22.09.2023
The Student Residences/Student Rooms Sponsorship Plan, with a total budget of €15 million and funding under the Recovery and Resilience Plan, which was presented by the Department of Urban Planning and Housing, aims to revitalize Nicosia.
Following the expected approval of the revised plan guidance by the State Aid Control Authority, it will be submitted to the Council of Ministers for approval.
Contents
Attracting students and landscaping
The purpose of the sponsorship plan is to provide incentives in the form of government sponsorship to property owners or tenants of buildings in the area within the walls of Nicosia to renovate/restore their properties for the primary purpose. converting them into student dormitories/rooms.
The main objective of the entire plan is to create 380 student rooms in the Walled City of Nicosia by 2026, with the aim of social and economic upgrading of the area by attracting students and other relevant investments, improving the built environment of the Walled City of Nicosia and contributing to the circular and green economy . development by restoring/renovating buildings and reusing them, and providing rent-controlled housing options for students.
The second call for applications is expected to open in early October and last three months, that is, until December 29, 2023. The budget is 14.3 million euros.
Sponsorship and eligible expenses
The beneficiaries are the owners or tenants of buildings on the territory within Nicosia, among them individuals and legal entities (companies, associations, institutions).
The sponsorship amounts to 75% of the eligible costs of each proposal for the conversion of an existing building into student housing and 50% of the eligible costs of each proposal for an expansion area exceeding 30% of the existing building.
Eligible costs include civil works, electrical, plumbing, mechanical installations, fire safety measures, fees of architects, civil engineers or other ETEK registered consultants (up to 10% of the eligible proposal budget), as well as building plates required for the projects , the cost of eligible expenses exceeds 500,000 euros.
It is clarified that funding can only be received by that part of the building that will function exclusively as a student dormitory, and directly associated auxiliary premises.
Grant rates per building
The maximum “recognized value” for the purposes of the scheme is considered to be:
- The maximum cost of protected buildings and ancient monuments is calculated at €1400/ sq.m.
- The maximum cost of existing buildings is estimated at €1000/ sq.m.
- The maximum cost of expansion/addition to an existing building is estimated at 1200 euros/ sq.m .
Payment is made in two equal parts: the first when 50% of the project is completed and the second after completion of the project based on approved plans. The possibility of an advance payment of up to 40% of state aid is also provided, while the beneficiary can receive an advance that does not exceed 20% of state aid without providing a bank guarantee, with a maximum amount of 60,000 euros.
Time commitment
The beneficiary is obliged to begin construction work for each project within three months and complete it within 20 months from the date of signing the public financing agreement.
The beneficiary is required, for a total period of at least 60 months within eight years from the date of completion of the project, and simultaneously, for a period of at least six months/year, to provide each eligible student with a rent-controlled room in its building, as determined by the Ministry finance.
It is also clarified that during the free months of operation of the student residence, student rooms may be rented out to academic and/or research staff and other relevant personnel of a recognized higher education institution.
