Key provisions of the Sponsorship Plan for the Multi-Family Houses in Government Housing Estates for Displaced Persons
The Council of Ministers approved the Sponsorship Plan for the 358 Multi-Family Houses in Government Housing Estates for Displaced Persons. Minister of Interior Constantinos Ioannou, after the end of the Cabinet meeting, in his statements to journalists, announced that the Plan will be implemented immediately and next Monday 10/4/2023 he will hold a press conference together with officials to explain its provisions in more detail. By Monday, when the Plan will be presented, the following is given for public information:
The aim of the Plan is to achieve a comprehensive and holistic solution that promotes the improvement of the living conditions of the residents and ensures their safety and health. The structural adequacy assessment study shows that of the 358 blocks of flats located throughout Cyprus, 245 are in satisfactory condition. 70 blocks of flats have problems and require maintenance, while 43 blocks of flats have structural issues and their repair is considered unsustainable and economically unviable. The Plan has immediate effect with priority to the owners of the 43 blocks of flats, as follows. The 43 apartment buildings in Phase 1:
| LIST | ||
| A/N | HOUSEHOLD | [TD] ADDRESS |
| LEXOSIA | ||
| 1 | Agios Georgios - Pallouriotissa | Nausicaa 2 |
| 2 | Nausicaa 4 | |
| 3 | Agios Eleftherios - Latsia | Dodecanese 13 |
| 4 | Machaira 4 | |
| 5 | Odysseus 11 | |
| 6 | Apostolos Andreas - Latsia | Tinos 1 |
| 7 | Tinos 3 | |
| 8 | Kokkines - Strovolos | Transparency 12 |
| 9 | Ave. Kantaras 155 | |
| 10 | Ave. Kantaras 163 | |
| 11 | Platy - Aglantzia | Vufavento 8 |
| 12 | Karpasia Square 6 | |
| 13 | Strovolos III | Apelles 4 |
| 14 | Dodekanissou 14 | |
| 15 | Dodekanissou 16 | |
| 16 | Dodecanese 18 | |
| 17 | Epaminonda 19 | |
| 18 | Epaminonda 21 | |
| 19 | Orestou 2 | |
| 20 | Orestou 4 | |
| 21 | Chrysospiliotissa - Deftera | Chrysospiliotissa 49 |
| 22 | Chrysospiliotissa 50 | |
| LEMESOS | ||
| 23 | Agios Antonios | Istiklar Block Z |
| 24 | Agios Ioannis | 54th Road no.3 |
| 25 | Agios Spyridon | 95th Road No.4 |
| 26 | 95th Road No.6 | |
| 27 | 96th Road No.2 | |
| 28 | Linopetra | Elpidos 2 |
| 29 | Kornesios 28 | |
| 30 | ||
| 30 | Cornesiu 30 | |
| 31 | Titanon 6 | |
| 32 | Makarios III | 26th Road no.6 |
| 33 | 26th Road No.12 | |
| 34 | 26th Road No.14 | |
| 35 | 26th Road No.16 | |
| 36 | 30th Road No.1 | |
| 37 | 30th Road No.2 | |
| 38 | 30th Road No.19 | |
| 39 | Omonia | Sarantaporou 22 |
| LARNAKA | ||
| 40 | Saints Anargyroi II | Serion 16 |
| 41 | Serion 18 | |
| 42 | Serion 22 | Serion 22 |
[/TD]
[TR] [TD]
43
[/TD] [TD]Agios Ioannis
[/TD] [TD]Kaspion Gates 12
[/TD] [/TD] [/TR]
In the coming days, a detailed assessment of the situation will be made in order to decide which ones are deemed to be demolishable so that new ones can be erected, on the basis of a timetable to be determined accordingly. It is estimated that the implementation of the first phase will take approximately two years.
The Interior Minister made it clear that, on the basis of the assurances of the experts, the residents of the 43 blocks of flats, which have the most serious problems, are not in any immediate danger. Nevertheless, those who are concerned will be able to find alternative places of residence, receiving immediately the rent to which they are entitled.
For the construction of new blocks of flats, the Plan provides for the use of open spaces within the Government Housing Estates themselves, which have already been identified. In addition, it will solve problems for apartment buildings erected on Turkish Cypriot-owned land parcels, where there will be reconstruction, as owners will now be given the opportunity to replace lease certificates with title deeds. The next phase, in the third and fourth year, will allow for the granting of grants to apartment owners of the 70 blocks of flats which have been found in principle to be in need of repair. In the remaining years, sponsorship will be granted for 35 blocks of flats per year, depending on their structural and/or construction quality classification in the relevant valuation study. The total cost of implementing the ten-year sponsorship plan is estimated to be around EUR 130 million
ii. Beneficiaries of the Sponsorship Plan for existing multi-family housing in government housing settlements for displaced persons
For the purpose of the Sponsorship Plan, the following groups of Beneficiaries are defined:
|
GROUP A |
[TR] [TD] [TD]
[I) 1ST GENERATION DISPLACED PERSONS AND ORIGINAL BENEFICIARIES OF THE APARTMENTS,
Title or Lease Certificate holders
(ii) 2nd generation Displaced Persons, 3rd and 4th generation, owners who acquired the
apartment by inheritance
[/TD] [/TR] [TR] [TD]GROUP B
[/TD] [/TR] [TR] [TD]Subsequent purchasers of displaced persons, who received housing assistance/
grant from the State for the purchase of the
[/TD] [/TD] [/TR] [TR] [TD]
GROUP C
[/TD] [/TR] [TR] [TD] [TD](i) Subsequent purchasers of the apartments, non-displaced persons
(ii) Subsequent purchasers of the apartments, displaced persons, who
are not entitled to and have not received any housing
assistance/grant from the State.
