At the discretion of the Ministry of Housing, the fact that within the adjustments made to Mi Casa Ya, priority is considered in assigning points to applicants in category 5 and 6 municipalities (up to 20 points), this in order to ensure that the program reaches municipalities that have been neglected, which will help the sector in these areas.
(See: Housing: rate hike would affect builders and buyers).
“With the growing demand and allocation of subsidies in the smallest municipalities, it is expected to encourage the supply of VIS housing in these areas of the country, linked to more regional builders and strengthening the role of small builders in the development of VIS housing in the country. ”they recognize.
In addition, regarding the slowdown in the sector, rThey recognize that although the construction of buildings is not the main generator of added value in the country, it has a participation of 2% in GDP and it is located as the activity number 15 among 61 that contributes the most to the economy.
“The construction of buildings is characterized by being a fundamental activity in terms of economic dynamism and job creation, thanks to the fact that it has direct, indirect and induced effects on other sectors and household income due to its high productive chains. This is not going to change”they remark.
(See: Home automation, the new home buying trend in Colombia).
In fact, they point out that although the Colombian economy, and especially the construction sector, has not gone through a good moment, yesand expects a speedy recovery thanks to the normalization of the current situation and the commitment to the industry.
“The gradual normalization trend of monetary policy intervention rates together with the commitment of the financial sector should lead to a consequent decrease in the financing rates of mortgage loans, which added to the guarantee of subsidies from Mi Casa Ya , which already shows high allocation rates, should translate into greater confidence among households buying homes in the low-income segmentthey say.
“The objective of the Ministry will be to provide a decent housing solution to more and more Colombians, this must be aligned with the macroeconomic and fiscal reality of the country.”, they conclude.
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The three proposals to recover the sector
In order to get out of the situation that threatens the viability of projects, savings and continuity of the sector as we know it, Camacol proposed to the Government three alternatives to once again recover one of the economic engines of the country.
1. Stay up to date with Mi Casa Ya.
After more than eight months of talks, the Government announced that with the budget addition of more than $1 billion, it would be possible to complete nearly $2.2 billion for the Mi Casa Ya program, which would make it possible to give 75,000 subsidies.
However, according to the union’s calculations, 105,000 subsidies are necessary for this year, taking into account that by April there are more than 52,000 households that were waiting for financial relief.
(See: 40% of home buyers do not have Sisbén).
However, due to the economic situation and the withdrawal of projects, the goal of 105,000 dropped to 90,000.
In this way, Camacol points out that at least 15,000 subsidies and about 33,000 coverage at the (fresh) rate are needed to stay up to date.
2. Appropriate budget resources for 2024.
Guillermo Herrera, president of Camacol, pointed out that in order to work on the countercyclical strategy announced by the Government and bet on the sector, it is necessary to appropriate budgetary resources for 2024 in order to support more than 10,000 VIS units that already have 70% marketed and one year of presale.
3. a transition regime is necessary.
The union is emphatic that “a transition process is necessary so that households continue (which they have already bought) with their real estate businesses and businessmen can close the projects they have and launch others” and avoid further damage.
‘Resources are not unlimited’: Minvivienda
Portfolio consulted the Ministry of Housingabout Camacol’s proposals to reactivate the industry, to which he replied that although they share the interest of the builders to continue maintaining Mi Casa Ya as one of the protagonists of the housing policythe Government must seek the best use of available resources, and recalled that it is not about unlimited funds.
“The objective of Mi Casa Ya has never been to cover the entire VIS housing offer on the market, but to provide support for the acquisition of the most vulnerable households, and that is what is sought through the adjustments made”, the entity pointed out to this medium.
In addition, they point out that the Government received a program with a huge gap between market expectations and the availability of resources, for which they decided to change the rules of the game.
About the transition processthe Ministry of Housing indicated that it does not increase the application procedures and access to the benefits of the Mi Casa Ya programsince this process guarantees that the subsidies benefit a greater number of vulnerable households.
“At the end of 2022, Sisbén IV had coverage of about 60% of the population and 70% of Colombian households, which shows that it does not constitute an access barrier”they say.
Likewise, they recall that in the new targeting the D20 group is taken into account in this process, which even covers families that have up to 4 minimum wages of income, so they do not consider change to be a barrier.
“Taking into account that there are households that meet the new requirements and have an advanced home purchase process, the allocation of those families that are scheduled to sign deeds within six months after the issuance of the Decree is being prioritized”. This makes it possible to reduce the stock of already completed homes and prevents withdrawals.
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