Henri Kox, Luxembourg's Minister of Housing; Credit: MLOG

Luxembourg's Ministry of Housing has published its annual report on the special support fund for afforable housing projects (Fonds spécial de soutien au développement du logement) for the year 2021.

The so-called special fund brings together subsidised housing projects benefiting from state financial contributions, called "Aides à la pierre". These are projects in development, under construction or completed and awaiting the final financial statement.

In 2021, the Ministry of Housing invested more than €170 million in affordable housing through the special fund. This represents an increase of 77% compared to 2020. From 2018 to 2021, these public investments increased by more than 141%. For the year 2022, it is estimated that nearly €230 million in financial contributions will be paid to social promoters for the construction of affordable housing.

At the end of 2021, 252 projects were taken over by the special fund with more than 3,300 housing units, of which 568 housing units were newly approved during the year in question. 1,853 housing units, i.e. 57% of these housing units, were intended for affordable rental housing, compared to 53% in 2020. Two-thirds of this housing is provided by the two public developers, the SNHBM and the Housing Fund (Fonds du logement). These affordable housing experts are responsible for carrying out the eighteen large-scale projects, among others. 11% of affordable housing is being built by associative social promoters. These partners of the Ministry of Housing play an important role in helping people with specific needs or in great emergency.

Within the framework of the new Housing Pact, whose budget management is part of the special fund, a special role falls to the municipalities. For each new specific development plan, a certain percentage of the surface is henceforth reserved for affordable housing and handed over to the public sector. In return, private developers receive an automatic increase in building rights of 10%. 

The special fund also enables the State to acquire land for the construction of affordable housing. In 2021, land totalling 1,100 ares was acquired for the Ministry of Housing with a view to making it available to a public developer under leasehold, representing 400 potential additional dwellings.

"The ongoing dynamic of the creation of affordable housing launched since 2018 shows that the Housing Strategy of the Ministry of Housing is bearing its first fruits", highlighted Luxembourg's Minister of Housing, Henri Kox. "Ultimately, we are aiming for ten times more public housing than there is today, in order to have – at least – an affordable supply for the 18% of the population who are below the at-risk-of-poverty rate. For the right to housing!"