Social housing fund to be established in Armenia

PanARMENIAN.Net - During the March 31 offsite meeting in Oshakan settlement, the Armenian government authorized the Ministry of Labor and Social Affairs to distribute the social housing fund.

According to Armenian Prime Minister Tigran Sargsyan, 90% of Affordable Housing for Young Families program was implemented in Yerevan at the first stage, but the situation has changed since approval of preferential terms for residents of regions.

“Affordable Housing for Young Families program of the Armenian government is gaining momentum in Armenia’s regions, what contributes to equal development of territories,” said Sargsyan.

As for the establishment of social housing fund, the Prime Minister said it is the first step: vulnerable groups of population will be provided with dwellings in already constructed buildings or those under construction.

In 2010, the Armenian government reviewed the terms for lending under the program and no other changes are expected in it within the upcoming years.

Specifically, the state’s assistance for residents of regions used to total 2% out of the granted loan, while currently this figure makes 4%.

Besides, the initial installment for a dwelling in Armenia’s regions will total 10% against previous 30%.

13 Armenian banks and 3 credit organizations participate in Affordable Housing for Young Families program.

According to calculations of the Armenian Ministry of Finance, 300 loans will be allocated in 2011, while the program fund will be increased by AMD 1bln to total AMD 4-4.5bln.