Latest news with #HousingFund
Shafaq News
29-06-2025
- Business
- Shafaq News
Out of reach: Iraq's mortgage loans deepen housing crisis
Shafaq News - Baghdad Despite Iraq's persistent housing crisis, many citizens continue to find mortgage loans inaccessible due to what experts describe as overly restrictive lending terms. High interest rates, excessive guarantor requirements, and severe repayment penalties have turned what should be a tool for alleviating the crisis into a burden for much of the population, particularly those with low or moderate incomes. Mortgage loans provided by Iraqi banks bear similarities to those of the Housing Fund but with harsher financial implications. "The Fund helps cover a portion of the increasing housing demand by offering interest-free loans to citizens," Nabil al-Saffar, spokesperson for the Ministry of Construction, Housing, Municipalities and Public Works, told Shafaq News. Each year, it issues between 16,000 and 20,000 loans, depending on the number of applicants and available funds. Distribution is determined by population size and poverty rates in each province, and the fund operates on a self-financing, revolving model. Bank Loans: A Burden, Not a Bridge Still, many citizens report difficulties in accessing these government-supported loans, forcing them to consider bank loans despite their heavy costs. Umm Hussein, one applicant who sought a 50 million dinar ($35,348.11) mortgage from a state bank, disclosed to Shafaq News that she would need to repay 75 million dinars ($53,029.34), with a monthly installment of 635,000 dinars ($448.91). The problem is not limited to high interest. Banks also require two guarantors, a condition that excludes many Iraqis without personal connections or high government ranks. Real estate expert Abdul Salam Hassan Hussein observed that these loans cost 76 million dinars on a 50 million principal, with further increases if payments are delayed. Such conditions, he argued in an interview with our agency, make the loans unattainable for ordinary citizens, noting that housing projects are often priced out of reach, particularly when managed by politically affiliated groups. Inflation Control vs. Housing Access The Central Bank (CBI)'s approach to controlling inflation through high interest rates has compounded the issue. Economist Ahmed Eid noted that borrowing costs reduce the ability of most Iraqis to purchase homes. "For citizens with limited income, home loans become a burden rather than a solution," he explained. The result is a stagnant housing market, especially in projects targeting lower-income segments. Current government estimates indicate that Iraq needs around 200,000 new housing units annually, with a deficit exceeding 2.5 million units. Yet the financial tools in place are not designed to meet that demand. 'Resources are poorly distributed and sometimes redirected to groups with political or militia affiliations,' Eid warned. 'In many cases, loans are misused for non-housing purposes, undermining their developmental intent.' To resolve the crisis, the economist emphasized the importance of synchronizing financial policies with citizens' actual purchasing power. He recommended designing income-based loan programs and stimulating investment in affordable housing. 'Without a clear link between loan terms, income levels, and housing demand, the crisis is unlikely to ease.' New Cities, New Hope Speculation in the real estate market has further distorted prices. Al-Saffar pointed out that brokers and individuals now engage in black market trading of housing units, fueling artificial price inflation. "We cannot curb manipulation unless we inject a large number of units into the market," he asserted. He believes increasing supply will lead to gradual price reductions. As part of a broader strategy, the Ministry of Construction launched new residential cities in cooperation with banks. In these developments, 20% of units will be allocated to the state and distributed to 21 eligible categories. These include public servants, military retirees, families of martyrs, and social welfare beneficiaries. Al-Saffar clarified that the policy prohibits free land grants to investors; instead, a portion of the developed units must be returned to the state. Under the first phase of this initiative, 12,000 housing units from Baghdad's Al-Ward City (Madinat Al Ward) and 10,000 from al-Jawahiri City (Madinat al-Jawahiri) will be transferred to the government. Additional phases are expected to deliver more units for eligible groups. Beyond Buildings: Iraq's Housing Reform Iraq's housing challenge is also shaped by systemic financial barriers, speculation, and unequal policy implementation. Solving this requires more than construction— Eid said that it demands a financial system that supports inclusion, ensures fair distribution, and operates transparently. 'Without such reforms, mortgage loans will remain inaccessible, and the crisis will persist.'
