Facilitator Model of Providing Youth Housing by Using the Capacity of Islamic Financial Bonds

Introduction and Objectives: Providing housing for young people is one of the problems faced by the Family and Youth Protection Law. Due to the high cost of land and buildings, the waiting period for owning a house has increased drastically. Currently, the share of housing in household expenses is more than 35%. Even though in the laws of banks and credit institutions, are required to allocate 25% of their facilities to housing, this legal ruling is not implemented. Banks and credit institutions are reluctant to participate in long-term housing projects; although they consider the lack of resources as the reason. The existing problems in providing a real or rented house reduce people's desire to get married and have children. Although provisions such as giving land and providing bank facilities to encourage childbearing have been proposed in the Family and Youth Protection Law, there is no operational plan for providing housing. Previous experiences, including the youth housing savings plan and the national housing plan, also face many problems and limitations. Based on this, strategies and solutions should be sought to empower families and young people to provide long-term housing; a solution that does not rely only on receiving bank facilities and empowering families and young people so that they can gradually participate in the construction and provision of housing with their own funds. Another goal of this research is to provide a model for entering the capital market into the field of housing financing. Organizing the support of the government and charitable institutions in buying and renting housing was another part of the goals of the article.
Method: In this article, using the analytical method, we examined the capacity of Islamic financial bonds to facilitate the long-term provision of housing for young people. The method of the article in collecting the required information was also the library and document method. In this methodological approach, studies related to the history of providing housing for the youth are conducted by examining the historical investigation method and referring to the available statistics in this field. The design of Islamic financial bonds for youth housing financing was done with a combination of comparative and discovery methods. The discovery method was a kind of ījtīhād method in which by referring to the superstructures, the basic principles and rules necessary for housing policy were extracted. In this regard, first, by using the discovery method, the principles governing the provision of housing in the Islamic approach were extracted. In the following, taking into account the assumptions and principles of Islamic housing provision, the youth housing provision model was designed. In this scheme, attention is paid to similar patterns that have been made to provide housing with an Islamic approach and using the capacity of contracts such as īstīsnā (is a contract of exchange, whereby the funding party agrees to deliver a commodity or an asset at a pre-determined future time at an agreed price) and Jū'ālah. The evaluation of the possible effects of this housing supply model was done with the method of analyzing the logical components of the model. In this way, it is noticed whether the proposed model can solve the problem of youth housing and how it can answer the problems raised about it. The proposed model should be able to meet the objective according to the existing objective facts. In this case, there is a kind of hidden analogy in the proposed model that is placed as an example of the ideal model in harmony with the foundations and principles of Islamic economics.
Results: The findings of the research showed that "house construction order papers (īstīsnā with rent" is a suitable method to facilitate the long-term provision of housing for young people. The proposed model is significant in terms of compliance with Sharī'ā standards and using the capacity of the two contracts of īstīsnā and Lease. In the proposed model, a combination of government and family participation is used to provide long-term youth housing. In this framework, the government provides land, subsidies, families (beneficiaries), and investors (non-beneficiaries) to finance construction gradually. In this model, "household construction order papers with rent" are sold to applicants. When the house is built, the user is considered the owner of the house according to the amount of documents in his possession, and the remaining amount is considered a tenant and pays rent. The beneficiary completes his ownership of the house by purchasing the remaining papers needed to fully own the house. The government and charitable institutions can buy part of the bonds and give them to the target groups; In addition to that, the capacity of youth justice shares can also be used. In this plan, it is also possible to use the rent subsidy to help the target groups. In this project, investors can also invest their capital in the housing construction sector and benefit from the benefits of this investment. In this model, the rent that people pay to live in a home before ownership is completed is paid to bondholders as interest. Of course, the government can also participate in paying the interest of the bondholders who did not receive housing. One of the advantages of this model is the possibility of gradual investment by families and young people to provide housing.
Discussion and Conclusions: The implementation of the long-term supply plan for youth faces challenges in the field of land supply, organizing bond issuance, timely participation of investors and users in providing the funds needed for housing construction, the possibility of speculation in the secondary bond market, and possible problems in the performance of construction contractors. The heterogeneity of housing and the difference in the conditions of different cities and regions is also a challenge for the project. If the long-term youth housing provision plan is implemented regionally, many challenges facing the plan will be eliminated. It is possible to plan to use the capacity of the housing foundation as well as provincial and city equity companies to enter into housing construction. If this plan is carried out along with the redistribution of population in a wide area of ​​the country and the expansion of rapid rail transportation, the problems caused by the lack of land and the high cost of building will be reduced. This will reduce unnecessary costs caused by population density in big cities and can help to increase childbearing. The successful implementation of the youth housing model requires the provision of suitable land by the Ministry of Roads and Urban Development in cooperation with relevant organizations, including the Environmental Organization; The participation of the Central Bank, banks and credit institutions, the Stock Exchange Organization, the Ministry of Cooperatives, Labor and Social Welfare and the Subsidy Targeting Organization is also necessary for the success of the plan. The mechanism for the implementation of the participation of supporting institutions, including the relief committee and the welfare organization of the whole country, in supporting the covered people by donating construction order papers should also be provided. Creating a monitoring system for the construction of youth housing will also strengthen transparency.