2026-04-28
For our compatriots forcibly displaced from Artsakh, resolving the housing issue has become a top priority. The certificate-based program introduced by the state offers a clear and practical solution, enabling families to purchase housing or build a home. However, in order to use the program as effectively as possible, it is necessary to fully understand its conditions, limitations, and implementation mechanisms.
In Armenia, a state housing support program is in place for families forcibly displaced from Artsakh, the main goal of which is to create a real opportunity to solve housing issues on a long-term basis. The program is designed not as short-term financial assistance, but as a targeted tool for acquiring housing, building a house, or reducing housing-related financial obligations.
The program is based on a certificate system. The amount of state support is determined for each beneficiary depending on where the property is acquired. In Yerevan, the value of the certificate is 3 million AMD per person, while in the rest of Armenia it is 4 million AMD per person.
This means that the total support for a family is formed based on the number of beneficiary members. For example, if a family has 4 beneficiaries, the total support in Yerevan can amount to 12 million AMD, and within the territory of the Republic of Armenia it can reach 16 million AMD.
It is very important from the outset to correctly understand the essence of the program: the certificate is not cash, it is not transferred to the beneficiary for free disposal and cannot be used for any purpose. It is applied only within the framework of the housing program as targeted state support.
The Artsakh certificate is a state support document that confirms that a given individual or family can participate in the housing support program. The certificate essentially serves as confirmation of both eligibility to participate in the program and the amount of support.
The program operates through a mortgage mechanism: the beneficiary selects a property or residential unit, applies to a bank, and the state support is included in the financing of the transaction. In other words, the acquisition of housing is carried out not through direct cash transfer, but through a regulated banking and legal process.
The certificate can be used:
• for purchasing housing, including in newly constructed buildings,
• for constructing or reconstructing an individual residential house.
The logic of the program is that the state reduces the financial burden of the beneficiary by participating in the repayment of the loan principal.
The maximum loan amount is set at up to 35 million AMD. This means that in the process of acquiring housing, the certificate amount can be combined with a bank loan and, if necessary, with the beneficiary’s own funds. Loan issuance, terms, creditworthiness assessment, and other conditions are determined by the bank.
One of the key restrictions of the program is that the property acquired through the certificate cannot be alienated until the full repayment of the state support. This period is set at up to 10 years. This means that the beneficiary cannot purchase a property and immediately sell it or transfer it to another person through a formal transaction. This restriction is intended to ensure the targeted use of the program.
At the same time, the provided financial support (the mortgage loan and the real estate acquired or constructed with that loan) cannot be pledged, seized, or offset against the beneficiary’s other obligations.
There are no significant restrictions on renting out the property. This means that the acquired property may be leased if the beneficiary has such a need or financial justification.
Beneficiaries of the program can be those individuals and families forcibly displaced from Artsakh who meet the program requirements. Family composition is important, as support is calculated not only per individual but based on the total number of eligible members in the family.
Participants in the program must have citizenship of the Republic of Armenia. This requirement applies to both adults and minors. If there is a minor in the family who does not have RA citizenship, then the family members cannot be considered beneficiaries. This means that all minors, legally married individuals, and persons who wish to become beneficiaries must have RA citizenship.
At the same time, dual citizenship is not a restriction for participation in the program.
The formation of the family composition is particularly important in cases where one of the family members does not meet the program requirements. If a family member is of legal age and cannot become a beneficiary, they may leave the family composition so that the remaining members can participate. This is important in cases where that person owns property, does not meet citizenship or other conditions, or their participation may hinder the family’s application.
However, in the case of legally registered spouses, a stricter rule applies. If one of the spouses leaves the program family composition, the participation of the other spouse is also excluded. In other words, it is not allowed to structure the family composition in a way that one spouse remains outside while the other participates.
In the case of divorced individuals, the inclusion of children is determined based on a court decision. If there is a court ruling specifying with whom the child resides, the child is included in that parent’s family composition. If there is no court decision, the children are considered mandatory members of the mother’s family, and their certificates may be used by the mother.
The main obstacles to participation in the program are related to family composition, citizenship, property status, and creditworthiness.
The first important restriction concerns the existence of residential property within the Republic of Armenia. If any family member owns residential real estate in Armenia, the area of that property is assessed per family member. If the residential area per person exceeds 12 square meters, the family cannot be considered a beneficiary.
It is important to distinguish the purpose of the property. If a family member owns property that is not designated as residential (for example, commercial space, industrial premises, non-residential buildings, or land), this does not prevent participation in the program. Only residential property or registered ownership rights over residential property may constitute an obstacle.
Purchase rights are also considered residential property. If there is a registered purchase right, it prevents participation in the program.
It is also important to know that installment payment options cannot be used. If a beneficiary makes installment payments to a developer before the completion of construction, regardless of other conditions, this transaction is considered as an already existing purchase right. In this case, the person is considered to have rights over residential property and can no longer become a program beneficiary.
