The Ministry of the Interior is proceeding with the announcement of new housing projects , some of which will be launched for the first time. The new plans are included in the New Single Housing Policy announced by the Ministry of the Interior.
This is the Housing Subsidy Scheme for Young Couples and/or Young People up to 41 years of age (total budget €15 million) as well as the Renovate – Rent Scheme (total budget €25). More information on the launch of all plans will be announced soon.
It is also worth mentioning that a few days ago the Ministry of Internal Affairs announced that the Guidelines for the “Built to Rent” Plan on private land and the Revised Urban Development Incentives were approved by the Council of Ministers . These are two schemes involving land development professionals and are also included in the New Single Housing Policy.
Let’s go below to see more information about the 2 new plans concerning citizens:
Housing Subsidy Scheme for Young Couples and/or Young People up to 41 years of age
By the beginning of February, it is expected that the Housing Subsidy Scheme for Young Couples and/or Young People up to 41 years of age will be announced. Soon the Ministry of Internal Affairs and Communications will announce more details about the project in order for those interested to start the procedures to secure the required certificates and certificates so that they are ready with the announcement of the project.
The specific plan is based on the philosophy of the housing plans for mountainous, hilly and rural areas that have been running in recent years. However, there will not be any limitation in the area in this plan. However, there will be an age restriction, up to 41 years, as well as a restriction on the area of the residence since it should not exceed 85 sq.m. useful area. Also noted is the condition that the parcel under development or consideration is within the boundaries of a residential zone/area.
Although the plan essentially allows the construction or purchase of both a house and an apartment, it is understood that the limitation of 85 sq.m. it refers more to buying an apartment. The plan also provides for the possibility of home improvement in addition to purchase or construction.
The purpose of the plan is to grant one-off financial assistance to young couples and/or young people up to 41 years of age, with the aim of strengthening their purchasing power and their ability to access housing. The project will last two years. It is estimated that 200 couples and/or young people will benefit annually , based on conditions and criteria.
BENEFICIARIES
Subsidy Beneficiaries
Young couples or young people up to 41 years of age, based on income criteria and household composition, applied to existing Schemes of the Care Service, KOAG and the Housing Scheme of Critical Areas.
Specifically, the Beneficiary Categories based on income and family composition are the following:
- Singles Individual: annual total income up to €25,000
- Couple (family of two) or single-parent family: annual total income up to €45,000
- Family of 3: annual total income up to €50,000
- Family of 4: annual total income up to €55,000
Beneficiaries will be approved through the Scheme’s implementing body.
Amount of subsidy
The amount of the financial aid is determined as follows:
- for single persons > €20,000
- for a couple (2 people) or single parent family > €45,000
- for a family with one or more children > €50,000
Conditions for inclusion in the Scheme
- The acquisition of a residence will be used for owner-occupation.
- The date of acquisition of the privately owned residence must be the same as or later than January 1, 2024. The date of acquisition is considered the date of filing the relevant documents with the Department of Land and Surveying.
- The beneficiary or his/her spouse/partner does not own or has not owned another private residence during the last five (5) years preceding the date of submission of the application.
- Documentation is required as to whether the beneficiary or his/her partner do not have sufficient resources to cover the total amount of acquisition of the housing unit.
- The total useful area for the acquisition of a residential unit cannot exceed 85 sq.m. When calculating the useful area, the following are not taken into account:• uncovered terraces, sheds and auxiliary spaces, unless the sum of their area exceeds 20 sq.m. In case the sum of their area exceeds 20 sq.m., only the additional area will be taken into account. • covered terraces, unless their area exceeds 20% of the built-up area of the same floor. In case their area exceeds 20% of the built-up area of the same floor, only the additional area will be taken into account
- Financial aid is granted for the legal acquisition of a privately owned residence for permanent ownership for at least ten (10) years. Acquisition includes: construction of a residence, purchase of a new or existing residence, purchase and improvement of a new or existing residence, acquisition by donation and improvement of a new or existing residence, and acquisition by other means and improvement of a new or existing residence.
- The Plan concerns the provision of financial support for the acquisition of a residence in municipal areas and the parcel under development or examination is within the limits of a residential zone/area.
- Eligible is the act of acquiring a residence and making a total expenditure of at least €20,000. The aid amounts to 50% of the total expenditure, with a minimum total expenditure of €20,000. Therefore, the minimum amount that can be granted is €10,000. The upper aid limit (50% of total expenditure) depends on the composition of the family.
- A beneficiary who will be approved to participate in this Scheme cannot participate in another Housing Scheme (Plan for the Allocation of Plots to Families with Low Incomes, Housing Schemes for Rural, Mountainous, Critical and Remote Areas, Care Service Schemes).
