THE government is working on a comprehensive housing plan aimed at helping primarily large families and persons with special needs acquire their own home.
The Standing Committee of the Housing Policy Agency met last Friday to thrash out the basics of the plan. Although still in the early stages, and despite budgetary constraints, the intention reportedly is to broaden the groups of people entitled to these facilities.
The preliminaries agreed during the meeting included the following:
Raising the maximum long-term loan from the current £30,000 to £50,000. On average, however, low-interest loans will cover the £35,000 to £40,000 range.
Paying off loans in 30 years, except in cases where an applicant reaches the age of 70 before that time. Interest rates will be 65 per cent of those that currently apply
State grants (for non-displaced persons) will be around £8,000; current loan schemes range from £3,000 to £8,000. Moreover, in most cases there will no be restrictions based on a person’s income, given that an applicant does not own another house
With the new arrangements, large families (which so far have been eligible for low-interest loans but no grant) will now also receive the subsidy, but income criteria will apply. This also covers people with special needs. Families with an income up to £20,000 will be eligible for the grant
Additional incentives for people to settle in small communities at a distance from urban centres. It is hoped this will help revitalise rural areas that are being abandoned
Large families and persons with special needs will also enjoy an extra advantage in being able to choose the location of their house anywhere in the free areas. But other groups of people will have limited options, such as populated communities or near the Green Line.
According to estimates compiled by the Standing Committee, the project for non-refugees alone will cost the government an extra £6 million, although the Finance Ministry would probably be reluctant to disburse this amount. At any rate, when all the details have been worked out, the plan would still have to be approved by the Cabinet.
