Brazil gov't to resume building of affordable housing

The federal government is to resume the building of over 10 thousand housing units as part of the previously interrupted Minha Casa Minha Vida affordable housing program, according to an official announcement made Thursday (Aug. 11). The government will also allow families with a gross monthly income of up to $750 to benefit from the initiative.

According to the program's website, funds will be made available for units of up to $43 thousand, at an interest rate of 5% per month. First launched under former President Lula in 2009, Minha Casa Minha Vida is an initiative that makes it easier for low-income families to purchase their own house. It serves families in need of housing according to location (country or city), income, and the price of a housing unit.

The plan also helps increase employment and raise income in construction. Due to the economic crisis facing the country and its impact on the public accounts, a number of units had been put on hold.

New deals

In his statement, Cities Minister Bruno Araújo announced that “funds adding up to $1.2 billion will be made available to families with a monthly income of $750.” Some 40 thousand new housing units are expected to be contracted.

According to the minister, acting President Michel Temer had already declared that 4,232 units were to have their construction resumed.

“Of the 50 thousand halted units, there remain a total 35 thousand units. We're committed to bringing it down to zero,” he pledged.

Since 2009, the federal government invested $98 billion in the Minha Casa Minha Vida program with a view to contracting over 4.3 million housing units, which, according to data from the ministry, benefited 3 million families across the country. “I take this opportunity to announce that we will contract 600 thousand units in 2017,” said the minister.

Government plan

Acting President Michel Temer said that resuming the works under Minha Casa Minha Vida will help the country make social strides on a number of fronts, as the initiative “serves those with a lower pay, generates employment, and boosts the private enterprise.”

“[Minha Casa Minha Vida] is a government project, not the project of individuals,” the interim president noted. The program, first launched in 2009 under former President Lula, was designed to make it easier for low-income families to buy their own house.

“We shouldn't regret what happened. Rather, we should say that this is the situation, and that we will move forward,” Temer highlighted. “Prosperity isn't possible without civil construction, since our needs in infrastructure are dire,” he added. “We know that there's a portion of the population that's still below the extreme poverty line, and that's what justifies Minha Casa Minha Vida, now that we've reviewed it.”

Translated by Fabrício Ferreira