The cabinet yesterday approved 4 billion baht to build houses for low-income earners and allow the private sector to form a joint venture with the government for related construction projects.
The cabinet also agreed to allow the Social Security Fund to allocate 5 billion baht for building residences for low-income earners. The programme is the second phase of the Pracha Rat (People's State) housing scheme.
Nathporn Chatusripitak, a spokesman for Deputy Prime Minister Somkid Jatusripitak, said the 4 billion baht will be provided by the Government Savings Bank (GSB) and GH Bank.
That sum includes pre-financing for developers, carrying a 3% interest rate for the first three years and MLR-1% for the fourth to fifth year, and post-financing at 2.75% a year for the first to fourth year, and MRR-0.75% for the fifth to 30th year.
The scheme will offer MRR-1% for people who have a salary not exceeding 35,000 baht a month.
The price of the residences is projected to be between 350,000-700,000 baht. Developers are required to pay the rental fees for land plots to the Treasury Department.
The first target group is low-income earners registered with the Finance Ministry. The second group are those with salaries not exceeding 35,000 baht per month, while the third is the general public, to whom the government will not offer any supporting interest rates.
Mr Nathporn said the housing projects will be built on nine plots owned by the Treasury Department.
They comprise 10 rai in Sattahip district, Chon Buri; six rai in Hua Hin; 23 rai in Muang district, Udon Thani; 30 rai in Muang district, Nakhon Phanom; 55 rai in Mae Tha district, Lampang; three rai in Muang district, Chiang Rai; 15 rai in Muang district, Chiang Mai; and two areas in Muang district, Khon Kaen, one 30 rai and the other 317 rai.
The Finance Ministry reported that as of Dec 18, the GSB and GH Bank had approved pre-financing to three developers worth 258 million baht and post-financing to 19,875 loan applicants worth 16 billion in the first phase of the Pracha Rat housing scheme.
The government has tasked GH Bank, GSB and Krungthai Bank (KTB) with providing loans both for buyers and property developers participating in the initiative.
First-time buyers who are self-employed or otherwise earn a low or uncertain income will be eligible to participate. The value of the low-cost homes, including the land on which they are built, must not exceed 1.5 million baht per unit.
The cabinet approved the low-cost housing scheme, worth 70 billion baht, on March 22, 2017.
Under the scheme's regulations, 40 billion baht has been slated for post-financing, with the remaining 30 billion is for pre-financing.
The GSB and GH Bank will take charge of post-financing for participating tenants and buyers, with the banks each lending 20 billion baht.
For pre-financing, the GSB, GH Bank and KTB will act as lenders.