Affordable homes for the young
The issue of low-interest or even interest-free mortgages for young people and couples aged 25 to 39 is expected to begin in the first quarter of 2023, as the basic terms of the program and the relevant draft law of the Labor Ministry have already been written up and put up for public consultation.
The aim is to have it voted on within 2022, in order for the Public Employment Service (DYPA) to issue invitations to the banks to participate and for the first applications from beneficiaries to be submitted.
In parallel, with the “social compensation” program, an estimated 5,000 young people up to the age of 39 will have access to significantly low-rent homes built by private individuals on plots granted by DYPA.
In total, the draft law includes four housing policy actions to be implemented by the ministry. They are My Home, Social Benefit, Coverage Plan and Renovate-Rent.
My Home will offer interest-free or low-interest loans to people aged 25-39 – with an annual income of 10,000-16,000 euros for singles, up to €24,000 for married people and an additional €3,000 per child (up to €33,000).
Social Benefit is a new institution added to DYPA’s toolbox for housing policy. It concerns a partnership between public entities and private contractors, with contractors constructing buildings at their own expense on undeveloped DYPA property in exchange for the utilization of the property for a certain period. They must also rent out 30-60% to beneficiaries for a predetermined rate. After the utilization period, contractors return the property to DYPA.
The Coverage Plan concerns the leasing by the state of private residential properties that participated in the Estia program for housing immigrants and making them available for three years to vulnerable young people and young couples, aged 25-39, beneficiaries of the Minimum Guaranteed Income. The aim in the first phase is to utilize at least 1,000 properties, which will house 2,500 Minimum Guaranteed Income beneficiaries.
Finally, Renovate-Rent aims to bring vacant homes into the rental market by subsidizing owners in renovations.
