A new affordable housing scheme is being introduced for low-income earners.
In a press conference this morning, Parliamentary Secretary for Social Housing Roderick Galdes announced that €10 million project is underway which will see 118 apartments erected for individuals and families who cannot afford to rent property and don’t qualify for social housing.
The apartments will be built in the tal-Patri area of Fgura and will be rented out as low as €300 for a one-bedroom and as high as €500 for a three-bedroom. Rent prices will be fixed for a five year period.
Those who qualify for the housing scheme will be assessed on a criterion that takes into consideration their family composition and income, which needs to be three times the cost of rent per month.
This means that, in order to be eligible for a one-bedroom apartment at €300, one will need to earn a minimum of €1,000 per month.
Those on the social housing list or who can afford a bank loan to purchase property will not be eligible for the scheme.
“We believe that the state should have a more direct and active interest in providing adequate social housing and to see that there is a market of affordable rents for persons with low income, as well as to regularise the rental market,” said Housing Authority CEO Leonid Mackay.
The scheme is for non-profit and self-financed by local banks who will be paid from the rent collected from the apartment.
“The idea would be for the rent payments to go towards the bank loans the authorities have taken to fund the building. After that the revenue generated will go towards further investment in projects of this kind,” said Galdes.
The project does not currently have a completion date.