Fewer subsidies for the construction of social housing in Nicaragua

La Prensa Nicaragua

Mabel Calero, 11/24/2019

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The budget execution report details that up to September 56.6 million córdobas has been invested in the construction of social housing for low-income people

In the midst of the deep economic recession in the country, the construction of social housing has stagnated. Between January and September of this year there were 612 subsidies for the construction of social interest housing for low-income families, while the same period last year had been given 700 subsidies.

However, although fewer families benefited, the investment was greater than last year. The January-September 2019 budget execution report of the Treasury and Public Credit details that up to September 56.6 million córdobas have been invested in the construction of social interest housing for low-income people. In that same period, 36.2 million córdobas were invested last year.

That is, on average this year for each family there was a subsidy of 92,483 córdobas, while last year the average subsidy was 51,714 córdobas.

Albino González Zambrana, valuation specialist architect and former president of the Nicaraguan Chamber of Valuadores (Caniv) said that despite the crisis, the sector has not been so affected, due to the fact that families are adjusting to a smaller economy.

“It has not fallen to zero. The amount of sales has decreased in proportion to how it was growing, but it is definitely the least affected. In fact, the ceiling for social interest housing has increased, this means that the 30,000 dollar housing units are considered to be of social interest and are the ones that have remained for sale, because we are adjusting to a smaller economy, ”González said.

According to Law 677, Special Law for the Promotion of Housing Construction and Access to Social Interest Housing, residential housing is considered a "Social Interest Housing", when it has a minimum of 36 square meters of living space, with basic services included. To access it, a family needs income equivalent to two minimum wages in the construction sector and whose final sale price (of the house) to the consumer does not exceed $ 40,000.

Housing for people of moderate income

As for the subsidy for moderate income families, between January and September of this year, 28 million córdobas have been invested to subsidize 422 families. That is, on average, each family was given 66,350 grant cordobas.

“In the period January - September 2019, a total of 422 subsidies were given for the same number of homes in the municipalities of León, Ciudad Sandino, Tipitapa, Nindirí, Managua and Mateare,” the report details.

It should be noted that this subsidy depends on external loans. In fact, the goal this year was to invest 100 million córdobas in subsidies for moderate income families, but not enough resources have been obtained to progress in the goal.

Elections could change the landscape

The economist and professor, Luis Murillo said the government will allocate more money for these social projects because a pre-election year is coming.

“We are facing a crisis and the government wants to win new adherents, besides that a pre-election year is coming. So they are expanding coverage with the Bismark Martínez project, which really does not solve the problem, because here we have a deficit of one million houses, ”said Murillo.

Next year, 2,292 subsidies are planned, 855 of which are for low-income families and 1,437 for moderate-income families.

The construction area is reduced

But besides less building of houses of social interest, the construction area of ​​these was reduced in 2018, 46.9 percent, compared to 2017, as reflected in the quarterly reports of Private Construction published by the Central Bank of Nicaragua.

Until the end of 2018, social interest homes represent 18.2 percent of the total construction nationwide and 28.8 percent of the residential area.

Bismarck Martínez Fund

This year the regime of Daniel Ortega and Rosario Murillo took out the Bismark Martínez social housing fund, which is working with the Institute of Urban and Rural Housing (Invur) and municipalities nationwide.

In fact, in August Rosario Murillo, coordinator of the Communication and Citizenship Council, said that these houses would be built of blocks, would have a construction area of ​​54 square meters, in lots of 150 to 180 square yards.

Murillo said workers who do not contribute to social security, self-employed or people who receive remittancescould access these homes, and the application can be individually or jointly as members of a family, with fees less than $ 40 monthly, with financing over a 25 year period.

 

 

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