The Committee on Legal Affairs and Public Administration has paved the way for the approval of amendments to the law “On Social Housing,” voting 8 in favor of the draft law, which aims to facilitate access to housing for families, young couples, students and professionals. The new package of measures introduces several support schemes, among them a zero-interest loan for buying a home, a 50% rent subsidy, and a mechanism that allows citizens to use a portion of the rent paid as a credit toward the purchase of a home.
During the presentation to the committee, Minister of Economy and Innovation Delina Ibrahimaj stated that the aim is to expand housing alternatives by creating financial options that match families’ incomes.
Interest-free loans and lower monthly installments
One of the main innovations is financing through a 0% interest loan for purchasing homes. To illustrate the impact of this scheme, Ibrahimaj gave the example of a loan of 6 million lek, repayable over 30 years. According to calculations presented by the minister, the monthly installment for an interest-free loan would be about 17,000 lek, while at a 5% interest rate it would reach about 32,000 lek. This would translate into savings of nearly 15,000 lek per month for beneficiary families.
Half of the rent covered for students and professionals
Another measure provided for in the draft law is a 50% rent subsidy for students pursuing master’s degrees, as well as for professionals. The measure will be applied with reference to prices approved by municipal councils, with the aim of reducing the financial burden of housing for these categories.
From tenant to homeowner
The draft law also introduces a rent-to-own program. Through this scheme, a portion of the amount paid each month in rent will be counted toward the final price of the home, creating the opportunity for tenants to become owners. Guarantee mechanisms are also foreseen to ease securing financing for advance payments on homes.
New model for neighborhood development
The legal amendments also include a 30-40-30 model for the development of integrated neighborhoods. Under this formula, 30% of homes will be reserved for social housing, 40% for affordable housing, and 30% will be part of the free market, for sale or rent. To financially support these policies, the creation of the Social Housing and Social Cohesion Fund is foreseen, to which the state budget, the private sector and other lawful sources will contribute.
31,000 families have benefited from social housing programs
During the reporting to the committee, Minister Ibrahimaj stated that since 2018, around 31,000 families, or nearly 100,000 citizens, have benefited from social housing programs. Of these, over 14,000 families have been supported through rent subsidies, more than 7,000 have received soft loans, and over 1,000 social homes have been built. The draft law was approved in committee with 8 votes in favor. During the meeting, Chairman Ulsi Manja also commented on the absence of opposition MPs from the vote, expressing the view that they should have been part of the decision-making on an initiative related to supporting citizens in need of housing. Manja stressed that the draft law may be supplemented with amendments and other proposals before it goes to final approval in the Assembly.