Financial Mirror (Cyprus)

Government housing a disaster waiting to happen

- Μy Antonis Loizou Antonis Loizou F.R.I.C.S. is the Director of Antonis Loizou & Associates Ltd., Real Estate & Projects Developmen­t Managers Antonis Loizou F.R.I.C.S. – Real Estate Valuer, Estate Agent & Property Consultant

Two months ago, we published our difference of opinion regarding the Limassol Municipali­ty to undertake an extensive housing developmen­t project in collaborat­ion with the Housing Developmen­t Organizati­on.

This is a dream that the Limassol Mayor and his Council have for their town.

Still, it is a dream that is not only non-attainable but will cause social and economic hardship for the Municipali­ty, the cost of which will run into millions in unpaid/uncollecte­d dues.

Interferen­ce of local politician­s in choosing candidates, the illegal extensions, the occupation of common use areas (quite normal in existing government housing units), nonpayment of common expenses and the possible compensati­on the Municipali­ty may have to pay for the expected 150 existing tenant families to be relocated are some of the problems.

As if we were in accord with the Ministry of Interior, the Minister last week recorded thousands of titles of government housing units that are not capable of being issued due to the tenants’/occupiers’ interferen­ce with the project.

He quoted as an example a refugee who was granted free of charge a building plot, on which he built a small house subsidized by the State.

After 38 years, the house is in a bad state due to the lack of maintenanc­e by the beneficiar­y, and the Minister added that the government would help out with the repairs required.

Never-ending subsidizin­g will be a regular occurrence for the Limassol affordable housing project.

The result is that we expect the project proposed will need to be substantia­lly and constantly subsidized by a new generation of Limassolia­ns from whom we will expect a reaction both for financial and social reasons.

Unfortunat­ely, the prevailing attitude of the public is that government land (or Municipal) and subsidies are for free for everyone to exploit for their benefit.

We wonder if there is a feasibilit­y study to include our financial concerns and the social side effects this project will have.

This will come up after 3-4 years from completion of the project when the problems will emerge (including the creation of ghettos) a similar situation that exists at present with the ageing refugee estates, which create problems in managing and cohabitati­on (see recent criminal events regarding parking spaces).

Government housing is not something new, and we should avoid the mistakes of more advanced countries such as the U.K., where thousands of apartments [Council Flats] were constructe­d by local Municipali­ties, but over the years, they realized they could no longer afford to continue.

As such, they decided to sell them; a similar situation exists for the Cyprus refugee housing estates, where millions of euros are due, including illegal extensions, etc., and constant demand for upgrading. Limited upgrading of the housing units done by the government over the years and bad management/occupation of such units create a neverendin­g black hole of the much-needed euros to disappear in the thin air.

We believe that we express the general belief that we have had enough with the fine-sounding announceme­nts (partly to do with the pending Municipal elections).

Alas, the existing Municipal Council/Mayor will not be there to realize their mistakes (or our prediction­s).

The House Interior Committee on the prevailing problems of state housing was happy to declare that “it understand­s the Government’s problems, but it should try to resolve them” – what does this mean?

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