My Home, My Life: how the government will fund the exemption – 09/29/2023 – Market

The federal government intends to use the money spent on collecting defaulters from Minha Casa, Minha Vida to finance the exemption in program installments for beneficiaries of the BPC (Continuous Payment Benefit) and Bolsa Família. This expense is currently R$300 million.

Projects financed with resources from the FAR (Residential Rental Fund) currently have a default rate of around 60% and more than half of those covered by Minha Casa, Minha Vida are beneficiaries of one of the two assistance programs.

Thus, the Executive’s logic is to stop spending on debt collection, carried out through a contract with Caixa Econômica Federal worth approximately R$300 million, and invest the resources in exempting monthly fees.

The fiscal impact of the measure tends to be zero, Executive technicians believe. There is even an expectation on the part of the government that a small saving will be made from the change in approach.

The ordinance published this Thursday (28) in the Official Gazette of the Union and signed by the Minister of Cities, Jader Filho (MDB), is only valid for those who are already beneficiaries of the housing program, but the government intends to extend the exemption from installments to new contractors who are part of Bolsa Família and BPC.

The value of the monthly installment can vary from R$80 to R$330 for properties in urban areas, depending on the family income range for Minha Casa, Minha Vida beneficiaries who are not included in one of the two programs.

According to the Ministry of Cities, historically, the subsidy offered to families in this income range varies from 85% to 95%.

As shown by Sheetthe new Minha Casa, Minha Vida has a higher ceiling for financing properties, more subsidies and lower interest rates.

The program was created in 2009 and ended in 2020, when it was replaced by Casa Verde e Amarela, from the government of Jair Bolsonaro (PL). Returning at the beginning of President Lula’s (PT) third term, the housing program wants to increase the number of beneficiaries and heat up the national real estate market.

The government’s objective is to finance 2 million properties in four years — 555 thousand by the end of this year. Financing allows the purchase of new or used properties. In 2022, in the resumption of Casa Verde and Amarela on the eve of the presidential election, 380 thousand housing units were contracted.

Families with a monthly income of up to R$8,000 are entitled to participate in the program. Informal workers can also finance, as long as they prove income through bank statements and Income Tax declaration.