After the Pinel, place for intermediate housing? – EconomyMorning


A report from the General Inspectorate of Finance (IGF) and the General Council for the Environment and Sustainable Development (CGEDD), which the daily The echoes was able to consult, recommends concentrating public housing policies on intermediate housing.

Preparing for the post-Pinel era

The construction of social housing already comes with enough legal obligations to function properly. But it is a mistake to forget intermediate housing, which lies between the market supply and social housing. In a report that the daily The echoes was able to consult, the General Inspectorate of Finance (IGF) and the General Council for the Environment and Sustainable Development (CGEDD) advocate increased involvement of institutional investors in the financing of new intermediate housing programs.

This new financing recommended by the two institutions should compensate for the gradual extinction of the Pinel system, scheduled between 2022 and 2024. And since it is a question of setting up a new device, it must also be made better and therefore less costly for public finances. Indeed, the Pinel should cost 1.2 billion euros in 2021.

Intermediate housing: an economic equation to find

But to build intermediate housing, it is still necessary to find building land at affordable prices, the purchase cost of which would become possible to repay thanks to the rents that will be collected (and which are not too high). But the main obstacle to their construction remains the exemption of intermediate housing from property tax, which does not interest the mayors (who, let us remember, issue building permits). To overcome this reluctance, the authors of the report propose to match these exemptions from property tax with a tax credit of an equivalent amount.

The report recommends, lastly, to direct the savings of individuals towards the construction of intermediate housing, via the inclusion of these intermediate housing in the stone-paper funds of the OPCI type (collective investment organizations in real estate).