The actions of the government’s new housing policy are analysed, speaking exclusively to the newsit.gr, by the Minister for Social Cohesion and Family, Mrs Sophia Zachakakis. “ The cost of housing, combined with the availability and quality of homes for rent, is a front to which the government gives a very structured battle. On the one hand because it is an acute social problem on the other because it is directly linked to demographics and is one of the main pillars of the National Action Plan to halt demographic collapse.” Ms. Zachaki points out that “the quality but at the same time affordable residence is the most sought for thousands of young people, young couples and families and for the first time in the country a targeted housing policy is being implemented. With a peak of the Ministry of Social Cohesion and Family and nine different rental and housing subsidies programs for vulnerable groups, acquisition of a home for young people with preferential funding from the state, renovation and disposal of thousands of homes for long term lease, etc.” The Minister of Social Cohesion and Family, points out in newssit.gr that “one of the reasons that makes the problem more difficult is the tens of thousands of houses and apartments that remain closed because they are old and their owners are unable to make them functional and relatively modern. I estimate that very soon we will overcome the interoperability problems that arose on the platform that will serve the applications for the “Renovation- Rent” program and we will be able to start the process so that they will gradually join the residential reserve around 12,500 dwellings,” she noted. Ms. Zachaki stresses that “greater offer of houses we believe will also lead to gradual control of the rate of increase of rent especially in the centres of major cities and especially in Athens. The program “My Home” moves at extremely fast pace and 10,000 young people with low incomes will have acquired their own home in very fast time.” She, at the same time, makes it clear that “we do not claim under any circumstances that we are solving housing, which as a problem is found in all European countries, but we are trying to increase citizens’ potential to find, economic and modern housing. Magical recipes do not exist as some political forces may claim by mentioning fragmentary examples from other countries.” “Greece for over a decade – during the crisis – did not add a sufficient number of new properties to meet the needs created by increasing single-person households. Airbnb creates issues and is already being studied by the government a targeted intervention without zeroing and cancelling the part of its positive contribution,” she noted. “I want to end by pointing out that we look forward to the programme that will follow for the ‘Social Contribution’. It is a programme that adopts a widespread practice in other European countries and will offer us affordable modern social housing. In cooperation with the private sector and the maximum guarantees of transparency, competitions will allow public property to be exploited to create social housing. We will continue even more targeted by providing significant funds as we perceive as a government that housing is a right and social good,” the Minister of Social Cohesion, Sophia Zachakakis, stressed. In detail, the projects under way by the Ministry of Social Cohesion and Family: “My Home” project The “Home” loan programme concerns the granting of low-interest or interest-free housing loans to young people and young couples. Beneficiaries are persons of 25-39 years (at the date of submission of the loan application), or spouses or persons associated with a partnership, if one (1) of the two (2) is 25-39 years (at the date of submission of the loan application), provided that they have no other property suitable for their residence and meet the income criteria. Recognizing the broad impact of the programme, in August 2023 we increased its budget to EUR 1 billion. To date we have: • 4.670 disbursements of loans of EUR 450.8 million • 5.341 contracts of EUR 516.2 million • 9,900 approvals (subjects) of EUR 1 billion The ‘coverage’ programme concerns the exploitation of private housing allocated to housing applicants for international protection under the “ESTIA II” programme and the “ESTIA 2021” programme after the termination of contracts. The aim of the programme is to accommodate vulnerable social groups aged 25-39. The programme covers renting costs for three (3) years. The programme also covers costs for damage repairs found in real estate. 44 municipalities participate. To date: • 330 beneficiaries of housed families • 134 of whom are minors • 380 property owners have joined the program • 168 families have already been housed. ‘House and Work for the homeless’ programme The ‘House and Work for the homeless’ programme concerns the immediate transition of homeless to autonomous living, providing housing, psychosocial support, work reintegration and interconnection with existing welfare policies. Programme actions: – Rent subsidy to beneficiaries for two years, as well as covering basic costs for household and payment of IKO accounts. – Grant of wages and insurance contributions for a year to find employment in private enterprises or to create a business. – Psychosocial support and interconnection services. The budget is projected to increase to EUR 15 million every two years and the number of beneficiaries is expected to increase to 700 to date: • 883 beneficiaries of the programme • 500 homes have been used • 779 beneficiaries housed (506 families) Housing allowance This is a pre-emptive rent subsidy scheme for households that rent their main residence. This is the first organized attempt to achieve a coherent housing policy and an effective social protection system for first residence on such a scale. It concerns beneficiaries of the housing allowance, subject to specific criteria: • Income • Property • Accommodation The allowance provides 70 to 210 euros per month, depending on the composition of the