CAIRO: The bylaws of the Mortgage Finance Fund has been amended to counter manipulation in the sale of condominiums allocated for people with low and mid-level incomes, Chairman at Mortgage Finance Fund (MFF) May Abdel Hamid told Al Ahram newspaper on Friday.
Those who have sold or leased condominiums without the permission of the MFF will be subject to a 50,000 EGP fine and one year imprisonment, said Abdel Hamid.
State Notary offices nationwide are instructed not to authorize sales or lease contracts for any of the residential units allocated by the MFF, she added.
“The MFF will conduct inspection visits to random units to ensure that they have not been sold or leased,” added Abdel Hamid.
In order to prevent any manipulation, Abdel Hamid said that the Bank will take the title of the debtor’s property on condition that the conveyance of the title is voided upon the payment of the debt.
On Feb. 18, the Central Bank of Egypt (CBE) launched an initiative to allocate 10 billion EGP for low-cost housing projects, to be deposited to banks for 20 years at a low yearly interest rate ranging from 7-8 percent, according to MENA.
Hisham Ramez, the Governor of CBE, said that the initiative aims at boosting the construction and real estate sectors.
CBE will provide such loans to banks, which in turn are due to lend at 7 percent interest rate annually for low-income people, while it will arrange loans for middle-income people at an 8 percent interest rate, according to CBE’s statement.
“An initiative floated to finance 100,000 housing units for low income people will be expanded to include all governorates nationwide,” Minister of Housing Mostafa Madbouly told the state run MENA.
He also pointed to an agreement that was signed between Egypt’s Armed Forces and the UAE’s Arabtec Construction Co. to build one million housing units over five years for the low-income brackets in Egypt.
The Ministry of Housing has placed advertisements in the state-run newspaper saying that the price of the units range from 75,000 to 112,000 EGP, with a down payment that ranges from 15 to 40 percent depending on the buyer’s income.