Introduction to Fovissste and the Housing for Well-being Program
With the expansion of the goal of the Housing for Well-being Program, which aims to build 1.8 million homes during the current six-year term, the Fondo de Vivienda del Issste (Fovissste) will play an active role in this scheme that aligns with the federal government’s housing objectives.
Fovissste’s Contribution to the Program
In this context, Fovissste announced that it will construct 100,000 homes between 2023 and 2025. These homes will be intended for Fovissste beneficiaries with monthly incomes around 13,760 pesos who do not own a property.
“Fovissste will stop being an exclusive financial actor that provides credits and will participate in housing production to guarantee this right for low-income beneficiaries who earn one to two minimum salaries and do not own a property,” explained Jabnely Maldonado Meza, executive board member of the organization.
Features of Constructed Homes
According to Fovissste, the built homes will have a surface area of 60 square meters, include basic services and adequate infrastructure, and be located near work centers.
Support Programs
The official detailed the progress of her support mechanisms to resolve and liquidate deteriorated credits from the organization, especially to help priority groups.
- Debt liquidation: For people over 80 years old and credit accredited individuals who have paid twice or more the original credit amount.
- Condonations and discounts: For retired and pensioned individuals; loan restructuring for deteriorated loans; lower interest rates and smaller financing and discount amounts for non-public sector accredited individuals.
More than 149,000 retirees and pensioners have benefited in the first stage, while in the second, deteriorated credit support will be provided to 135,000 individuals.
“In the last quarter, we will apply support for 116,000 beneficiaries, covering nearly half of Fovissste’s credit portfolio,” explained Maldonado Meza.
Fovissste’s Performance in 2023
This year, Fovissste has granted 17,000 new credits with an economic outlay of 18,768 million pesos (51% of the annual target). Additionally, 14,664 cases of regularization and recovery of collateral, as well as 32,000 mortgage guarantee cancellations, have been resolved.
Key Questions and Answers
- What is Fovissste? Fovissste, or the Housing Fund for Issste Employees, is a Mexican financial institution that provides housing credits to Issste (Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado) employees.
- What is the Housing for Well-being Program? It’s a Mexican government initiative launched in 2019, aiming to build 1.8 million homes by the end of 2024, targeting low- and middle-income families.
- What role does Fovissste play in this program? Fovissste will actively participate by constructing 100,000 homes between 2023 and 2025 for low-income beneficiaries without property ownership.
- What features do the homes built by Fovissste have? These homes will be 60 square meters, include basic services and adequate infrastructure, and be located near work centers.
- What support programs does Fovissste offer? Fovissste provides various support mechanisms, including debt liquidation for seniors and credit-accredited individuals, condonations and discounts for retirees, loan restructuring for deteriorated loans, and lower interest rates for non-public sector accredited individuals.
