Are you ready to live in social houses?
Economy13 April 2016, 16:45 749
Mortgage loan is one of mechanisms for solution of housing problems of young and low-income families. However this mechanism is not accessible and that is why it needs to launch another more successful and available project - social housing. Experts beleive it will help solution of people's housing problems. By the way, the above-mentioned project has already been applied in other countries. Thus, President of the Republic of Azerbaijan Ilham Aliyev spoke about it at a meeting of the Cabinet of Ministers dedicated to the results of the first quarter of 2016. Construction of social houses for low-income people is beginning.
The head of state noted that program on constraction of social houses will be presented for community. Construction of social houses has two goals. Provision of low-income families with houses and reduction of unemployment level. Social houses will be built in Baku and regions. Moreover the houses will be given to vulnerable population with low prices and long-term loans. Afterwards people will get posession right for those houses.
The President also noted that the project will maintain growth of more than 20 fields of national economy.
Short-term solution to the housing problem
Azerbaijani MP Musa Guliyev told that the project of social housing is very successful project that realized in several countries: "The project is implemented with help of government, governmental organizations and private sector that significantly helps low-income people with housing problems and solve their problems. Legislation base is large enough for construction of social houses in Azerbaijan. According to Mr President’s order implementation of spesified measures have been kicked off. According to the project Social housing fund has been established. The fund will help to build social houses. Those houses will be given for rent to low-income people for a long time.
According to the MP, such houses help people with low-income as well as, provide development of about 20 economic fields: " Firstly, production of construction materials will be liven up and employment of people will be increased. During a short peiod of time majority of people with housing problems will find solution for thier problems.
The project may solve housing problem for near 10 years
Economist Vugar Bayramov told that the President’s order on addition of 200 mln manat for mortgage program made formation of social housing fund actual: " The head of state gave a task on usage of this amount of money for construction of social houses. Such funds run in Turkey, Russia and other CIS ocuntries.
By establisjment Social housing fund Azerbaijan can solve housing problems within near 10 years. Despite drop of oil prices in global market, the state has resource for this. Formation of those fund is meant in Housing Code. According to the code establishment of social rental and social housing funds is expected. Social housing fund is a collection of residential houses given to citizens according to social rental contracts by the state and municipialities. It is written in Article 108 of the Code that giving residential areas to citizens from various categories for their social defense is implemented according to rules prescribed by law. Afterwards, there is a legal framework for the issuance of residential areas free of charge, even to low-income families
12 thousand new houses in a year
According to the economist, allocation of AZN 200 million from the state budget makes an opportunity to provide youth with houses: " As well as this amount is safe in terms of protection of the profitability of housing market. Price per square meter of apartments which areas of those houses to be provided by the state is forecasted to be for AZN 350. Currently, per square meter of appartment costs AZN 310. And repair work needs AZN 40. If houses 50 per squere meter to be built it means 12 thousand new houses within a year. Rent for a house 50 per square meter will be AZN 150 for 20 years.
V.Bayramov also noted that government donates area for construction of social houses freely and construction companies are chosen in tender.
There are useful points of this: Firstly, funds spent from oil revenues will return to budget in 20 years which will provide future generations to use current high profit. Secondly, it will cause to fall of price in housing market. Thirdly, it will release low-income families from high rental fees as well as, stabilize prices in rental market. Also in the construction of housing on the basis of state orders can provide proportional development of the regions. As such funds will be formed not only in the capital, also in the regions: ”Currently, the state forms requierement but not proposal. Thus, legal base of the project that will solve population’s housing problem and decrease prices in estate market is ready. It needs to form implementation mechanisms and start establishment of the fund.
He also added that formation of social housing fund is one of suitable ways for drop in real estate prices. At that time the state will be an offerer that allow to regulate the prices in the market: "