The Minister Delegate for Housing, Guillaume Kasbarian, presented a new bill aimed at reducing housing prices and rents in order to make them more affordable for a larger portion of the population. The government’s goal is to create a “supply shock” by increasing the production of housing. This is in response to a historic housing crisis characterized by a stagnant new construction sector, low rates of homeownership due to a sharp rise in interest rates, a blocked rental market, and a record number of households waiting for social housing.
Despite the challenging budgetary constraints, the proposed measures in the bill will not involve any new public spending to boost housing production. One of the key measures of the bill is to reform the Solidarity and Urban Renewal Law (SRU), which requires urban communes to offer a minimum percentage of social housing in order to promote social diversity. The government plans to include the construction of intermediate housing for upper middle-class individuals in the SRU production objectives to further promote social diversity.
The government aims to encourage communes that have already made efforts towards providing social housing to build more housing by allowing them to count their production of intermediate housing towards meeting their SRU obligations. Approximately 650 communes facing a shortage of social housing will be able to take advantage of this flexibility, including the city of Nice, which currently has 14.2% of social housing and has expressed interest in revising the SRU law. By allowing this flexibility, the government hopes to increase the overall housing supply and promote social diversity in urban areas.
Another measure proposed in the bill is to tighten the criteria for occupancy of social housing in order to increase turnover rates. The government plans to evict tenants who are deemed to be benefiting from social housing unfairly, such as those whose income exceeds the eligibility limits or those who own property that allows them to find housing outside of the social housing system. By reducing the threshold for income eligibility and considering the assets of tenants, the government aims to ensure that social housing is allocated to those who truly need it.
The bill also introduces measures aimed at increasing the supply of affordable housing, such as simplifying and speeding up the construction permit process, facilitating the conversion of non-residential buildings into residential units, and encouraging the construction of energy-efficient housing. In addition, the government plans to implement financial incentives for landlords who offer rents below the market price, in order to increase the availability of affordable rental housing. These measures are part of the government’s broader strategy to address the housing crisis and make housing more accessible to all segments of the population.
Overall, the government’s new bill for developing affordable housing aims to create a balance between supply and demand in the housing market by increasing production, promoting social diversity, and ensuring that social housing is allocated to those in need. While the bill does not involve additional public spending, it includes a set of targeted measures to reform existing housing policies and address the challenges faced by both renters and homeowners in the current housing market. Through these measures, the government hopes to make housing more affordable and accessible for all.
