It has been announced that during the third quarter of 2018 work will start on construction of a residential compound consisting of 5,500 homes, and its first stage will begin in the municipality of Usulután.
The companies that will be participating in the project, which will run for three years and will be developed at the national level, are Investment and Development El Salvador (Nami), Asinesa El Salvador and UyD Constructora.In the first stage 800 houses will be built, which will have three bedrooms, and a bathroom, kitchen, living and dining room, in a total area of 50 square meters.
The Social Housing Fund (Fondo Social para la Vivienda) in El Salvador will keep the interest rate for social housing construction at 6%.
Francisco Guevara, president of the Social Housing Fund (FSV by its initials in Spanish), explained that this was because the housing supply was less than expected due to red tape delays.
"Some housing projects suffered from lack of technical documents which were in the process of being drawn up, or awaiting inscription in the National Registry. This halted three projects", said Guevara.
The Social Housing Fund of El Salvador has raised the maximum amount for loans to $ 125,000, following a request of the Salvadoran Chamber of Construction.
It has also announced the unification of the rates for loans for the purchase of affordable housing which will remain at 6%.
The measure had been formally requested of the Social
Housing Fund (FSV in Spanish) by the Salvadoran Chamber of Construction (CASALCO), as well as expanding the scope of social action in terms of housing provision, serving to stimulate demand in the construction sector.
In 2011, house sales in El Salvador grew by 4%, and the industry is planning new campaigns to encourage home ownership.
Strengthening the housing market is a key item for the construction industry to consolidate the economic recovery of 4% recorded in 2011, noted the Salvadoran Chamber of Construction (CASALCO).
The union has decided to boost the campaign entitled “Your own home, wellbeing guaranteed” for six months.
The National Housing Fund will start in the coming days the bidding process for 3 condominium projects.
From Friday 26th to Monday 29th the bidding will begin on a 1,068 residential apartment project in Santa Lucia and one of 416 units in Procavi. The first is valued at $ 16 million and the second at $ 7 million.
Both are part of "Home for All", which is funded with $ 50 million provided by the Central American Bank for Economic Integration.
El Salvador’s government signs agreements with commercial banks to obtain short-term finance for the social housing project.
Tomás Chévez, president of the Social Home Fund (FSV), commented that the agreements had been signed with Banco Agrícola and HSBC.
Without revealing the size of the loans, he added that the funds from Banco Agrícola will go towards five housing projects while the HSBC loan will fund two.
By the end of September and the start of October, there will be three bidding processes for the construction of 2.200 units of social housing.
Bidding for the first 500 unit housing project, to be located in San Miguel, will be done in the second half of September. In October, the process will start for the other two projects, one for 1.500 residences in San Martín, and the other for 300 homes in "Polígono Don Bosco".
The Social Housing Fund announced that it has increased its credit coverage to attend to other Salvadoran segments.
These include Salvadoran abroad, retirees, IPSFA members and workers with variable income, independent workers and professionals, business people, people with businesses at home and micro, small and medium sized business owners.
At the same time, the FSV has increased the loan amount from $14,285.71 to $50 thousand.
The approval of the credit terms and conditions to acquire a home is part of the strategy promoted by the Fondo Social para la Vivienda (Social Housing Fund) to increase the loan coverage.
The credit policy also seeks to reduce the deficit of social interest housing, assured the president and executive director of the FSV Enrique Oñate Muyshondt yesterday.
El Salvador is holding its First Forum for the Promotion of Affordable Housing, an event hosted by the nation's Chamber of the Construction Industry (Casalco) and the Social Fund for Housing (FSV).
The forum will debate issues that relate to the promotion of affordable housing. These include regional and town planning, land-use regulations and finance.