Title: New Housing Initiative Expands Support for Rural and Small-Town Communities
In a significant move to bolster rural and small-town development, the Housing Foundation of the Islamic Revolution has announced an increase in the ceiling for rural housing loans to 400 million tomans. This enhanced financial support is designed to cover approximately 55 to 60 percent of the total construction costs for a residential unit.
Accelerated Implementation and Widespread Impact
Majid Joudi, Deputy for Reconstruction and Rural Housing at the Foundation, provided details on the rollout of this year’s loan program, which was officially announced in the Iranian month of Ordibehesht. He confirmed that 5,000 individuals were initially covered under this scheme.
“The plan anticipates the construction of 200,000 units in rural areas and an additional 20,000 units in cities with populations under 25,000,” Joudi stated. The loan amount has been raised from last year’s 350 million tomans to 400 million tomans, offered with a 5% service fee and a 20-year repayment period.
Rapid Disbursement and Ambitious Targets
Highlighting the program’s efficient implementation, Joudi reported that since payments commenced in Khordad, approximately 125,000 eligible households have been introduced to the banking system. Of these, contracts for 55,000 loans have been finalized and disbursed, amounting to an estimated 7 hamt in monetary value.
The Foundation has set ambitious targets for the coming months. “We anticipate introducing 220,000 units to the banking system by the end of Aban, with the goal of having all contracts finalized with the banks by the end of Azar,” Joudi added. He praised the current cooperation of banks, describing the loan issuance process as proceeding at a satisfactory pace.
Expanding the Program’s Reach
Looking ahead, authorities plan to operationalize new loans for the current and next year in the fourth quarter, following approval by the esteemed Council of Ministers. Efforts are underway to prepare for a new loan package by the end of the current Iranian year, ensuring its implementation can begin at the start of the next year.
This initiative, which began in 2005 with a loan ceiling of 5 million tomans, has evolved significantly. While the initial loan covered about 70% of construction costs, the current 400 million toman loan continues the government’s commitment to addressing housing needs.
Comprehensive Support for Low-Income Families
In a key component aimed at social justice, the program includes specific provisions for low-income families. Joudi emphasized that for the three lowest income deciles, in addition to bank facilities, non-repayable grants have been allocated.
“These grants are sourced from supportive institutions such as the Foundation of the Oppressed, the Imam’s Executive Headquarters, the Imam Khomeini Relief Foundation, and the State Welfare Organization,” he explained. This measure ensures that even those unable to provide a personal financial contribution can benefit from safe and resilient housing, guaranteeing comprehensive support for all segments of society.