Mai Abdel Hamid, CEO of the Social Housing and Mortgage Finance Support Fund, revealed details of the new housing offering under the rental and rent-to-own systems, confirming that the Fund is preparing to offer 15,000 housing units under the subsidized rental system during the current month of August or early next September, alongside the offering of 5,000 units under the rent-to-own system through the New Urban Communities Authority.
Mai Abdel Hamid said that the units to be offered through the Fund will be distributed among new cities and governorates, in addition to a number of units in some villages developed as part of the presidential “Hayah Karima” (Decent Life) initiative, noting that the locations of the units will be highly diverse to meet citizens’ needs.
She added that the rental system is particularly aimed at young people, newlyweds, and groups who may need greater housing flexibility due to work conditions or relocation between areas. She explained that the rental period will be three years, renewable for another three years, bringing the total period of benefiting from the system to six years.
The CEO of the Social Housing and Mortgage Finance Support Fund confirmed that the rent will be subsidized, with citizens required to submit proof of income, while the rental value may not exceed 25% of their monthly income. She noted that the goal is to provide citizens with suitable housing at prices compatible with their financial capacity.
She explained that citizens will have the option to switch from the rental system to ownership after one year of receiving the unit if their financial circumstances improve and they meet the ownership requirements. She noted that the installments paid during the rental period will be counted toward the down payment for the unit when switching to the ownership system.
She added that the subsidy received by the citizen during the rental period will be counted toward the cash subsidy allocated to them when switching to ownership. The remaining value of the unit will then be determined according to the applicable financing rules, with the possibility of paying the remaining amount in installments over a period of up to 20 years at a declining interest rate of 8%, in accordance with the mortgage financing system applied under the ownership program.
Regarding the unit sizes, Mai Abdel Hamid explained that the units offered will come in various sizes, including 75 and 90 square meters, giving citizens the opportunity to choose according to their needs.
She pointed out that details of the cities included in the offering and the application requirements will be fully announced through the terms and conditions booklet and the Fund’s official statement before reservations open. She explained that the application process will be entirely electronic, as is the case with all of the Fund’s housing announcements, from application registration through electronic sorting and screening stages.
She added that accepted applications will be referred to the relevant authorities, whether housing directorates, governorates, or new city authorities, to complete the procedures and sign the required documents.
Regarding the 5,000 units under the rent-to-own system, the CEO of the Social Housing and Mortgage Finance Support Fund explained that they will be offered through the New Urban Communities Authority at approximately the same time.
She noted that the eligibility requirements will include several conditions, including that applicants must be no older than 35 and must not have previously received a state-subsidized housing unit or own a residential unit.
She confirmed that setting the age limit at 35 was based on the program’s primary target of newlyweds and young people who have not had the opportunity to own a home. She noted that the goal of the new system is to provide a flexible alternative for those who need rental housing at a particular stage of their lives.
She noted that the current offering represents an initial pilot to measure demand for the rental system. If there is strong demand, the Fund will consider expanding the system in future offerings or modifying some of the eligibility requirements based on citizens’ needs.
Mai Abdel Hamid concluded her statements by emphasizing that the rental program represents a new addition to the social housing system, providing lower-income groups with an opportunity to obtain suitable housing while also offering the possibility of eventually transitioning to ownership for those who wish to do so and meet the required conditions.