Maximum value for property financed by Casa Verde e Amarela rises due to inflation – 13/09/2021 – Market

The Board of Trustees of the FGTS (Guarantee Fund for Length of Service) approved this Monday (13) an increase in the ceiling on the value of properties that can be financed by the Casa Verde e Amarela program.

The readjustment was requested by the construction industry, which registers an increase in real estate construction costs.

By the approved proposal, there is a correction in the property value ceiling in municipalities with a population between 20 thousand and 50 thousand inhabitants (10% increase), with a population between 50 thousand and 100 thousand inhabitants (15%) and larger municipalities, including regions metropolitan areas (10%).

There is no change for municipalities with less than 20 thousand inhabitants.

With the readjustment, the maximum property value of the housing program in São Paulo, Rio de Janeiro and Brasília will increase from R$240 thousand to R$264 thousand.

For municipalities with more than 100,000 inhabitants or metropolitan regions in the South, Espírito Santo and Minas Gerais, the ceiling goes from R$215 thousand to R$236.5 thousand.

Values ​​vary according to the region of the country and the size of the city. The highest ceiling is in the metropolitan regions of São Paulo, Rio de Janeiro and Brasília (R$264 thousand). The lowest is R$ 135 thousand for cities with less than 20 thousand inhabitants in the North and Northeast regions.

At the Board meeting, it was mentioned that the last wide-ranging readjustment of the property value ceiling of the housing program took place in February 2017.

In addition, members of the group stressed that inflation in the construction sector is 17.35% in 12 months.

In a statement, Abrainc (Brazilian Association of Real Estate Developers) commemorated the decision of the collegiate body and informed that it has worked intensively in the last seven months for the proposal.

Another measure defended by the entity, and which was approved on Monday, provides for a temporary reduction of 0.5 percentage point in the interest rate, until December 31, 2022, for people with an income of R$4,000 to R$7,000 (track 3 of the Casa Verde e Amarela program) and who are FGTS shareholders.

The Casa Verde e Amarela program replaced Minha Casa Minha Vida, an initiative in the housing area launched by former PT president Luiz Inácio Lula da Silva.

With the new program, the government is seeking to resume works that had been stopped by previous administrations and to regularize properties for low-income families, in addition to increasing supply and reducing interest rates for real estate financing.

The program’s objective is to reduce the housing deficit in the country, also allowing private investments and foreign funds. The goal is to serve nearly 2 million families by 2024, with a focus on the North and Northeast.

The lane system of Minha Casa Minha Vida was changed in Casa Verde and Amarela. The previous program had ranges 1 (for families with an income of up to R$1,800), 1.5 (income between R$1,800 and 2,600), 2 (between R$2,600 and R$4,000) and 3 (between R$4,000 and 7,000).

Now there are three groups. The first, with an income of up to R$2,000, is entitled to benefits such as receiving subsidized property, accessing low-interest financing, land regularization and property renovations.

Groups 2 (R$2,000 to R$4,000) and 3 (R$4,000 to R$7,000) have access to financing with interest rates a little higher than the first level, in addition to land regularization.