Will Housing Become Affordable?

As Turan reported yesterday, the presidential decree established the State Housing Agency in the form of a limited liability company (http://www.president.az/articles/19226).

The document approved the charter and structure of the agency with 60 employees. The initial authorized capital of the organization is defined in the amount of 10 million AZN. It will be the only customer of the construction of multi-storey buildings in the residential, public and business areas, and it will also participate in the construction of other facilities. The Supervisory Board will include 5 members elected for a term of 3 years and meet at least 1 time in 3 months. It is able to appoint an Executive Director and his two deputies.

The agency, which will operate under the overall supervision of the head of state, is designed to encourage the construction of apartment buildings and create good conditions for the citizens, and to organize the effective use of funds allocated for the construction of multi-storey housing.

Construction contractors will be identified in compliance with the law "On public procurements". According to the Regulations on the activities the agency will have an independent balance sheet, treasury and bank accounts, personal attributes, including seals, stamps and letterheads.

Until now, the government has been repeatedly raised the issue of affordable housing and preferential mortgage lending. However, it was all about the benefits of banks that financed only those customers who received official salary equivalent to $ 800 or more, and were able to pay the initial payment at the level of 30% or more of the cost of the purchased housing. Such conditions are not practical for many residents of the capital, and especially for those in the province. --17D-