MIL-OSI Translation: HLM Congress: the Government is relaunching the construction of housing

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MIL OSI Translation. Government of the Republic of France statements from French to English –

Source: Republic of France in French

Prime Minister Jean Castex detailed the Government’s measures to relaunch the sustainable construction of housing, including social housing in France.

Observation of the Prime Minister during his opening speech at the HLM Congress in Bordeaux: “For 15 years, tensions have been very high on the real estate markets. ”

This tension is explained by the higher demand for housing with regard to new constructions, including those of social housing, and results in:

on prices first of all: “between 2007 and 2020, the prices of second-hand housing increased by 11% throughout France, by 36% in the large cities and by 17.5% in the 50 largest cities ”, detailed the Prime Minister;
by social exclusion: the poorest are affected, but also the middle classes, resulting in these populations moving away from the outskirts of cities.

“I want to say it forcefully: to continue to create jobs in metropolises while slowing down construction there is quite simply to accept, and even organize, the eviction of the poorest outside cities and metropolises. This condemns part of the working population to have to live further and further from their place of work, while fostering an unbearable feeling of relegation. »Jean Castex, Prime Minister

Strong measures to remove the obstacles to construction

The Government has relied on the proposals of the commission chaired by François Rebsamen which advocates, among other things, to encourage communities to issue building permits in tense areas.

In each tense territory, housing recovery contracts will be signed, with objectives for the construction of collective housing giving rise to the payment of lump-sum assistance. 175 million euros from the stimulus plan will be redeployed for this purpose.
So that municipalities are tax incentivized to issue building permits for social and affordable rental housing:
the property tax on built properties (TFPB) will be fully compensated by the State for 10 years for approved social housing in 2021, and until the end of the municipal mandate if the results, halfway through, show a real rebound;
the exemption from the TFPB for intermediate housing, which is also the subject of several easing measures in the continuity of the abolition of the approval in the 2021 finance law, will be replaced by a tax credit of an equivalent amount for project leaders. Housing completed as of January 2023 and therefore already authorized will be eligible.

To remove the land constraint:
the State will be transparent with the establishment of a real-time inventory of transferable plots;
It will undertake an exhaustive census of the land resources available in the territories in tension;
By the end of the year, a call for expressions of interest will be launched for exemplary construction projects on the optimization of building rights, targeting social housing, intermediate housing and student housing.

To promote financially accessible housing: private landlords will be encouraged to offer capped rents in the existing stock with the “Affordable Rent” scheme, which will be made more attractive for housing in tight areas.

In video, Jean Castex on measures in favor of social housing

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

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