The government proposes new changes to the law on social housing, providing for sovereign guarantees for soft loans, expanding beneficiary categories, and greater involvement of the private sector in housing financing.
The draft law aims to create new financial instruments and reduce the dependence of social programs on the state budget. One of the main innovations is the development of mixed-use projects, where in the same intervention, social rental housing, low-cost housing and apartments for sale on the free market will be built.
The proceeds from the sale of housing on the open market will be used to finance, expand and maintain the public social housing fund. The project also foresees that private entities will also contribute to the creation of this fund.
Another measure is the Sovereign Guarantee, through which the state will cover up to 30 percent of the value of the apartment for families that benefit from soft loans. According to the report, this scheme is expected to include about 4,100 families, while the estimated cost of the guarantee amounts to about 231 million lek.
The draft law also expands the economic criteria for low-cost housing, with the aim of including middle-class and moderate-income families in the scheme, who are unable to purchase a home on the open market.
The amendments also create the possibility for special rent subsidy programs for specific categories. The Council of Ministers will determine the criteria, beneficiary categories and the manner of their administration.
According to the report, the draft law does not create an immediate burden on the budget, but potential liabilities that are activated only if the beneficiaries do not fulfill the loan obligations.