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Real Estate Sales More than 100,000 homes from the Procrear Plan remain paralyzed and there are construction companies at risk - Infobae

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More than 100,000 homes from the Procrear Plan remain paralyzed and there are construction companies at risk - Infobae
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June 05, 2024

The Ministry of Territorial Development, Habitat and Housing reported that budgets and contracts are being analyzed to establish a solution. Meanwhile, 4,200 thousand families cannot move forward with their homes and they owe construction companies $55,000 million


By Jose Luis Cieri

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It is estimated that among the urban developments there are 17,000 paralyzed homes. They are units that are delivered turnkey, private companies could finish them but everything is uncertain today

The Government faces the challenge of finishing more than 100,000 unfinished housing units inherited from the administration of Alberto Fernández . Among these works are 17,000 homes from the Procrear Urban Developments program, 16,000 units from the Construction line and others corresponding to the Rebuild and Active House-Own Home programs, focused on retirees, according to sources in the sector.


From the Argentine Chamber of Construction (Camarco) they confirmed that the Government's debt with companies is approximately $55,000 million. And they raise a question: if once the Bases Law is approved in the Senate, funds will be released to pay off those debts.

With the arrival of the new government, works stopped throughout the country, which caused the termination of jobs. Gustavo Weiss , head of Camarco, pointed out that “Procrear's debt is for works carried out last year. The Fernández government had paid a portion of those invoices quite well, but the work carried out in September, October and November fell due this year, and until now nothing has been paid.” Thus, the construction works of units in Procrear urban developments and other social housing plans are without activity.


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The fate of thousands of homes promoted by the State is uncertain. The housing deficit grows

Weiss added: “This meant, of course, the layoff of workers and surely some adjustment in the monthly payment structure, as we all did. The Government tells us all the same thing: There is no money , they have to wait, the priority now is fiscal adjustment. “That is the situation of public works, particularly in Procrear.”

To address the situation of unfinished homes, the Executive is contemplating an agreement with the private sector. The intention is for the Government to conclude the works with 80% progress and for the construction companies to take care of the rest, receiving part of the homes.

From the Secretariat of Territorial Development, Habitat and Housing, led by Rodrigo Aybar (who replaced Héctor Lostri when the area was in the Ministry of Infrastructure and now depends directly on the Ministry of Economy), it emerged that at this moment the trusts are being audited (Procrear, Social Housing Trust Fund and the Socio-Urban Integration Fund, FISU) by the General Audit Office of the Nation.


In addition, the option of municipalities contributing their own funds to finish some pending homes is being analyzed, although everything is just being analyzed.


While this is happening, and with a limited budget, tools were worked on to incorporate private parties and finalize the stock of housing under construction. Although the Housing Secretariat's budget for 2024 is USD 374 million, it could be insufficient to complete all the housing solutions under development.

Given the limited budget, the secretariat is working in both universes, in which not only the progress of the work will be considered but also the state of the committed infrastructure and other pertinent factors.

This week, Resolutions 361/24 and 368/24 (Rebuild and Own Home) were published, which allow the Social Housing Trust Fund to incorporate co-financing . Thus, the executing entities will be able to complement the financing of the National State with private, private contributions or other tools. This fund has approximately 49,000 homes under construction.

Beneficiaries in trouble

The tax cuts affect 4,200 beneficiaries (a number recognized by the Secretariat that has housing under its orbit nationwide) of the Own Home Construction line through Procrear II that were drawn in June 2022 , who did not receive the second disbursement planned in January and could not continue the work on their homes.

Only between September and October 2023 had they received (also late) the advance payment of 30% of the loan, about $3,000,000 of the total $10,000,000 of the plan, and all beneficiaries must have their own land.

Romina Nieva , from Paraná (Entre Ríos), left her home halfway built and is worried because in November she would have to start paying on her mortgage: “We don't think we can move because, if we don't receive money, we won't be able to continue building,” she said. to Infobae .


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There are more than 8,000 homes started throughout the country and the beneficiaries are waiting for disbursements to be able to continue with their Procrear plan, but it is not clear what will happen.

There are hundreds of cases like Nieva's in the country and many affected must continue renting or renewing contracts, when they could have already completed their home and begin paying a monthly fee of $90,000, adjusted by the Own House formula (which updates according to salary income and not by UVA).

“After two months in which Banco Hipotecario (Procrear's fiduciary entity) told us that they were delayed in certifying the photographs to grant us the first disbursement, the argument changed to that, due to Resolution 200/2024 of the Ministry of Economy, there is no financial availability in the Procrear trusts,” Nieva explained.

The beneficiaries make complaints to the Ministry of Economy, the Housing Secretariat and the Mortgage Bank, but do not receive a response. Some initiated actions through Consumer Defense in their municipalities. In addition, they have several WhatsApp groups to stay united in the claim.

Cristian Rubia , another affected person, was barely able to start his house in Chimbas, San Juan. “I got to the height of the slab but the bricklayers couldn't continue because I couldn't pay them. We suffered theft of materials because we could not continue and we are 15 minutes from the center of San Juan,” he commented.

Like other beneficiaries, he only wants to receive his second disbursement, although due to construction costs, which rose 289% year-on-year, they are now out of date and many families are in debt.

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The urban development in Río Gallegos is almost completed, the only thing missing is the completion and delivery of the homes. But since before the end of the year the work was paralyzed

In Coronel Pringles, Carolina Ocampo postponed the construction of her home: “The works were stopped, the bricklayers left and the initial construction budgets are no longer valid. It is very difficult to finish with salaries alone. “Most of us rent now.”


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