€130M grant plan proposed for 358 refugee apartment buildings

In an effort to effectively manage buildings in government housing estates and address observed structural issues, the Ministry of Interior has prepared a comprehensive Sponsorship Plan to be presented at Friday's Cabinet meeting. The aim of the Plan is to ensure safe living conditions for residents living in buildings with problems. Interior Minister Constantinos Ioannou will present the Plan, which concerns 358 blocks of flats in government housing estates for displaced persons in the Nicosia, Limassol, and Larnaca districts. The Plan is expected to serve as a tool for the rapid repair and/or reconstruction of buildings with structural problems. It has been formulated in cooperation with the Department of Urban Planning and Zoning, considering multiple parameters with social, economic, and legal aspects to enable its smooth and immediate implementation. The Sponsorship Plan was a response to an issue raised in the House of Representatives and has been designed to address the issue effectively. It should be noted that for most of the 3,128 apartments in the 358 buildings, title deeds have been granted to the respective beneficiaries, except for cases where the apartment building is built on Turkish Cypriot-owned land, for which Lease Certificates have been granted.

The Plan

According to the provisions of the Plan, from the first day of its implementation, it will be available to beneficiaries for use based on the risk criteria of the buildings. The list of 358 blocks of flats included in the Plan, as well as a ten-year implementation plan, will be published with the announcement of the Plan. The Plan will prioritize buildings with the most significant structural and construction problems. Beneficiaries of the Plan will have the possibility, depending on the building's problems, to carry out repair work, reinforce the buildings, or reconstruct them. In cases where it is deemed necessary to install a lift for the repaired buildings, an additional grant per building will be awarded.

Priority of Works

A technical committee appointed by the Planning and Building Department has conducted a preliminary prioritization of the 358 blocks of flats concerning the structural and construction problems detected.

According to the findings of the committee, 43 blocks of flats (approximately 375 flats) were deemed unprofitable to repair. The extent to which the blocks of flats are demolishable will be confirmed in consultation with the National Focal Point on Friday.

Moreover, 70 apartment buildings were identified as requiring some repair work, while 245 blocks of flats had fewer repair needs.

The list of the 43 blocks of flats in Nicosia, Limassol, and Larnaca that are considered demolishable will be announced by Mr. Ioannou after the Council of Ministers meeting on Friday. The Plan will prioritize the owners of these 43 blocks of flats. A detailed assessment of the situation will be carried out in the coming days to determine which ones are deemed demolishable to erect new ones based on a set timetable.

The Beneficiaries

The Grant Scheme defines three categories of beneficiaries. Specific amounts of sponsorship and rent subsidy will be granted to each category based on the level of repair needed. The contribution of beneficiaries will also be determined based on their category. The Plan provides flexibility in terms of the repair method and degree. Beneficiaries can choose to receive the sponsorship along with compensation for their land entitlement instead of participating in the repair or reconstruction project. Beneficiaries' participation in the Project has been set at 10% of the market value for purchasing new, safe, and sustainable housing.

The Categories:
Group A
-1st generation settlers
-2nd, 3rd and 4th generation displaced persons who acquired the apartment by inheritance

Group B
-Descendant purchasers of displaced persons who received housing assistance/grants from the State for the purchase of the apartment in question

Group C
-Subsequent purchasers of the apartments who are not displaced persons
-Subsequent purchasers of the apartments who are displaced persons, but are not entitled to and have not received any housing assistance/grants from the State.

Incentives to Developers

The Plan also provides options for private developers to undertake projects in refugee buildings. In addition to the state grant and the beneficiaries' contribution, an additional building factor will be provided to be utilized either in the project itself or in another project of the developer, in order to finance the project sustainably. The Sponsorship Scheme in terms of projects will be implemented by the private construction sector option, which is expected to contribute to the utilization of the Scheme by a large number of beneficiaries.

[This article was translated from its Greek original]