Local services
The Főnix Housing Programme is a unique programme supporting the housing of young people in Debrecen, the details of which were discussed with real estate developers on the 15th of May 2024.
Following the event, the details were presented by Mayor László Papp and Deputy Mayor Lajos Barcsa.
Mayor László Papp said that “one of the most interesting announcements of the past period was the Főnix Housing Programme. The aim of the programme is to support young people under the age of 35 in Debrecen who are working and looking for a job. Preparations for the project were launched in March. He added that the internal consultations and the basic concept of the programme had been completed, but the involvement of real estate developers was also essential”.
The mayor underlined that the proposal had been very well received by both employers and employees. “The last ten years have basically been about Debrecen’s ability to retain young people and keep them in the city. To do that, we needed to create jobs. The next ten years will basically be about how we can help young people to find a home. So, after job creation comes the period of home creation. This will complete our programme,” László Papp stressed.
László Papp believes that they have every chance of using Debrecen’s economic strength to help young people in Debrecen to get a home, using the city’s revenue for good causes.
On the timing of the programme, he said that “once the consultations have been completed, fine-tuning of the scheme is expected. The detailed design of the programme will then begin. Developers will be invited to tender first, then tenants and employers together. The scheme could start in 2025 with a first contingent of 200 apartments”.
Regarding the timing of the launch of the housing programme, László Papp said that “previously neither the interest rate environment nor the investment intentions of real estate developers were such that the housing programme could be launched. However, conditions have improved a lot in the last year. As a result, there is the potential for new, serious property developments to start in Debrecen. Already this year, according to the indications, the construction of hundreds of new apartments may start, and this number will continue to increase in the following year”.
László Papp emphasised that “99 percent of the real estate developers present at the round table can undertake that they will be able to provide apartments for the Főnix Housing Program in 2025 that meet the already known tender parameters.They can therefore launch this programme in 2025 with a high degree of certainty”.
Deputy Mayor Lajos Barcsa said that “ real estate developers are key players in the Főnix Housing Program, which is why this current round table discussion was necessary. “Real estate developers see a perspective in the implementation of the programme and therefore want to participate in the tender, which is planned to be launched in the second half of the year, “ he added.
“The general assembly decision decided on the framework of the program, but the aspects of those involved in the program, including the real estate developers, must also be taken into account during the elaboration of the detailed program. During the course of the day, questions such as the situation of the public utilities or parking spaces belonging to the apartments came to the surface, and comments were also received regarding insurance and contract structures. These questions will be clarified by the city administration in consultation with the participants in the program in the near future,” the Deputy Mayor emphasised.
Lajos Barcsa also spoke about the fact that the needs of the employer’s side were assessed at the previously held employer consultation. Since then, declarations of intent to join the program have already arrived. Real estate developers can make comments in writing regarding the program in the coming weeks.
Regarding the tender, Lajos Barcsa said that “two tenders are planned for the second half of the year, one for real estate developers to compile the housing quota, and the other for employers to join the program”.
About the Főnix Housing Programme:
The aim of the programme is to provide affordable, low maintenance, high energy efficient housing for workers under 35 years of age working in Debrecen, so that they can plan their lives and careers in Debrecen with peace of mind. The programme would cover the development of a contingent of dwellings of a minimum of 30 m2 and a maximum of 50 m2 with predefined standard technical content, built within a maximum of 5 years prior to the launch of the Programme, and the subsequent rental of the dwellings, which could be occupied by single workers or families of up to 2-3 persons.
The programme involves several actors:
- Municipality as Supporter,
- The real estate developers, and the housing companies as Landlords of the apartments, who will guarantee the number of apartments they have committed to for 5 years in order to implement the Programme,
- Cívis Ház Zrt., indirectly owned by the Municipality, acting as a rental coordinator and participating in the tenancy as (main) tenant,
- Enterprises with their registered office or place of business in Debrecen,e.g. employers, as (sub)tenants, who undertake to enter into a 5-year sublease agreement with Cívis Ház PLC
- Employees of the enterprises, as final beneficiaries, who are entitled to use the designated accommodation.
The programme will provide housing for persons who meet the following conditions:
- Employment contract of indefinite duration with a company operating in Debrecen,
- Tenant must be under 35 years of age at the time of signing the tenancy agreement,
- He/she is Hungarian or a person with dual nationality,
- No ownership of real estate in Debrecen
- Registered address in Debrecen at the time of registration in the rental property.
Under the rental scheme provided by the programme, the Municipality finances 1/3 of the rent, so the remaining 2/3 of the rent is shared between the employer and the employee.
Source: debrecen.hu
