06.05.2022
A new housing plan recently announced by the government aims to revitalize mountainous, critical and disadvantaged areas, meeting the housing needs of singles, couples and families.
The purpose of the Plan is to provide financial support for the acquisition of a permanent home in the areas covered by the Plan.
The plan covers a total of 277 communities/areas identified as critical, mountainous and disadvantaged based on specific criteria.
Geographical scope A: Critical areas
Geographic scope A includes:
(a) Certain areas along the green line in the municipalities of Nicosia and Agios Dometios.
(b) Certain communities and areas in the municipalities (13) adjacent to the line of confrontation (Dénia, Mammari, Libya, Potamia, Atianou, Troulua, Pyla-certain territory, Strovilia, Derynia, Ahna, Frenaros, Acheritou, Avgorou).
It is noted that critical settlements adjacent to the line of confrontation and falling under the special category of extremely mountainous and extremely small and remote areas (Kato Pyrgos, Pano Pyrgos, Pigaineia, Pachyammos, Mosfili) are included in the Geographical application in the area C.
Geographical area of application B: Mountainous and disadvantaged areas
Designated areas/communities (134) in mountainous and disadvantaged areas. Based on the following criteria, approved by the Council of Ministers of March 3, 2022, of which at least one must be met:
Altitude greater than or equal to 500 meters.
A distance greater than or equal to 40 kilometers, depending on the road network, from the city centre.
The population is less than 500 inhabitants (according to the 2011 census) and at the same time at a distance of more than or equal to 25 km, based on the road network, from the city center.
Population less than 500 inhabitants (according to the 2011 census) and either with a decrease in the population at the 2011 census of at least 10% compared to the 2001 census, or with an overall decrease of at least 20% population in 1992-2001 and 2001-2011
Population less than 50 inhabitants (2011 census).
It is also emphasized that the Plan includes all communities that have been approved under the National Strategic Development of Mountain Communities.
Geographic Application C: Extremely mountainous and extremely small and remote areas.
Based on the parameters of the above criteria, namely height, distance from the city center and population, which were weighted and averaged, a special category of settlements/regions is created, which are defined as extremely mountainous and very small/remote.
This category includes 130 communities/regions (125 mountainous and disadvantaged and 5 non-critical) out of 277 eligible (259 mountainous and disadvantaged and 18 non-critical).
Beneficiaries
The beneficiary (applicant) is a citizen of Cyprus or a citizen of a Member State of the European Union who is a permanent resident of Cyprus with legal and permanent residence in Cyprus for the past five years.
Also eligible are repatriated Cypriot citizens who have resided permanently in Cyprus for at least the last two years prior to the date of application.
A beneficiary may receive financial assistance or financial benefit only once and only from the State Housing Scheme or the Cyprus Land Development Organization Housing Scheme (CLOAG).
It is clarified that an applicant who previously received state financial assistance or assistance from the FMSA for housing needs cannot be a beneficiary, with the exception of an applicant who received subsidies for rental housing or housing loan interest. In the case of a married couple, he or his spouse/cohabitant cannot be a beneficiary, a previously assisted applicant.
A beneficiary is a person who purchases a dwelling that he will use for his own residence and provided that he or his spouse/partner does not own or has owned, during the last five years prior to the date of his application, other private dwellings.
A beneficiary cannot be a person who, or another member of the couple, has lost and/or benefited from the Possessed Compensation Committee.
Finally, a beneficiary cannot be a person who, or another member of the couple, has also applied to the Displaced Persons and Suffering Financial Assistance Program.
Income criteria
Gross family income (the total annual gross income of all family members resulting from the amount) must be within the funding level and amount. The plan is financed by the Ministry of the Interior, and the costs associated with the financial support of the beneficiaries in the acquisition of housing are paid by the respective provincial governments.
The plan remains open until December 31, 2022. The budget is bound by the approvals received depending on the geographic scope.
Financial assistance is provided for the legal acquisition of private residences for permanent residence for a period of at least ten years, for example, for the construction of housing, the purchase of new or existing housing, the purchase and improvement of a new one, or the purchase and improvement of an existing residence.
The assistance is 50% of the total cost of purchasing a home, with a minimum total cost of 20,000 euros. The maximum assistance limit (50% of total expenses) depends on the composition of the family, as well as on the community / region in which the housing is purchased, while the maximum amounts are:
One person up to 35,000 euros
Couple up to 45,000 euros
Young couple – none of the two members of the couple is aged 41 or older on the application date, up to €60,000.
Family with children (including a family with one parent) up to 50,000 euros
Young family with children (including young single parent families) – none of the family members are 41 or older on the date of application, up to €65,000
Large families (4 or more children) up to 70,000 euros
Persons with disabilities an additional amount of up to 10,000 euros for construction
For special constructions, for safety and adequate support of the house due to the morphology or slope of the ground, an additional amount of up to 25,000 euros (depending on the area).
