Skip Ribbon Commands
Skip to main content

 

Mehr Housing Plan

Cities with a Population of less than 25,000

 

BackgroundmaskanMehr.jpg

Paragraph "D", Note 6 of Government Budget for the year 2007 has put a strong emphasis on the provision of adequate housing for all citizens, especially low-income ones, and has proposed several mechanisms for achieving the determined objectives, including: long-term leasing of state lands in terms of exploitation right and in order for reduce the prices of residential units and remove the land price from the finished price of such units.

The Operational Directive for Regulations of Paragraph "D", Note 6 of Government Budget for the year 2007 was prepared by the Ministry of Housing and Urban Development with the purpose of realization of the objectives of the aforesaid Plan and was communicated on 4 July 2007 by the Minister of Housing and Urban Development. In accordance with Note 4, Paragraph "B" of this Directive, all duties of the Ministry were transferred to the Islamic Revolution Housing Foundation for implementation of Mehr Housing Plan in cities with a population of less than 12,000, including: land preparation, receiving list of qualified applicants from Ministry of Cooperatives and referring them to agent banks for receiving facilities, monitoring the preparation of land separation plans, and preparation and construction operations of residential units.

To promote the aforementioned objectives in the field of production and supply of housing, the government prepared the Act of Organizing and Supporting Production and Supply of Housing, and submitted it as a one-priority bill on 22 May 2007 to the Parliament of Islamic Republic of Iran for ratification and subsequently, the parliament approved it on 14 May 2008 after the approval of the Council of Guardians.

With regard to the ratification of the Cabinet on 8 December 2008, signed by the vice president, the measures related to Mehr Housing Plan in cities with a population of less than 25,000 were to be undertaken by the Islamic Revolution Housing Foundation as the ad hoc deputy of the Ministry of Housing and Urban Development.

The Operational Guidelines of the aforesaid Plan for cities with a population of less than 25,000 were notified by the Minister of Housing and Urban Development to Islamic Revolution Housing Foundation on 27 April 2009 with the underlying basis of assigning the responsibility for all affairs related to Mehr Housing Plan to the Foundation, and these guidelines, along with their enclosed forms and Operational Directives are the most important reference for the above Plan in cities with a population of less than 25,000.

 

Measures

* Regulatory Measures:

After ratification of abovementioned Guidelines and for the purpose of realization of those objectives, the Housing Foundation has made diligent efforts to use its high potentials and its widespread offices and branches in all cities and counties and has commenced an extensive cooperation with Maskan Bank as the agent bank for providing housing facilities, so that even in many cases, several amendments and notes have been proposed by the Housing Foundation in order to accelerate and advance the Plan, the most important of which are the followings:

1.    Projecting various mechanisms for providing long-term leasing lands using the following methods:

·         Using state lands held by Ministry of Housing and Urban Development

·         Using national lands held by governmental organizations other than Ministry of Housing and Urban Development such as Natural Resources, etc.

·         Mutually agreed upon lands of actual and legal landowners

·         The lands in held by Housing Foundation as a non-governmental public institution

2.    Providing the applicants who themselves own estates with loans while keeping their ownership over premises

3.    Referring applicants to receive 150 Million IRR facilities where building residential units have been possible in their lands simultaneously with preparation operations

4.    Construction of one or two additional floors over the residential units of adequate resistance or demolition of existing deteriorated housing units and construction of three residential units in accordance with the defined provisions of the Plan

5.    Providing a mechanism for payment of facilities to the estates without title deeds as an effective step for promoting the Plan and overcoming existing obstacles

6.    Referring applicants to the banks and ordering them to prepare house plans for concluding a pre-contract, determining the deadlines for obtaining building permits and submitting such permits to the banks for concluding definitive civil partnership contracts

7.    Payment of subsidies of Mehr Housing Plan ratified by the Ministry of Housing and Urban Development with the following axes:

·         Reducing the issuance fees of building permits and limiting them to the maximum amount of 100,000 IRR per square meter

·         50% discount of the issuance fees of building permits and arranging the remaining 50% of such fees to be paid in installments during 36 months

·         Reducing engineering costs and limiting them to the maximum amount of 30,000 IRR per square meter

·         Providing grants for preparation plan equal to 10,000,000 IRR per hectare for 99-year leasing lands

·         Providing grants for architectural design and structure plan equal to 2,000,000 IRR per each residential unit to be built in 99-year leasing land or estates

·         Arranging the water, electricity and gas connection fees to be paid in installments during 2 years since the exploitation of the constructed unit

·         The issuance of completion certificate of construction operations by municipalities for those inhabitable buildings which are in rough works stage 



 

Reports of Operational Activities until 22 April 2013 :

  

 

Land provision: 5203 hectares with the capacity for constructing 273183 residential units

Registration of applicants and organizing them: Registration of 322344 applicants and determining qualification of 292454 ones.

Operations: Obtaining building permits for construction of 368978 residential units, commencing the construction operations of 325906 residential units, construction of building carcasses for 299288 residential units, completion of rough works in 262068 residential units, and completion of finish works in 213124 units.

Bank Facilities: Referring 359216 households to agent banks for concluding contract agreements, registering and concluding 329175 contracts for facilities of Mehr Housing Plan

Completed: 179906 units. 


 

 

 

Also according to the recent ratification of National Housing Working Group (NHWG):

1. The housing facilities equal to the facilities of Mehr Housing Plan, i.e. 150 Million IRR per unit, will be paid to those members of Teachers’ Housing Cooperatives who have not ever used loans of Mehr Housing Plan.

2. A piece of land will be given to all teachers who have no house in cities with a population of less than 25,000, provided that they have not used government facilities for housing before; such lands will be allocated to them as a group, i.e. from one to three households, along with bank facilities of 150 million IRR as the loan of Mehr Housing Plan for each residential unit.

 The New Regulations:

In accordance with the Ratification No. 44245/257702 dated 14 March 2010 of the National Housing Working Group (NHWG), from the April 2010 onward, the maximum amount of facilities of Mehr Housing Plan will be 250 Million IRR for constructing residential units by industrial methods and 20 Million IRR for constructing with non-industrial methods, while the rate of interests for the cities with a population of less than 25,000 decreases down to 4%.

Also, the applicants who have commenced the operations of their units under Mehr Housing Plan prior to the notification of this ratification and who have received some of their credits, may receive new facilities up to the new maximum amount, if necessary and only after completion of rough works, by confirmation of Islamic Revolution Housing Foundation and by concluding contract amendments.

In accordance with the Ratification No. 58824/C 44711 N dated 6 June 2010 of the National Housing Working Group (NHWG), in addition to the approval of those employees working at organizations subject to Article 160 of the Act of Granting Mehr Housing Facilities for Lands without Title Deeds, to act as guarantors, reliable tradespeople and customers of the banks also can be approved to act as guarantors.

For more information please contact us on the following numbers: