The Ministry of Equipment and Housing plans to realize about 5,000 housing units under the rent-to-own mechanism by the end of 2030. The program represents an estimated investment of 750 million dinars, i.e., about 1,000 housing units per year, according to the ministry’s response to a written question from MP Abdelhalim Bousma on the housing crisis and the Housing Promotion Fund for Employees (FOPROLOS).
A first tranche of 1,213 housing units
The ministry states that the first tranche of the program includes the studies and works necessary for the realization of 1,213 housing units spread across 11 governorates. Its cost is estimated at 212 million dinars. Other projects must be programmed depending on the availability of land.
The FOPROLOS also finances the acquisition of authorized subdivided plots for the construction of a first home, the construction or extension of a dwelling, as well as the purchase of a first home from public or private real estate developers.
Since 2026, financing can also cover up to 100% of the cost of social housing projects and social-lot development carried out by the National Housing Company of Tunisia (SNIT) and its subsidiaries, the Social Housing Promotion Company (SPROLS) or the Housing Land Agency (AFH). These homes are intended to be sold under rent-to-own or installment payment mechanisms.
More than 65,000 housing units financed since the creation of the fund
The ministry specifies that FOPROLOS serves employees whose gross monthly income does not exceed six times the minimum wage guaranteed (SMIG). Its financing can cover the purchase of a standalone home, land, construction or extension of a dwelling.
According to the ministerial response, the fund has contributed to financing more than 65,000 housing units since its creation. The pace, however, has fallen to about 600 housing units per year in recent years.
The ministry explains this decline by the reluctance of some developers to undertake social housing, in a context of rising costs. It cites notably the increasing cost and scarcity of serviced buildable land, the rise in the price of materials, construction and labor costs, the shortage of skilled workers, as well as the higher cost of connecting to public networks.
It also notes the growing gap between households’ purchasing power and housing prices, as well as developers’ shift toward more expensive properties, less accessible to middle-income groups.
The access conditions to FOPROLOS have been widened
Regarding Government Decree No. 127 of 2023, the ministry recalls that the changes broadened access to the fund to a fourth category of employees, whose gross monthly income lies between 4.5 and six times the SMIG.
The changes also raised the maximum repayment age to 75 years, allowed the stacking of a loan for land purchase and a construction loan, increased the financing ceiling to six times the SMIG and increased the areas eligible for financing.
The automatic revision of the housing price ceiling, based on the evolution of real estate prices and construction costs, will be studied as part of the revision of the national housing strategy, according to the ministry. The modification of Article 26 of the 2015 supplementary finance law requires, for its part, coordination with the General Directorate of Studies and Legislation of the Ministry of Finance.
The deputy mentions a surplus of more than 1.874 billion dinars
In his written question, MP Abdelhalim Bousma states that a closing report of the state budget by the Court of Audit notes cumulative surpluses at FOPROLOS exceeding 1.874 billion dinars. He also questions the financing ceiling, which he estimates remains at 220,000 dinars without updating, as well as the differences between the ceilings applicable to housing financed by the fund and those eligible for a tax advantage.
The ministry states that the management of the fund’s resources is entrusted to BH Bank under an agreement signed in 1990. The Ministry of Finance records annual appropriations based on budget forecasts, then funds them according to loan requests registered with the bank. The response, however, does not provide the updated balance of FOPROLOS.
The deputy also questioned the ministry about the marketing of SNIT housing at prices above the FOPROLOS ceilings and tax advantages. In response, the ministry explains that SNIT offers affordable, middle-income and social housing, and that the margins realized on middle-category housing help cover the cost of social housing and preserve the company’s financial balance.
