The state mobilizes significant resources to finance social housing in France. State aid to producers includes budget support, tax aid, and department assistance. Since 2009, an annual report on subsidized housing has been published by the Ministries of Environmental Transformation and Regional Cohesion. It collects information on the financing of social housing (location, financing plan, technical characteristics).
Subsidies and tax schemes
Budget subsidies constitute the smallest share of state aid for social housing construction and reflect its gradual withdrawal in the 2000s, as a natural consequence of the increase in the power of subsidies from local authorities.
Budget grants can consist of three components:
- basic scholarship Calculated by area and structure (average housing size) for the operation;
- Additional Land Fee Subsidy, which aims to allow planting in areas where the costs of purchasing or developing a right of way are high. The principle is to subsidize part of the land fee for the operation that exceeds the reference value;
- Integration bonus in Ile-de-Franceaims to facilitate the construction of the most social housing in this area where the cost of land is very high.
Social housing benefits from various tax measures, which constitute the largest share of state aid. These are tax exemptions or reductions that are subject to compensation or reimbursement by the state:
- Corporate tax relief for HLM organizations and public planning and building offices (OPAC);
- Exemption from property tax on built real estate (TFPB) for up to 25 years. Based on the recommendations of the report of the Rebsamen Committee on the revival of housing construction, the state in the Finance Act 2022 pledged to guarantee local authorities full compensation for ten years for the loss of revenue associated with the exemption from this tax;
- Apply a reduced rate of value-added tax (5.5%) since 1996. This provision has been extended to work on improving, transforming or equipping social rental housing and tenure and improvement processes.
mobilization of public lands
Mobilization of public lands is another lever of state policy in favor of social housing. For the state, it is a question of selling bare or built lands within its scope or the lands of some public institution in order to build social housing there. The January 2013 law introduced the possibility for the state to reduce the price of its land by applying a discount to the initial market value.
This discount is calculated based on:
- type of social housing : PLAI (Lental loan supported by integration), PLUS (Lental loan for social use), PLS (social rent loan) … the higher the state subsidy for housing, the higher the discount;
- tension zone Residence.
The National Commission for Development, Town Planning and Land (CNAUF) is responsible for monitoring the implementation of the land mobilization mechanism for housing.
In a provisional procedure published in 2018, the Audit Bureau considered that this device, “Relatively underutilized from 2013 to 2016“, I was “Too complex and competing with other public land transfer procedures“.
Article 23 of the Ilan Law of 2018. Simplify the discount system Existing In particular by removing the requirement to complete the housing program within five years after the sale of the land. From now on, only the first part of the work must be carried out during this period to take advantage of the discount. The law also states that the program must affect At least 50% of its floor area is habitablecompared to 75% previously. Thus, it encourages the establishment of more mixed projects that combine housing, shops and activities.