The news of the Ministry of Roads and Urban Development for low-income applicants for national housing in deciles 1 to 4

The Ministry of Roads and Urban Development announced the provision of about 7 thousand billion tomans of credit to support low-income applicants of the National Housing Movement.

According to Ambassador Arjan, the Ministry of Roads and Urban Development has provided about 7 thousand billion tomans of credit to reduce the financial pressure of low-income applicants for national housing. Anticipated support includes deciles one to four and welfare and relief committee applicants who are struggling to fund and continue projects.

Ambassador Arjan wrote in a news: In addition to the loan of 650 million tomans from the banking network, 400 million tomans special assistance for tithes and 200 million tomans loan facilities of the National Housing Fund are also considered to reduce the contribution of the people from 70% to about one third.

Reza Farhadzadeh, Director General of Planning and Monitoring Housing Projects of the Ministry of Roads and Urban Development, explained about providing credit for people to own houses. The national housing plan was first started in the 12th government under the title of National Action and then in the 13th government under the title of National Movement and all people without housing were able to register. Over time, it became clear that the supporting deciles, including deciles one to four and the beneficiaries of the Relief and Welfare Committee, are facing challenges for financing and continuing their projects.

Reza Farhadzadeh, Director General of Planning and Monitoring of Housing Projects of the Ministry of Roads and Urban Development, said: "The previous government and the current government consider solving the financial problem of low-income applicants as an important concern and have tried to solve it." According to the resolution of the Supreme Housing Council chaired by the President, the Ministry of Roads and Urban Development was obliged to help from its internal resources to facilitate the financing of projects that were challenged mainly due to the financial problems of the applicants. The relevant resolution was announced after its approval, and its implementation process is followed up every week in the monitoring meetings of the Ministry of Roads and Urban Development with the presence of the minister, deputy ministers, general managers of road and urban development of the provinces, managers of the Housing Foundation and managers of new cities. Providing credit for the projects of the lower deciles is also one of the most important issues raised in these meetings.

The resolution of the Supreme Housing Council in 1405 allowed the provision of credit up to 11 thousand billion tomans, and so far nearly 7 thousand billion tomans have been provided from the sources of the Department of Roads and Urban Development, the National Land and Housing Organization, and in some cases, new cities. The allocated credit covers a significant number of applicants from deciles one to four and applicants. The Ministry of Roads and Urban Development is also trying to increase the ceiling of 11 thousand billion tomans so that more people from the target community can benefit from the Qarz Al-Hasna loan facility with a repayment period of up to 15 years.

One of the questions raised was the real possibility of the low deciles getting a house with a loan of 200 million tomans, repayment of 15 years and the existence of intermediaries. Reza Farhadzadeh, Director General of Planning and Monitoring Housing Projects of the Ministry of Roads and Urban Development said:

First, we must accept the reality and know that we are aware of the housing problem and the economic problems of the people. Article 31 of the Constitution obliges the entire government to enter the field with the priority of the strata without housing, and the Ministry of Roads and Urban Development has also worked with all its strength and has taken the first step by providing land.

According to Farhadzadeh's explanation, the responsibility of completing the projects is not only on the Ministry of Roads and Urban Development, and various departments and ministries must also participate. The Ministry of Energy and the Ministry of Oil must provide water, electricity, gas and sewage infrastructure, the Ministry of Education is responsible for building schools, and the Ministry of Health must also take action to build clinics. Housing projects have registered a new record in physical progress during the four months leading to the publication of the report.

From 2018 to Mehr 24, 1405, only about 130,000 residential units have been delivered in the form of national action plans and national movement. The number of delivered units, which was around 20,000 units in 1403, has reached 130,000 units by the time of publishing the report. The Ministry of Roads and Urban Development plans to deliver another 130,000 units in the second half of 1405.

The financial package of the applicants includes a loan of 650 million tomans from the banking network, a 400 million tomans grant for eligible tithes and a 200 million tomans loan facility from the National Housing Fund for all classes. The total of two support of 400 million and 200 million tomans for the eligible applicant reaches 600 million tomans and it is supposed to increase the contribution of the people from 70% of the project cost to about one third. The exact amount of cash brought by each household still depends on the final cost of the unit, but the announced policy is to reduce the applicant's share to nearly 33% of the costs. Repayment of Qarz Al-Hosna facility can also continue for up to 15 years.

In a resolution that was approved two weeks before the publication of the report and is in the process of being promulgated, the High Council of Housing has assigned the cost of providing elevators for advanced projects to the Ministry of Roads and Urban Development. The relevant amount will be received from the people in installments after the delivery of the unit, and the applicants do not need to pay the entire cost of the elevator before the delivery of the house. Such a mechanism would reduce the initial pressure on low-income households, although installment payments would continue after delivery.