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In favor of the promotion of the Affordable Rent Plan, KOAG

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He expressed a willingness to discuss ways to achieve this goal while acknowledging the state's efforts to contain spending

ΥπΕρ της προθησ ης του ΣχεδΙου ΠροσιτοΙ ΕνοικΙο&upsilon ; ο ΚΟΑ&Gamma?

In favor of promoting the Affordable Rent Scheme, the Cyprus Land Development Agency made a statement on Saturday, adding that it is willing to discuss ways to achieve this goal while acknowledging the state's efforts to contain costs .

According to the organization, by law the mission of KOAG is, among other things, the housing of the moderately and low paid, with KOAG carrying out its mission until 2019 by erecting and selling units to beneficiaries of its housing plans.

It is added that, as a rule, the COAG finances the work, and carries out its projects with its own funds and without the financial assistance of the state, however, an exception to this rule was the initial capital of the COAG, which was paid by the state, at the start of the operation of the COAG in 1980, the low-wage housing scheme, in which the COAG was simply an operator/administrator and whose initial funding came from the state in 2001, but which was gradually repaid by the beneficiaries who benefited, and the donations received by the COAG from the Cyprus Investment Program.

It is noted that in 2019 and with the aim of helping the most vulnerable social strata who, despite the affordable selling prices of KOAG, were still unable to purchase their residence, KOAG began planning for the construction of units with the aim of making them available at an affordable rent within the framework of the new Affordable Rent Scheme.

The project was chosen by KOAG because of the inputs and funding expected from the Cyprus Investment Program, with KOAG noting that precisely because it survives on the inputs it has from the projects it builds and sells and without fixed and/or any other funding from the state, would not be able, without the donations from the KEP, to finance the Affordable Rent Scheme, since the inflow of income from rents is much slower than the inflow of income from sales.

It is added that the COAG listened with satisfaction to the intention of the new government for the formulation of a new, modern Housing Policy and submitted in writing, when requested, its own costed thoughts, opinions and suggestions.

It is also reported that, recognizing the efforts of the state to contain costs, but at the same time to offer social protection, the CAO submitted a number of possible scenarios (7 possible scenarios in total) with variables, among others, the amount of the sponsorship which could be made available by the state to the COAG.

At the same time, it is noted that for the purposes of completeness, transparency and comparison, the COAG also submitted a scenario, which foresees that there will be no state sponsorship and therefore no affordable rent project from the COAG .

However, and as noted in the Study, KOAG is of the opinion that abolishing the Affordable Rent Plan “decisively changes the character of the housing policy and significantly limits the housing options that the state offers to its vulnerable social strata. It is for this reason that the COAG insists on the promotion of the Affordable Rent Scheme and is willing to discuss ways of achieving its goal”. and no provision has been made for obtaining state sponsorship, adding that it was not, nor is it his intention to advance any will of the Government. exceeds expected revenue, characteristic of any development budget, since revenue is calculated at a later time and if units are sold, but this does not mean that it does not have the financial strength to promote and implement its development program.

Source: www.kathimerini.com.cy

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