The Social Housing Fund’s board agreed to study how the rent system could be involved in the social housing project with specific mechanisms and rules for available units in order to benefit people most in need.
Minister of Housing Mostafa Madbouly said that a number of housing units will be allocated for rent in the “building 656,000 housing units” project in governorates to help low-income people, who are unable to fulfill ownership obligations through the mortgage finance system.
Madbouly added that the rent system is one of the agreed upon procedures in the World Bank’s loan programme, noting that it is possible to transfer from ownership to rent depending on the client.
Head of Mortgage Finance Fund’s (MFF) and CEO of Social Housing Fund May Abdel Hamid said there are some rules, mechanisms, and a proposed financial model will be announced when applying the rental system.
Abdel Hamid added that financial support will also be provided to the beneficiaries of the rent system, noting that specific terms will be imposed to ensure that the client takes advantage of this unit, and do not use the unit in another way.
“The Social Housing Fund’s board approved signing protocols with each of the electricity, gas, and water companies, for the installation of metres for social housing project units, with the payment of the prescribed fees,” said Abdel Hamid. “New cities and development projects are negotiating with commercial banks to provide financing for low-income citizens for electricity, gas, and water fees.”
In November 2014, the Social Housing Fund was established under the Ministry of Housing and is responsible for imposing the general policies of constructing and managing the units. It will also be responsible for financing the project from budget allocations and sales revenue.