AFFORDABLE HOUSING FOR YOUNG FAMILIES PROGRAM TO OFFER BETTER CONDITIONS

PanARMENIAN.Net
May 17, 2010 - 14:10 AMT 09:10 GMT

Armenian Deputy Minister of Sport and Youth Affairs Arsen Karamyan
said that the Affordable Housing for Young Families program will
offer better conditions within a month.

Specifically, they will refer to age restrictions, initial payment
and loan terms, Mr. Karamyan told a press conference in Yerevan.

"The program has faced some problems in practice, and the Armenian
government voiced willingness to amend it to make it more flexible
and affordable," he said.

According to the Deputy Minister, the changes will make the mortgage
loan more affordable; however, the state cannot imperatively make
various suggestions at the real estate and financial markets, as it
would be an incorrect step under market economy. "But one should
understand that we deal with vulnerable groups of population, and
the state should secure some assistance to them," said Karamyan,
adding that this is also a task of demographic security.

Besides, from August-September, programs on social construction will
kick off in Syunik and Tavush regions of Armenia under the government's
concept on equal development of the country's regions.

These programs aim to provide young families with the opportunity to
purchase dwelling.

"I consider social construction in regions to be of keen importance,
as such projects have not been implemented in the regions since
Armenia regained independence, except for the 1988 earthquake zone,"
the Deputy Minister said.

20 young families received apartments under the Affordable Housing
to Young Families program as of today, while 60 applications are
currently being considered by banks.

The Affordable Housing for Young Families program was approved by
the January 29, 2010, sitting of the RA government. All the families
wishing to get a loan should meet certain requirements: family's gross
income should amount to approximately AMD 300-350 thousand, including
incomes of all family members. Besides, the "young family" definition
means family, where the spouses' cumulative age doesn't exceed 60 and
none of the spouses is over 35. The definition also covers families,
where the age of the only parent does not exceed 30. The maximum amount
of loan under the program totals AMD 16mln with 15-year payment term.