The main goal of the Housing Pact 2.0 is to support municipalities, who are a central partner of the government, in the development of affordable housing. To achieve this goal, the Housing Pact 2.0 has the following three objectives:
- Increasing the supply of affordable and sustainable housing;
- Mobilising existing land and residential potential;
- Improving residential quality.
In particular, the Housing Pact 2.0 introduced a new article 29bis in the amended law of 19 July 2004 on municipal planning and urban development. In order to strengthen the provision of affordable housing, Article 29bis aims to contribute to a substantial increase in the public housing stock.
Article 29bis ensures the creation of a higher number of affordable dwellings in each special development plan “new district” (PAP NQ) and thus ensures that a good social mix is maintained in new residential areas.
Tutorial video
This video presents the main changes brought about by said article and explains how these new provisions on affordable housing will be integrated respectively in the PAPs NQ and in the agreements to be concluded between the developers and the municipalities or the State.
Percentages of affordable housing
For each new PAP NQ affected by Article 29bis, a certain percentage of the total area meant for housing is reserved for affordable housing.
The land on which these dwellings will be built is transferred to the municipality or the State.
In return for this transfer of land in the PAPs that fall under the scope of the aforementioned article, the building potential reserved for normal housing is increased by 10% compared to the general development plan (PAG).
Overview of the PAPs NQ affected by Article 29bis and the share of gross built area to be reserved for affordable housing:
Scope of the PAP NQ |
Share of gross built area to be reserved for affordable housing |
For land classified as a building zone before 18 February 2022 |
|
10-25 dwellings |
At least 10% |
> 25 dwellings |
At least 15% |
For land classified as a building zone after 18 February 2022 |
|
5-9 dwellings |
At least 10% |
10-25 dwellings |
At least 15% |
> 25 dwellings |
At least 20% |
As mentioned above, Article 29bis provides for an increase in the level of land use initially foreseen by the PAG as a compensatory measure for the transfer of land for affordable housing. It has been ensured that this compensatory measure is balanced and reasonable for each of the parties concerned.
The increase in the level of land use is aimed at increasing the gross built-up area dedicated to housing, or even the areas that will be used for commercial operations. For these reasons, it has been decided to increase the coefficients relating to the degree of land use (CUS, DL, COS, CSS) across the board.
In the specific case of a PAP NQ located in a "priority housing zone" according to the sectoral master plan for housing (PSL), 30% of the gross built-up area for housing is reserved for affordable housing.
In return for this reservation, the building potential reserved exclusively for housing in the PAP is also increased by 10% compared to the PAG. For the part of the additional transfer imposed by the PSL, an additional counterpart is defined between the transferor and the transferee. This compensation can, for example, take the form of an additional increase in the building potential or a financial compensation.
Plot Reservation
The PAP NQ defines for each lot or parcel the number of affordable dwellings as well as the gross built-up area to be reserved for affordable housing. Lots or parcels with significant constraints on implementation that could result in disproportionate costs for the creation of affordable housing are excluded from such a reservation.
Lots and plots reserved for affordable housing do not necessarily contain affordable housing only. Thus, affordable housing may be subject to co-ownership. In this case, the affordable dwellings concerned will have to be transferred with their corresponding shares of the funds.
Transfers
There are two different possibilities for transfer, first the municipality benefits from them, in the event of renunciation by the latter, the State, through the Minister having Housing in his or her attributions, who can be substituted by a public promoter other than the municipality (Fonds du Logement, SNHBM).
Once they are the owners of the affordable dwelling, the municipalities or other public promoters may proceed to rent it in accordance with the provisions and criteria laid down in particular by the amended Grand-Ducal regulation of 16 November 1998 on the implementing measures relating to rental housing.
Alternatively, they may opt for the sale of the affordable dwelling by means of a long lease and a right of repurchase should they wish to transfer the land in order to have affordable housing built there by third parties, which would substantially reduce the financial impact.
