[PIO] Announcement of the Office of the State Aid Control Authority on the Grant Scheme for student halls of residence/student rooms within the walls

The Office of the State Aid Control Authority announces that the State Aid Control Authority Ms Stella Michailidou issued, on 27/9/2023, a Decision in relation to the Aid Measure, entitled: "Grant Scheme for student residences / student rooms in the walled city of Nicosia"

The budget of the Measure amounts to €15 million and concerns the period 2023-2026.

The competent authority for the implementation and execution of the Measure is the Department of Urban Planning and Zoning.

The competent authority for the implementation and execution of the Measure is the Department of Urban Planning and Zoning.

The object of the Scheme is to provide incentives in the form of a government grant to owners of real estate or tenants of buildings (with the signed consent of the owners) in the area covered by the Scheme, for the renovation/restoration of their premises, with the main purpose of converting them into student residences/student rooms.

The main objectives of the Scheme, in relation to its object, are as follows:

1. the social and economic upgrading of the area of the walled city of Nicosia, attracting students and other related investments
2. the upgrading of the built environment of the walled city of Nicosia and the contribution to the circular economy and green growth, through the restoration/renovation of buildings and their reuse, and
3. the provision of housing options for students at a rent-controlled rate, as determined by the Ministry of Finance from time to time.

Beneficiaries

Potential beneficiaries are. [*]Legal Persons (Companies, Associations, Foundations) whose majority of the share capital or voting rights of the shareholders or, more generally, control is held by Cypriot citizens or citizens of the European Union. [*]Natural or Legal Persons, which have received any government grant from another Grant Scheme for the same eligible costs for their building may be considered potential beneficiaries of this Scheme, after ten (10) years from the granted aid.
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Non-potential beneficiaries include, inter alia:

1. Firms in difficulty within the meaning of the Community guidelines on State aid for rescuing and restructuring firms in difficulty.
2. Undertakings in respect of which a recovery order is pending following a previous decision of the European Commission declaring aid granted by the same Member State unlawful and incompatible with the internal market pursuant to Article 1(5)(a) of Regulation No 702/2014 of 25 June 2014.

Eligible costs

Eligible costs are the costs of renovating buildings with a view to converting them into student accommodation and are broken down as follows:

i. Building work relating ONLY to the part of the building that will function exclusively and only as a student residence and the ancillary rooms/uses directly connected to it,

iii. electrical, plumbing and mechanical installations (air conditioning and ventilation) relating ONLY to the part of the building that will function exclusively and only as a student residence and the ancillary rooms/uses directly connected to it,

iii. security/fire safety measures,

iv. immovable equipment,

v. fees for the services of architects, civil engineers or other consultants (surveyors, mechanical engineers, electrical engineers, etc.).etc.) related to the building works,

vi. cost of construction and installation of the sign/plate required to be included in projects where the total cost of the eligible investment exceeds €500,000, for publicity purposes;

vi. cost of construction and installation of the sign/plate required to be included in projects where the total cost of the eligible investment exceeds €500,000, for publicity purposes.

The total amount of Design Consultants' fees identified as eligible costs cannot exceed 10% of the eligible project budget.

Aid intensity and maximum grant amount

The aid intensity will be 75% of the eligible costs of each proposal to convert an existing building into student accommodation. In the case of an extension of an existing building, for an extension area in excess of 30% of the existing building, the grant will be 50% of the eligible costs.

Please note that only the part of the building that will be used exclusively as a student residence and the ancillary spaces/uses directly connected to it may receive funding. It is also noted that the part of the building that will be for student residence hall/student room use cannot be less than 60% of the total floor area of the building. This percentage includes student rooms, common living room and kitchen, laundry room and circulation areas.

The maximum amount of sponsorship per beneficiary is EUR 2 million and any proposal with a total eligible expenditure of less than EUR 140 thousand will not be considered eligible.

The amount in excess of the public funding remaining for the completion of the project is considered as own contribution and may be covered by own resources or borrowing from a financial institution. The own contribution will be evidenced by official data submitted with the electronic submission of the application.

The grant will be paid in two equal instalments, one at the stage of implementation of 50% of the project and the other after its completion.

This Measure was published in the Official Gazette of the Republic, dated 6/10/2023.

(OP/EXP)
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