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Procrear: The Government transfers public works to the provinces to complete advanced housing - Infobae
Source:
www.infobae.com
August 13, 2024
Due to lack of funds, thirteen provincial states agreed to this method, seeking private and own financing. The halt in public works impacted on job losses and the beneficiaries of Procrear's Construction line are still not receiving the disbursements.
By Jose Luis Cieri
Hundreds of homes and more than 60 Procrear Urban Developments have their works paralyzed
The lack of funds and the “no money” that comes from the government of Javier Milei , directly affect the loss of jobs and the paralysis of housing works of the Procrear program and social housing throughout the country.
However, the Government's priority appears to be to resume and complete these works through agreements to transfer projects to the provinces.
To date, the Government has signed 13 agreements with Catamarca, Chubut, Corrientes, La Rioja, Mendoza, Misiones, Río Negro, Salta, San Luis, Santa Fe, Santiago del Estero, Tierra del Fuego and Tucumán to transfer public works and complete the Procrear Urban Developments and social housing within the framework of the Social Housing Trust Fund (FFVS). The National Secretariat for Territorial Development, Habitat and Housing, which reports to Rodrigo Aybar , signed framework agreements involving the executing entities, represented by the governors.
Initially, the FFVS had 1,200 agreements for the construction of 49,200 homes, most of which have been on hold since October or November 2023 due to budgetary restrictions, with 32 percent progress. Faced with the economic crisis and lack of funds, the Milei administration decided to prioritize the existing budget and invite the provinces to co-finance to finish the works. The Ministry of Economy authorized the Housing Secretariat to jointly co-finance with the provinces, committing them to absorb the remaining work (they must try to obtain private or local funds).
Within the Procrear trust, there are currently 17,341 homes under construction, 3,520 lots with services and 2,520 zero-interest loans, which generated a debt of $60 billion in work certificates. A flow of $1.3 billion is projected to complete these homes, prioritizing those with greater progress and infrastructure.
The provinces must present plans for the completion of the works of 17,371 homes of Procrear Urban Development Line
To allow collaborations with private entities, provinces and municipalities, the Government proposed modifying the original Procrear decree. This measure seeks to complete the works that were neutralized to audit the trust, due to the lack of funds available to cover previous commitments, including the 2,520 zero-interest loans granted by the previous administration.
Of these loans, 1,855 people received advances and are in a position to request the first disbursement. “Despite the complicated situation and the irresponsibility of the previous administration, alternative solutions are being sought to help these families,” reported the Secretariat of Territorial Development, Habitat and Housing.
From this agency, they enabled an email so that beneficiaries who have not yet received the second disbursement of the 2022 draws of the Procrear Construction line or have not yet received any payment, can write to: procrear@minhabitat.gob.ar
Gustavo Weiss , president of the Argentine Chamber of Construction (Camarco), explained that there is still a significant debt for work carried out in September, October and November of last year under the management of Sergio Massa in the Economy . “The invoices that expired in December, January and February remain unpaid. The problem is not only that there are now works that are not being continued, but that they also owe us money for work carried out and not paid for,” said the business leader.
There are thousands of social units paralyzed and construction entrepreneurs also pointed out that the cuts to the National Housing Fund (FONAVI) at different times due to macroeconomic needs are causing the initiative to disappear.
Weiss stressed that the accumulated debt is unfortunately not indexed to inflation, which worsens the financial situation of companies in the segment. “Due to this situation, 100,000 direct jobs have already been lost in the construction sector.”
The president of Camarco pointed out that the government has invested USD 6 billion in works, which have already been paid for, but not finished or made available to the public. This situation represents an expense without benefits for society, since the infrastructure cannot be used.
Businessmen argue that it is essential to promote intermediate credit policies to accelerate the construction of properties. All beneficiaries must have their own land.
“We rely on this program to achieve our own home and today we are in a critical situation. Many of us turn to banking institutions in search of UVA loans, but with our land mortgaged we cannot access new lines of credit to finish our houses,” said Romina Nieva , who left her home half-built in Paraná, Entre Ríos, and is worried because in November she will have to start paying for her mortgage.
In some cases, the works were vandalised when they were stopped: electrical boxes and materials were stolen or damage was caused. This situation generates an economic impact, as well as insecurity and frustration among the beneficiaries.
“It is frustrating not knowing what will happen to our money; we have made huge sacrifices and now we are trapped, drowning in bills and paying rents that exceed our salaries,” Nieva added.
The tax cuts affect 4,200 beneficiaries (a figure acknowledged by the Government) of the Construction line, distributed throughout the country.
There are more than 8,000 housing units started and the beneficiaries are waiting for disbursements to continue their projects
In September and October 2023, they received late advance payments of 30% of the loan (about 3,000,000 of the total 10,000,000).
A source from a private construction company who participated in meetings with the government said that, with the transfer of construction work to the provinces, this situation would be reversed shortly. “The houses in the urban developments will be completed and they will try to sell them so that people pay for them, they are not free. Construction work should resume at least before the end of the year,” he concluded.
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Source:
Procrear: el Gobierno transfiere obras públicas a las provincias para culminar viviendas avanzadas
Debido a la falta de fondos, trece estados provinciales acordaron este método, en busca de financiación privada y local. El freno de la obra pública impactó en la pérdida de empleo y los beneficiarios de la línea Construcción de Procrear siguen sin recibir los desembolsos
www.infobae.com
August 13, 2024
Due to lack of funds, thirteen provincial states agreed to this method, seeking private and own financing. The halt in public works impacted on job losses and the beneficiaries of Procrear's Construction line are still not receiving the disbursements.
