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Private guarantees for renting in CABA: what is the proposal of the Buenos Aires Government and the registration process - Infobae
Source:
August 28, 2024
The “Alivio” program to obtain a contract through the Housing Institute (IVC) is still in effect. It allows tenants to access a rental quickly by offering bonuses on surety bonds and more agile procedures.
By Jose Luis Cieri
Buenos Aires is one of the few cities with active rental policies and the IVC reported that they work in collaboration with various actors in the real estate sector and the community.
Although the rental offer in the city of Buenos Aires has expanded by almost 200% since the DNU that repealed the Rental Law came into effect, the costs remain high to make a new agreement.
In this context, the Buenos Aires City Government's "Alivio" plan through the City Housing Institute (IVC) is still in force, with a good response from tenants through the "Guarantee + Easy" and "Rent + Easy" programs. According to the IVC, since the launch of these programs, more than 7,500 people have signed up, of which almost 600 have already received benefits.
This year, the Institute allocated a budget to facilitate access to housing through three innovative programs, including “Renovación + Fácil” (Renewal + Easy).
“In total, almost $200,000,000 was allocated to support these initiatives, which are designed to simplify the rental process, offer affordable guarantees to those who need them and assist in the renewal of contracts. These efforts reflect a robust commitment by the Buenos Aires government to ensure that more citizens can find and maintain a suitable home in an increasingly complex real estate market,” Leonardo Coppola , President of the IVC, told Infobae .
In addition, the IVC provides a 70% bonus on the cost of surety bond insurance, which reduces initial expenses.
“The surety bond is executed within a few months, unlike proprietary guarantees that require long periods to be effective,” Coppola added.
“The program is very safe because the insurance company, before issuing the policy, performs a credit analysis to verify the tenant's solvency and ability to pay,” Coppola said.
Insurance companies that are part of the program, such as Woranz, Banco Ciudad-Sancor Seguros, ACG, Credit and Guarantee Insurance Company, Crédito y Caución, Digna Opción, Antártida and La Perseverancia Seguros, are permanently audited by the National Insurance Superintendency, which adds an extra layer of security.
In the event of non-payment by the tenant, the insurer is responsible, holding the owner harmless.
In addition, the owner is exempt from having to deal with a large part of the legal procedures, since the insurer provides legal assistance during the eviction process should it come to that.
In addition, to access the subsidy you must:
The plan has already benefited more than 600 tenants and families who rented in different properties in CABA
Property requirements:
Property Search:
The IVC does not intervene in the search process and you can apply to the program already knowing the property that will be rented or start the search once you apply to the program.
The IVC specified that “these are UVA loans with 0% interest.” This financial flexibility was crucial for several tenants in a context of high inflation and a shortage of rental properties (especially until the beginning of the year).
This proposal helps cover the costs of deposit, guarantee, initial month and moving.
The maximum amount of credit to be granted may be up to 3 months of the rent (this amount must be declared by the tenant in the Program registration form).
It should be noted that in no case may the maximum amount of the credit exceed the 1962 UVAs (approximately $2,500,000) reported daily by the Central Bank.
The amount of the loan also depends on the tenant's ability to pay, since the first installment cannot exceed 10% of the total income declared on the form.
Those who wish to join can register through the following link: https://vivienda.buenosaires.gob.ar/alquilar#top
Through the Housing Institute of CABA there are options that facilitate access to a rental (Illustrative Image Infobae)
“New outreach campaigns are currently being drawn up to strengthen the reach of each of the programs. We are also working on implementing increases in the amounts of each program,” Coppola said.
The loan amount cannot exceed 6,500 Housing Units (UVIs), approximately $5,750,000 for renovations.
The UVI is a unit of account published by the Central Bank that evolves according to the cost of construction.
To calculate the amount to be financed, the presented budget is considered and analyzed according to the project to be carried out.
Coppola clarified: “The amount of the loan also depends on the ability to pay, since the first installment cannot exceed 25% of the total income declared on the form.”
The transparency and accessibility of these programs are reflected in additional services offered by the IVC, “such as free legal advice, a signature certification service and a calculator to check rent increases,” Coppola concluded.
www.buysellba.com
Source:
August 28, 2024
The “Alivio” program to obtain a contract through the Housing Institute (IVC) is still in effect. It allows tenants to access a rental quickly by offering bonuses on surety bonds and more agile procedures.
By Jose Luis Cieri
Buenos Aires is one of the few cities with active rental policies and the IVC reported that they work in collaboration with various actors in the real estate sector and the community.
Although the rental offer in the city of Buenos Aires has expanded by almost 200% since the DNU that repealed the Rental Law came into effect, the costs remain high to make a new agreement.
In this context, the Buenos Aires City Government's "Alivio" plan through the City Housing Institute (IVC) is still in force, with a good response from tenants through the "Guarantee + Easy" and "Rent + Easy" programs. According to the IVC, since the launch of these programs, more than 7,500 people have signed up, of which almost 600 have already received benefits.
