The first law, dubbed the Affordable Housing Act, aims to establish a transparent and equitable mechanism for financing affordable housing and supporting residents.
The second law, on the other hand, proposes a streamlined process for individual aid programs, allowing easier access to both rental and owned housing in the private sector.
These reforms come at a crucial time when an increasing number of households are finding it difficult to secure decent housing. The legislation intends to expedite the production of more affordable housing units.
The law concerning individual housing subsidies intends to overhaul the entire subsidy system, specifically in relation to their amounts and boundaries. By simplifying administrative procedures and expanding the eligibility criteria to include more households, particularly single-parent families and families with children, this law is seen as a significant advancement.
The conditions for receiving home ownership subsidies have been unified to make them more accessible. This includes shortening the minimum residence period from ten years to two and removing the requirements related to the size of the dwelling. The assistance amounts have been recalibrated, and the range of potential beneficiaries has been expanded.
Moreover, the savings bonus system has been entirely revamped. The law will incentivize prospective homeowners to save for their initial capital by offering a bonus that equals 10% of their annual savings. Over a decade, this bonus could accumulate to as much as €5,000.
Additionally, the law introduces two new grants to the individual assistance package. A €10,000 grant has been established for the development of integrated housing.
Integrated housing refers to an additional unit within a single-family home. Each unit must have its own entrance, either externally or from a shared hallway, and the homeowner must reside in one of the units after the completion of the project. This grant increases to €20,000 for all integrated homes finalized before the end of 2026.
The law also reinforces the energy renovation grants via the ‘Klimabonus’ top-up. Lower-income households may be eligible for an additional allowance that could be twice the climate bonus provided by the Ministry of the Environment. The introduction of a unique aid package of €35,000 per person marks another novel aspect in the overhaul of individual aid.
The four capital grants (for home ownership, savings, improvements, and the Klimabonus) have been merged into one capital grant pool with a set limit.
As for the interest subsidy, the supportable amounts have been increased from €175,000 to €280,000 in response to market changes. This measure is socially oriented, offering continual monthly support to households bearing the highest mortgage costs.