The transfer agreements for affordable housing with their corresponding share of land must contain at least the costs of construction, the plans for the construction of the affordable housing and a specification of the level of finish and equipment.
This provides transparency for the benefit of the purchasers, but also greater legal certainty for the contractors as to the exact terms of the transfer. In this way, the contractors are on an equal footing and have the same information about the details and quality of the work and equipment to be realised.
It is also important that prior to any transfer of affordable housing, the contractors are able to understand how the price will be determined, based on the information contained in the development plans and specifications. The transfer of affordable housing by means of a sale in future state of completion is also possible.
In return for the above-mentioned transfer of land, the degree of land use exclusively for housing to be met by the PAP NQ is increased by 10%. The PAG does not have to be amended accordingly to take account of this increase, as this amendment is made through a legal disposition.
If the parties do not agree on the value of the affordable housing to be transferred, they each appoint an expert. If the experts are divided, the parties call on an arbitrator. In the event of disagreement on the arbitrator, the president of the district court of the place where the concerned land lies shall appoint the arbitrator.
Compensation for the land to be transferred
The increase of the land use coefficients by 10% results from analyses carried out on the basis of data collected by the Housing Observatory.
In addition, the compensation is estimated on the basis of projects in which the time lag between the acquisition of the land and the selling of the housing was between 24 and 36 months. This means that the compensation is particularly advantageous for projects where the developers acquired the land at an earlier stage, and that the developers will be able to take the compensation into account for most of their future projects.
An increase in building density will allow for economies of scale, which implies an overall reduction in development costs per unit of saleable housing space. The land impact per unit of floor space will also be reduced, as the price of land acquisition and even development remains unchanged despite the increased building density referred to in this provision.
On the other hand, greater compensation would not only lead to over-compensation for the transfer of land for affordable housing, but would also generate building densities that are too high and not compatible with the surrounding urban and rural environment in which the projects concerned must be integrated.
The great advantage of this approach is that it reduces the financial burden on the public hand for the acquisition of affordable housing funds, while ensuring that the private property rights of the developer of a PAP NQ are safeguarded.
FAQ: Questions / Answers
Percentage of gross built area dedicated to housing to be reserved for affordable housing
If a ZAD is lifted, will an increased share of affordable housing have to be included in the PAP, as provided for by law if land is reclassified as a residential or mixed zone?
No, funds that benefit from the lifting of a ZAD, even after 18 February 2022, are not covered by the provision of article 29bis (2), paragraph 3.
If, in accordance with the PAG, it is possible to build 23 dwellings at the housing density set in the PAG, and taking into account the increase in building potential in accordance with article 29bis, it will then be possible to build 26 dwellings, will it be necessary to set aside 10% or 15% of the SCB for affordable housing?
This depends on the number of dwellings actually permitted in the PAP, which must comply with article 29bis in particular. The procedure is as follows:
First step:
The building potential is first determined by taking into account the increase in surface area and number of dwellings based on the counterpart provided for in article 29bis, in this case 10%. In extreme cases, however, it may not be feasible to use all of the building potential obtained in this way, in order to ensure the harmonious integration of the project into the existing built fabric.
Second step:
On the basis of this building potential, a development project that does not exceed these theoretical maximum values and that complies with the PAG land use plan and the ratios relating to the mix of urban functions and housing types (single-family - multi-family) is developed. We recommend applying the ratios relating to the mix of housing types also to affordable housing.
Third step:
Finally, the housing units and SCBs, which may not reach the aforementioned buildable potential, are distributed over the different lots. (See Appendix I - Summary table - February 2022 version).
Fourth step:
The gross built area earmarked for affordable housing ("SCB-logabo") is calculated on the basis of the number of dwellings and the maximum SCB dedicated to housing, as actually adopted in the PAP, and not on the basis of the maximum building potential.
So, for our example, we could waive the maximum permitted number of dwellings of 26 and then submit a PAP that only provides for 25 housing units.
