This effort has funded a total of 43 construction projects in sectors that seek to promote access to decent housing for people in vulnerable situations.
The program has allocated a total amount of 577,000 million dollars, resulting in the construction of 5,474 VIS homes for families who need access to affordable housing solutions. Furthermore, this FNA financing scheme promoted the creation of 2,047 VIP homes, focusing on low-income people in need of a priority housing alternative.
Laura Roa Zeidán, president of the National Savings Bank, explained that this type of project required a significant investment in terms of credit and allocated resources. “The execution of these projects has involved a significant investment, reaching a total of $577,000 million in credit approvals,” he noted, underscoring the positive impact these initiatives have had on the beneficiary population.
In the Atlantic department, for example, five specific credits have been approved. One of the most notable is the financing of more than 42,000 million dollars granted for the development of 700 VIP homes in the city of Barranquilla.
This FNA strategy not only promotes the construction of new homes, but also contributes to regional development by creating direct and indirect jobs in the construction and infrastructure sectors.
The impact of these projects goes beyond access to housing, as it also helps improve the quality of life of families and reduce the housing deficit in the country.
In the development of the Colombian Construction Congress, which will take place from 6 to 8 November, at the Puerta de Oro Congress Center, in Barranquilla (Atlántico), the president of the Colombian Chamber of Construction (Camacol), Guillermo Herrera, declared that a as of today there is no action plan to address the challenges of the sector, despite the interest and repeated calls for reactivation by the national government.
Guillermo Herrera, president of Camacol, at the Colfecar 2024 Congress – Colfecar credit“Not everything developed as expected, but today the big bet is on the reactivation of the sector, despite the multiple appeals, the multiple announcements that the national government has made to reactivate the sector, the reality is that today we do not have a reactivation plan and what we want to know in this congress is the voice of the government,” the executive said.
And he added that we need to know from the government “what the future of the construction sector will be” which, according to union data, derives from 25 consecutive months of decline in house sales.
Herrera added that: “It is clear that the consensus of the national government is needed to recover these levels of activity in a sector that can generate one and a half million direct jobs in Colombia, but which also performs a very important social function for many low-income families who have the ability to save at home, the ability to overcome poverty and, above all, to have a better quality of life”.
Likewise, Herrera predicts that by 2025 the outlook will not improve in terms of home sales, taking into account the fiscal deficit which between January and August amounted to 4.3% of gross domestic product (GDP) and which is ultimately in 2024 increase; and which, therefore, affects the national budget for 2025.
“We have great concern in the real estate industry today about the fiscal restrictions that are coming for next year. We already know it, and the Minister of Housing said it For next year we will not have 50,000 subsidies, but almost 20,000, according to projections of the availability of resources for the National Housing Fund“, the executive said in a press conference.
Interview between Time.news Editor and Housing Expert
Editor: Welcome to Time.news, where we dive deep into the pressing issues of our time. Today, we’re joined by Laura Roa Zeidán, the president of the National Savings Bank, and Guillermo Herrera, the president of the Colombian Chamber of Construction (Camacol). Thank you both for being here.
Laura Roa Zeidán: Thank you for having us.
Guillermo Herrera: It’s a pleasure to be here.
Editor: Laura, let’s start with you. Your recent program aimed at promoting access to decent housing for vulnerable populations has funded 43 construction projects. Can you share the impact these projects have had?
Laura: Absolutely. With a total investment of 577,000 million dollars, we have been able to provide 5,474 VIS homes and 2,047 VIP homes. This initiative not only focuses on providing shelter but also plays a crucial role in improving the overall quality of life for these families, thereby reducing the housing deficit in Colombia.
Editor: That’s impressive. And despite the challenges, you mentioned it has created significant job opportunities. How does the financing from the National Savings Bank contribute to this job creation in the construction sector?
Laura: The financing enables developers to undertake large-scale projects, which in turn generates both direct jobs on-site and indirect jobs in related sectors, such as materials suppliers, transportation, and public services. Essentially, it creates a ripple effect that can invigorate local economies.
Editor: Guillermo, turning to you—during the upcoming Colombian Construction Congress, you expressed concerns about a lack of action plans from the national government to address sector challenges. What specific issues are you observing in the construction industry that require urgent attention?
Guillermo: There are multiple factors at play. While we have significant interest in reactivation, we’ve yet to see concrete action. The construction sector is vital for economic recovery, but we need clear policies and consistent support from the government to stimulate growth. Delayed approvals and lack of communication are impacting projects on the ground.
Editor: What would you consider effective strategies for the government to support and revitalize the construction sector?
Guillermo: First, we need streamlined approval processes for construction projects. Second, investing in infrastructure can create a healthier ecosystem for developers. Lastly, fostering partnerships between the public and private sectors can boost investments and innovation which are critical for sustainable development.
Editor: Laura, in light of Guillermo’s comments, do you think the financing efforts from institutions like the National Savings Bank can drive the necessary changes in policy?
Laura: Definitely. Our role is crucial in providing the resources, but we also need alignment with government strategies. If we can collaborate effectively, we can amplify the impact of our financing efforts while also ensuring that we address the underlying issues in the sector that Guillermo highlighted.
Editor: It sounds like collaboration is key. How can stakeholders ensure that the needs of vulnerable populations are prioritized amidst these initiatives?
Laura: This is essential. We must continuously engage with communities to understand their needs and incorporate their feedback. By doing so, we can tailor our projects to be effective not just as housing solutions but also as community-building initiatives.
Editor: In closing, what message would you both like to convey to our audience regarding the current housing situation and the future of the construction sector in Colombia?
Guillermo: I would say that while there are challenges ahead, there is also tremendous potential for growth. With proper governmental support and public-private partnerships, we can pave the way for a brighter future in our sector.
Laura: And I would urge everyone to recognize the importance of housing as a fundamental right. As we work towards these housing solutions, we should remember that access to decent living conditions plays a vital role in fostering social stability and economic development.
Editor: Thank you both for your insights. It’s clear that there’s a critical need for collaboration, thoughtful policy, and community engagement to tackle the housing challenges in Colombia. We appreciate your time and dedication to this issue.
Laura & Guillermo: Thank you!