The Social Cohesion and Family Ministry is expected to sign by summer the first four ministerial decisions that will specify the terms under which construction companies will build social housing on state property.
The project is part of the government’s efforts to tackle a lack of available and affordable housing in Athens and around the country.
Modeled after the old “antiparochi” housing system, whereby landowners partnered with developers to replace old houses with apartment buildings in exchange for a share of the new apartments, the new system will require that construction and renovation are carried out exclusively with private funds, without burdening the state budget.
Some properties will be made available at a low rent to low-income citizens. The first eight state properties that will be developed are in Paiania, eastern Attica, Serres in northern Greece, Larissa in central Greece, and Kalamata and Pyrgos in the Peloponnese.
The ministerial decision will offer two implementation models. In the first, the contractor will complete the project and leave, receiving a percentage of the houses or the proceeds from their sale. In the second, the contractor will undertake the management of the properties, leasing houses, collecting rents, handling maintenance and representing the state in relations with the tenants.
Contracts that include the management of the properties could have a duration of up to 50 years to ensure the long-term operation of residences with stable rules, and the repayment of the contractor’s investment.