Cases of Withdrawing Social Housing Apartments and How to Avoid Them

The Ministry of Housing, Utilities and Urban Communities, represented by the Real Estate Finance Fund, offers many housing units (social housing apartments) to citizens of low and middle-income through a system of payment in installments over long periods of time taking up to 20 and 30 years according to specific conditions that if breached would lead to withdrawing the housing unit from its owner.

In cooperation with the Housing Police and local authorities, the Social Housing Fund carries out periodic control campaigns on social housing units. This is done with the aim of verifying citizens’ full compliance with the Fund’s directives, and ensuring that social housing laws are not violated. This is to ensure that financial support is directed to those eligible in a correct and effective manner.

The most prominent cases of withdrawing social housing apartments from those who obtained them were as follows:

1. Assigning or disposing of the unit to others without written approval from the New Urban Communities Authority.

The Social Housing Law prohibits transferring or disposing of the housing unit to others without written approval from the New Urban Communities Authority, otherwise this is considered a violation of the law, and the Authority has the right to withdraw the housing unit from the beneficiary.

2. Failure to complete the unit payment within the specified periods.

The beneficiary is obligated to pay 10% of the unit price as an advance payment, and the rest of the amount in monthly installments for a period of up to 20 years. If the beneficiary does not complete the payments on the specified dates, the authority has the right to withdraw the housing unit from them.

3. Failure to contract and receive the unit on the specified date for receipt.

The beneficiary is given a period of 3 months from the date of announcing the final result of the sorting, to complete the contracting procedures and receive the housing unit. If the unit is not received within this period, the authority has the right to withdraw the housing unit from them.

4. Discovering the forgery of any of the papers submitted while applying for the unit.

The beneficiary is obligated to submit the required documents to the authority in the event of applying for a housing unit in social housing. If any of these documents are discovered to be forged, the authorities have the right to withdraw the housing unit.

5. Use of the residential unit for purposes other than residential.

Social housing is allocated to low- and middle-income citizens for the purpose of housing. If the residential unit is used for a purpose other than residential, such as renting it or opening a commercial store in it, the authority has the right to withdraw the residential unit.

In the event that the housing unit is withdrawn from the beneficiary, s/he will be notified of the decision, and they will have the right to appeal the decision before the court within 60 days from the date of their notification.

The Ministry of Housing, Utilities and Urban Communities confirmed that withdrawing social housing apartments from beneficiaries is an exceptional measure that is resorted to in cases of violation of conditions, and that the Ministry seeks to preserve the principle of justice and equal opportunities among citizens applying for housing units.

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New projects for social housing apartments:

Researching the details of announcement no. 18, for social housing apartments for the year 2023, is still ongoing. Research is currently being conducted on the conditions for applying for and obtaining these apartments, which target individuals with limited income. The focus is on providing accurate information about the locations and expected prices of these apartments, which are expected to be released at the end of 2023 or at the beginning of the new year 2024, according to the previous statement issued by the Social Housing Fund.

● Prices range between 245,000 and 360,000 ep for social housing apartments according to announcement no. 18.
● The price of a unit area of 75 square meters starts with a down payment of 15 thousand ep.
● The price of a unit area of 90 square meters starts with a down payment of 22 thousand ep.
● As for the payment for Social housing apartments you pay 10% of the unit value upon receiving the unit, and the rest is paid in installments through the real estate financing system.
● Installments for Social housing apartments according to announcement No. 18 relies on the mortgage financing system and are paid over a maximum of 30 years.

Conditions for obtaining social housing apartments starting year 2023:

The applicant for social housing apartments must be of Egyptian nationality, and must be between 21 and 50 years old. The maximum monthly income for applicants is determined, as it must not exceed 6,000 ep for a single person and 8,000 ep for married people.

The applicant must also not apply for more than one housing unit in the same announcement, and must pay the reservation deposit required to participate in announcement No. 18 for social housing apartments.

In addition, the applicant must have proof of residence in the governorate that offers the desired housing unit, or must have a job in that governorate.

The project for social housing apartments is one of the most important initiatives launched by the Egyptian government, with the aim of providing adequate housing for low-income citizens, as these apartments are distinguished by their reduced prices and flexible payment systems, in addition to their location in new cities with integrated services like New October, New Cairo, New Obour, October Gardens, 10th of Ramadan City, Shorouk City, and New Mansoura.

If you want to invest in, buy, or rent a property in Egypt, we advise you to deal with distinguished real estate consultants to aid you. Contact RE/MAX Egypt through +20222692004 or contact us here.