Filenews 8 February 2022
Koag's plans foresee the construction, for the next few years, of more than 800 residential units and that its financing will be made from the casino's revenues, government spokesman Marios Pelekanos said.
The President of the Republic, Mr. Nicos Anastasiades, chaired today, at the Presidential Palace, a meeting on the housing policy of the Government, in the presence of the Ministers of Finance, Interior, Labour, Energy, Trade and Industry, the Deputy Minister of Welfare and other officials.
During the meeting it was agreed that with the commencement of the operation of the casino - resort in Limassol, a percentage of 15% of the Government's revenues from the use of the casino's services will be granted to the Cyprus Land Development Organization for the promotion of the projects undertaken by the Organization.
The Organization's plans foresee the construction, for the coming years, of more than 800 residential units that will be made available either through the method of affordable housing or through the new Affordable Rent Scheme, which are aimed at economically vulnerable households.
The total expenditure for the implementation of housing policy, which amounts to €125 million, was also discussed for 2022, double the amount of expenditure for 2018 and increased by 22.4% compared to 2021.
The housing plans
Indicatively, the housing plans for 2022 include:
1. €15m for the Housing Plan for the Revitalization of Mountainous, Remote and Disadvantaged Areas and Rural Areas.
2. €62m for Housing Plans for displaced persons and victims
3. €22m for rent and interest subsidy on housing loans
4. €11.6m for the plans implemented through the Cyprus Land Development Organisation, and
5. €12m for rent subsidy from which approximately 3000 beneficiaries of Guaranteed Minimum Income benefit.
In addition to the overall budget, non-monetary benefits should also be taken into account, such as the free allocation of land to young couples facing financial difficulties.
Indicatively, for comparison purposes it is noted that the budget of the Ministry of Interior about €67 million for 2021 increases to €79 million for 2022 while the budget of KOAG from about €3 million reaches €11.6 million for the same period.
In addition, the meeting referred to the amount granted for the needs of the "Estia" Scheme, from which approximately 800 borrowers are expected to benefit, with the total contribution of the state amounting to €200 million.
"Home" project
At the same time, the President of the Republic was informed about the ongoing application process in the "Home" Scheme, which concerns borrowers who have contracted loans with government funds, with a mortgage on their first home.
During the discussion reference was made to the effectiveness of other schemes that have been implemented such as, for example, the interest subsidy. This Scheme will benefit 4750 households, which will borrow a total amount of €700 million for the acquisition of their main residence.
President Anastasiades was also informed about the "Economize and Upgrade" Plan, which aims at the energy upgrade of residences. For this Project, 2300 applications have been submitted with the total amount of the grant amounting to €35 million.
Following the instructions of the President of the Republic, in the coming days the details of the new and upgraded, based on what was agreed housing plan for the Revitalization of Mountainous Border and Disadvantaged Areas and Countryside, will be announced by the Ministry of Interior. In addition, in the coming weeks, the details of the integrated planning for the upgrading of the refugee settlements will be announced.
Today's meeting also discussed the issue of the VAT rate for the acquisition of a first home.
The Government will consult with the political forces and the European Commission in order to find the best solution, always in accordance with the guidelines of the European Union.
