News item | 19-12-2024 | 14:19
Minister Mona Keijzer of Housing and Spatial Planning (VRO) is allocating another €70 million to stimulate transformations of areas and buildings into homes. This brings the budget of the so-called Transformation Facility to €150 million. Through this instrument, developers can obtain a loan if they want to transform a location or building into affordable housing. Repaid loans are returned to the facility, after which new loans can be issued. Now that the size has almost doubled, more transformation projects can be helped simultaneously. The counter was closed in recent months because all the money had been lent. The counter is expected to open again around the turn of the year.
The Transformation Facility contributes to better use of existing buildings for the realization of homes. Since the facility came into operation in 2019, it has contributed to the realization of more than 9,000 homes. In 2023, approximately 8,800 homes were realized by transforming real estate, making transformation a substantial part of the goal of adding 100,000 homes annually. Transformation also contributes to the quality of life in villages and cities, because it prevents vacancy. This often concerns former office buildings, shops or other buildings that have been vacant for a long time.
Transformation facility
The Transformation Facility offers developers the opportunity to obtain a short-term loan to finance the first phase of a housing project. In practice, this turns out to be a difficult phase, in which bank financing is virtually impossible. The Transformation Facility fills this gap. This way, developers can start development more quickly. Loans are a minimum of €500,000 and a maximum of €3.5 million for 50% of the total purchase and/or development costs. A project must consist of at least two-thirds affordable housing. These are owner-occupied homes below the established affordability limit and social and medium-priced rental homes.
Realization incentive and Flex and Transformation Homes Incentive Scheme
In addition to the expansion of the Transformation Facility, Minister Keijzer previously took more measures to stimulate transformation. For example, there will be a realization incentive, whereby municipalities receive a fixed amount for each affordable home that is delivered. This financial incentive will soon also apply to homes that are realized by transforming locations and making better use of existing buildings that meet the conditions. In addition, the Flex and Transformation Homes Incentive Scheme (SFT) will be evaluated and adjusted, after which the counter for municipalities will reopen. This is expected to be at the beginning of 2025. From that moment on, municipalities can again apply for the subsidy scheme.
Acceleration Agenda for Transformations
Finally, the Acceleration Agenda for Transformations also contributes to the goal of realizing more and faster homes through transformations. This agenda was drawn up before the summer and is a collaboration between market parties, government organizations and knowledge and research institutions. The Acceleration Agenda consists of a series of concrete actions that should ensure faster and more transformation in the Netherlands. One of the actions from the agenda to increase the reach of the Transformation Facility has been realized with this additional contribution.