Over EUR 500 million to finance the construction of approx 3 thousand cheap rental flats

Over EUR 500 million to finance the construction of approx 3 thousand cheap rental flats

Until the end of September, social housing associations, municipal companies and housing cooperatives may submit applications for loans for the construction of cheap rental apartments. This is the second edition of the program, in which over USD 540 million is waiting for investors. Positive applications from the previous edition assume investments of a similar amount, which will allow to build over 3,000 flats. Local governments may apply for USD 65 million for three more weeks.
– The company has been supporting housing in the USA for over 10 years. We have allocated nearly USD 7.5 billion for this purpose. Thanks to these funds, over 100,000 flats were built, during the 26th Forum. The bank has two programs of supporting housing construction addressed to different groups of recipients, constructed in different ways.
The first one is the social rental construction programme launched at the end of 2015. It is to help people who cannot afford to buy their own M, even with a state subsidy, or to rent it on market terms, but at the same time do not meet the income criterion to apply for a communal flat. Social housing associations, municipal companies and housing cooperatives may apply for financing under the scheme. In the autumn edition, the bank has at least USD 545 million to distribute. In ten editions, USD 4.5 billion will be distributed to beneficiaries.
– At the beginning of this year, the first session of calls for proposals under this program took place. Over USD 560 million was granted in the form of low-interest loans, which may finance up to 75% of the construction costs. The applications which were accepted in the first edition will give approx. The applications which were accepted in the first edition will yield approx. 3,000 flats.
Under the second program of building social and communal flats, accommodation and houses for the homeless, local governments may apply for a non-refundable grant of USD 65 million. The flats created thanks to these funds are intended for the poorest groups.
– This is a cyclical program addressed to municipalities, municipal associations and public benefit organizations. Under this program, these institutions can receive up to 55 percent funding in the form of non-refundable grants.
The spring edition was very popular among potential beneficiaries. The bank received 111 applications for the amount of over USD 100 million. The bank allocated nearly USD 74 million in funding for the implementation of 83 projects. In total, USD 600 million was reserved for this program.
– Rents in this program are at the level of rents set by the commune for municipal flats, i.e. at a relatively low level. In the programme of social rental flats, the amount of rent results from replacement costs calculated at the level of 4-5 percent of the replacement value and 30-year financing period,” explains the bank’s vice-president.
In both programmes, the call for applications will end on 30 September. The decisions will be known at the end of the year.
The bank also implements the program, supporting the purchase of flats, and is responsible for the Housing Fund for Renting. Also in the forthcoming Housing Plus programme, the Real Estate Bank created by the bank will play an important role as the National Housing Operator.

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