Brazil plans low-income housing program with fewer subsidies -reports

SAO PAULO, May 15 (Reuters) - The Brazilian government is preparing to launch a new low-income housing program by July with fewer subsidies, newspapers Folha de S. Paulo and Valor Economico reported on Wednesday.

The plan comes as a current housing subsidy program, known as Minha Casa Minha Vida, is likely to run out of money this year.

Folha said that Brazil’s regional development ministry confirmed the cuts in a statement, without providing details.

Under the new program, the government would also use its own land banks to develop housing projects, an Economy Ministry official told Valor in an interview.

The official also said workers would no longer be able to use money from a severance fund known as FGTS to buy a finished residential property. Instead, FGTS would only fund homebuilders while individuals would lease the units. (Reporting by Carolina Mandl; Editing by Jeffrey Benkoe)