Advisory Center for Affordable Settlements & Housing

acash

Advisory Center for Affordable Settlements and Housing
ACASH

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Document TypeGeneral
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Published ByOECD
Edited ByArslan Hassan
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MEASURES FINANCING AFFORDABLE HOUSING DEVELOPMENT

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Document Type:General
Primary Author:OECD
Edited By:Arsalan Hasan
Published By:OECD

Affordable rental housing (or ‘intermediate rent’ as it is referred to in some countries such as France) receives public support in Australia, France, Japan, Spain, Switzerland, the United Kingdom and the United States. Affordable rental housing can include different types of arrangements for the provision of below-market rental dwellings. In some countries support for affordable rental housing is linked with temporary agreements ensuring that subsidized dwellings are let at affordable rent for a minimum time period (for 10 years in Australia, 9 years in France, 15 years initial period subject to extension in the United States). In case of developments including several housing units, affordable housing schemes can set a minimum share of dwellings to be let at affordable rent and/or to tenants with incomes below a given ceiling. For instance in France a reduced VAT rate applies to developments where a minimum 25% concerns social housing, while under the HOME Rental programme in the United States in projects with more than five units 20% has to be allocated to households with incomes below 50% of the median family income for the area.. Measures can also include programmes to develop housing for specific target groups such as the elderly or disabled. For example, Japan has two different programmes providing subsidies to developers to build barrier-free dwellings for affordable rent, one targeting low-income elderly households and another programme providing for all elderly regardless of their income. In England, the Care and Support Specialised Housing Fund provides capital funding for specialist housing providers for the development of specialist housing to meet the needs of older people and adults with disabilities.

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