Written by Hind Mukhtar Wednesday, November 8, 2023 05:44 PM
The Council of Ministers announced that, in implementation of the mandates of President Abdel Fattah El-Sisi, President of the Republic, to offer housing units on a rental system, within the “Housing for All Egyptians” program, with the aim of providing housing units at a subsidized rental value, the Council of Ministers adopted the decision of the Board of Directors of the Social Housing and Real Estate Finance Support Fund regarding… Initiating the launch of an “initial” pilot project for rent through contracting and cooperating with a specialized financial services company, which will sign contracts with customers, collect rent, and take various administrative and legal measures before the competent authorities, as well as legal measures against customers who fail to pay.
The initial pilot project proposal includes making 1,000 housing units available in 4 governorates (Menoufia, Giza, Sharkia, Beni Suef), reaching 20-30 thousand housing units from the “Housing for All Egyptians” project, ready for delivery in a number of governorates, and taking the required measures to establish A new electronic system for the rental program.
The terms of the contract and payment stipulate that the rental period should be 7 years, renewed according to the client’s desire without cash support and at the market rental value of the site at the time, and that the monthly rent should be 1,500 pounds for a residential unit of 90 square meters, and an amount of 1,200 pounds per month for a residential unit of 75 square meters, including management, collection, and maintenance expenses, and it increases. At a rate of 7% annually. The citizen pays only 25% of the monthly income as the value of the monthly rent, and the fund pays the remaining amount as cash support to the citizen. The citizen also pays the advance reservation for the housing unit at the rate of three months of the rental value of the unit, which is recovered upon the end of the rental period.
The Fund installs prepaid utility meters through the housing directorates and city agencies, pays their cost, and retains ownership of them. The cards for those meters are delivered to the customer to charge and begin use, provided that they are returned upon the end of the rental period.
If the customer is late in paying on the scheduled dates, he will bear a late fine of 2% per month, and legal measures will be taken after the first month, leading to eviction procedures in the third month.
Regarding the conditions for benefiting from these units, they include that the maximum net monthly income for citizens allowed to benefit is 6,000 pounds per month for an individual, and 8,000 pounds per month for a family, and that the minimum monthly income for citizens is 2,500 pounds, provided that social research is conducted by the Ministry of Social Solidarity. To ensure the authenticity of the documents submitted by citizens and their eligibility, as well as to conduct an inquiry about having previously benefited from obtaining a housing unit or a plot of land from the state or any other housing support. In the event that there is a previous benefit or ownership of a housing unit, it is possible to participate in the rental program without obtaining cash support, and it is not possible You own the unit at the end of the rental period, and the beneficiary is obligated to use the residential unit for himself and his family and it will serve as a main residence during the rental period.
Citizens benefiting from the rental program can benefit from the housing units that will be offered in the future within the ownership axis for low-income people, provided that the value of the support obtained is deducted from the support scheduled at the time to obtain the ownership unit.
The maximum cash support should be 90,000 pounds, starting at the monthly income level of 2,500 pounds, and gradually increasing until it reaches 5,000 pounds at the monthly income level of 5,900 pounds for beneficiaries of 90 m2 residential units, and it is paid monthly during the rental period.
While the maximum cash support amount is 60,000 pounds, starting at the monthly income level of 2,500 pounds, and graduated until it reaches 5,000 pounds at the monthly income level of 4,600 pounds for beneficiaries of 75 m2 residential units, and it is disbursed monthly during the rental period.
The agreement with the citizen includes a promise to sell if a request is submitted during the rental period, provided that the total payment will be deducted after excluding management, collection and maintenance expenses from the price of the residential unit, and the sale will be carried out according to the system in effect at the time.
2023-11-08 15:44:00
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