The Armenian government, perhaps finally accepting the fact that it cannot make good on its promises to provide housing to homeless families of Gyumri, has decided on a new tack – to give them money with which to purchase housing on their own.

This direct approach by the government is because Glendale Hills CJSC, which was given the contract to build new housing, hasn’t completed construction of apartments in Gyumri’s Moush-2 neighborhood earmarked to house 450 families who lost their homes in the 1988 Spitak earthquake.

Instead, the company has made due with reinforcing the foundations of several buildings.

Such a trial run occurred in 2005 for the homeless in Shirak province. The program wasn’t a great success. Many families concocted fake property purchase contracts and then used the money for other purposes.

Albert Margaryan, who heads the province’s urban construction department, claims that new mechanisms have been drafted to avoid such schemes this time around.

On October 2, 2014, the government adopted a decision to allocate 1.5 billion AMD (approximately US$3.6 million) to implement the new housing purchase program.

Shirak Provincial Governor will personally oversee the program that will begin to allocate the funds in a few days. During the program’s first stage, 215 homeless will receive housing purchase certificates.

Those chosen to participate in the program will be notified in advance and will have three days to register at the Shirak Provincial Authority where they will sign a contract.

Having signed the contract, the approved applicant is given two months to take care of the paperwork and six months to find suitable housing on the open market.

In order to prevent the mistakes of the past, the entire purchase procedure will be monitored.

60% of the money agreed upon will be transferred to the individual’s account only when a notarized buy and sell agreement is presented to program officials. The apartment is then registered in the beneficiary’s name and becomes their property.

The remaining 40% of the funds is only transferred when it is proven that the person has torn down the temporary housing they now own.

The program will allocate 4 million AMD ($9,600) to buy a one room apartment of no more than 45 square meters; 6 million AMD for a two room apartment (55 square meters); 7.1 million AMD for three rooms (65 square meters); and 8.2 million for four rooms (75 square meters).

Buyers have the option of adding their own funds to that allocated by the government and buy whatever they want.

The program starts on December 26 and will last for eight months. Housing can be purchased throughout Armenia.

Those who opt out of the program will have to wait until construction is completed next year on residential buildings in the Akhuryan district.