Government will reassume works of the program Minha Casa Minha Vida

More than ten million persons live currently in houses that came from the program Minha Casa, Minha Vida (My home, my life), which is present in more than 5300 cities

Through a decree issued in July 24, the Ministry of Cities established a new deadline for conclusion and delivery of the residential units already contracted in the program Minha Casa, Minha Vida, whose works were stopped. Many of these works were started in 2009 to 2012 and are located in cities with population up to 50,000 inhabitants. Financial institutions and agents have to present to the Ministry of Cities the request of new deadlines till August 23, together with the Declaração de Viabilidade da Obra (DVO – Project Feasibility Statement) and the Termo de Adesão (TA – Term of Acceptance).

The new deadline of conclusion and delivery will be established in accordance with the status of physical execution of the works, starting from July 12, 2017. The units with 50 percent of the works already completed will have 10 months to end them (till May 12, 2018). Projects with 50 to 80 percent of the works completed may go till February 12, 2018 (seven months). And the projects with more than 80 percent completed will have to end their works till November 12, 2017.

The flow of payments will be carried out in accordance with the development of the works when the rates of 30, 45, 60, 75, 90 and 100 percent are reached. Fund releases will pay works already carried out and attested by the institutions and financial agents when the sum of the subventions already decentralized is not enough to discharge the works concluded. To release the last installment when the works are finished, the institutions and financial agents will have to send the Relatório de Entrega de Unidade Habitacional (Delivery Report of Habitational Unit) up to 60 days after the new established deadline.

Institutions and financial agents that did not comply with the new deadlines may send a request for time extension to the Secretaria Nacional de Habitação (SNH – National Secretary of Habitation) from the Ministry of Cities. This request may be authorized only a single time, if matching with the deadlines established by law (July 11, 2018). If the works are not finished in the new deadline, received resources have to be integrally returned with correction by SELIC plus 2 percent per year.

Stabilizing the deficit

Since its start in 2009, the program Minha Casa Minha Vida (MCMV) built more than 4 million residential units, stabilizing this way the Brazilian deficit. “We stabilized in approximately 9 percent the deficit from 2011 on. We did not reduce this figure, but it did not continue to increase. This is a very important social victory”, celebrated the National Secretary of Habitation from the Ministry of Cities, Maria Henriqueta Arantes, during a public hearing in the Comissão de Desenvolvimento Urbano da Câmara dos Deputados carried out in May30, 2017.

According to calculations from the Ministry of Cities, there will be 5.75 million of contracted units till the end of the third phase of the MCMV. These units will benefit about 23 million persons. Currently, more than 10 million persons already live in houses that came from this program, which is present in more than 5300 cities. This means that low-income families that live in more than 96 percent of the Brazilian municipalities have houses coming from the MCMV.

Most benefits contained in the range 1 of the program (69 percent) were delivered to families whose income was below R$ 800.00 per month. This shows the adherence of the program to the features of the habitational deficit in the country.

Reassuming the works

From the total of 60,000 residential units that were stopped, approximately 30,000 were already restarted. Other 20,000 will also be restarted in the whole country. In addition, new contracts are being signed, involving more than 170,000 units for the range 1.

“After a lot of work, we currently do not have any project with delayed payment in any program of the Ministry”, said the secretary. All works will be carried out with funds coming from the Federal Government.