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The decline in PLA does it really "no impact" for the HLM ?

The decrease of € 60 for using a custom housing for the tenants of low-rent housing concerned about the building and the donors, who will have to bear the cost of the measure.

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The decline in PLA does it really

The decrease of € 60 for using a custom housing for tenants of low-rent housing concerned about building and donors, who will have to bear cost of measure.

The tenants will not be penalised ; y are donors, who will have to bear cost of this measure.recent alert over risk of a lack of cash to enhance and maintain current fleet.By extension, building sector could also be affected by this new move of plane." For beneficiaries of ELL in social housing, re will be no impact. "The prime minister, Edouard Philippe, is used to reassure, Wednesday, September 13, on France 2, about new cut, announced this aid, essential for this type of accommodation.

However, concerned about issue, and several specialists in sector have started to make ir calculations to check if this cup would be truly painless. In reality, it may be... but not for everyone.

what is it ?

To fully understand, you should know that low-rent housing (HLM) are managed by organizations (public or private, depending on case) called " social landlords ", who receive rents of tenants. The latter may be entitled to a personalised aid to housing (APL) under certain conditions, in particular resources (read our article on this subject).

The concern is following : a decrease of APL paid by State for social landlords on behalf of ir tenants – is being considered by executive, and would go up to 50 or 60 euros monthly. This decrease of APL would be offset by lower rents so that tenants are not penalised. The State would compel it so directly to social landlords to reduce rents.

In consideration of this decline of ir resources, y could get borrowing conditions are more favourable – notably through a freeze in rate of Livret A, whose funds are used to build social housing.

This measure only applies to housing, public park (HLM French is about five million dwellings, or 17% of principal residences) ; beneficiaries of APL in private sector are not concerned. Reform private park is more complex, since it would prevent landlords from passing on to ir tenants higher rents in framing se. That does not wish to Emmanuel Macron.

Read also :   APL : rules for owners not always adhered to

The account is it good ?

The HLM organizations, which receive in total some 20 billion euros of rents, by year, are going to have to dip into ir cash. The Union social habitat (which represents 723 social landlords on whole territory of country) has estimated savings necessary to "mop up" decrease of APL to about 3 billion euros ; a sum that was impossible to find, according to its director general, Frédéric Paul :

" Their business model is based on a long-term debt of nearly 140 billion euros, guaranteed by local government and repaid by rents. "

however, HLM organizations are facing difficulties in recovering increasingly large, number of beneficiaries living at poverty level have exploded. "A grant on two benefits to households living at poverty line. Ten years ago, ratio was one in five, " explains Mr Paul.

What are consequences ?

The main risk of decline of APL is to dry out capacity investment designed to build new housing (including housing for "very social" promised by candidate Macron) and maintain current fleet. "This money [ rents] is not intended to serve as dividend but is fed back in ir entirety on reinvestment of heritage. For example, construction, rehabilitation, improvement of quality of life of tenants, etc ", lists Jean-Sebastien Paulus, director general of Territory habitat, which manages 11 370 housing units in Territory of Belfort.

Read (in edition subscribers) :   "Down rents should not be linked to reduction of APL"

in Addition to freezing of Booklet, Emmanuel Macron has hinted that he could leave HLM organizations to increase surloyers (rents for households that earn more than ceilings of resources) to encourage wealthier households to leave social housing. But such a measure, highlight donors, would affect few households (about 3 % in public park).

Or risk of decline of APL in low-cost HOUSING : enhance imbalance between funders are most vulnerable financially and those who have kidneys stronger. In Paris, elected communist Ian Brossat has calculated that if Paris Habitat compensated for 50 euros drop ELL for all tenants concerned, sum involved would amount to 25 million euros, 1 000 social housing units in less rehabilitated each year. And Paris Habitat is one of donors, most powerful of France, as noted by Renaud Epstein, a lecturer in political science at Sciences Po Saint-Germain-en-Laye :

Ex. for Paris Habitat ⤵(imagine conséquences for donor/communityés with kidneys less solid) https://t.co/9qkeLW6HK010/n

— renaud_epstein (@renaud epstein)

in turn, it is also a whole range of sectors that would be affected by this new turn of screw : construction companies, that social landlords provide a lot of activity, with 105 000 housing starts per year, more than a quarter of national production, have thus expressed ir concern.

" Any weakening of this actor, our one and only shock absorber during crisis, would have significant consequences, " said Jacques Chanut, president of French Federation of building.

With transport and employment, housing is one of three sectors expected to generate most cost savings in a finance bill 2018 that provides for $ 20 billion of savings. The only downside of APL in HLM would allow State to save 1.5 billion euros on aid to housing.

Read :   Housing : "The logic of Macron is to do better with less money"

The government has pushed back to September 22, presentation of "strategy" to housing. Not sure that this delay would suffice to reassure sector.

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