As a result, 10% of the SCB dedicated to housing would be reserved for affordable housing. Compliance with article 29bis is therefore determined on the basis of the specific features of each PAP application. If, on the other hand, the maximum number of dwellings permitted in the PAP is only 26 units, 15% of the gross floor area allocated to housing must be reserved for affordable housing.
Please note: if the PAP is amended later on, article 29bis will still apply. An increase in the number of dwellings is likely to generate a different proportion (e.g. 15% instead of the initial 10%) of the area to be set aside for affordable housing.
If a PAP modified in this way is already in the implementation phase, however, such a modification of the PAP is likely to complicate its implementation in terms of compliance with these new provisions when the relevant building permits are issued.
Can a municipality ask for more than the 10%, 15% or 20% of the gross built area to be reserved for affordable housing, given that the law stipulates that at least a certain proportion (e.g. 10%, 15%, etc.) of the maximum gross built area dedicated to housing must be reserved for affordable housing?
No, municipalities cannot require developers of special development plans to devote more SCB to affordable housing than the minimum percentage stipulated in article 29bis. However, PAP initiators are free to exceed this minimum percentage when drawing up the PAP.
Does this mean that any modification to an area subject to the preparation of a PAP NQ at the level of the PAG (e.g. lifting a ZAD, increasing the level of land use, etc.) raises the proportion of the SCB to 20%, 15% or 10%, without exception? Alternatively, does this only apply to modifications to the PAG that result in a classification as a residential zone (e.g. change from ECO to HAB-1 zone)?
If a PAP covers land reclassified from a zone other than a residential or mixed zone to a residential or mixed zone by an amendment to the PAG, the proportion of the gross built area of the land reserved for affordable housing is increased to 20%, 15% or 10% respectively.
The provision in question relates exclusively to amendments to the PAG concerning the classification of the original zone, which relate to the classification as a residential or mixed zone (e.g. changing the ECO zone to HAB-1), for which the adoption procedure (first vote by the Communal Council) was initiated after 18 February 2022.
Urban design
When drawing up a PAP, at what point is it important to know the municipality's position on whether or not it wishes to accept the transfer of funds reserved for affordable housing?
According to article 29bis, the municipality must accept or reject the transfer of land reserved for affordable housing or, where applicable, affordable housing with the corresponding share of land, at the latest when the agreements relating to this transfer are drawn up.
However, it is certainly advisable to raise this issue with the municipal authorities (as potential future transferees) beforehand, preferably at an early stage in the development of the urban planning concept for the PAP in question.
What is the modus operandi for allocating the gross built area reserved for affordable housing within a PAP, and who decides on this allocation? When are the types of affordable housing (e.g. flat or house) and their configurations (e.g. number of bedrooms) determined?
In principle, this allocation should be made in close consultation with the future transferee, preferably at an early stage in the development of the urban planning concept for the future PAP.
With regard more specifically to the types and configurations for affordable housing, please refer to the provisions and specifications drawn up by the Ministry of Housing and Spatial Planning:
https://logement.public.lu/fr/professionnels/aides-etatiques/demande-aides-a-la-pierre.html
In particular, the specifications will ensure that future homes built under the PAP have living areas that will enable them to be eligible for the various grants offered by the Ministry of Housing and Spatial Planning. The same applies to the type of dwelling and the layout of the interior rooms.
Both the distribution of the surface areas reserved for affordable housing and the determination of the types of housing planned for this purpose need to be discussed with all of the stakeholders involved from the outset of the project's urban design, in particular during the meeting with the PAP consultation platform.
Prior to the official opinion issues as part of the procedure for adopting the PAP, who will be able to check that the affordable housing and related designated areas comply with the official provisions and specifications?
