Housing Minister Marc Hansen today presented the concept of social rental management as a tool in the fight against social exclusion and a lever for social mixing through housing before signing a collaboration agreement with the inter-communal syndicate De Réidener Kanton.
Under his proposals, homeowners who make their accommodation available to a recognised organisation will benefit from tax advantages, and a guaranteed rental income, as well as control and regular maintenance of the property. Under the scheme, a 50% tax-exemption applies on rental income from the relevant properties.
Under the scheme, any foundation or non-profit organisation whose social purpose is the promotion of housing, any commune or social office may sign a collaboration agreement with the Ministry of Housing.
The collaborator then leases housing to private owners who in turn make it available to clients, usually low-income households. On average, rents on the regulated market are 30% below the rents of the private market. The Ministry of Housing supports this approach via a contribution to the costs of up to €100 per dwelling per month. Since the beginning of fiscal year 2017, 50% of the rental income received by the owner is exempt from tax.
The scheme has been operating since 2009, and in 2016, the Ministry of Housing subsidised 361 housing units at a cost of €461,000 on the basis of agreements with seven different organisations, including the Agence Immobilière Sociale (AIS). Discussions are under way with several other actors for future collaboration.
Image: Minister Hansen signing the agreement with De Réidener Kanton
