Levy on the financial reserves of social housing (HLM) bodies

Article 210 of the 2011 Finance Act rewrites Article L. 423-14 of the Construction and Housing Code: from 1 January 2011, social housing (HLM) bodies with a rental stock are subject to a levy on their financial potential (the gap between long-term resources and long-term uses). The levy equals the body's number of dwellings multiplied by an average contribution per dwelling, calculated with a progressive scale from 0% (potential below €900 per dwelling) to 16-20% (above €3,000). For each body it is capped at 8% of rents and financial income, a rate reduced according to the growth of its stock. A ministerial order sets the parameters so that total annual revenue reaches €175 million. The sums are paid before 31 August to the social rental housing guarantee fund (CGLLS). No levy is due below €10,000 or when the body is under a recovery or consolidation plan.