Solidarity rent reduction in social housing and matching cut in housing benefit (APL)
The 2018 Finance Act creates the solidarity rent reduction (RLS, article L. 442-2-1 of the Construction and Housing Code): social landlords must lower the rent of tenants whose income is below a ceiling. Those tenants' personal housing benefit (APL) is reduced by 90% to 98% of the RLS, as set by decree. The landlords' contribution to the social housing guarantee fund is adjusted to spread the effort between organisations.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
For 2018 the law caps the monthly RLS at €41-50 for a single person and €56-69 for a household with one dependant, depending on the zone, plus €8-10 per extra dependant; actual amounts are set by order. The APL of affected tenants falls by at least 90% of the RLS, so the effort mainly falls on social landlords. Targeted State saving: €800m in 2018.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
President of the Republic signature
Publication au Journal officiel
Possible referral to Constitutional Council
Décision de conformité / censure partielle
National Assembly has the final say
Si échec CMP
Debate and vote
Débat et vote en séance publique à l'Assemblée nationale, ou engagement de la responsabilité du Gouvernement (article 49.3)
Council of Ministers
Validation interne