Colombia’s housing minister announced Thursday $792 million will be made available to fund a 30% subsidy in mortgage interest payments for poor homebuyers, local media reported.
German Vargas Lleras said that starting July 3, 140,000 families from strata two and three who want to buy a “priority interest” or “social interest” house will be able to receive the subsidy for seven years. “Social interest housing,” according to the Urban Reform law of 1989, is living accommodation built to guarantee the right to housing for those with little economic resources or small household incomes.
On Wednesday the Colombian Senate approved the Priority Interest Housing (VIP) Bill which will allow families living in extreme poverty, delineated by strata one, to own their homes. The bill now has to pass through the Chamber of Representatives in order to become law. The minister made clear that the construction companies who will build the houses must have five years experience and must not have received fines for non-completion of work.
“From July the auctions will begin which will be allow the poorest Colombians to receive 100,000 houses with 100% subsidy,” said Vargas Lleras.
He also said agreements are being made with concrete producers, iron producers, brick makers and finishings and others to guarantee supplies and stable costs in order to ensure low costs of VIP housing.
Those who are part of the United Network program — a government initiative intended to benefit victims of displacement and winter rains, as well as those who live in areas at risk for environmental problems– will receive priority in the bidding.