Minister for Home Affairs Taina Bofferding has rejected the opposition's criticism of the Housing Pact 2.0.

Bofferding stressed that it is better to have 20% affordable housing entirely owned by public institutions, than 30% without any guarantees. Otherwise, there would be a risk to revert to the "old system", i.e. when flats that had once been declared "affordable housing" suddenly disappeared from the market after a few years.

In order to avoid this risk altogether, the government introduced an amendment to ensure that the flats will be owned by public authorities and remain affordable, the Minister explained.

Such a guarantee has not existed up until this point, Boffering stated. In return, the state will allow 10% of additional construction work to take place on the plots of land.

The Minister thinks that it would be unwise to ignore the financial impact of the coronavirus crisis. Reduced public finances could otherwise lead to municipalities and the state not being able to buy the respective flats.

Bofferding thinks that reducing the discussion solely to the total percentage of affordable housing is "too short-sighted".

The opposition had previously criticised the changes and accused the government, mainly the Democratic Party (DP), of giving in to the demands of building contractors. The amendment will weaken the Housing Pact, since less affordable housing space will be created in the end, according to opposition MPs.