500 million € by the EIB to the SNI group to fund the construction of 12,000 intermediate dwellings
Solid proof of the key role of intermediaries in channeling EU fundingParis, 16 November 2015 | Published in Economy
The EIB is lending 500 million Euros to the SNI group to help finance 12,000 intermediate housing units by 2019. Announced at the USH annual conference last September, the partnership was officially signed on 3 November 2015.
The EIB support to the social housing sector could increase in the coming months since a long-term subsidized loan mechanism is still being discussed with Action Housing, and another one is under consideration by ESH to add up to a number of 35,000 social homes provided in the next 5 years.
"What's more concrete than housing to illustrate what the EU can do for economic development serving citizens in their daily life?” said Pierre-René Lemas, CEO of Caisse des Dépôts and Ambroise Fayolle, Vice-President of the EIB, on the occasion of the formalization of the agreement on Tuesday, November 3rd. This funding option is mobilized over five years for loans with a duration up to 25 years at rates, "fixed or indexed Euribor 6 months ", which will be determined at each draw. Housing construction will meet high standards in environmental performance stated a representative of the SNI group.
This allocation is added up to the 900 million Euros raised by the SNI group from CDC. In total, putting together 10 000 intermediate homes provided as part of the FLI (Social Housing Fund) and 13,000 planned as part of the investment fund created by the state and managed by the SNI and Ampere management subsidiary, amounts up to a total of 35 000 new social homes that should be produced by the SNI over the next five years.
In order to deepen European intervention in housing, Pierre-René Lemas is convinced that the state funding could also benefit from a partnership with the EIB. Exchange of expertise in that would also be needed. Furthermore, he highlighted that this newly established Fund, Action Housing and the EIB are working on a very long-term soft loan system for all households living in public housing.
Housing Europe welcomes this development that confirms the key role of intermediary bodies to channel EU funding towards the affordable housing sector, a need that the European Federation has been stressing over the last years.