As for checking the conformity of the affordable housing and its designated areas (Art.29bis Loi ACDU):
Any experts, in particular urban planners (registered on the relevant list with the OAI), may carry out such checks by using the Excel table in Appendix I - Summary table - (latest version) or by making an appointment with the consultation platform. The purpose of this platform is to enable municipalities, together with project initiators, to obtain advice prior to the elaboration of a PAP, before the file is officially submitted for the adoption procedure provided for in article 30 of the amended Act of 19 July 2004 on municipal planning and urban development.
As for the provisions contained in the specifications by the Ministry of Housing and Spatial Planning, project initiators will have to check directly with the ministry.
https://logement.public.lu/fr/professionnels/aides-etatiques/demande-aides-a-la-pierre.html
How do you determine which building lots are reserved in whole or in part for affordable housing?
The PAPs define for each lot or parcel the number of affordable housing units and the gross built area to be reserved for affordable housing. Lots or parcels that are subject to significant constraints in terms of execution, likely to generate disproportionate costs in terms of creating affordable housing, are not subject to this regulation.
Lots reserved in whole or in part for affordable housing should be determined in close consultation with the municipality, the private developer and the public developer who will be responsible for managing the affordable housing units.
Lots and parcels reserved for the development of affordable housing do not necessarily contain affordable housing only. In this case, the affordable housing units will have to be ceded with their share of the corresponding funds, and a cession of exclusively these funds is not possible.
Compensation for ceding land reserved for affordable housing & increase in the level of land use
The maximum degree of land use, as permitted by the PAG, is increased by 10% in accordance with article 29bis. Is this increase calculated in relation to the housing density ("DL"), (e.g. a DL of 18 increases to 19.8) or is the number of housing units permitted for a zone in relation to the DL increased by 10% (rounded up)?
All the coefficients relating to the degree of land use (DL, CUS, COS, CSS), as determined in the PAG, are increased by 10%. However, the resulting maximum number of dwellings must always be rounded down.
For example, for a project covering an area of one hectare and with a DL of 24, the PAG allows 24 housing units (without application of article 29bis), i.e. 26.4 units, taking into account the provisions of article 29bis. A maximum of 26 housing units may therefore be planned in the PAP.
Is the compensation for the transfer of land limited to a 10% increase in building potential, even if more than 10% of the SCB dedicated to housing is reserved for affordable housing?
Yes, this increase is always limited to 10%, irrespective of the percentage of the SCB to be reserved for affordable housing (10%-15%, if applicable, 20% or even 30% [if PSL]).
It is reduced according to two factors:
- the proportion of land owned by public developers, and
- taking into account functions other than housing.
Is the proportion of the SCB dedicated to housing that is to be reserved for affordable housing defined in relation to the SCB to be allocated to housing under the PAG or in relation to the SCB reserved for housing as set out in the PAP?
The SCB-logabo is to be defined based on the maximum SCB reserved for housing as set out in the PAP, taking into account, if applicable, the increase in building potential of 10%.
How do you check that a PAP complies with article 29bis when the project covers several zones with different degrees of land use (DL, CUS, etc.)?
The first step is to check that the project complies with the summary table in the supporting report, for each zone for which the same degree of land use is set in the PAG. In the case of different coefficients relating to the degree of land use (CUS, DL, COS or CSS), it is necessary to draw up several tables.
In these tables it will also be necessary to enter the proportion of the SCB-logabo for each zone analysed using the above-mentioned tables.
However, it is possible that in one or more zones covered by a single PAP, the proportion of the SCB-logabo, as required by the provisions of article 29bis, is not achieved, due to a disproportionate distribution of affordable housing within the PAP. In fact, a disproportionate distribution of affordable housing across the different zones of the PAG is not contrary to the law, if the aforementioned minimum share is respected for the entire PAP, and without prejudice to the provisions of article 2 of the aforementioned law.
If the table provided in XLS format by the Ministry of Home Affairs indicates that part of the surface area covered by a PAP does not meet this minimum share, the table can be completed with a comment providing information on the total SCB-logabo of the PAP and the share of SCB-logabo for the entire PAP.