[/TD] [/TR]
iii. Grants for Beneficiaries of the Grant Scheme for Existing Apartment Buildings in Government Housing for Displaced Persons
In case of Reconstruction of the apartments of the existing apartment building:
A. For Beneficiaries of GROUP A, a lump sum will be granted per apartment (regardless of floor area and area) as follows:
(i) One (1) bedroom apartment €30.000
(ii) Two (2) bedroom apartment €40.000
(iii) Three (3) bedroom apartment €50.000
B. For GROUP B Beneficiaries, a lump sum will be granted per apartment (regardless of floor space and area) as follows:
(i) One (1) bedroom apartment €20.000
(ii) Two (2) bedroom apartment €30.000
(iii) Three (3) bedroom apartment €40.000
(iii) Three (3) bedroom apartment €40.000
Eligible Group A and B displaced persons who do not wish to participate in the Redevelopment Project will receive their lump sum allocation (as determined in Group A and B), plus an amount attributable to the share registered in their name on the Title Deed, based on the land value of the most recent general land value assessment of the Department of Lands and Surveys.
In addition to the above grants, an amount of €90,000 per apartment building to be built will be granted for the installation of an elevator.
C. Beneficiaries of GROUP C will be granted a one-time sponsorship amount corresponding to the amount corresponding to the share registered in their name on the Title Deed, based on the land value of the most recent general land value assessment of the Department of Land Registry and Surveying, without, however, bearing any proportionate share of the cost of demolition of their apartment building when it is deemed to be demolishable.
However, it will be possible for Group C Beneficiaries, who are natural persons and use the housing unit (apartment) as their primary residence, to participate in the Redevelopment Project, without the allocation of any lump sum of sponsorship, which will be borne by them.
The scheme will apply on the basis of the ownership status at the time the scheme is announced and it will not be possible to participate in the scheme if the Beneficiaries purchased the housing unit (apartment) after the date of the official announcement of the Sponsorship Scheme. It is understood that inheritance transfer is excluded from the above.
iv. The additional costs that the Group A and B Beneficiaries will be required to contribute are estimated as follows:
| | GROUP A |
[TD]
GROUP B
[/TD] [TD]Indicative market value in similar area for an average apartment
[/TD] [/TD][TR] [TD]
(i) One (1) bedroom apartment
[/TD] [/TD] [TD]€10.000
[/TD] [TD]€20.000
[/TD] [TD]€120.000-130.000
[/TD] [/TR] [TR] [TD](ii) Two (2) bedroom apartment
[/TD] [/TD] [TD]€20,000
[/TD] [TD]€30,000
[/TD] [TD]€190,000-220.000
[/TD] [/TR] [TR] [TD]
(iii) Three (3) bedroom apartment
[/TD] [/TD] [TD]€25,000
[/TD] [TD]€35,000
[/TD] [TD]€230,000-250.000
[/TD] [/TR]
On the basis of the above table, it is stated that the beneficiary will in fact be able, with a contribution not exceeding ≈10% of the market value of the apartment, to acquire a new apartment that will provide him with a decent and, above all, safe accommodation.
In the case where the Beneficiary chooses not to rent accommodation in the private sector, but to stay with a relative, he/she will be entitled to a monthly grant of €80/person, for a period determined above depending on the case.
The total cost that will be required to be contributed by the Beneficiaries of Group C, who are eligible and wish to participate in the Redevelopment Project, is estimated as follows.000
(ii) Two (2) bedroom apartment €60.000
(iii) Three (3) bedroom apartment €75.000
(iii) Three (3) bedroom apartment €75.000
v. Rental Subsidy Beneficiaries
Rental Subsidy Beneficiaries are Group A, B and C Beneficiaries who, during the six months preceding the notification of the project, reside in an apartment in a block of flats which has been declared to be in need of demolition or in an apartment which is in need of repair/reinforcement and requires temporary relocation in order to carry out the works.
The rental subsidy amount is determined based on the type of the Beneficiary's existing apartment, as follows:
[I) ONE (1) BEDROOM APARTMENT €400/ MONTH
[II) TWO (2) BEDROOM APARTMENT €600/ MONTH
[III) THREE (3) BEDROOM APARTMENT €800/ MONTH
In case of participation in the Redevelopment Project for the construction of a new apartment building, the rent subsidy will be valid for a total maximum period of 24 months
With regard to Group C, those who are not eligible to acquire an apartment may receive the above rent subsidy amounts with a subsidy period of three months until new housing is found.
It is also stated that in respect of vulnerable persons or elderly persons, it has been agreed with the Local Authorities that where a need is identified, some form of assistance for removals/transportation may be provided.
Presentation of Plan Provisions
As previously stated, next Monday, 10/4/2023, at 11.30 a.m, a Press Conference will be held where a detailed briefing will be given by the Minister of Interior and representatives of the Department of Planning and Zoning on the provisions of the Plan, the amounts of the government grant and contribution to be paid by the beneficiaries, the Special Incentives to provide an additional building factor to private developers who will undertake the projects in order to finance them in a sustainable manner. Monday also sees the launch of a website and a telephone information line, through which citizens will be able to put their queries directly to the relevant officials of the Planning and Zoning Department.
(EF/IS)
Contents of this article including associated images are owned by PIO
Views & opinions expressed are those of the author and/or PIO
Source
