Properties are being developed for residential use in El Salvador, the lots are located in different provinces, to facilitate access to housing for Salvadorans, with different typologies to accommodate families.
CentralAmericaData's Commercial section provides an up-to-date list of public and private construction projects that have submitted Environmental Impact Assessments (EIA) to the respective institutions in each country.
In El Salvador, it was announced that as of September 2, the interest rate for the purchase of recovered homes will be reduced from 6% to 3%, while for homes of up to $25,000 the rate will be 4% for loans granted by the Social Fund for Housing.
The new conditions will apply to the formal sector, for new housing with a price of up to $25,000 dollars, which will offer an interest rate of 4% and zero premium, informed the Salvadoran government.
Financing for housing and sustainable urban development will be the topics under discussion at the event to be held on August 22 and 23 in Managua.
The Chamber of Builders in Nicaragua and the Inter-American Housing Union are organizing the event, which will bring together professional financial real estate companies, developers and builders, banks and finance companies, savings and loans companies for housing, cooperatives, investors, and representatives of public entities.
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.
A preferential interest law is being studied which would reduced by up to 50% the amount of the fees to pay for mortgage loans from private banks for the purchase of home.
Elmundo.com.sv reports that "The Salvadoran Chamber of Construction Industry (Casalco) is seeking to encourage the purchase of new houses through the creation of a preferential interest law, which would reduced by up to 50% payments for loans made by private banks. "
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.
FONAVIPO will take over private building projects that have had to be stopped due to lack of funding.
More than 2 000 public houses will be developed by the National Fund for Popular Housing in different areas of the country.
They will be built on lots where private developers had begun construction of buildings, and therefore already have building permits and other documents required by regulation.
The National Popular Housing Fund is putting out to tender the construction of 491 units of social housing.
The works to be tendered include "Construction of 491 homes in the project Residencial Los Almendros II Etapa located in polygons Nos. 6 and 7 in the municipality of San Martín, San Salvador, " which must be implemented in accordance with specifications and construction plans, and for which the contractor will provide all materials, labor, transportation and all that is necessary for the proper execution of the works.
The National Popular Housing Fund gave the order to begin construction of the Santa Lucia and Procavi developments in the city of Santa Ana.
The Santa Lucia project consists of 1.068 apartments, divided into 57 buildings on three levels. To date the fund has awarded the construction of the first 16 buildings -192 apartments - to two companies. For the rest of the development, FONAVIPO will receive bids from firms on 6 May.
Out of $ 99 million in loans it is estimated that 53% will be invested in new housing.
The trend over recent years has been the purchase of used housing, according to Thomas Chévez of the Social Housing Fund (FSV).
"The balance that could be achieved regarding the trend is because in 2011 the supply of new housing, specifically of social interest, will increase due to construction projects from the program “Casa para todos,” reports the article in Laprensagrafica.com.
$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.
Grupo Salazar Romero started selling its “Cumbres de San Bartolo” project, with 600 social housing units.
Residences are being offered at an average price of $10.300, with financing available through the Social Housing Fund. The project is located in the Tonacatepeque municipality.
“Raúl Salazar, president of the company, acknowledged that the housing market went bearish last year, but he argued that this project is an example of how to reactivate the construction industry”, reported Elsalvador.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”.
For 2010, the National Housing Fund plans to build 4.752 housing units.
The first 499 homes will be built in Nuevo Belén, with the Fund inviting bids for constructing them in the first fortnight of February.
Marco Martín, president of the Fund (known as FONAVIPO in Spanish) explained that "a total 45.000 jobs will be generated in the year by this investment, an important Government contribution to the construction industry", reported Laprensagrafica.com.
The National Housing Fund began the bidding process, earmarking $3 million for it.
12 municipalities will be benefited with the project, which is part of the program "Housing for Everyone" (Casa para Todos).
Elsalvador.com reports: "Each house will be built with cinder block walls, fiber cement board roof and lattice windows ... Bids must include a maintenance guarantee, issued by a bank or insurer, entitled to Fonavipo and valid for 120 days"..