To tackle the pressing issue of housing shortages affecting the most vulnerable populations, the government has sanctioned a significant investment in a housing support initiative. This strategic move aims to alleviate the housing crisis by allocating substantial funds over the next five years. The government has committed to investing up to €2,011 million in the Housing Access Support Programme. This investment will be distributed annually, with specific allocations set for each year: €266 million in 2029, €300 million in 2026, €345 million in 2025, €500 million in 2028, and €600 million in 2027. These funds are intended to address the structural challenges in the housing sector and provide much-needed support to those in dire need. According to the official resolution, the allocated amounts for each year can be adjusted based on the financial balance from the previous year. This flexibility ensures that any unspent funds can be carried over to enhance the programme’s effectiveness in subsequent years. The resolution also stipulates that if housing solutions, including lease agreements, are finalized by June 30, 2026, all related expenses will be deemed fully eligible. This provision aims to expedite the implementation of housing projects and ensure timely support for those affected by the housing shortage. Overall, this initiative represents a comprehensive approach to mitigating the housing crisis, with a clear financial roadmap and provisions to maximize the impact of the allocated funds. By addressing the root causes of housing shortages, the government aims to create a more stable and supportive environment for vulnerable social groups. Housing solutions completed by December 31, 2026, will receive 85% financing, while those finalized by June 30, 2027, will receive 75% financing. For completions by December 31, 2027, the financing drops to 65%, and those completed by December 31, 2030, will receive 60% financing. The government highlights that municipalities have identified over 120,000 families living in inadequate housing conditions. This indicates that national needs extend beyond the 26,000 homes provided for in the Recovery and Resilience Plan (RRP). Applications submitted by April 1, 2024, represent 58,993 homes, leaving approximately 32,990 homes outside the RRP’s scope, underscoring an urgent need for additional housing solutions. To address this shortage, the government has allocated a new budget of €845 million to finance up to 100% of 10,000 candidate and approved homes, which must be identified by November 30, 2024. Additionally, the government has committed €1,166 million for a 60% co-participation value for around 22,990 housing responses. Should you be interested in learning more about this sector, understand our partnership/equity structure, or know about our other investment opportunities, please reach out at your earliest convenience to arrange a meeting.
Read More