The rising costs of materials and the government's refusal to raise the ceiling price on affordable housing could derail the National Housing Plan.
The Government is maintaining its position of not raising the ceiling price of $20 000 to $26,500, saying that would not benefit low income families.
The Speaker of the Chamber of Developers (Cadur), Alberto Atha, argues that it is impossible to construct houses on a mass scale that cost between $10,000 and $15,000, considering the increase in construction costs. Atha says another problem is the lack of financing for this segment in the financial system.
An IDB loan will support a program of housing and neighborhood improvement, focusing on low-income families.
A press release from Inter-American Development Bank (IDB) reads:
the Initiative will focus on low-income families and progressive construction
The Inter-American Development Bank (IDB) announced the approval of U.S.$20 million in funding for Nicaragua to support a program of housing and neighborhood improvement focusing on low-income families.
The Government will raise the ceiling of the subsidy value to include homes whose value is less than $30 thousand.
Currently the subsidy is granted for home purchases of less than 60 square meters and that are priced at less than $20 thousand.
Lucia Navas writes in his article for Laprensa.com.ni, "The business chambers argue that the value of building houses in the country has increased in general as a result of the price of construction materials reporting strong increases, therefore houses worth less than $20 000 no longer exist. "
The changes in criteria as to what is consider social housing has contributed to the development of the sector.
The state subsidy, the increase in the ceiling of $ 10 thousand to $ 20 thousand for housing to be considered of social interest and the fact the Nicaraguan Institute of Social Security (INSS) made funds available for banks were factors which led to a recovery in the industry," said Alfonso Silva, vice president of the Nicaragua House Builders (Cadur).
Development companies expect the Government to allocate $ 40 million for the construction of social housing by mid-year.
The Builders Chamber of Nicaragua (Cadur) said the funds will achieve the goal set by the Nicaraguan Social Security Institute, INSS, of 4.000 homes for 2011.
El Nuevo Diario writes, "...the chamber is asking for longer housing loan periods, or lower interest rates, so Nicaraguan families have more options to buy a home, announced the president of Cadur, Alberto Atha."
The resources of the Inter-American Development Bank will go towards the construction of social housing.
The announcement was made by representative of the IDB in Nicaragua, Mirna Liévano, with the Ambassador of Spain Antonio Pérez-Hernández Torra, a country which provided the resources to conduct the study of the housing project to be implemented this year.
The housing deficit is on the rise and the country currently needs to build 500,000 new homes.
During the third National Housing Forum held in Managua, both the government and the private sector agreed that what is needed is more social housing projects.
The president of Nicaragua's Chamber of Developers (Cadur), Ingrid Herrera, insisted on the need to reduce bureaucracy: "we need institutions to adapt to the "Housing Law" and to enable permits to be obtained within 90 days, as established in the law," reports Elnuevodiario.com.ni.
In the next couple of days a new tender process will begin for the construction of 258 social interest dwellings.
The $39 million integrated development project is funded by the Spanish agency for International Cooperation in Development (AECID) and includes parking facilities, a school and a health clinic, as well as the housing.
"In parallel to the housing project, both organic and inorganic waste processing plants able to cope with 1,300 tons of the Nicaraguan capital's daily trash are to be built, providing jobs for the residents of the new neighborhood, Acahualinca," reports Diariocolatino.com.
The Swedish Cooperation Center has organized a forum between the region’s housing ministries and nongovernmental organizations to promote the concept.
Cooperative housing implies that those interested in buying a house must organize themselves in a cooperative, in turn building their own houses. This model allows up to 30% cost savings.
“This modality allows low income citizens to access adequate housing solutions at a low cost”, reported Elfinancierocr.com. “The concept has proven successful for over 40 years in Uruguay, where over 25.000 families have used it to get high quality residences”.
With only few days remaining for companies to submit bids for building 200 homes, the hiring process was suspended.
Back in early March, the Municipality of Managua, in alliance with the Spanish International Cooperation Agency, invited companies to bid for building these homes. Thirty three companies forwarded information to be included in the process.
The City of Managua and the Spanish Cooperation Agency are inviting bids for building 225 homes in La Chureca, Managua.
An integral development project in Acahualinca neighborhood will be funded with $45 million by AECID, the Spanish International Cooperation Agency for Development. It comprises building residences and creating a waste disposal plant.
The Mexican cement company will produce low-cost cement for a public social housing project in Nicaragua.
The product will be labeled using the "Cemento Popular" (Popular Cement) brand, and packed using special bags for this government project.
"Maximum production will be 47.000 monthly bags. It will be used in the construction of 4.000 low-cost homes, funded with $90 million from the Nicaraguan Social Security Institute and commercial banks", reported Cnnexpansion.com.
The Nicaraguan Social Security Institute will use the money to build 4.800 social housing units.
A group of banks will administer the loans, which will charge interest rates of 8%. They are "Banco de la Producción" (Banpro), "Banco de Finanzas", "Banco de Crédito Centroamericano" (Bancentro) and "Banco de América Central".
Ricardo López, executive director at the Nicaraguan Social Security Institute (INSS), explained the units benefit from "preferential conditions not seen before in the country", adding that the homes will be approved by the Housing Institute (Invur). Each house will not cost more than $30.000", reported Elnuevodiario.com.ni.
The private sector expects to build between 5.000 and 7.000 social housing units, with prices between $12.000 to $15.000.
Constructors are expecting an increase of 40% when compared with 2008, as a result of the coming into effect of a law fostering social housing and millionaire disbursements to banks by the Social Insurance System.
"We are optimistic about the coming into effect of the law, as it covers one of our two concerns.
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