Programme for finalizing the housing blocks started before 1989, in accordance with Government Ordinance no. 19/1994

Legislative framework:

• Government Ordinance no. 19/1994, approved, amended and completed by Law no. 82/1995, amended and completed by Government Ordinance no. 76/2001 and by Law no. 734/2001.
• Methodological norms implementing the provisions of Government Ordinance no. 19/1994, approved by Government Decision no. 950/2002

Purpose: To finalise the construction of private housing in various stages of execution, started from state funds and which had gone out of financing sources..

Objective: To finalise the construction of housing under various stages of execution, which had remained unfinished since before 1990.

Presentation of the programme: The programme started in 1993, as a consequence of the provisions of Government nr.391/1993. Housing distribution is done by the local public administration authorities: local councils, city halls, and constructions are finalised according to their physical execution stages. Local councils / city halls or their delegated managers, who are responsible for carrying out the investments, conclude pre-contracts and contracts with housing applicants. The housing applicants are selected by social commissions in the order their applications were received and based on criteria that take into consideration their dwelling and economic status, only from disadvantaged social categories provided by the no. 19/1994.

Development stages:

• Inventory of the housing blocks under various stages of execution, which had remained unfinished since before 1990;
• Elaboration of proposals for the annual programme;
• Approval of the annual programme;
• Elaboration, based on the approved annual programme, of financing lists by counties, localities and investment objectives;
• Approval of the financing lists;
• Transmittal of the financing lists to county councils for the counties included in the annual programme;
• Monthly centralisation of the requests of county councils regarding the activity of the special account opened with territorial treasuries for the construction of housing, as well as the production achieved and unsettled at the end of each month;
• Monthly breakdown by county of the funds allocated from the state budget, based on the applications from county councils, and elaboration of the Substantiation Note for opening budgetary loans;
• Monthly approval of the Substantiation Note for opening of budgetary loans;
• Monthly transfer of amounts to county budgets;
• Monthly distribution of amounts and their transfer to the budgets of the administrative territorial units, for the finalisation of the blocks under various stages of execution;
• Follow-up whether payments fall within the approved quarterly and annual ceilings;
• Programme monitoring;
• Follow-up whether the deadlines for commissioning the objectives are met, in accordance with the approved annual programme.

Implementing authorities: County and local councils, together with the Ministry of Regional Development and Tourism – in its capacity as main fund manager.

Beneficiaries: disadvantaged social categories, as stipulated by G.O. no. 19/1994, especially young married, aged up to 35.

Financing sources: Sources of the state budget, sources of the local budgets and sources of the beneficiaries of housing units.

The feeding of special accounts at county level from amounts resulting from the sale of the spaces having a different destination, located in the housing blocks forming the object of the programme, from advance payments made by the beneficiaries of housing units (at least 10% of the value of the housing unit), from instalments and interest or amounts deposited by the beneficiaries of housing units in order to pay their full cost. The feeding of special accounts at county level from amounts annually allocated from the state budget to provide financing at the required level, as substantiated by local councils, through county councils.

Main characteristic: The amounts resulting from the sale of housing units are not returned to the state budget, but are retained by the local budgets, their destination being only the construction of housing units. These amounts are redistributed between county councils and local councils, according to needs.

Value of the programme: For each year, the funds from the state budget with this destination are approved by the State Budget Law for the respective year, through the budget of the Ministry of Regional Development and Tourism.
Duration: Depending on the funds allocated from the state budget, the finalisation of the programme is foreseen for 2011.

Contact person:
Mihaela Constantinescu, Head of Department
e-mail: mihaela.constantinescu@mdrt.ro