At the historic soap factory Strauch & Cía – located right in the intersection of Barrio Sur and Palermo neighborhoods – demolition work began in order to build on the same site a modern housing complex. In total there will be 314 units with one, two and three bedrooms.

The development of this complex – in the block bordered by the streets Gonzalo Ramírez, Ejido and Isla de Flores – comes under the Support for Social Housing law, which grants tax benefits to builders.

Through this law, N° 18,795, the company in charge of the project – in this case Campiglia – will obtain exemptions on value added taxes (VAT), on property transfer tax (ITP), on income from economic activities tax (IRAE), on personal income tax (PIT) and on wealth tax (IP).

"We will attend a substantive change process, as that amount of housing involves a number of residents, services and a permanent move in the area," the Director of Planning from the Montevideo Council, Juan Pedro Urruzola, said to El País yesterday.

The architect said as well that a few blocks away, on Gonzalo Ramirez, toward Barrio Sur – going past Cementerio Central – the works are advanced for a cooperative that is being built on land that was vacant for many years.

"Probably both sets of buildings will allow us to attend a sort of rebirth of the neighborhood in the surroundings of the Cementerio Central," said Urruzola.

The aim of the project for the old factory Strauch & Cía is changing a disused industrial area to a housing area, one that includes recreational spaces. In this sense, the complex incorporates services on a neighborhood scale and beyond, such as a food court. When it was presented at the Council several months ago, it was spoken of the possibility to include movie theaters.

This is a modern complex consisting of three towers with a 12-story building on Ejido, a 23-story building on Aquiles Lanza, and a third three-story building on Isla de Flores.

The project includes 314 units of one, two and three bedrooms as well as garages, shops, communal room with barbecue, and security service.

"This is the first social housing project in Montevideo of this magnitude. The law was coordinated with the Montevideo Council to define areas where it could be applied to. This means, depending on whether they are units for sale or for rent, a series of tax breaks that allows private capital to take interest in a market that traditionally they wouldn’t have invested in," added Urruzola.

CAMPOMAR

The National Board of Housing manages dozens of projects to be developed under this law, especially for the leasing of new units.

Campiglia took another similar challenge under the law of Support for Social Housing: the construction of a complex on the plot of land occupied by the former factory Campomar, in Pablo Zufriategui between the railroad and Uruguayana.

As reported by the Gente & Negocios portal from El País, for that site there is a projected building with 167 units of one, two and three bedrooms. In addition, there will be 112 parking spaces and commercial units covering 720 square meters.

The Campiglia company, which is in its 33^rd year, has three other social housing projects in the pipeline, which will be develop gradually.

In Daniel Fernandez Crespo and Cerro Largo there are plans for a 10-story building with 72 apartments of one, two and three bedrooms, 45 garages, commercial premises on the ground floor and a communal room with barbeque grill on the top floor.

Meanwhile, the building "Ámbar" will be located on Américo Vespucio and Millán, with 50 units of two and three bedrooms over four floors. It will also have 50 parking spaces and a communal room with barbecue grill on the ground floor.

 “Ibirapitá” will be built on Vilardebó and Agraciada, as a three story building. This construction will include 19 units of one to three bedrooms, 19 parking spaces and a communal room with barbecue grill.

75% of the units in each building will be financed through the Banco Hipotecario del Uruguay, and the remaining 25% through private banks.

Source: El País