Owning property or any type of asset in another country is not a restriction for participation in the program. Only residential property located within Armenia is evaluated.
Creditworthiness is also an important factor. Since the program operates through a banking mechanism, the bank evaluates the family’s income and repayment capacity. A third party outside the family cannot act as a co-borrower. At the same time, if the entire acquisition amount is formed exclusively through loan funds and the bank approves the loan, there is no need to involve an additional co-borrower.
Although the program is practical and targeted, it faces several factors that, in some cases, limit its widespread adoption and the active participation of beneficiaries.
The need for a down payment
The program requires a minimum 10% down payment, which must be paid by the beneficiary. For many families, this is the primary obstacle, as initial financial resources are required to start the process.
Requirement for mortgage financing of the remaining amount
When the value of the property exceeds the total value of the certificates, the difference must be covered within the logic of the down payment or through a mortgage loan. In many cases, the primary option offered by banks is mortgage financing, which creates additional obligations and requires sufficient income.
Emotional and perception-related factor
Some beneficiaries perceive the program as compensation for their lost housing. Under this perception, restrictions on property disposal, particularly the 10-year restriction on alienation, may be viewed as unfair or limiting, which in some cases affects willingness to participate.
Certificates can be applied for and are valid until December 31, 2028. This means beneficiaries must make housing decisions and organize processes within this timeframe.
Certificates can be inherited if the recipient meets the criteria of being forcibly displaced.
It is also important to consider the regulation related to newborn children. If a family has already acquired property and a child is born afterward, that child is also considered a beneficiary. The certificate assigned to the child may be used to repay the outstanding mortgage. If the mortgage has already been fully repaid using other family members’ certificates, the child’s certificate may be used for renovation or furnishing (up to 4 million AMD) or for purchasing agricultural land (up to 5 million AMD).
This regulation applies only if the child is born before December 31, 2026.
It is also important to understand the payment structure. Regardless of whether the total value of the certificates fully covers or even exceeds the property price, a minimum 10% down payment is required. This requirement is set by the Central Bank of Armenia for commercial banks and is a mandatory regulatory condition.
For example, if a family of 6 wishes to purchase a property outside Yerevan worth 24 million AMD, even if their certificates total 24 million AMD, they must still pay a 10% down payment (2.4 million AMD). This creates a “missed benefit,” as certificates cannot fully replace the down payment.
It is also essential to clarify the bank’s position in advance, especially when the property value exceeds the total certificate amount.
For example, if a property costs 30 million AMD and the family has 24 million AMD in certificates, it must be clarified whether the remaining 6 million AMD can be financed. Since 10% (3 million AMD) must be paid as a down payment and 24 million is covered by state support, the question arises whether the remaining 3 million AMD will be financed or must be paid in cash.
The answer depends on the bank’s policy and must be clarified in advance.
To avoid such situations, it is more effective to choose a property where approximately 90% of the value matches the certificate amount, and the remaining 10% is covered as a down payment.
In practice, the process is as follows: the family obtains a certificate, selects a property, applies to a bank, and completes the purchase using a combination of the certificate, loan, and personal funds.
The Artsakh certificate is an important and effective tool for acquiring housing, but its proper use requires a clear understanding of all mechanisms.
Key points to know:
• The certificate is not cash and is strictly targeted
• The property cannot be sold for 10 years
• A minimum 10% down payment is mandatory
• Installment payments disqualify participation
• Non-residential property is not a restriction
• Creditworthiness is required, and third parties cannot act as co-borrowers
• It is essential to clarify whether the bank will finance the remaining amount
• Financial structure:
down payment + total certificate amount + remaining amount
• If the property value exceeds the certificate amount, the difference must be covered:
either in cash (along with the down payment),
or through a mortgage loan (if allowed by the bank)
• To avoid misunderstandings:
if the 10% down payment and certificates do not cover the full price, the remaining amount must
either be paid in cash,
or financed through a mortgage loan depending on the bank
• Final formula:
property price = down payment + certificates + mortgage loan (remaining part)
* Update. Following the publication of this article, the Government of the Republic of Armenia introduced amendments to the State Housing Support Program.
Under the new regulation, when purchasing a residential property within the framework of the program, a bank may recognize up to 20% of the total value of the State Housing Certificates as the borrower's down payment, subject to its internal lending policy and the outcome of the borrower's creditworthiness assessment.
For example, if a beneficiary family holds State Housing Certificates with a total value of AMD 12 million, up to AMD 2.4 million of that amount may be recognized as part of the required down payment.
This amendment significantly reduces the amount of personal funds that beneficiaries may need to contribute and can facilitate access to mortgage financing. However, the final decision for each individual transaction remains subject to the lending institution's internal credit policy and the applicable mortgage lending requirements.