beneficiary unit, has a total annual budget of EUR 400 million from state budget resources (for this year it increased by EUR 4 million), while the average number of beneficiaries for 2023 amounted to 264.531. In February 2024, 238,249 beneficiaries received the amount of EUR 29 million. Insurable Seniors Housing Allowance The housing allowance is granted to persons over 67 years old who are uninsured and lease a main residence. The amount of the allowance is equal to the amount of the agreed rent with a maximum amount of 362 €. The programme budget is EUR 4 million. Beneficiaries and conditions are: • Uninsured lone individuals or a couple of insecurities who have completed their 67th year of age. • Their annual taxable actual or presumed income, as well as the exempt or taxable person, shall not exceed EUR 4,320 and for uninsured couples EUR 8,640. • They do not receive a pension from any resident or foreign insurance institution, with the exception of the pension of Law 1296/1982 (A’128), and the Social Solidarity Allowance of Invalidity. In February 2024, 15,000 beneficiaries received the sum of EUR 6,003.118. Program “Renovate – Rent” (start within March) The aim of the project is to renovate or repair private residences, in collaboration with DYPA. Its budget amounts to 50m euros, with the aim of using 12,500 empty houses. The participants in the project “Renovate – Rent” are subsidized to carry out repair and renovation costs on their property, up to ten thousand (1,000) euros, including the required materials and work. The subsidy amounts to forty percent (40%) of the expenditure incurred. By legislative provision in March 2023 part of the subsidy was allowed up to 50% to be granted as an advance. Conditions of the scheme: • Beneficiaries should have 50% or more of the profit or full ownership, family taxable income up to 40,000€ and real estate up to 300,000€ • Beneficiaries have not received a grant for an energy-saving or renovation programme in property ownership in the last five (5) years and have not been included in subsidised energy savings programmes for any property. • The property must be up to 100 sq.m. and must not be declared as a first residence, or as a rented property and declared as a vacancy in form E2 accompanying the income tax declaration of the last three (3) years Within the month of March, applications will be started on page gov.gr. Social Contribution Programme (to be launched within the year) The project concerns the construction of houses with the contractor’s costs and renting the property to beneficiaries with pre-defined criteria, in collaboration with the IPPA. It is important because a public housing reserve will also be used, while beneficiary tenants will be selected on the basis of objective social criteria and will be allowed to sign rental contracts with an option for their acquisition by the beneficiaries (rent to own). ‘Social Housing for the most vulnerable groups’ programme (RRP Project) The project, with a budget of EUR 1,642,628, aims to create and exploit a housing reserve for the most vulnerable groups to address their exclusion. Beneficiaries are vulnerable groups threatened by or experiencing a housing shortage. The project includes the renovation and integration of part of the inactive private housing reserve into a scheme of affordable rental. It will take place in Athens (renovation of 70 apartments, implementation of the Society for the Development and Tourism of Athens – EATA S.A.) and Thessaloniki (30 apartments, but will result primarily from the municipal and public housing reserve. Organization for Implementation of the Major Development of Thessaloniki – MATH SA. Housing projects implemented by other ministries are the following: Saving – Renovating for young people (in collaboration with Ministry of Environment and Energy) The “Economy – I Renovate for Young People” Programme is the new program of energy upgrading and renovation of houses, which is a continuation of the “House Savings”, “Economy” and “Economy 2021” programmes. The Programme consists of two strands: • ‘Economy’: it consists of providing incentives for energy saving interventions in the household sector (budget of EUR 80 million) • ‘Renovation’ strand: it consists of providing incentives for aesthetic, functional renovation and upgrading of housing interventions, as complementary to energy saving interventions (budget of EUR 11.5 million) So far 6,679 applications have been submitted, of which 3,836 relate to the ‘Renovation’ section. Student housing allowance (Ministry of Education, Religious Affairs and Sports) The aim of the housing allowance is to strengthen families who do not possess the necessary resources for their children’s studies. In particular, the allowance is paid to students of S.E.I. who reside outside the county of their main residence under the conditions and conditions laid down in the provisions in force. All grants to cover the costs of beneficiaries of the allowance amount to EUR 70,875,000. For the year 2022-2023, the approved applications amounted to 46,220 and the approved roommate applications amounted to 4.699. Study, Construction, Financing, Operation and Maintenance of Student Restaurants with S.D.I.T. PPP projects for the construction of student houses are directly linked to the future of universities, with the upgrading of research, the improvement of the quality of life of teachers and students, the internationalisation of institutions and the stimulation of the local economy. The total budget of the project is EUR 636.3 million. The projects approved and in progress are the following: • University of Crete (255.3m euros) • Democritus University of Thrace (107.3m euros) • University of Thessaly (91.5m euros) • University of Western Macedonia (78m euros) • University of Western Attica (64.2m euros) • National Technical University (40m euros)
Sofia Zachaki: “12,500 residences will be included in the residential reserve” through the Renovation- Rent” – “All the housing aid programs
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