Ulaanbaatar
Rent-to-own housing project to house citizens through securitization
Society
Ulaanbaatar /MONTSAME/. At his weekly virtual briefing on May 11, Governor of the capital city and Mayor of Ulaanbaatar S.Amarsaikhan informed that a project is underway to house citizens including the 220 thousand ger area families in Ulaanbaatar through securitization for the first time.
The Capital City Housing Corporation is working to purchase ready-to-occupy apartments on sale through the issuance of an asset-backed securities and house citizens on a rent-to-own basis. According to the Governor, the project has been introduced to the Parliament and the Cabinet and relevant decisions have been made.
Also, Ministry of Finance, Bank of Mongolia, Financial Regulatory Commission, and other related authorities are preparing to establish the Capital City Mortgage Corporation jointly with the Capital City Housing Corporation to implement the project.
The Ulaanbaatar city government introduced a rent-to-own option to its housing program for ger area redevelopment last year and has provided homes for around 3,000 families so far by freeing up their land lots only after presenting them keys to ready-to-occupy apartments.
Governor S.Amarsaikhan said the Capital City Mortgage Corporation is being set up to house a larger number of citizens than before in a short period of time without putting financial burdens on them. He emphasized the securitization scheme is also aimed at helping construction companies sell their idle assets.
So far, 35 thousand citizens have submitted their requests to be involved in the rent-to-own housing project.
