In a collaboration between the Archdiocese and the Government of Malta, the Foundation for Affordable Housing (FAH) has announced that at least 260 housing units are to be developed across four localities, and offered at a 30% discount to the market price of comparable properties.

The exact quantity of these affordable housing units may increase beyond 260 apartments depending on the designs submitted by contractors during the tendering process opening on the day of this announcement.

Every one of these affordable units may become the permanently owned home of the applicants living in them, after 20 years of living there. 20 years after moving into their respective affordable housing units, end users will have the option to convert their temporary emphyteusis into a perpetual emphyteusis to become a homeowner in their own right. Those heeding this process will need to pay an additional amount of money, set by a predetermined formula, to fully take over the land themselves.

During the announcement on Monday morning, it was said that these apartments shall be developed on parcels of land in Fgura, Ta’ Giorni in St. Julian’s, Marsascala, and Ħal-Kirkop.

The FAH told journalists during a press briefing on Monday that most of these housing units shall be concentrated in Fgura. Approximately 117 housing units, over a 4,200 square metre plot have been earmarked for development within this town, specifically on a site along Triq tax-Xemx u tal-Qamar, Triq il-Karmnu, and Triq id-Dejma.

The Ta’ Giorni plot measures at 4,800 square metres, and will host 79 housing units in Triq Albert Mayr and Triq Charles Sciberras.. Ħal Kirkop is to gain 55 of these housing units in Triq Salvu Sacco spread over a 1,970 square metre area, and Marsascala will have nine (9) such properties spread out across Triq il-Qaliet, Triq Thomas Ashby, and Tal-Ġebel l-Abjad over a land area measuring 337 square metres.

These housing units shall be targeted at what was referred to as a “stretched class” of citizens who are too financially comfortable to qualify for government schemes of social housing, yet not financially comfortable enough to independently seek a property of their own within the private sector with present market prices.

During this press briefing, it was noted that the goal of this project is to offer affordable living spaces to individuals and families at an approximate 30% discount, comparable to the market price of similarly sized properties within the same geographic region.

A preset eligibility criteria has already been defined to determine who is eligible to apply for these housing units when applications open. Single individuals between 25 and 34 years of age are eligible if they have a maximum gross annual income of €29,000 and a maximum net worth of €45,000. Single individuals of 35 years old or older are eligible should they have the same maximum net worth, but a maximum gross annual income of not more than €33,000.

Meanwhile, couples where the oldest partner is between 25-34 years old may be eligible if their combined maximum gross annual income does not exceed €36,000 and if their combined maximum net worth is not more than €75,000. For couples where the older partner is over 35 years old, the maximum gross annual income widens up to a combined €38,000.

This maximum net worth comprises cash, savings, other movable assets, and investments. In addition, applicants must not be in possession of any “residential immovable property” to be eligible for this affordable housing.

Selected applicants will need to pay sub-ground rent, with revisions occurring every five years to increase the rate by 10% each time. The first adjustment will occur at the beginning of the sixth year.

The FAH’s CEO, Jake Azzopardi, stated that applicants will “certainly” not be overburdened by the requested payments once living in these spaces.

The FAH acknowledged that cases featuring health issues may warrant individual assessments that are to be adjudicated by a Board of Appeal on a case-by-case basis.

The FAH aims to open applications in 2027, and applications will be available on the FAH’s website. It is hoped that these housing units can be distributed in 2028, Minister Roderick Galdes said.

The tender process opened for contractors to submit their designs for this project through an official Expression of Interest and Capabilities (EOI&C) call on Monday.

It was established that tenders will be evaluated through a best price-quality ratio (BPQR) where 65% of the weighting depends on the technical quality of the design and development of the affordable housing units, while 35% is weighted on the proposed price. This weighting was determined in order to push contractors to compete by submitting the best sustainable designs they can, journalists were told.

The FAH will transfer this land to a selected private contractor via a temporary emphyteusis, through a Design and Build (D&B) contract. Contractors’ bids must include the price at which the future residential units will be sold at; such prices must align with the FAH’s policy of affordable prices.

The Foundation is set to make a marginal return on this project. Any profits will be reinvested into future affordable housing projects.

The FAH was founded in 2022 through a collaborative effort between the Government of Malta and the Archdiocese of Malta with the aim of providing sustainable market solutions for today’s housing market, by facilitating home ownership and leasing.

The Minister for Social and Affordable Accommodation, Roderick Galdes, commented that this is the largest project that this Foundation has ever undertaken.

The Prime Minister of Malta, Robert Abela, observed that even though Malta can proudly say that 85% of its citizens are homeowners, the remaining 15% must be looked after, “as we are doing today.” This point was also made by Archbishop Charles Scicluna, who was also present for this project announcement’s press conference, earlier on Monday morning.

Prime Minister Abela stated that applicants for this affordable housing project will know precisely how much money they will fork out once all agreements have been signed, amidst concerns of increasing housing prices, as prices within this project will be locked and only subject to 10% increases every five years, as described previously.

He hopes for this project to promote the country’s mission to increase the rate of homeownership and grant peace of mind to many more families as a result.

Archbishop Scicluna commended this initiative and stated that “this is concrete evidence that when we work together, each and every one of us benefits.”

The Archbishop appealed for people to mean what they say so that we can collectively work for a better future. He also said that “quality of life begins with having a dignified place to live.”

The CEO of the Foundation for Affordable Housing, Jake Azzopardi, described that everything his Foundation does circles around the principle that “everyone deserves a home.”

He described that this initiative is reaching out to a new bracket of people being labelled as the “stretched class” who often lament their much of their work, studying, and saving has been for naught, since they continue to struggle to have their own living spaces.

On behalf of the FAH, he promised for similar future projects to be financed “so that every person on the Maltese islands can be able to own their own home.”

Following the press conference, the Prime Minister said that "it is every Maltese and Gozitan's right to have a roof over their head." He continued that the government is offering several remedies to promote this, including resolving an issue relating to pre-1995 rental agreements where several families faced eviction and are now receiving assistance.

The Prime Minister commented that this "new concept" will help those who struggle to purchase a property at market price yet do not qualify for government's social housing schemes. 
He described this project, which he reminded will impact 260 families, as a "very important measure" that will generally calm down property market prices. Abela continued that all profits from this project will be reinvested into similar projects in other sites to support youths and families through this "sustainable model."
"This is a new model for that category of people who are ineligible for social housing yet have great difficulty in attaining a property through the free market," the Prime Minister said.
He said that increasing the rate of homeownership in the country would align with the State's goals to promote the principle of social justice.