EghtesadOnline: based on a government decree, the individual loan ceiling for the improvement and reconstruction of housing in rural areas and towns with populations under 25,000 (2024 allocation) will increase to 400 million Toman, with compliance to national building regulations for at least 200,000 units. These loans will have a civil partnership and installment sales period of 20 years.
Although the eligibility for these loans requires the applicant not having benefited from previous banking loans for special rural improvement programs, senior officials from the Housing Foundation of the Islamic Revolution stated that whenever the disbursement of rural housing loans gained momentum, the reconstruction and renovation of rural homes also accelerated.
In 2005, the government approved a program to increase the ceiling of loans by 15% annually. The scheme started with a loan ceiling of 5 million Toman. However, during the 13th government, a sudden decision increased the ceiling to 350 million Toman for 350,000 housing units. The "Rural Housing Reconstruction and Renovation Program" has been targeting the reconstruction and renovation of 200,000 housing units annually since 2005. In the period from 2005 to 2011, the program successfully completed 1,167,504 housing units in rural areas and towns with populations under 25,000. However, by the early 2010s, with inflation rates not aligning with the loan amounts, the program's performance declined sharply.
According to a report from the Parliamentary Research Center, after 19 years of the "Rural Housing Reconstruction and Renovation Program," around 41% of rural housing units (about 2.5 million homes) and 8.5 million people residing in them remain dilapidated and need urgent action to prevent potential risks.
In an interview with *Eghtesad Online*, Gholamreza Salehi, the head of the Housing Foundation, responded to the question regarding a recent report from the Parliamentary Research Center, which indicated that despite 19 years of the "Rural Housing Reconstruction and Renovation Program," around 41% of rural housing units are still in poor condition, saying: "No development program in the country (including the 4th, 5th, and 6th development plans) has been more successful than rural housing."
He continued: "It is important to mention that since 2005, the rural housing reconstruction and renovation program has been aiming to renovate and upgrade 200,000 housing units annually. However, there were years when the program and housing loans were not issued."
In response to the question of whether the proposal is made to suggest that the Housing Foundation lacks the ability to build and renovate rural housing, or if this might lead to discussions about the Ministry of Agriculture's involvement in rural housing renovation, Salehi clarified: "In the 7th development plan, the tasks and responsibilities of the Housing Foundation have been clearly defined. The important point is that the Housing Foundation has been the only organization that has fully absorbed its allocations without any violations, particularly regarding bitumen allocation."
Salehi added: "Currently, the Housing Foundation is working to ensure that the 400 million Toman rural housing loans are issued by the Central Bank as soon as possible. This funding will greatly assist in the reconstruction and earthquake-proofing of rural homes."
He further mentioned: "Our goal is to increase the reinforcement of rural homes to 70% by 2026. If we compare villages hit by earthquakes before reconstruction with those that have undergone renovation and reinforcement, we will clearly see how beneficial and effective this program and the loan provision can be."
In response to the question about the recent Cabinet approval to raise the rural housing loan ceiling to 400 million Toman, Salehi stated: "Currently, the Planning and Budget Organization is issuing the guarantee letters for the 400 million Toman rural housing loan. Once these guarantee letters are sent to the Central Bank and communicated to the banking system and branches, loan disbursement will officially begin."
When asked whether the 400 million Toman rural housing loan would be available from December, Salehi answered: "It is highly likely that once these procedures are completed, the loan payments can begin from December."
Salehi emphasized: "Rural housing loans, with their low interest rates, are expected to be well-received by applicants. We hope banks will cooperate effectively, allowing us to reach 70% rural housing reinforcement by 2026."
