state plans standard projects, wider guarantees for purchase and subsidies for large families / Article / LSM.lv

To improve access to housing, government-forming parties have agreed to work on a number of issues. Among other things, the state plans to develop and offer a standard project for multi-apartment houses, as well as to continue and expand the Altum guarantee program for the purchase of housing for young families, as well as to provide subsidies for large families for the purchase of housing.

A typical apartment building

Already this week, the government plans to consider the possibility that the state could come up with a standard rental house project. This could reduce the costs for investors and other project implementers, thus providing an opportunity to create more affordable housing at lower prices, said Prime Minister Krišjānis Kariņš (“New Unity”).

A typical house project could be for wooden apartment buildings.

This will allow the use of materials available in Latvia, the Minister of Economics Jānis Vitenbergs (“KPV LV”) added. In his opinion, a standard project could allow to reduce construction costs by 10%, as well as speed up the process. And it could be used by municipalities and construction project developers.

The preparation of several standard projects could cost 400 thousand euros, Vitenbergs said.

“As a minister, it would be important for me to build wooden buildings in order to use the materials produced here on site. There are already a number of companies that are currently doing this in Scandinavia – producing wooden buildings. Its technology has advanced, and wood can be built much faster and more environmentally friendly. Historically, part of Riga also has wooden buildings, ”said Vitenbergs.

Guarantees for the purchase of housing

The government also plans to review the continuation and supplementation of Altum’s housing purchase and construction support program this week. The Minister of Economics assessed it as one of the most successful programs in Latvia, and currently several additions are planned for it. Greater support is provided for families with three or more children, and a grant support mechanism is also provided.

“The more children, the more support. This is a good step for our large families. Because housing is often the biggest problem, which is why families stay with one or two children, ”said Vitenbergs.

Greater guarantees are provided for families who are still expecting a child, as well as for families with at least four children, as well as for the purchase of housing with a higher energy efficiency class, said the Prime Minister’s Adviser on Demography Imants Parādnieks (National Association).

In addition, families will also be able to receive a guarantee for the purchase of a home again, but this will have three conditions:

• previous commitments have been canceled,
• three years have passed
• the family has become thicker.

Subsidies for large families

Also, a new program “Balsts” is planned to support the purchase of housing from July – a subsidy for Latvia’s honorary families. It will be available to Latvian citizens, tax residents with three or more children.

Families with three children will be able to receive support of 8 or 10 thousand euros. In turn, with four or more children – 10 and 12 thousand euros for the purchase and construction of housing, said the Debtor.

“It is with this subsidy that it is possible to cover both the first installment and, accordingly, make the monthly payments lower, thus more families will be able to qualify for a loan,” said the politician.

CONTEXT:

The Organization for Economic Co – operation and Development (OECD) launched the OECD in June this year conclusionthat one third of households in overcrowded dwellings in Latvia live. This is the largest number among OECD countries. In addition, Latvia has one of the smallest social housing funds in the OECD – 2% of the total housing stock. In turn, the rental market practically does not exist.

The OECD recommends Latvia to develop a comprehensive housing policy strategy. The Ministry of Economics plans to develop a housing policy strategy by the end of 2021.

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