The cabinet on Thursday gave the go-ahead for the payment of a one-time grant to beneficiaries of the ‘Ktizo’ scheme relating to refugee housing estates.

The grant is given to those refugees who opted out of being moved to new housing units.

It concerns the tenants of 43 run-down buildings which are to be demolished, as part of the first phase of the scheme.

In April 2023 the government launched ‘Ktizo’, a reported €130 million project to provide “respectable living conditions” on refugee estates.

There are 358 refugee apartment buildings across the government-controlled areas. Living conditions in some of them have been described as dangerous, with refugees fearing the apartments are at the brink of collapse – particularly in earthquake-prone Cyprus.

Of the 358 apartment buildings, 245 are deemed to be in satisfactory condition and 70 have problems that need maintenance. The remaining 43 have structural issues and their renovation is deemed unsustainable and not financially viable.

Tenants of these 43 unsafe buildings opting out of being relocated to new housing, instead receiving a one-off grant, are not eligible for tax breaks, according to an announcement by the interior ministry.

For those beneficiaries choosing to participate and move to new government-subsidised housing, they will contribute out of pocket €10,000 for a single-bedroom apartment, €20,000 for a two-bedroom apartment, or €25,000 for a three-bedroom apartment.

The out-of-pocket contribution amounts to approximately 10 per cent of the value of the new apartment.

The interior ministry said that, as part of phase one of ‘Ktizo’, construction works are underway at four new buildings for refugees – two in Latsia, one at Plati Aglandjia, and one in Strovolos. For four other buildings, they are at the stage of securing the necessary permits; these buildings will be located in Pallouriotissa, Anthoupoli, Linopetra and Kato Polemidia.

Meanwhile, the start date for the second phase of the scheme – relating to improvement works at 70 buildings – has been brought forward.