The Government is updating the existing income criteria in relation to the rental subsidy, as stated on Tuesday by the Minister of Interior, Konstantinos Ioannou, before the Refugee Committee of the Parliament, during its last session with its current composition. The Minister also said that increasing the housing stock is the main means of addressing the rise in prices in the real estate market. "Our efforts are mainly focused on increasing the supply, so that a balance is reached and prices are decompressed," he said. Both during the discussion within the committee and in subsequent statements, Konstantinos Ioannou reviewed the last three years, stating that the most important reform concerns the amendment of the legislation on Turkish Cypriot properties, with the aim of ending phenomena of opacity and abuse.
Regarding the rental subsidy, he said that the existing income criteria will be updated, as it is found that several potential beneficiaries are left out. He added that outdated provisions regarding the calculation of income between members of a couple will also be revised. He clarified, however, that it is being examined whether it is feasible to simultaneously increase both the income limits and the subsidy amounts.
The Minister also provided specific information regarding changes made to the Welfare Service's plans, "resulting in a 90% reduction in complaints, an increase in beneficiaries and a reduction in the time it takes to review applications to six months."
He also said that by a recent decision of the Council of Ministers, and following recommendations from the Refugee Committee, an additional 20% subsidy was granted to housing projects for remote, mountainous and disadvantaged areas.
Referring to the "I BUILD" project, he spoke of a holistic approach to the problem of apartment buildings in refugee settlements, pointing out that the committee's contribution was decisive.
He added that, in parallel with the implementation of the housing policy, a major reform of development licensing has been implemented, with the introduction of fast-track licensing procedures within 40 working days for low-risk developments and within 80 days for medium-risk developments. So far, more than 5.000 units have been approved through the fast-track and automatic process, which will enter the market much earlier than expected. “Our effort, the bulk of our actions, is focused on increasing supply,” said the Minister of Interior.
Regarding the delays in the program, he attributed the problems mainly to the unwillingness or difficulty of cooperation on the part of beneficiaries, as well as to practical issues such as the establishment of management committees, cases of deceased beneficiaries or refusal to move. As he said, these issues slow down the progress of the projects.
In response to a question about the differentiation of the subsidy per region raised by MPs, he replied that it remains uniform on a pan-Cyprus basis.
In relation to the repairs of Turkish Cypriot homes, it was reported that the current limit of 45.000 euros is considered low in relation to the actual cost. As noted, unit prices will be revised to reflect market levels.
Konstantinos Ioannou also said that the support of the Parliamentary Refugee Committee regarding the implementation of the "BUILDING" Plan was decisive, expressing gratitude for their support, stating that "all of them, without exception, exceeded party aspirations and demonstrated a high sense of responsibility towards the refugee community."
During the discussion, it was mentioned that for 2026, funds of 230.000 euros are planned for repairs and 500.000 euros for visual inspections.
During the discussion, AKEL MP and President of the Refugee Committee, Nikos Kettiros, requested information on the increase in the subsidy and the timing of the payment of the amounts. He stressed that, although the goal of examining applications within six months has almost been achieved in all provinces, there is still a delay in the payment of the amounts due.
DISY MP Rita Theodorou Superman referred to complaints from young people who, although approved for housing projects, are unable to secure loans due to income criteria. She also pointed out difficulties in paying the down payment, which could solve housing problems. At the same time, she raised the issue of supporting other housing projects, such as those for remote areas, while requesting information on the progress of the "I Build" project and the reasons for the delay.
DIKO MP Zacharias Koulias raised the acute housing problem, especially for the refugee community, emphasizing the need for the state to provide assistance, as – as he mentioned – the economic conditions make it extremely difficult for a young couple to acquire a home. He suggested, among other things, the development of apartment buildings for housing young couples.
Securitization of housing in housing estates in the Cabinet
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In statements after the meeting, the chairman of the Refugee Committee and AKEL MP Nikos Kettiros said that next Thursday the decision to securitize housing in settlements in which there are minor violations will go before the Council of Ministers.
"The decision will be issued next Thursday and from now on, title deeds or lease certificates can be issued for these residences with a note as is the case for all other residences," he said. He also noted that in the immediate future, "the update of the criteria for the rent subsidy will proceed. The income criteria will be increased and the anachronistic distortion that only calculates 50% of the income for wives will be deleted." He added that commitments have been secured for the submission of amending legislation (with the new composition of the parliament), regarding the management of Turkish Cypriot properties, specifically professional rentals, holiday homes and agricultural properties.
DISY MP Rita Theodorou Superman said that a fundamental question arises regarding the welfare plans and the plans for remote areas. “Why do the welfare plans offer a smaller amount than the plans for upgrading remote areas? When the state gives increased incentives to specific areas without ensuring that the refugees themselves can benefit in practice, then the impression is created that these people are being used as a policy tool and not as its focus,” she said. She also touched on the fact that “young people are rejected because they are considered to have sufficient income” while some are approved and cannot secure bank financing.
"That is, we have a system where neither those who can get a loan are approved nor those who are approved can proceed, and despite repeated questions, no answer has been given to the most crucial question - how many of the approved beneficiaries have ultimately secured financing and implemented the plans? Because that is where success is judged, not in approvals but in results," he said.
Regarding the "BUILDING" plan, he said that "the responsibility cannot be transferred to citizens because they do not have the financial capacity to respond." "The state has the responsibility to design policies that can be implemented, there are people who do not refuse to pay, they simply cannot. They are low-income pensioners, they are elderly, they are families with low income. The state cannot operate with the logic of whoever can afford it," he said, adding that it is not enough to increase spending, but the goal is "to solve the problems and today, unfortunately, refugees do not see solutions but rather obstacles."
DIKO MP Zacharias Koulias highlighted the issue of housing as the biggest issue. He stated that “approximately 1000 approvals for refugee housing are pending and our request to the Minister was to build new apartment buildings or settlements, at least one in each city, so that these requests, which have been pending since 2013, when the economic crisis broke out, can be resolved.”
"This must be considered in parallel with the great housing crisis that young couples are facing," noted Mr. Koulias. "I even explained to the Minister that every child born contributes 1 million to the state in taxes," he added.
Particularly with regard to the refugee community, who, as he said, lack the ability to take out a mortgage for lending purposes, he stated that it is very important for the state to intervene immediately.
He also mentioned that a large portion of the refugee population is housed in Turkish Cypriot homes, without having a title deed.
In his statements, DIPA MP Giorgos Penindaex expressed satisfaction with the increase in the housing stock by 2.500 units, mainly for young couples.
Referring to the "I BUILD" project, he noted that two apartment buildings on Tinou and Gypsou streets in Kokkines are expected to be delivered in May, while another four will be delivered within the year. The rents of the displaced people in these apartment buildings are covered by the state until their return.
Finally, he expressed concern about the refusal of banks to grant loans to the displaced, calling on "the Equal Burden Distribution Agency, which has the financial strength, to give interest-free loans to the displaced and in this way, with low-interest installments, to cover their loans."
Source: KYPE