- A beneficiary who will be approved to participate in the said Plan can use the amount of subsidy he will receive for the purchase of a house at an affordable price, which will be produced through the Revised Urban Planning Incentives
Submission of an application of interest to participate
Those interested will be able to submit an application of interest to participate via an electronic platform, on a date to be announced. Applicants will be evaluated by the Scheme implementing body in order of priority (first-come, first-served).
Applicants will be asked to provide documents proving total annual income and family composition. More information about the plan can be found here .
Plan Renovate – Rent
The 2nd plan expected to be announced towards the end of February is the Renovate – Rent Plan
The goal is to make use of houses and apartments that are in disuse and to join the affordable rental market, with a subsidy granted to the owners for their renovation/upgrade.
The goal is to place 1,000 units on the affordable rental market over a period of two (2) years.
The Plan is twofold. Initially, a grant will be given to owners to renovate their properties and then they will declare them on a special platform prepared by the Ministry of the Interior. Subsequently, citizens who will meet the criteria to be eligible for affordable rent, will be able to rent the specific properties at affordable rent. All procedures will be carried out through the special platform prepared for this purpose by the Ministry of Internal Affairs, which will supervise the procedures and transactions based on the criteria and conditions of the plan.
So beneficiaries of the plan are 1/ property owners and 2/ citizens who meet the criteria for affordable rent.
SUBSIDY BENEFICIARIES
Subsidy beneficiaries
Property owners, natural or legal persons. An owner may participate in the Plan for more than one residential unit, provided that all conditions for inclusion in the Plan described below are met.
Owners, who will apply to the Ministry of Energy, Trade and Industry (YEEB) to secure sponsorship for the energy upgrade of the residential unit, may also participate in the “Renovate-Rent” Scheme for renovations/construction works not covered by the scheme YEEB.
Conditions for inclusion in the Scheme
- The residential unit must be listed as vacant/unused for at least the last 12 months preceding the date of publication of this Plan, i.e. at least from October 2023.
- A house/apartment with a consumption of up to 200 kWh per year, according to the EAC account statement, is defined as an empty/unused residential unit.
- The residential unit must be at least 15 years old from the date of publication of this Plan.
- If the owner also participates in the YEEB Plan for energy upgrading, only the costs related to renovations/building works that are not covered by the YEEB Plan will be covered.
- The beneficial owner cannot rent the property to a relative of the first degree (descendants – ascendants) or out of kinship.
- The housing units in question should be legally existing (licensed) units.
- In the case of co-ownership of the property or the existence of usufructuary persons, the agreement/consent of all is required to participate in the Scheme.
Amount of subsidy
The subsidy concerns renovation and/or repair costs*, which must be proven with relevant documents. The following are defined as upper limits of financial support:
- for a 1-bedroom residential unit > up to €15,000
- for a 2-bedroom residential unit > up to €25,000
- for a 3-bedroom residential unit > up to €35,000
Submission of an application of interest to participate
Owners who wish to participate in the Scheme will be invited to submit an interest for participation through an electronic platform. More information on the application process for participation, as well as the exact date of the start of expressions of interest, will be announced in the near future.
Completion of renovation/repair work
Renovation and/or repair work must be completed within six (6) months from the date of approval of the application.
Payment of subsidy amount
To pay the subsidy amount, the following are required:
- Submission of a sponsorship payment request by the beneficial owner.
- Production of certificates from professionals carrying out renovation/repair work for completion of all work.
- Presentation of invoices/receipts/documents proving the amount of the cost of works carried out on the specific property. It is understood that the supporting documents will be submitted to accounting, technical and other controls.
- The payment of the subsidy amount is made in a single installment for all the renovation works that will be carried out, after their completion and after the necessary supporting documents have been presented.
- The implementing/managing body may carry out technical on-site sampling and other checks on the premises, to confirm the completion of the works, before the payment of the subsidy.
- The beneficial owner should have settled their obligations with the Social Insurance Services, the VAT Service and the Inland Revenue Department (Income Tax). Provided that, based on the Management of Revenues and Expenditures and the Accounting of the Republic (Amendment) Law of 2013 N.82(I)/2013, article 6A “Reconciliation of Revenues and Expenditures of the Republic”, the Accountant General may at his discretion of, when making any payment to a natural or legal person to deduct amounts owed to any Ministry or Department or Independent Agency or other Special State Fund.
Obligations of beneficial owner
- Obligation to rent the property for which an affordable rent subsidy is granted , for a period of four (4) consecutive years (annual contracts). The affordable rent is defined per Province (and in more detail per Municipality) and per type of apartment, based on the average market rent reduced by 30% .
- The residential unit cannot be sold or transferred to a new owner before the end of four (4) years.
- Obligation of the owner to include the property in the Plan, observing the minimum equipment requirements*.
