Brasilia. During a ceremony, President Luiz Inácio Lula da Silva presented a new law for social housing.
The expansion of the “Minha Casa, Minha Vida” (My House, My Life) program aims to subsidize housing for low-income Brazilians, especially in central regions of cities. The aim is to build two million new social housing units by 2026. The law has already been approved by Congress and is expected to go into effect this year.
On Twitter Lula expressed confidence in the law reform. With “much more government subsidy and the lowest interest rates on the market,” families earning up to two minimum wages can realize their dream of homeownership, according to the head of state. The houses would be bigger and better. “Minha Casa, Minha Vida” is back “to make the eyes of the Brazilian people shine,” it said.
The new regulations of the social housing program provide for an adjustment of the living space, so that houses must be at least 40 square meters and apartments 41.5 square meters. From now on, apartments should be equipped with balconies. In addition, residential complexes are to be equipped with common rooms such as libraries or sports facilities.
As a result of the law, new financing rules come into force. The loan interest for the financing of new or existing real estate is to be lowered and the family income is divided according to salary brackets, which decide on financing options.
Families in urban areas with a gross monthly income of up to 8,000 reais (approx. 1,480 euros) and households in rural areas with a gross annual income of up to 96,000 reais (approx. 17,800 euros) have the opportunity to receive financial aid. The measures provide for the prioritization of families with the lowest income within the subdivision. At the same time, the middle class should also benefit and have easier access.
In order to meet the need for social housing for the disadvantaged population, abandoned buildings and state-owned land are to be converted into social housing. According to Lula, there is a high housing deficit in Brazil of between six and seven million homes. The National Institute for Social Security (INSS) alone has over 3,000 buildings and properties in the centers of large cities. Here in particular, plots of land should be used because of their connection to the necessary infrastructure such as schools, hospitals or public transport.
“Minha Casa, Minha Vida” was launched under Lula’s mandate in 2009 to improve access to housing for low-income families. Since then, more than six million residential units have been built.
The program was transformed into “Casa Verde e Amarela” (Green and Yellow House) during Jair Bolsonaro’s previous presidency. The Lula government resumed the original program. More than 10,000 apartments have been handed over since the beginning of the year.