Romanian State-Built Home Rent Capped At One Third Of Average Net Wage - Draft

The rent paid for social homes the Romanian state will build in public-private partnership in the next years will cover administrative costs, the property tax and home insurance, and will not exceed one third of average net wage, according to a draft Government decision.

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Average net wages in Romania stood at about 1,500 lei (about EUR353) over the past few months.

Rent for homes built by the country's National Housing Agency (ANL) currently is not regulated through Government decisions, but is set by local authorities.

According to the draft decision, the state allots RON6.45 million to the housing program in 2011 and RON21.5 million per year in 2014 and 2015. No money from the state budget will be directed to the program in 2012 and 2013.

The Development Ministry estimated construction costs will stand at EUR450 per square meter, VAT included.

Costs to design 1,000 homes reach EUR1.5 million, VAT included.

According to the ministry, requests to rent a social home exceed 100,000. ANL has built about 28,000 homes since 2001.

(EUR1=RON4.2525)

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