This year, the Institute allocated a budget to facilitate access to housing through three innovative programs, including “Renovación + Fácil” (Renewal + Easy).
“In total, almost $200,000,000 was allocated to support these initiatives, which are designed to simplify the rental process, offer affordable guarantees to those who need them and assist in the renewal of contracts. These efforts reflect a robust commitment by the Buenos Aires government to ensure that more citizens can find and maintain a suitable home in an increasingly complex real estate market,” Leonardo Coppola , President of the IVC, told Infobae .
Advantages
The “Guarantee + Easy” program offers advantages for both tenants and owners. According to the IVC website , tenants can access a rental quickly and economically without the need for a property guarantee.In addition, the IVC provides a 70% bonus on the cost of surety bond insurance, which reduces initial expenses.
“The surety bond is executed within a few months, unlike proprietary guarantees that require long periods to be effective,” Coppola added.
“The program is very safe because the insurance company, before issuing the policy, performs a credit analysis to verify the tenant's solvency and ability to pay,” Coppola said.
Insurance companies that are part of the program, such as Woranz, Banco Ciudad-Sancor Seguros, ACG, Credit and Guarantee Insurance Company, Crédito y Caución, Digna Opción, Antártida and La Perseverancia Seguros, are permanently audited by the National Insurance Superintendency, which adds an extra layer of security.
In the event of non-payment by the tenant, the insurer is responsible, holding the owner harmless.
In addition, the owner is exempt from having to deal with a large part of the legal procedures, since the insurer provides legal assistance during the eviction process should it come to that.
Requirements to apply for “Guarantee + Easy”
- Be 18 years of age or older.
- Have a total and/or family income of up to 7 Minimum Living Wages.
- Not having an unfavorable financial history.
- Possess an Argentine National Identity Document.
In addition, to access the subsidy you must:
- Submit all documentation related to the family group and the situations reported in the web form.
- Not having previously been awarded another benefit from the IVC and/or the CMV.
- Not being listed in the registry of those debtors of alimony.
- The rental value cannot exceed 654 UVAs (approximately $700,000 per month of contract).
The plan has already benefited more than 600 tenants and families who rented in different properties in CABA
Property requirements:
- Purpose: Housing for residential purposes.
- Location: Within the scope of CABA.
Property Search:
The IVC does not intervene in the search process and you can apply to the program already knowing the property that will be rented or start the search once you apply to the program.
Initial expenses
The “Rent + Easy” program focuses on helping tenants cover initial expenses (which exceed $1,400,000 for a two-room apartment, including moving costs) through interest-free monthly installments, with terms that vary between 12 and 36 months.The IVC specified that “these are UVA loans with 0% interest.” This financial flexibility was crucial for several tenants in a context of high inflation and a shortage of rental properties (especially until the beginning of the year).
This proposal helps cover the costs of deposit, guarantee, initial month and moving.
The maximum amount of credit to be granted may be up to 3 months of the rent (this amount must be declared by the tenant in the Program registration form).
It should be noted that in no case may the maximum amount of the credit exceed the 1962 UVAs (approximately $2,500,000) reported daily by the Central Bank.
The amount of the loan also depends on the tenant's ability to pay, since the first installment cannot exceed 10% of the total income declared on the form.
Those who wish to join can register through the following link: https://vivienda.buenosaires.gob.ar/alquilar#top
Dissemination and effectiveness measures
The IVC implemented several measures to ensure that funding reaches tenants who really need it, including publishing and promoting the programs on all digital platforms and social networks of the Buenos Aires City Government.
Through the Housing Institute of CABA there are options that facilitate access to a rental (Illustrative Image Infobae)
“New outreach campaigns are currently being drawn up to strengthen the reach of each of the programs. We are also working on implementing increases in the amounts of each program,” Coppola said.
For owners and tenants
The “Refacción + Fácil” program seeks to improve homes by providing loans to owners and tenants for renovations, with additional incentives such as a 15% bonus on the outstanding balance if the home is rented out within the first 24 months of the loan.The loan amount cannot exceed 6,500 Housing Units (UVIs), approximately $5,750,000 for renovations.
The UVI is a unit of account published by the Central Bank that evolves according to the cost of construction.
To calculate the amount to be financed, the presented budget is considered and analyzed according to the project to be carried out.
Coppola clarified: “The amount of the loan also depends on the ability to pay, since the first installment cannot exceed 25% of the total income declared on the form.”
Requirements and additional benefits
To access these programs, tenants must submit all documentation that supports what is stated in the IVC Web registration form to corroborate compliance with the requirements.The transparency and accessibility of these programs are reflected in additional services offered by the IVC, “such as free legal advice, a signature certification service and a calculator to check rent increases,” Coppola concluded.
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