16.09.2023
In support of promoting the affordable rental scheme, the Cyprus Land Development Organization issued a statement on Saturday, adding that it was ready to discuss ways to achieve this goal while acknowledging the government’s efforts to contain costs.
According to the organization, KOAG’s statutory mission, among other things, is to provide housing for moderate and low-wage earners, with KOAG fulfilling its mission through 2019 by constructing and selling apartments to beneficiaries of its housing plans.
It is noted that in 2019, in order to help the most vulnerable segments of society who, despite KOAG’s affordable sales prices, were still unable to purchase their own housing, KOAG began planning the construction of apartments in order to make them affordable.
The project was chosen by KOAG due to the contributions and funding expected from the Cyprus Investment Programme, with KOAG noting that it is precisely because it survives on the contributions it receives from the projects it builds and sells. The state would not be able to fund the Affordable Rent Program without KEP’s donations because the flow of rental revenue is much slower than the flow of sales revenue.
It is added that COAG supported the new government’s intention to formulate a new, modern housing policy and submitted its own views, opinions and proposals in writing, upon request.
It is also reported that, recognizing the government’s efforts to contain costs while at the same time providing social protection, the CAO presented a number of possible scenarios (7 possible scenarios in total) with variables, among other things, the size of the sponsorship that could be provided by the government to COAG .
At the same time, it is noted that for the sake of completeness, transparency and comparison, COAG has also presented a scenario that envisages no government sponsorship and therefore no affordable rental project from COAG.
However, as the study notes, KOAG is of the view that the repeal of the Affordable Rent Plan “drastically changes the nature of housing policy and significantly limits the housing options that the government offers to its vulnerable social groups. It is for this reason that KOAG is committed to moving forward with the Affordable Rent Plan and is committed to discussing ways to achieve its goal.”
It adds that COAG has already submitted its 2024 budget to the Ministry of Home Affairs and no provisions for receiving government support were included in it, adding that the company does not intend to advance any will of the government.