By Jose Luis Cieri
Hundreds of homes and more than 60 Procrear Urban Developments have their works paralyzed
The lack of funds and the “no money” that comes from the government of Javier Milei , directly affect the loss of jobs and the paralysis of housing works of the Procrear program and social housing throughout the country.
However, the Government's priority appears to be to resume and complete these works through agreements to transfer projects to the provinces.
To date, the Government has signed 13 agreements with Catamarca, Chubut, Corrientes, La Rioja, Mendoza, Misiones, Río Negro, Salta, San Luis, Santa Fe, Santiago del Estero, Tierra del Fuego and Tucumán to transfer public works and complete the Procrear Urban Developments and social housing within the framework of the Social Housing Trust Fund (FFVS). The National Secretariat for Territorial Development, Habitat and Housing, which reports to Rodrigo Aybar , signed framework agreements involving the executing entities, represented by the governors.
Initially, the FFVS had 1,200 agreements for the construction of 49,200 homes, most of which have been on hold since October or November 2023 due to budgetary restrictions, with 32 percent progress. Faced with the economic crisis and lack of funds, the Milei administration decided to prioritize the existing budget and invite the provinces to co-finance to finish the works. The Ministry of Economy authorized the Housing Secretariat to jointly co-finance with the provinces, committing them to absorb the remaining work (they must try to obtain private or local funds).
Within the Procrear trust, there are currently 17,341 homes under construction, 3,520 lots with services and 2,520 zero-interest loans, which generated a debt of $60 billion in work certificates. A flow of $1.3 billion is projected to complete these homes, prioritizing those with greater progress and infrastructure.
The provinces must present plans for the completion of the works of 17,371 homes of Procrear Urban Development Line
To allow collaborations with private entities, provinces and municipalities, the Government proposed modifying the original Procrear decree. This measure seeks to complete the works that were neutralized to audit the trust, due to the lack of funds available to cover previous commitments, including the 2,520 zero-interest loans granted by the previous administration.
Of these loans, 1,855 people received advances and are in a position to request the first disbursement. “Despite the complicated situation and the irresponsibility of the previous administration, alternative solutions are being sought to help these families,” reported the Secretariat of Territorial Development, Habitat and Housing.
From this agency, they enabled an email so that beneficiaries who have not yet received the second disbursement of the 2022 draws of the Procrear Construction line or have not yet received any payment, can write to: procrear@minhabitat.gob.ar
Requests to resume work and meetings
Construction entrepreneurs and trade unionists from the Construction Workers Union (UOCRA) demanded that the Government adopt a policy to reactivate housing construction. In a meeting held in the Chamber of Deputies, the Housing and Urban Planning Commission, chaired by Leandro Santoro , received representatives of business chambers, trade unionists and social organizations to discuss the demand for construction and renovation of housing.Gustavo Weiss , president of the Argentine Chamber of Construction (Camarco), explained that there is still a significant debt for work carried out in September, October and November of last year under the management of Sergio Massa in the Economy . “The invoices that expired in December, January and February remain unpaid. The problem is not only that there are now works that are not being continued, but that they also owe us money for work carried out and not paid for,” said the business leader.
There are thousands of social units paralyzed and construction entrepreneurs also pointed out that the cuts to the National Housing Fund (FONAVI) at different times due to macroeconomic needs are causing the initiative to disappear.
Weiss stressed that the accumulated debt is unfortunately not indexed to inflation, which worsens the financial situation of companies in the segment. “Due to this situation, 100,000 direct jobs have already been lost in the construction sector.”
The president of Camarco pointed out that the government has invested USD 6 billion in works, which have already been paid for, but not finished or made available to the public. This situation represents an expense without benefits for society, since the infrastructure cannot be used.
Beneficiaries in crisis
Less than a month before the first year since the first beneficiaries of the Procrear Construction Line received their only disbursement, uncertainty and anxiety are growing among those who were hoping to continue building. So far, neither the Ministry of Habitat nor the Mortgage Bank (trustee of the program) have provided clear answers about the future of the outstanding loan money.
Businessmen argue that it is essential to promote intermediate credit policies to accelerate the construction of properties. All beneficiaries must have their own land.
“We rely on this program to achieve our own home and today we are in a critical situation. Many of us turn to banking institutions in search of UVA loans, but with our land mortgaged we cannot access new lines of credit to finish our houses,” said Romina Nieva , who left her home half-built in Paraná, Entre Ríos, and is worried because in November she will have to start paying for her mortgage.
In some cases, the works were vandalised when they were stopped: electrical boxes and materials were stolen or damage was caused. This situation generates an economic impact, as well as insecurity and frustration among the beneficiaries.
“It is frustrating not knowing what will happen to our money; we have made huge sacrifices and now we are trapped, drowning in bills and paying rents that exceed our salaries,” Nieva added.
The tax cuts affect 4,200 beneficiaries (a figure acknowledged by the Government) of the Construction line, distributed throughout the country.
There are more than 8,000 housing units started and the beneficiaries are waiting for disbursements to continue their projects
In September and October 2023, they received late advance payments of 30% of the loan (about 3,000,000 of the total 10,000,000).
A source from a private construction company who participated in meetings with the government said that, with the transfer of construction work to the provinces, this situation would be reversed shortly. “The houses in the urban developments will be completed and they will try to sell them so that people pay for them, they are not free. Construction work should resume at least before the end of the year,” he concluded.
www.buysellba.com
