News

Recently, the Government of Nicaragua approved an amendment to the Law No. 677, Special Law for the Promotion of the Construction of Housing and Access to the Low Income Housing. Among the amendments that were made and that is an innovation to the Nicaraguan population, is the Multifamily Housing as one of the possible solutions to the housing deficit in the country. With the introduction of this new modality of housing, both the Public and Private Sector expect to give the opportunity to many Nicaraguan families to have access to own a house.

Among the special conditions and terms that this Law contemplates, we can mention the subsidies in the interest rate and exonerations in the construction materials for the companies that develop projects of social interest. With the recent reform, the ceiling to consider a housing as low income went from USD 32,000.00 to USD 40,000.00 and the introduction of the multifamily housings with a ceiling of up to USD 50,000.00. Additionally, it was created a special regime of automatic payroll discount, where the employers can discount from the employees’ salary the corresponding fees for the amortization of the mortgage loans, as long as there is an express authorization from the interested employees.

Multifamily housings are defined as a complex where units of overlaying housings accommodate a determine number of families, whose cohabitation is not mandatory. The space is under the regime of joint tenancy, with shared services, such as stairs and elevators, garbage pipes, parking lots, green and social areas. This system can be developed both vertically and horizontally. The Multifamily Housing is proposed as a solution for the housing deficit in Nicaragua, as well as an answer to the accelerated population growth, especially in the capital.

Even though in many countries of the region the multifamily housings is a modality widely used, in Nicaragua is a concept with which Nicaraguans are not familiarized, therefore it represents a challenge for the Government of Nicaragua to make that the population choose this type of housing over the traditional ones. Multifamily Housings, having affordable financing conditions, may result a good option for Nicaraguans that otherwise could not be able to buy a house. It demonstrates, as well, the interest and effort of the Nicaraguan Government to give a solution to the housing deficit.

Many Nicaraguans have been benefited to this date with this Public Policy, which is one of the most important established by the Government; and there could be more Nicaraguans who can take advantage of the new modality of housing such as the Multifamily Housing introduced in the new reform, but given that is a way of living not so familiar to the Nicaraguan population, it is necessary to have their consent and willingness to accept a solution that can bring them better living conditions. Nicaraguans must give a chance to the opportunities given by the Government.

Amandamiguel Ramírez Jiménez
Associate
García & Bodán
Nicaragua