The Ministry of Housing and the HLM movement aim to construct 100,000 social housing units by 2025, addressing the housing crisis through a comprehensive roadmap that includes financial commitments and urban renewal initiatives. The plan also focuses on renovating 120,000 to 130,000 existing units and enhancing access for tenants. Financial strategies, such as reducing annual levies and reinstating zero-interest loans, are set to support this goal, though concerns remain about potential funding shortfalls.
Ambitious Plans for Social Housing by 2025
The Ministry of Housing, alongside the HLM movement, has set an ambitious target to develop 100,000 social housing units by the year 2025. This commitment was formalized during a recent agreement signing aimed at addressing the ongoing housing crisis.
Strategic Roadmap and Financial Commitments
In a joint statement, the two parties emphasized the government’s commitment to reinvesting and remobilizing resources through the 2025 finance law. They outlined a comprehensive roadmap to engage all stakeholders in achieving the construction goal, while also catering to the specific needs related to urban renewal. Notably, the plan includes a focus on smaller housing units to meet diverse demands.
For context, the Social Union for Housing (USH), which advocates for social landlords, forecasts around 85,300 approvals for social housing in 2024. The roadmap, which encompasses four key areas, was officially signed by Housing Minister Valérie Létard and representatives from various HLM federations during a visit to Ormesson in Val-de-Marne.
In addition to the housing construction target, the plan aims to renovate the energy modes of 120,000 to 130,000 social housing units and enhance property access for HLM tenants. The New National Urban Renewal Program (NPNRU) also includes the reconstruction of 16,500 social housing units.
Every objective within this roadmap is supported by a detailed list of mutual commitments, financial resources, and monitoring metrics. Minister Létard highlighted the potential for the sector to generate an extra billion euros for building and renovating social housing in a recent interview.
To stimulate social housing development, the government has reduced the annual levy on landlords by 200 million euros, known as the ‘solidarity rent reduction’ (RLS). Additionally, the upcoming reduction in the Livret A interest rate and the reinstatement of the zero-interest loan (PTZ) are expected to enhance funding across all housing types.
The statement also noted that these financial strategies would be complemented by initiatives to mobilize land and simplify legislative processes. Moreover, a support fund of 100 million euros for ‘builder mayors’ is in the works.
According to the USH, the 2025 finance law signifies a pivotal change in how social housing is budgeted, particularly as social landlords face increasing financial pressures. Emmanuelle Cosse, president of USH, described this roadmap as a crucial initial step during a challenging period for the sector.
Jean-Luc Vidon, president of the National Federation of Regional HLM Associations, acknowledged Minister Létard’s efforts, but stressed that the measures may fall short given the severity of the housing crisis, especially with the anticipated loss of a 400 million euro aid for HLM stock renovations in 2025.