Minister of Housing Mostafa Madbouly tasked social housing project officials to quickly offer units for rent, especially to the most in-need governorates to help low-income citizens, who are unable to fulfil ownership obligations through the mortgage finance system.
The mortgage finance system has become a key requirement for citizens who are unable to pay the deposit on social housing units, the minister said.
Madbouly instructed the preparation for launching about 40,000 units.
The ministry had offered different mortgage finance systems in social housing to citizens with different income levels. Once an individual’s income slightly passes the threshold of the lowest income bracket, the ministry is considering providing them with a different mortgage plan, based on a study that is currently being conducted.
The minister determined that this demographic’s income ranges between EGP 3,500 and EGP 5,000. This study will open the door for a significant segment of society to take advantage of and have housing units within the social housing project.
Madbouly noted that the mechanisms to offer units for this demographic would vary according to mechanisms that are put in place for social housing units.
In May, 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 be of benefit to those most in need.
Madbouly said that a number of housing units will be allocated for rent in the “building of 656,000 housing units” project in governorates to help low-income citizens.
Madbouly pointed out 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.