A bill concerning legal matters in order to Social housing strategy (My Home program) be formed from the beginning of 2023, presented on Cabinet Minister of Labor and Social Affairs, Kostis Hatzidakis.

The strategy, with a total budget of 1.74 billion euros, from which more than 137,000 citizens will benefit according to the Ministry of Labor, was announced by Prime Minister Kyriakos Mitsotakis at TIF, and in September the measures were presented to the respective ministers.

The actions envisaged by the provisions of the bill relate to subsidized housing loans, social compensations, as well as the Cover and Renovation-Rent programs (for the Save-Renovation program, which is also part of the package of measures, there is no need for legislation, and the Guidelines were published in advance).

In addition, the bill includes measures aimed at freeing state property from barriers in order to use it for housing purposes, speeding up the relevant procedures and paying special attention to the victims of the fire in East Attica (Mati).

Social Housing Programs

According to the Department of Labor, social housing programs include the following:

We are talking about providing preferential loans to young people and young couples with co-financing from DYPA and banks.

The program is for young people and young couples (in a religious/political marriage or in a cohabitation agreement) aged 25-39 (one out of two) and with an annual net income of 10,000 up to the prescribed limits, depending on marital status for heating allowance. Borrowers also do not have to own another home that meets their housing needs.

Beneficiaries can purchase under the program the first house worth up to 200,000 euros, with an area of ​​up to 150 sq.m. and year of construction until 2007 with an interest-free or preferential loan.

The loan can reach a maximum amount 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 large families, as well as couples with 3+ children, the loan will be converted into an interest-free loan upon repayment. It is also noted that:

• No guarantors are required for loan approval.
• The loan agreement must be signed within 8 months from the date of the preliminary approval of the loan.

The program budget is 500 million euros with the possibility of doubling depending on the demand that will be shown.

2. Social compensation

It is about the use of public property owned by public administration, in partnership with the private sector for the construction of social housing.

On the one hand, DYPA (and the government that owns the property), and on the other hand, construction/technical companies participate in the scheme as follows:

DYPA is providing undeveloped land on which a contractor, to be selected following a tender, is committed to construct, to the specifications specified in the notice, modern residential and commercial buildings. The government body retains ownership of the property, while the contractor receives an operating concession in return until the costs are covered and provided that a portion of the houses are made available at reduced rent to social compensation program beneficiaries.

The maximum concession period will be determined by DYPA based on relevant European practice, and the contractor’s operating rate will vary from 30% to 60% to ensure public interest as well as to make the program attractive to private producers. build modern high-quality social housing.

3. Program coverage

We are talking about extending the lease term for another 3 years for more than 1000 private houses that have already been rented out under the ESTIA program (and will gradually become vacant from 12/31/2022) and providing them as social housing, the General Secretariat of Social Solidarity and Struggle with poverty, young people, recipients of the minimum guaranteed income aged 25-39 years. If necessary, the state also bears the cost of repairing these apartments.

The Ministry of Labor will offer the owners of this property for another three years the same amount of rent they received under the ESTIA program from the DYPA reserve and will provide the property either free of charge to vulnerable Greeks (social housing) or at low rent (affordable housing). Priority will be given to families with one parent, families with three children, and especially families with many children, who will be selected according to objective criteria (point system).

4. Renovation – Free Home Rental Program

We are talking about subsidizing homeowners for repair and restoration work in empty houses, which will then be rented out for at least 3 years.

The program implemented by DYPA involves owners of houses up to 100 sq.m. in urban centers that have at least 50% of the right of use or full ownership of the residence and with family taxable income up to 40,000 euros and real estate up to 300,000 euros. The residence must be declared vacant in E2 of the last tax year. It also clarifies that each beneficiary can only apply for one residence, while those who join the Save program are not eligible.

The subsidy relates to the costs of reconstruction/repair, which are confirmed by the relevant invoices, and reaches up to 40% of the cost, but not more than 10,000 euros.

Exploitation of state property

In addition, the bill includes provisions aimed at accelerating the use of state property:

A new special use “Social housing” is established, which can be included in most general purposes (housing, urban center, social functions, etc.). It is envisaged that property owned by the state is automatically used as social housing if the common use allows it.

The purpose of the ordinance is to allow the use of unused public property as social housing.

2. Withdrawal of public property concessions that have not achieved the purpose of the concession

All governments are encouraged to examine real estate concessions they have made, using or owning them, to fulfill a specific public purpose. If the goal has not been achieved within 15 years of the concession, then the enterprise is obliged to withdraw it, giving the concessionaire a two-month period to document the need to continue the concession. Thus, public property, which is currently tied up with no prospect of exploitation, is freed up for use as social housing.

In demarcated areas where there is public property, an expedited procedure of the old Code of Compulsory Expropriation of Property has been established to determine the compensation due on both sides, in order to quickly determine new boundaries of sites.

In particular, the temporary determination of the price per unit in an expedited manner will be made by the single court of first instance, the compensation will be paid by the state, and thus the state will quickly acquire the divided plots.

4. Introduction of rules for housing rehabilitation of victims of fires in Eastern Attica (Mati).

The Ministry of Environment and Energy is taking over, using a donation from the Republic of Cyprus, the construction of houses for the rehabilitation of the victims of the fire in East Attica, while the municipalities of Rafina Pikermio and Marathonos take over the management and distribution of the houses. eligible residents.