Yahoo
21-03-2025
- Business
- Yahoo
City of Tacoma contributes $6M for affordable housing. Here's which projects will benefit
The Tacoma City Council has approved $6.9 million for new affordable-housing projects, totaling a more than $27 million investment over the past five years. According to the city, the collective $27 million investment will help create 724 units of affordable housing. During its March 18 meeting, the Tacoma City Council approved an amendment to the Affordable Housing Fund agreement with the Tacoma Community Redevelopment Authority. The amendment contributes more than $6.9 million to three additional affordable housing projects. The projects and investments include: $1 million to Mercy Housing Northwest's Aviva Crossing near Tacoma Community College. According to the City of Tacoma, the funding will help create 129 units of affordable housing. $3.7 million to HumanGood Affordable Housing's South Yakima Senior Housing facility. The funding is expected to create 66 units of housing. $2.2 million to Mercy Housing Northwest for 80 units of affordable housing at a development referred to as 35th and Pacific Maria Lee, a spokesperson for the City of Tacoma, said the money will go toward the 'construction phase' of the projects. The projects were selected through an application process in 2024 administered by the Tacoma Community Redevelopment Authority. According to Lee, the city committed an additional $6 million to Aviva Crossing through a similiar funding oppurtunity in 2023. Lee said the priorities for affordable-housing projects are consistent with priorities previously identified by the Tacoma Community Redevelopment Authority. According to a city memo, households served by the projects must have incomes below 60% of Area Median Income (AMI), and some projects include lower income limits, such as below 50% AMI or below 30% AMI. Tacoma's AMI is $83,857 per household, according to the most recent U.S Census data from 2023. According to a memo from the city, a goal is to 'decrease the percentage of individuals who are spending more than 45% of income on housing and transportation costs,' a burden felt disproportionately by Tacoma's Black and Pacific Islander households. 'As of the last reported U.S. Census Bureau American Community Survey 5-Year Estimates, 51% of people in Tacoma are experiencing renter cost burden, meaning they pay more than 30% of income on monthly housing cost expenses,' the city's memo states. Money for the projects comes from the city's Affordable Housing Fund, which raises money through sales-tax revenue. One-time general fund contributions can also be allocated to the Affordable Housing Fund periodically by the City Council. The fund contributes to contracts which can extend to 2031. Completed projects funded by Tacoma's Affordable Housing Fund include: The Shiloh New Life Apartments operated by Shiloh Baptist Church which the city committed more than $4.4 million towards to create 60 affordable housing units. Tahoma Place operated by the Korean Women's Association, which received more than $1.9 million to create 87 affordable housing units. Other projects that have received committed funding from the Affordable Housing Fund are still under construction or in pre-development. Some of those projects are: Patsy Surh Place, for which the Low Income Housing Institute received more than $1.4 million from the city to create 77 units. Viridian Grove, for which Southport Construction received $2 million from the city to create 98 units. Lincoln District Family Housing, for which the Low Income Housing Institute received $4 million to create 72 units.
BBC News
16-03-2025
- Business
- BBC News
West Devon Borough Council launches plan to ease housing crisis
A Devon council has agreed an annual housing action plan that aims address housing shortages and increased demand for temporary plan, agreed at West Devon Borough Council's hub committee on 11 March, identified a number of projects to help increase the housing council said it was already working towards a number of recommendations outlined in the Devon Housing Commission report published in July 2024. Councillors also agreed to charge council tax premiums on second homes. The authority said projects which have been identified as part of the action plan include:Three new flats on Plymouth Road in Tavistock to be used as temporary accommodation for homeless householdsThe purchase of eight homes through the Local Authority Housing Fund, with plans for a further three, attracting 40% in government grants for match fundingSixteen new energy efficient lower cost homes in Lifton, delivered by Plymouth Community Homes, with 10 offered for social rent and six through shared ownership Expansion of Pilchers Field in Crapstone, providing five new assisted supported living homesIt said they would be delivered through the council's housing and homelessness strategies. 'Housing crisis' From 1 April, councils will be able to charge up to two times the normal council tax on second to the scheme, councillors said the money it raises would be set aside to improve housing in the borough. Councillor Mark Renders, hub member for Housing at West Devon Borough Council, said: "We are proud of the work we are doing to help tackle the housing crisis and we remain committed to supporting our residents with their housing needs."