What might an additional compensation for the transfer of land for affordable housing in accordance with article 11, paragraph 2 of the law of 30 July 2021 on the Housing Pact consist of, given that in a priority housing area, as defined by the "housing" sectoral master plan, the proportion of the SCB-logabo must be at least 30% of the total SCB dedicated to housing?
The law does not provide any precise framework for this, which allows for greater flexibility when implementing this compensation mechanism.
Two possible options are worth highlighting:
- Financial compensation: such a compensation must be determined by mutual agreement between the two parties, the public and the private developer, within a written agreement.
- Specific modification of the PAG: The municipality agrees to a modification of the PAG in order to grant more construction potential to the developer. In this context, it is useful to also draw up an agreement stipulating that the municipality will initiate the procedure to amend the PAG, while supplementing this agreement with a suspensive clause, making it possible to determine the consequences resulting from a possible non-completion of said procedure.
Can a 10% increase in the building potential of a priority housing area, as defined by the "housing" sectoral master plan, be combined with the additional compensation provided for in these zones?
Yes, the provision, which stipulates that, in return for the aforementioned transfer of funds, the degree of land use intended exclusively for housing to be complied with by the PAP NQ defined in the PAG is increased by 10%, is also applicable to all PAPs covering a priority housing area. In addition to the 10%, the transfer of funds reserved for affordable housing may give rise to additional compensation measures, if the proportion of the gross built area to be reserved for the creation of affordable housing exceeds the percentage initially provided for in these zones, in accordance with article 29bis.
Does the compensation for the transfer of funds reserved for affordable housing consist of a 10% increase in building potential or only in a 10% increase in the SCB reserved for housing?
Article 29bis provides for a 10% increase in all coefficients relating to the degree of land use. The term "building potential" is synonymous with the term "degree of land use" as used in the aforementioned law of 19 July 2004.
As part of the increase in building potential, in accordance with the provisions of article 29bis, must the choice of housing types and their distribution at the level of the PAP always correspond to the distribution key (single-family/multi-family) set out in the PAG?
Yes, the PAP in question must always comply with the PAG that it implements, even in the event of an increase in building potential under article 29bis of the aforementioned law of 19 July 2004.
Is the surface area of a garden shed and/or a garage considered to be "dedicated to housing" and therefore part of the share of the SCB to be reserved for affordable housing?
Yes, all of the SCB effectually reserved for housing, including that dedicated to the outbuildings allocated to dwellings, is taken into account in the calculations of the SCB dedicated to housing, or to affordable housing.
Transfer of land and affordable housing & affordable housing agreements
Do affordable housing agreements have to be signed within a certain timeframe?
These agreements must be signed and, where applicable, approved by the Minister for Home Affairs before any building permit is issued for one or more dwellings (affordable housing or "conventional" housing). Apart from this requirement, there is no statutory deadline.
Once the public authority that will take over the funds for affordable housing is designated, when will the developer be notified whether the public authority keeps the land or chooses the option of the land with the homes already built?
The decision to opt for a transfer of land reserved for affordable housing or, as the case may be, affordable housing with its corresponding share of land is made simultaneously. It is therefore important to raise this issue with the public authority at an early stage in the development of the urban planning concept, which will subsequently be translated into the PAP.
In paragraph 6 of article 29bis, when reference is made to the value of the transfer of affordable housing with its corresponding share of land, is this really a free transfer or is it the price of the initial plot of land with or without infrastructures?
This is the net building plot, i.e. the fully serviced plot that is to be transferred free of charge. The dwelling itself is to be sold at the value equivalent to its completion price.
Who will have to draw up the specifications defining the level of finish and equipment, as well as the plans for the construction of the affordable housing? If a municipality receives the transfer, can it commission a private developer? In the case of a government body, will it be responsible for drawing up these documents itself?
