoke the concession. The 15 -year period is considered to be in favor – enough to conclude whether the will and / or the possibility of fulfilling the purpose is available. In addition, there is a two -month deadline in which the concessionaire can substantiate the need to continue the concession if necessary. In any case, it is not conceivable of public real estate to remain committed and unused while they can be used to accommodate families. Start = “10”>
12. What are the programs in which property owners can participate? Owners have multiple benefits. The owners e.g. which will participate in the “Cover” program will have a guaranteed income from the rent paid by the state for their homes, which will be allocated to new beneficiaries of the minimum guaranteed income. The state also undertakes repairs. which will undertake to renovate them and dispose of them to young and young couples. renovate them on a condition that they are leased for at least 3 years. renovation and energy upgrading of houses they own. Start = “11”>
13. Why do you need to vote for a new bill on housing policy? Is the existing institutional framework sufficient? the implementation or acceleration of the implementation of the government’s new strategy for housing. After all, the state has been absent from the field of housing policy in recent years. New tools have been added, such as social consideration that should be added to the “Toolbox” of the DBTA in order to be applied with speed and transparency.