CBC
24-02-2025
- Business
- CBC
More money for more homes: Federal government, N.L. announce $44M in construction funding
The latest in a string of funding announcements made by Newfoundland and Labrador's provincial government since January took place at a construction site in Clarke's Beach on Monday. A $44-million commitment was made between the provincial and federal government's to help build over 280 new homes in the province. The location of the announcement is the where six affordable rental units will be built, using $300,000 from the province's Affordable Housing Fund. That fund provides money through low-interest and forgivable loans or contributions to partner organizations. "A lot of these units that you see here will probably be for seniors," said Avalon MP Ken McDonald, who isn't seeking re-election federally but is "leaning toward running provincially." But Monday's announcement includes 26 projects total. The province previously contributed 17.9 million. On Monday, the federal government added $26 million. McDonald said as the population ages, more homes will become available for rent or redevelopment to accommodate cheaper apartments for those struggling to find a place to live. Avalon MP Ken McDonald and Harbour Grace-Port de Grave MHA Pam Parsons announced the funding on behalf of the federal and provincial governments, adding that McDonald is "leaning toward running provincially" in the upcoming election. Area MHA Pam Parsons told reporters two more projects are already being planned for Bay Roberts. "We'll see a significant number of homes as well," she said. "It's good news all around." Access to housing is a problem in the province. Emergency shelters like the Salvation Army's Wiseman Centre and The Gathering Place in St. John's are constantly at capacity. Kim Grant, associate executive director of The Gathering Place, said their shelter has 40 beds, but they hope to have more with the opening of 53 transitional and supportive housing rooms within the next two months. Pam Goodyear at the Salvation Army shelter in St. John's says the shelter's 21 beds fill up every night, but it needs more money to keep up with demand. The units announced by the government on Monday are projected to cost between $665 and $880 a month.
Zawya
20-02-2025
- Business
- Zawya
Iraq unveils new housing strategy to boost affordable homeownership
Iraq is revamping its housing investment strategy, shifting away from traditional real estate models in a bid to expand homeownership and address housing shortages. Mudher Mohammed Saleh, Financial Advisor to the Prime Minister, told Zawya Projects that this initiative is part of Iraq's goal to provide one million residential units in newly developed urban areas across the country. 'The policy emphasises the development of new urban centres, moving away from previous practices of constructing housing within existing central urban areas,' he said, adding that the focus will be on developing well-planned communities with modern infrastructure to enhance the quality of life for residents. The new policy advocates a mix of direct distribution and subsidy-based solutions to provide sustainable and affordable housing to Iraqi citizens. Saleh explained that direct distribution involves acquisition of completed properties from developers and distributing them to low-income beneficiaries through affordable monthly payment mechanisms. Additionally, the government plans to offer subsidised housing loans through the Real Estate Bank and the Housing Fund. 'These instruments are intended to support individual home construction and purchases, making housing more accessible to a broader segment of the population,' explained Saleh. Stabilise prices The official said he anticipates the new housing policy to stabilise property prices in urban areas. 'By increasing the supply of housing units and offering diverse options, the government aims to align property values with their true market worth, making homeownership more attainable for citizens,' he said. He added that ultimately, this initiative aims to address long-standing housing shortages exacerbated by decades of conflict and economic instability. 'By combining vertical (apartment complexes) and horizontal housing (single-family houses) solutions with government-subsidised construction materials and financial support, the policy seeks to create sustainable, affordable living environments across the country,' Saleh noted. (Reporting by Majda Muhsen; Editing by Anoop Menon)
