Federal Council rejects initiative for affordable housing
The Federal Council rejects the popular initiative "More affordable housing". However, an increase in credits in favor of non-profit housing construction is to be submitted to parliament.
The popular initiative "More affordable housing" was submitted on October 18, 2016 and calls for amendments to the Federal Constitution. The goal is to expand the supply of affordable housing. The housing initiative, which was co-launched by Wohnbaugenossenschaften Schweiz, Schweizerischer Gewerkschaftsbund, SP and Grünen, calls for twice as many non-profit apartments to be built as before.
The cantons and municipalities should be able to introduce a right of first refusal for suitable land for themselves, and such a right of first refusal should exist by law for land owned by the federal government and businesses close to the federal government. In addition, public subsidies should only be paid out if they do not lead to the loss of affordable housing, according to the initiative's demands.
Targets "neither realistic nor in line with market"
In a statement, the Federal Council maintains its view that housing in Switzerland should primarily be provided by the private sector. However, non-profit housing construction is a "segment that supplements the market to close supply gaps". The promotion of this group of providers is already a constitutional mandate, writes the Federal Council in a media release. However, the instruments and targets demanded by the initiative of the Swiss Tenants' Association are neither realistic nor in line with the market.
However, it is clear that the population attaches great importance to housing and that, despite the current easing of the market, it remains difficult regionally and for various population groups to find appropriate and financially viable housing, the statement continues. The Federal Council therefore combines the rejection of the initiative with a framework credit. With this, the existing Fonds de Roulement, which grants loans to non-profit housing developers, is to be increased over the next few years.
The Federal Council intends to decide on the amount of the framework credit in connection with the opening of the consultation procedure.
