President Dilma launches the new phase of the nation’s largest construction program with a new income band and a unified register.

Dilma Rousseff launched the third phase of the Minha Casa Minha Vida program on Wednesday, March 30, 2016, with the goal of building 2 million homes by 2018. The new phase of the largest building program in Brazil’s history will have as a novelty the creation of a new income bracket, bracket 1.5, which will facilitate home purchases for families earning up to R $ 2,350. Additionally, a new portal will unite the “cadastre do programa” to allow interested parties to simulate online financing.

In total, the Minha Casa Minha Vida 3 program envisages investments of Rs 210.6 billion over three years and will continue to strengthen the construction sector and the economy as a whole. Of this amount, R $ 41.2 billion will come from the federal budget and 39.7 billion in grants from the Fundo de Garantia do Tempo de Serviço (FGTS). Fund allocation has been approved by the Foundation’s Board of Trustees and will not weigh on employees. The $129.7 billion remaining R $ will come from loans granted by FGTS.

The new 1.5 bracket was created to help a part of the population having difficulty accessing the program with the previous criteria. Now, those in the new category will be able to fund up to 135,000 R $, with grants that can reach 45,000 R $, depending on location and income, paying 5% annual interest.

To allow families even more access to the program. Bracket the income ranges from 1,600 to 1,800 R $; bracket 2 ranges from 3,275 to 3,600 R $; and bracket 3 families with income up to 6,500 R $, an amount that was previously fixed at 5,000 R $.
Property values are rising, due to the upgrading of construction costs and the improvements set in this new phase. In bracket 1, from 76,000 R $ to a maximum of 96,000 R $, and in brackets 2 and 3, ranges from 190,000 R $ to 225,000 R $. In bracket 1.5, the property will cost up to 135,000 R $.

In bracket 1, 90% of the value of the property will be subsidised to beneficiaries who will pay monthly instalments of 270 R $, based on income, without interest and for 10 years. In bracket 1.5, the grant is up to 45,000 R $ and the funding of the balance will be made with interest at 5% per annum. The bracket 2 allowances will be up to 27,500 R $, depending on your income and position, with interest from 6% to 7% per annum. In bracket 3, the funding will have an annual interest of 8.16%.

New MCMV Portal

Registration on bracket 1.5 will be carried out exclusively by the new MCMV Portal, which will select the beneficiaries through the new “Sistema Nacional de cadastral Habitacional (SNCH)” coordinated by the Ministry of Cities. Interested parties completing the registration will submit receipts in digital form. The system will evaluate and validate the data.

The new site aims to further facilitate access to and transparency of the program, bringing together all the information needed for citizens, businesses and public officials. In the selection process of beneficiaries of brackets 1 and 1.5, the SNCH allows the citizens themselves to see their situation.

In addition, tracking contracts and commitments made by local project contracting authorities will be available.

If necessary, the beneficiaries will be designated according to the approval of the recruitment units for each region. In bracket 1, the diagnosis of demand and registration will continue to be made by governments, but now submitting revenue to the new SNCH so that the entire process is accompanied by stakeholders in a transparent way to ensure that the parameters of the program are completely satisfied.

For brackets 2 and 3 of the program, the interested parties can submit simulation of the financing contract with the income values and the desired property.

Additional space and improvements

The properties of bracket 1 will increase by 2 square meters in the minimum length, reaching 41 square meters, plus a better thermal and acoustic insulation to provide greater comfort for residential residents. Additional sustainability elements, such as double unit discharge valves, presence sensors for common area lighting, Procel certified water pumps, and alternative solar heating systems will be included.

Trees will be mandatory: preferably native trees should be planted at the rate of one tree per 5 dwelling units in groups of flats and one tree per housing unit.

New projects should be made in the form of allocations, ie all roads should be public and connected with the rest of the neighborhood or city. This will provide greater integration of services, comfort and security. The sidewalks must have a maximum size to allow safe pedestrian movement, and the roads must have minimum widths that provide for different modes of transport.

Of the 2 million units to be built by 2018, half will be in the range of 1 and 1.5, with 500,000 units per each. Bracket 2 will have 800,000 contracted units and another 200,000 will be contracted from bracket 3. The expectation for this year will be 110,000 units in bracket 1 and 120,000 units in bracket 1.5, 180,000 in bracket 2, 70,000 units of the bracket 3. All these contracts will be added to the units contracted in 2015, after completing phase 2 of the program: units 16,890 bracket 1; 344,729 bracket 2 and 40,526 bracket 3, for a total of 402,145 units already contracted.

Another innovation is the creation of a phase of pre-qualifying proposals. At this stage, the proposals made by the construction companies will be subject to a pre-qualification process: a cycle of proposed presentations will be launched. At the end of this cycle, the best proposals must be reported on the basis of budget compliance criteria, larger housing units, and better urban integration. The best proposals will have priority.