Programme for Mortgage-financed housing
 

Legislative framework:

• Law no. 152/1998 on the establishment of the National Housing Agency, republished, with further amendments (Government Emergency Ordinance no. 14/2010, G.E.O. no.33/2010)
• Methodological norms for the implementation of the provisions of Law no. 152/1998, approved by Government Decision nr. 962/2001 with further amendments and completions (G.D. no. 1396/2002, G.D. no. 607/2003, G.D. no. 60/2004, G.D. no. 816/2005, G.D. no. 592/2006, G.D. no. 165/2008, G.D. no. 889/2008 and G.D. no. 761/2009)
• Law no. 190/1999 on the mortgage loan for real estate investment, with further amendments and completions (Law no. 34/2006, G.E.O. no.174/2008)

Purpose: To build personal property housing units financed from mortgage loans and to create a privately owned housing stock

Objectives: To continue the execution works on the investment objectives started during previous years, and to promote new objectives and start execution works for them.

Presentation of programme: This programme was aimed at developing new projects according to the new legal provisions, without favouring the National Housing Agency any longer by the provision of financing sources from the state budget for subsidies, thus permitting the setting-up of any type of partnership for the development of new residential complexes.

Mortgage loan is granted by the financial institutions agreed by the National Housing Agency. Mortgage loan is guaranteed by mortgages on the land and the buildings erected on it further to the establishment of mortgage within the limits of an established amount and in accordance with the gradual use of the loan. Until the full repayment of the loan, the mortgaged buildings can be alienated only with prior consent of the mortgage creditor.

The amount of the loan for the construction of housing shall be provided to the loan beneficiary in instalments, and the payment shall be made directly to the constructor. The borrower has the obligation to conclude an insurance contract for the mortgaged assets, valid for the entire duration of the mortgage loan. The amount of the granted loan is conditioned by the beneficiary`s repayment capabilities. The granting of mortgage loans for the construction of housing units is conditioned by the beneficiary`s possibility to cover in advance, from own sources, the difference between the total cost of the housing unit and the amount of the loan that can be granted.

For the construction of housing, the National Housing Agency establishes a portfolio by applying for and taking over plots of land, in accordance with law, from the public patrimony of the state or of the administrative territorial units. In parallel with the checking of the financial trustworthiness of the applicants who made an option for the construction of personal property housing units through the National Housing Agency (ANL), the agency organises and performs the procurement of the design and execution of works and obtains the building authorisation. After the contracts are awarded, following the tenders for design and work execution procurement, upon the conclusion of the contract between the ANL and the general contractor, the loan beneficiaries for the construction of housing units through the ANL are requested to be present for the conclusion and signature of: a contract mandating the ANL to represent them during the performance of the contract for the construction of a housing unit; the contract for the construction of the housing unit; the loan contract. The construction of housing units, their acceptance and delivery to beneficiaries is followed up and carried out by the ANL, together with the beneficiaries of housing units, in accordance with the clauses and powers provided in the contract of mandate.

Implementing authority: the National Housing Agency

Beneficiaries: Beneficiaries of mortgage loans

Financing sources: Own sources of the beneficiaries and mortgage loans granted by banks agreed by the National Housing Agency.

Contact person: ZAMFIROIU Florin, Adviser
e-mail: florin.zamfiroiu@mdrt.ro