Statement by the Minister of Interior Mr. Constantinos Ioannou after the Cabinet meeting on the Sponsorship Plan for the Multi-Family Houses in Government Housing Estates for Displaced Persons:
"The Council of Ministers today approved the proposal of the Ministry of Interior concerning the Sponsorship Plan for the Multi-Family Houses in Government Housing Estates for Displaced Persons.
The proposal was prepared on the basis of the findings of the study assessing the structural adequacy of a total of 358 blocks of flats and the long-standing problems with regard to their maintenance and/or reconstruction. The aim of the Plan is to achieve a comprehensive and holistic solution that will promote the improvement of the living conditions of the residents and ensure their safety and health.
The 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 given to the owners of the 43 blocks of flats. A detailed assessment of the situation will be carried out in the coming days to decide which ones are deemed to be demolishable in order to erect new ones, 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. For the construction of new multi-family housing, the Plan envisages 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 reconstruction will take place, 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 possibility of granting to apartment owners of the 70 apartment buildings 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.
Ladies and Gentlemen, We will shortly publish the list of the addresses of the 43 blocks of flats located in Nicosia, Limassol and Larnaca for the information of the interested parties. The groups of beneficiaries will also be announced based on criteria such as whether they are displaced persons or not, whether they have already received assistance from the state, whether they are subsequent buyers of the apartments or whether they are natural persons who have these apartments as their first residence.
The philosophy of the Plan is that the beneficiaries of the apartments, in case of full renovation - based on our assessment - will complete the works without the need to pay a substantial contribution. And where demolition is deemed appropriate, beneficiaries will make a small contribution and receive more decent, safe and sustainable housing. As an example, for a one-bedroom apartment, the beneficiaries' contribution would be around €10,000-€12,000 to get a new apartment whose value, depending on the area, is estimated between €120,000-€130,000. Therefore, the beneficiary will be able, with a contribution not exceeding 10% of the market value of the apartment, to obtain a new apartment that will provide him/her with a decent and, above all, safe accommodation.
At the same time, we have arranged for a subsidy of the rental costs for tenants who will have to leave their apartments during the period when renovation or demolition works and the construction of new blocks of flats are being carried out. I want to make it clear that, on the basis of the assurances we have received from experts, the tenants of the 43 blocks of flats with the most serious problems are not in any immediate danger. However, those who are concerned will be able to find alternative accommodation, receiving the rent to which they are entitled immediately.
Already the Ministry of Interior has begun informing the representatives of the local authorities in which the 43 blocks of flats are located, who in cooperation with the officials of the Department of Planning and Housing will take their turn in informing the tenants door to door, starting next week, about the options offered and any other information they need. We will also organize local meetings to directly inform affected and interested parties.
In addition to the information that will be released shortly, next Monday a detailed briefing will be given by the Department of Planning and Zoning and other relevant departments on the provisions of the Plan. Details will be announced, the provisions will be explained, the amounts of government grant and contribution to be paid by the beneficiaries, the Special Incentives for providing additional building factor to the private developers who will undertake the projects to finance them sustainably. From Monday, a website and a telephone information line will be launched, through which citizens will be able to put their queries directly to the relevant officials of the Planning and Zoning Department. Ladies and Gentlemen,
The Plan was prepared before the new government has completed one month since taking office. We gave priority to this issue from the first week, facing it in the context of the strategy for an integrated housing policy, also based on the President's election manifesto. We are moving towards a clear, realistic and costed plan to offer citizens practical, viable and effective solutions, far from temporary approaches that postpone the problem.
We listened to the affected refugees, consulted with their representatives, discussed with the Union of Municipalities, the Union of Communities and with local authorities as a whole, with the parliamentary parties, ETAK and other organised groups. On behalf of the government, I want to welcome their willingness and assure them that we will be in constant communication until we renovate or rebuild the last apartment. In this great effort we look forward to the cooperation of the private sector involved in the building and construction industry. The Plan that has been approved is the result of the painstaking efforts of many officials from various departments of the State, particularly the Department of Planning and Zoning. I would like to thank them for their dedication and diligence in order to achieve a result in a very short period of time.
Ladies and Gentlemen, We all realize that we are facing a titanic task with great social and economic challenges. We are touching on a decades-old wound and it is to be expected that there will be practical problems that will require great effort, will and effective management. The Home Office will stand by tenants, landlords and all stakeholders to support them in their efforts to make a smooth transition to the new order. To make this possible, the support and cooperation of all stakeholders is essential so that together we can move to the next step, building together a new period in the lives of hundreds of our fellow citizens in dignity, security and prosperity. Thank you very much."
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