It is the responsibility of the project owner, in consultation with the future transferee, to define the level of finish and equipment, as well as the plans for the construction of the affordable housing, since these terms and conditions form an integral part of the agreements.
Similarly, a private developer may be appointed in the case of a transfer of affordable housing to the municipality, in order to monitor the completion of the project.
When the agreement is drawn up, it is stipulated that it must be accompanied by plans for the construction of the affordable housing as well as specifications defining the level of finish and equipment. How detailed must the plans and specifications be (preliminary design, final design, working drawings, etc.)?
The law does not explicitly regulate the level of detail required in these documents. It is obviously useful for these documents to be sufficiently detailed to enable the transfer of the property with full knowledge of the facts on the part of the transferor and the transferee. The preparation of execution plans does not seem to be required at this stage, as such plans are excessively detailed, whereas a preliminary design is hardly sufficient at this stage. Final plans should therefore be used wherever possible.
In view of the steps to be taken in applying article 29bis, who is supposed to pay for the additional design studies for the development plans and specifications for the affordable housing? Should this be the responsibility of the lessee of the land and housing or the initiator of the PAP NQ?
When the public authority builds the affordable housing, these costs are its responsibility. If it is the initiator of the PAP NQ who builds the affordable housing, these costs will initially be its responsibility. However, they will be recovered when the housing is sold, since the sale price will be equivalent to the completion price, which obviously also includes the related planning costs.
If exclusively the land reserved for affordable housing is transferred to the municipality or another public developer, how will the exact surface area of the land to be transferred be calculated?
First of all, it should be noted that an exclusive transfer of land reserved for affordable housing is only conceivable if these plots are exclusively reserved for affordable housing. In fact, the free transfer of land under article 29bis is excluded if "conventional" housing or functions other than housing are also permitted on this land.
Pursuant to article 29bis, the PAP must indicate which lots are to be used for affordable housing. It is therefore up to the regulatory section of the PAP to allocate the gross built area to be reserved for affordable housing to the various lots. The net surface area of these lots is not regulated and does not necessarily have to correspond to the same proportion of the gross built surface area dedicated to housing that will be reserved for affordable housing. The surface area of the plots to be transferred is therefore determined by the urban planning concept and the organisation and size of the plots, as adopted when the PAP was drawn up.
If affordable housing is transferred to the municipality or the State in accordance with article 29bis, who will pay the planning costs for this housing?
In accordance with article 29bis (6), paragraph 2, the sale price of affordable housing must be equivalent to the completion price. This includes planning costs, which are borne by the transferee, in this case the public developer.
Whereas in article 29bis (6) the value of the transfer of affordable housing takes account of the completion price, how is this value to be established?
First of all, it should be remembered that the transfer of land reserved for affordable housing is carried out without any financial consideration. Therefore, the value of the transfer of affordable housing units with their corresponding share of funds takes into account only the price of building the units, including their planning costs, and not the value of the land or the costs of servicing it.
Given that this completion price must be set out in an agreement between the transferor and the transferee, which must be concluded prior to the construction of the housing units, this value can only be established on the basis of detailed estimates of the realisation costs for the construction project. This is why the legislator opted for the term "takes into account the costs of completion", in the knowledge that the actual costs of completion will only be known once the work has been definitively completed.
When estimating completion costs, however, it is important to be as close as possible to the actual construction costs at the time, without including a profit margin for the developer.
However, in view of fluctuations in the price of materials and construction in general, which can be significant, it is essential to include a clause in the agreement allowing these prices to be indexed, to avoid the transfer price not being able to cover the private developer's actual construction costs.
Designing, building and subsidising affordable housing
Is there a deadline for the realisation of the affordable housing units?
Article 29bis does not specify a deadline for the completion of affordable housing.
