Social housing in Luxembourg: what are the conditions for being entitled to it?
The housing crisis is great in Luxembourg. If affordable homes are still available, who can claim them?
We know it, Luxembourg is facing a severe housing crisis. The supply in the market is less than the demand, which keeps pushing prices up. In this context, it becomes complicated to find and finance a home. A public promoter, the Housing Fund nevertheless offers affordable housing for rent and purchase.
The Housing Fund, what is it?
The Housing Fund (FDL) is a public institution under the supervision of the Ministry of Housing, although it enjoys administrative and financial autonomy. He allows the rental and purchase of subsidized housing for low-income households. The FDL provides social and financial support for tenant households.
In addition, the structure also rents and sells shops, offices, car parks and non-subsidized housing. This for the purpose of guarantee a mix of functions and social mix in the residential complexes or in the neighborhoods he creates.
How to rent subsidized housing?
People who wish to use the FDL and rent subsidized housing must meet certain criteria before any chose:
- Not be the owner or usufructuary or emphyteutic of another dwelling
- Not having the right to reside in another dwelling
- Commit to living in the accommodation personally
If you meet the above criteria, you must submit an application (the form is here) to obtain subsidized housing (accompanying it with the supporting documents requested) from the rental department of the FDL. Once the file is complete, the application is then placed on the waiting list. The files are examined by the Advisory Committee and are subject to a social investigation. If the household is selected, it receives a housing proposal and a site visit is organized with a view to signing the lease. It should be noted that applications must be confirmed and updated each year, as any application that is not updated will be archived.
The rent is calculated according to the annual net income of the tenant household and the surface area of the occupied accommodation. At the beginning of each year, the FDL asks the tenant household for their declaration of income received from January 1 to December 31 of the previous year. Based on this income and the composition of the household, the rent to be paid for the current year is adjusted by May 1 at the latest (provided the file is complete).
How to buy subsidized housing?
People who wish to use the Housing Fund to buy subsidized housing must meet certain criteria:
- Be a natural person and occupy the accommodation for personal residential purposes only
- Benefit from an acquisition or construction grant from the housing aid service
- Benefit from a financing agreement issued by a financial institution
- Not be an owner in Luxembourg / abroad or commit to selling your current home
- Respect the type of accommodation according to family composition
Persons who transmit the conditions of acquisition are invited to fulfill a registration form to be kept informed of future projects. If you are consideringbuy one of these homesNope application file accompanied by supporting documents must be submitted to the FDL sales department.
The selected household is informed by the sales department with a view to visiting the premises and signing a sales agreement. Before signing the notarial deed, a report on the visit to the accommodation is made.
Please note that the land on which the goods sold by the FDL are integrated are transferred as part ofa right of emphyteusis for a period of 99 years. The FDL reserves a right of repurchase in the event of resale of the good during all the duration of the right of long lease.
In addition to the Housing Fund, there are other public promoters working in affordable housing such as the SNHBM (the national society of low-cost housing) or the Kirchberg Fund. Their criteria for location or purchase are similar, although the Kirchberg Fund focuses (as its name suggests) on the development and urbanization of the Kirchberg Plateau.
Read: Real estate: prices that are still rising… but less quickly
Read Price of a new or old apartment in Luxembourg in the 1st quarter of 2022
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