Government Approves Housing Support Program for Families Displaced from Artsakh

The government of Armenia has approved a state assistance program for housing support for families displaced by force from Artsakh, as well as the list of specific residential areas in Armenia.

"The objective of the project is to create conditions for the long-term social and economic integration of individuals forcibly displaced from Nagorno-Karabakh into Armenia," said Narek Mkrtchyan, the Minister of Housing and Urban Development of the Republic of Artsakh. The program proposes establishing state support for housing for displaced families, consisting of three components: the first being the acquisition of an apartment or a private residential house through the issuance of a certificate.

The second component involves the issuance of a construction certificate for an individual housing unit, and the third helps with the repayment of existing mortgage loans. The certificates vary in value depending on the number of family members and different residential areas. The first certificate, worth 5 million drams, will be issued in 242 urban and rural settlements, while the second—worth 4 million drams—will be available in 148 areas. A 3 million dram certificate will be applicable in all remaining locations except for the first and second zones of Yerevan, and a 2 million dram support will be provided if there is an existing mortgage, again excluding properties in the first and second zones of Yerevan," Mkrtchyan said.

He outlined the main conditions of the program and who can become beneficiaries: "A family displaced from Artsakh after September 27, 2020, will be considered a beneficiary if all members, including minors, have obtained or possess Armenian citizenship. The acquired residence must not be less than 12 square meters per family member, and its value must not exceed 55 million drams. The funding for the program will be implemented through partner banks, but during the program’s implementation, the support amount and its interest fees will be paid by the Armenian government. If there are remaining funds after the implementation of the certificate, those positive balances will be redirected towards three areas: 1. Purchase of agricultural land up to 5 million drams; 2. Renovation works for properties needing repairs up to 4 million drams; and 3. The possibility to buy furniture and household appliances up to 2 million drams.

This program specifically addresses families displaced from specific regions of Nagorno-Karabakh after September 27, 2020, excluding beneficiaries from the Kashatagh program, regardless of the implementation of property rights. The program allows for a family member to have ownership of an apartment or a residential house, and if constructing a home, beneficiaries must select from pre-designed and published model projects. Construction of the residential home can only be carried out by licensed construction organizations in Armenia.

If the beneficiary does not have land for individual residential house construction, we allow the support amount to be used for purchasing land up to 3 million drams, with a minimum surface area of 400 square meters. The regulations resulting from the program will be confirmed by June 15, after which the components supporting the acquisition of a home will be active, followed by the individual residential house construction component starting June 15, and support for repayment of existing mortgage loans beginning August 1.

The program will be implemented in three phases: the first phase will include families with three or more minor children, and in the case of house construction, families with two minors, as well as various vulnerable groups and families with existing mortgages, or any other families deemed creditworthy will receive at least 50 percent additional loans from the bank," the minister added.

According to him, the second phase will incorporate families with two minors, and in the case of house construction—families with one minor, starting no later than January 1, 2026. The third phase will include families of any composition starting January 1, 2027.

Mkrtchyan stated that the program has been developed following discussions within the inter-agency group led by Deputy Prime Minister Tigran Khachatryan and will enter practical implementation by June 15, following the confirmation of regulations.

“It is crucial to note that we have, in fact, moved away from the principle of flat distribution and have adopted a model that allows for differential treatment,” said Prime Minister Nikol Pashinyan.

Tigran Khachatryan stated, “We estimated that up to 25,000 families can benefit from this program, and if we consider average compensation, the total cost for constructing or acquiring those houses or apartments could reach 500 billion drams, aside from the interest expenses that will be paid to financial organizations over the course of this period. The most modest estimates suggest expenses exceeding 800 billion drams."