However, such a deadline may be set as part of the agreement for the transfer of the affordable housing to municipality or another public developer. (See convention-type art.29bis)
The maximum thresholds for a dwelling unit to be eligible for affordable housing are expressed in square metres usable for habitation. However, the PAP is expressed in terms of SCB. What is the standardised procedure for moving from net square metres allowed to maximum net square metres of usable floor space?
Generally, one calculates the net surface area of dwellings as some 25% less than the SCB. Without having at one's disposal the summary plans relating to the various dwellings when the PAP is being drawn up, there is no way of determining the exact usable surface area that the dwellings in question will have during this phase.
However, the definition of the SCB provided for in the Grand Ducal regulation of 8 March 2017 concerning the content of the general development plan of a municipality has been slightly clarified in order to facilitate the application of the provisions of article 29bis of the aforementioned law of 19 July 2004.
In case of multi-family housing, what is the best way to determine the SCB to be dedicated to affordable housing in the PAP, based on the usable living area ("SUH")?
There is no specific methodology for determining the SCB to be reserved for affordable housing ("SCB-logabo") at the PAP level on the basis of the SUH. In the context of the PAP, the SCB-logabo needs to be set solely on the basis of the maximum SCB dedicated to housing and the proportion of this area to be reserved for housing. It is only when the architectural projects are drawn up that this SCB-logabo will be allocated to the dwellings, garages and other spaces associated with these dwellings.
Given that the written part of the PAP will have to state the SCB reserved for affordable housing per lot, what are the consequences of a discrepancy between the SCB dedicated to housing as admitted by the PAP and the SCB dedicated to housing that will actually be built? Is the SCB-logabo calculated on the basis of the theoretical SCB or on the basis of the SCB actually built? (Example: The PAP plans to build 150m2 of SCB dedicated to housing on a plot. However, only 125m2 are actually built).
At the PAP level, the SCB-logabo will be determined on the basis of the maximum SCB dedicated to housing.
When the PAP is implemented, in this case when applying for the construction permit, the minimum SCB definitively dedicated to affordable housing does not necessarily have to correspond to the minimum SCB-logabo provided for in the PAP, as this is simply a reservation of areas for affordable housing. However, the part of the SCB-logabo reserved by the PAP that is not implemented cannot be dedicated to other urban functions or to "conventional" housing.
Can a single-family home owned by the municipality and rented on an affordable basis include an integrated dwelling (affordable or not)? If so, can the total floor area of the single-family home (main dwelling + integrated dwelling) exceed the maximum SUH that must be respected in order to receive financial subsidies?
Any single-family home can house an integrated dwelling, regardless of whether the dwelling is rented out on an affordable basis, unless otherwise stipulated in the PAG or the PAP. More specifically, with regard to obtaining subsidies, the Ministry of Housing and Spatial Planning considers the SUH dedicated to the main dwelling to be a SUH of a single-family home and the SUH dedicated to the integrated dwelling to be part of a flat.
How does article 29bis apply in the case of a change of use of an existing building in order to create new housing units and whose land a PAP drawn up pursuant to article 29bis covers?
In this context, a distinction between two cases must be made:
- If, in accordance with the provisions of the PAP in force, such a change of use remains possible because the maximum number of dwelling units permitted has not yet been reached when the initial project was carried out, only an application for a construction permit covering the change of use and, where applicable, the conversion work is required.
- If, on the other hand, in accordance with the provisions of the PAP in force, such a change of use is not permitted because the maximum number of housing units has already been reached when the initial project was carried out, the PAP must first be amended in accordance with the PAG. When the PAP is amended, compliance with article 29bis must be guaranteed for the entire PAP site, which generally also means increasing the SCB-logabo and also means amending the agreements on the transfer of the land and, where applicable, the affordable housing to the municipality or another public developer.
Thus, especially in locations that are less suitable for retail development, such as rural areas and outside the central areas of the main towns of development centres and centres of attraction, it is generally not advisable to plan areas exclusively for retail use, while at the same time consuming the full potential in terms of housing units in the remaining areas.