- Eligible landlords, who will be approved for sponsorship, should be aware of and accept the obligation to rent at an affordable rent, as well as the other conditions, as will be set out in the standard rental agreement. The owners are obliged to send copies of contracts and/or any other necessary supporting documents requested for control purposes to the Plan implementer, annually or as otherwise requested.
- In case of breach of the conditions on the part of the owner, he will be excluded from the Plan and automatically the amount of the sponsorship will be converted into a civil debt to the Republic, therefore, judicial collection measures will be taken.
Tax incentives
The Plan is a means of strengthening the market with available units and making use of existing inactive residential units. The Scheme is accompanied by tax incentives, as follows:
- Income from affordable rent is exempt from income tax at 60% for the period it remains affordable.
- Additional exemption of 3% of the extraordinary defense levy for the properties that will be included in the Plan.
- Increased capital allowances of 5% (up from 3% currently) for the period properties remain in the Affordable Rent Scheme on the capital expenditure.
- Increased capital allowances of 15% (up from the current 10%) on equipment purchases for the property in question.
BENEFICIARIES OF AFFORDABLE RENT
Beneficiaries of affordable rent
The population group entitled to affordable rent is determined based on the income criteria and the composition of the household, in a similar way to those applied in existing Plans of the Care Service, the Social Security Administration and the Housing Plan for Rural Areas.
Specifically, the Beneficiary Categories based on income and family composition are the following:
- Singles Individual: annual total income up to €25,000
- Couple (family of two) or single-parent family: annual total income up to €45,000
- Family of 3: annual total income up to €50,000
- Family of 4: annual total income up to €55,000
- Family of 5 or more people: annual total income up to €65,000
Beneficiary is a person who, on the date of submission of the application, does not own a home himself or his spouse/partner.
Beneficiaries of affordable rent will be approved through the Scheme implementing body.
Declaration of interest in participation by beneficiaries of affordable rent
Beneficiaries of affordable rent will be able to locate available housing units through the online platform, where they will be registered by the eligible owners, and declare their interest in renting. The eligible owner and the eligible tenant will sign a Contract, where all the terms of the agreement between them will be defined. A Model Contract will be prepared by the Ministry of Interior.
Obligations of beneficial tenants
The eligible tenant pays the rent only by bank transfer to the owner’s specific bank account and not in cash. It is understood that in cases of co-owners or others with a benefit from the property (usufructuary), the rent is paid into a bank account of the person who submitted an application on behalf of all co-owners.
In case of damages, after confirmation by the housing agency, the tenant is responsible (it will be specified in the contract).
End of rental obligation period with affordable rent
After the end of the 4 years, during which the owner is obliged to dispose of the property at an affordable rent, he can declare his interest in renewing his participation in the Plan, on an annual basis.
In case of renewal of participation in the Plan, the beneficiary owner will be able to receive a grant for the maintenance of the residential unit, as follows:
- for a 1-bedroom residential unit > up to €3,000
- for a 2-bedroom residential unit > up to €4,000
- for a 3-bedroom residential unit > up to €5,000
See here more information about the plan
“Built to Rent” scheme on private land and Revised Urban Development Incentives
The two medium-term measures are aimed at increasing the production of residential units and making them available on the affordable housing market.
Specifically, the “Built to Rent” Scheme on private land concerns the construction of a number of residential units with the use by land development professionals of an additional building factor of up to 45% of the applicable one, with the obligation to grant all the additional units that will be produced at an affordable rent for a period at least six years old. The Plan, which is an innovation for Cypriot data, gives a strong incentive to the private sector to get involved, with the aim of strengthening the market with approximately 800 additional residential units over the next three years.
In addition, the Ministry of the Interior has proceeded with the review of urban planning incentives aiming at increasing the production and distribution of new housing units, through the granting of an additional building factor of up to 45% of the current one. Land development professionals will be required to sell 25% of the units produced with the additional rate for affordable housing purposes.
Scheme for Allocating Plots to Families based on Income Criteria
The Ministry of the Interior is also running the procedures to open the Scheme for Allocation of Plots to Families based on Income Criteria. The specific plan will be implemented in collaboration with the communities.
The aim is to grant land to families based on income criteria for the acquisition of a private residence and the development of Communities located in the countryside, in mountainous, remote and disadvantaged areas. The project’s budget is €6 million for the separation of at least 300 plots. At the same time, according to a relevant decision, the process of disposing of the approximately 500 unused plots from existing divisions will proceed immediately.
As offsitenews is informed, the Ministry of the Interior has already given instructions to the District Administrations to identify and register the citizens who were deemed eligible in 2013 for the grant of a plot of land but were never granted. If it becomes clear that they did not get a grant from another scheme, a plot will be allotted to those people as well. More information about the plan here.
As for the well-known housing schemes for mountainous and rural areas, they are expected to be announced again in April with some revised provisions.
Source: Offsite News
