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Radio ARA

Parliament amends 2023 Affordable Housing Act

Parliament amends 2023 Affordable Housing Act

Episode Info

Show: Your Luxembourg News
Broadcasted: 07:30
  on 17th July 2026

 

About this Episode


Parliament approved a bill amending the 2023 Affordable Housing Act to boost delivery and make the rules easier to apply. Social housing projects may claim 15% more in eligible costs, aiding renovations and conversions. Municipalities and syndicates can now receive remuneration for invested capital, retroactive to 1 October 2023. Allocation rules were adjusted to recognise single‑parent households and to give large social landlords limited discretionary quotas. Tenants will be required to provide a rental guarantee. Rules on under‑occupation were tightened, with landlords given up to three years to offer alternatives. The changes aim to expand affordable stock as the Fond du Logement scales up output.

The Greens criticised the government’s fiscal stance, warning reliance on short‑term revenues (fuel and tobacco duties, a one‑off inheritance windfall) and concurrent tax cuts risked weakening public finances and crowding out investment in housing and infrastructure; they urged measures to curb land speculation and vacant homes, stepped‑up state housing investment, tighter rental regulation, redesigned municipal roles for climate adaptation, and faster financial support for low‑income households to adopt green technologies.

Parliament approved a €171 million plan to extend the tram about 2.1 km from Place de l’Étoile to the new CHL mobility hub. The extension will include four stations and a 600‑metre tunnel between Wunnquartier Stade and the CHL. Works are slated to start in spring 2029, tests are planned for late 2032 and commercial service is expected in Q1 2033. The state will fund €114 million and the City €57 million.



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