|Iran allocates $3.1b to Mehr Housing Project||
TEHRAN – Iran has allocated 77 trillion rials (about $3.1 billion) to the Mehr Housng Project, which aims to build millions of residential units nationwide and stabilize housing prices.
Iranian Transport and Urban Development Minister Abbas Akhoundi said that 1.1 trillion rials (about $44.3 million) will be injected into the project per week for the next 70 weeks, ISNA reported on Friday.
The decision has been taken in coordination with the first vice president, the finance and economic affairs minister, and the Central Bank governor, Akhoundi added.
Under the Mehr Housing Project, real estate developers are offered free parcels of land in return for building cheap residential units for first-time buyers, who receive 99-year mortgages for the purchase of the land.
The project started in 2007 during the incumbency of former President Mahmoud Ahmadinejad.
In October 2013, Akhoundi announced that the project will not continue in the new administration of Hassan Rouhani.
He said his ministry will “only complete” the unfinished residential units.
In August 2013, Finance and Economic Affairs Minister Ali Tayebnia blamed the Mehr Housing Project for over-expanding money supply. He also blamed the Mehr housing policies for runaway inflation and serious budget problems.
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