The nicaraguan government has announced a new subsidy on the interest rate for apartments´purchases worth up to $50,000 and constructed within buildings with no more than four floors.
In addition to this new incentive to purchase housing classified as social interest and in high rise form, the Ortega administration has announced that it will expand from $32 thousand to $40 thousand the maximum value of high rise housing that is eligible for the current interest rate subsidy.
Analysis is being done on the concept of a leasing and a housing trust fund to facilitate greater access to bank financing for the construction industry.
The Salvadoran Construction Chamber believes that its financial capacity to develop more projects could be expanded through the use of trusts.Its president, Jose Antonio Velasquez, told Laprensagrafica.com that"... at the moment banks lend to housing developers'against their balances'. By using the concept of trust loans, the bank takes control of the project and would be able to lend more".
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.
BCIE and IDB funds will finance the "Casa para Todos" (Housing for Everyone) program.
The $ 70 million Inter-American Development Bank loan will go to build 6.373 homes for low-income families, of which 2.000 would be ready by March 2011.
The credit of the Central American Bank for Economic Integration (BCIE), of also $ 70 million, "will be implemented by the National Housing Fund (FONAVIPO), which will bid the affordable housing projects to developers," Elsalvador.com reported.
$70 million loan to finance subsidies for low income households.
El Salvador will improve housing conditions for low- and middle-income families and boost the housing sector’s ability to efficiently and equitably meet demand with a $70 million loan approved by the Inter-American Development Bank (IDB).
The program will finance individual subsidies to help families acquire new homes or improve their existing properties.
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.
The government plan "Housing for Everyone" ('Casa para Todos'), started transferring and dividing state terrains into lots, where 2.050 houses will be built.
1.500 homes will be built in the capital city and 550 in the east of the country. The location of an additional 150 is still to be determined, to achieve the target of 2.200 homes in 18 months.
Salvadoran home builders welcomed President Funes's announcement, that turns into reality the long awaited anti crisis plan for the sector.
Funded by the government and the private sector, the global housing project aims to build 25.000 homes, generating over 100.000 direct and indirect jobs.
The first stage of the plan will see investment for $165 million, for the construction of 5.800 homes.
Legislation in El Salvador proposes preferential interest rates for the purchase of new housing with costs between $15,000 and $60,000.
The Salvadorian Chamber for the Construction Industry (Casalco) presented to the Legislative Assembly a government bill that would encourage low-income families to purchase new housing in the range of $15,000 to $60,000.