New Minha Casa, Minha Vida program expands income ranges and reduces interest rates

The new “Minha Casa, Minha Vida” program was sanctioned today, Thursday (13), by President Luís Inácio Lula da Silva (PT). The new version of the project includes the expansion of income ranges and the reduction of interest rates on properties.

The Provisional Measure that recreated the program was approved by the National Congress at the beginning of June. The new program replaces the former Casa Verde e Amarela of the Bolsonaro Government. It is not yet known whether President Lula vetoed any part of the text.

Even finding a public machine completely dismantled, we returned to invest in the poor people of that country. With the new Minha Casa Minha Vida, families with incomes of up to two minimum wages will be able to make their dream of home ownership come true again. With much more government subsidy… pic.twitter.com/lXLp1skz59

— Lula (@LulaOficial) July 13, 2023

_{Lula talks about the new project. (Photo: Reproduction/Twitter/Lula)}

With the aim of simplifying the vote in the Senate, the Government chose to veto the part of the project that covered the contracting of structural insurance, a measure that could increase the costs of the project.

The Government’s intention is to invest 10 billion from the Federal Budget for Track 1 of the program. In this range, the family pays symbolic installments. During the first semester, the government delivered more than 10,000 homes in 14 states, with an investment of R$ 1.17 billion. The forecast is that more than eight thousand housing units will be delivered.

Through social networks, President Lula said that he is happy with the new program and that the people need a decent place to live:

No one chooses to take a pipe bath if they can take a hot shower. It is extremely important that we ensure the quality of what we deliver to the poorest people. People want to be respected.

— Lula (@LulaOficial) July 13, 2023

_{Lula talks about the new program. (Photo: Reproduction/Twitter/Lula)}

The income range has been expanded in three categories, both for beneficiaries and for those who will finance:

• Tier 1: Income of up to BRL 2,640.
• Range 2: Income between BRL 2,640.01 and BRL 4,400.
• Range 3: Monthly income between BRL 4,400.01 and BRL 8,000.

The values ​​of the program’s properties were increased according to income brackets and financing modalities. The new established values ​​are:

• For projects that include Tier 1 Subsidized: up to BRL 170,000
• For developments that include Level 1 and 2 Financed: up to R$ 264,000
• For ventures that include Tier 3 Financed: up to BRL 350,000

In addition, in the rural Minha Casa Minha Vida (MCMV) program, changes were made to the maximum values ​​for new homes and improvements to a home:

• For the first home, the maximum amount increased from BRL 55,000 to BRL 75,000
• For improvements in a house, the value increased from R$ 23,000 to R$ 40,000

_{Lula talks about the new program. (Photo: Reproduction/Twitter/Lula)}

These changes are aimed at adapting property values ​​to market conditions and the needs of program beneficiaries. With the FGTS resources, families will have a greater discount on the entrance fee.

Interest rates for Tier 1 have been reduced. For families with an income of R$2,000, the annual interest rate is 4%, applicable to residents of the North and Northeast regions. For other regions, the rate is 4.25%. For bands 2 and 3, rates reach 8.16% per year.

Featured photo: Minha Casa, Minha Vida program is sanctioned by the Government. Playback/Twitter/Lula