Changes from report parliamentary committee draft to plenary report

Added7. Recognises that the construction sector, which plays a crucial role in addressing the housing crisis through the construction and renovation of more sustainable housing, is one of the main professional groups suffering from labour shortages, and calls for targeted measures to improve the working and housing conditions of the construction workforce; calls also on the Commission and the Member States to make full use of the ESF+ to address the shortage of skilled workers in the construction and renovation sectors, acknowledging that an expanded and highly skilled workforce is crucial in increasing the housing supply, improving affordability and driving competitiveness and innovation in the European construction industry, especially by developing start-ups based on research into new materials;

Added8. Calls on the Commission and the Member States, therefore, to make use of ESF+ to support vocational training, as well as targeted upskilling and reskilling programmes to equip workers with the necessary expertise in energy-efficient construction, sustainable housing renovation and new building technologies; considers it crucial, in this context, that qualifications and national labour legislation in the construction sector contribute to the effort to address long-term labour shortages in the Member States; recognises, in addition, the work and effort of self-employed people, who, as the core labour force in the sector, require special protection;

Added9. Highlights the fact that the lack of affordable housing is also increasingly becoming a barrier to labour mobility within the EU, with workers, especially young professionals, essential workers and low-income earners, struggling to find adequate, decent and affordable accommodation close to their workplaces, exacerbating social and economic inequalities between regions and Member States; proposes that funding should also support temporary housing solutions for mobile workers, students and young families to enhance social cohesion and economic mobility;

Added10. Recalls the Commission’s commitment to present the first European affordable housing plan to support the Member States in tackling key causes of the housing crisis, and stresses that local and regional authorities, as well as civil society, must be involved in drafting it, to reflect the experienced realities; emphasises that the plan should include specific measures and tailored services to address the root causes of homelessness, such as the Housing First model, in a way that complements EU funding instruments and in accordance with the commitments made under the EPOCH;

Added11. Calls on the Commission and the Member States, in the current context of housing market failure and given the external circumstances, to support public investment, and in particular investment in social housing made by CP and financial instruments, such as loans, guarantees and equity in social and affordable housing, including in affordable student housing; underlines the need to improve the relationship between CP and EU economic governance, while avoiding a punitive approach; stresses that the European Semester should comply with CP objectives under Articles 174 and 175 TFEU, as they are essential to future and long-term societal well-being;

Added12. Calls on the Commission to propose off-the-shelf State aid schemes to facilitate the swift authorisation of support measures at national or EU level, as appropriate; stresses the need to strengthen technical assistance instruments under CP to improve the understanding of State aid rules as they apply to social, public, not-for-profit and cooperative housing providers, and to support the implementation of projects on affordable housing developed in collaboration between the EIB and the Commission; highlights the importance of ensuring access to information, knowledge exchange on EU financial instruments for housing, and tailored advisory support for project development and implementation, including through the Pan-European Investment Platform for affordable and sustainable housing;

Added13. Suggests the improvement of the EU-level statistical tool for accessing data on CP fund allocations on housing; stresses the need to quickly adopt the proposed regulation on European statistics related to population and housing, to enable evidence-based policymaking and better allocation of cohesion resources, and asks Eurostat to monitor cohesion investment trends, territorial imbalances and the effects of tourism and short-term rentals; calls, furthermore, for strengthened cooperation with the European Court of Auditors on the use of CP funds for affordable housing, recommending that this data be integrated into future CP programming to address affordability and investment gaps;

Added14. Considers that rental income can be a structural element to supplement citizens’ income amid economic uncertainty; highlights the need for transparency requirements for large-scale real estate investments, and for the monitoring of financial products linked to housing markets;

AddedUpdated cohesion policy 2021-2027 to address the housing crises

Added15. Urges the managing authorities of CP funds at national and regional level to consider using the mid-term review of the CP programmes in the 2021-2027 programming period as an opportunity to at least double the funds earmarked for affordable housing, ensuring a more balanced approach between new housing and energy efficiency interventions, enhancing more direct access to EU funding for regional and local authorities, as well as for city and urban authorities; recommends that the Member States develop national housing strategies to provide additional solutions and that they make use of the current possibilities for transferring allocations between CP funds to step up such investment and simplify administrative procedures to accelerate housing investment; recalls, however, that shifting resources within CP alone will not solve the housing crisis, and that the fundamental role of CP in strengthening economic, social and territorial cohesion must be fully respected; calls on the Commission and the Member States to use funds available through NextGenerationEU, the EIB and CP to increase their investment in housing and associated services;

Added16. Recalls that the competence for housing lies with the Member States and is, to a large extent, managed by regional and local authorities; stresses that the housing crisis should be tackled while respecting the principle of subsidiarity, starting from the local level and specifically respecting regional and local authorities in this domain; calls, therefore, for flexible EU support that aligns with national, regional and local specificities; recalls the importance of fully respecting the partnership principle, the European Code of Conduct on Partnership, and the principles of multilevel governance in all programming, implementation and monitoring, and in any CP reprogramming, ensuring the active involvement of regional and local authorities and other stakeholders; calls on the Commission to avoid centralising funding programmes at national level and to create more opportunities for regional and local authorities to identify and appropriately use CP funds, particularly in the area of housing; stresses the need to strengthen investment in administrative capacity building, especially for regional and local authorities, to enable effective decentralised management and delivery of EU funds;

Added17. Acknowledges that rising house prices result from multiple factors, including limited supply, excessive bureaucratic barriers, labour shortages and market dynamics, and urges Member States to balance affordability with legal certainty and investment incentives; advocates streamlined and effective CP instruments to reduce regional disparities in access to affordable housing, and calls for the simplification, transparency and accessibility of CP funds; suggests supporting local entities through reduced administrative burdens; calls on the Commission to review existing regulations impacting the construction and renovation sectors, to identify obstacles linked, among others, to public procurement and State aids rules delaying projects financed with CP funds;

Added18. Notes that most Member States have identified the affordability of housing as a priority; calls on the Commission to consider the current lack of housing affordability as a long-term phenomenon and to propose a revision of the current regulations on the ERDF/Cohesion Fund, the ESF+ and the Just Transition Fund to support investments aimed at mitigating the socio-economic consequences of the housing crisis, particularly in cities, while also noting the housing market-specific challenges in rural areas and on islands; stresses the importance of ensuring that EU public funds complement national investments; calls for a regulatory framework that encourages the renovation of existing buildings to improve housing conditions without undermining market availability; stresses that CP funds for housing must align with policy goals, avoiding urban overpopulation and supporting efforts to combat depopulation in regions where this is a problem; suggests addressing both depopulation and housing shortages through improved connectivity projects; considers that this type of investment should go hand in hand with the provision of other basic services such as health, education, energy and water services; stresses, in particular, the need to address the impact of housing costs on unemployed people, single-parent families and young people at risk of poverty and to prevent the risk of social exclusion and the ‘not in education, employment or training’ (NEET) phenomenon, with a view to reducing inequalities and promoting social cohesion;

Added19. Suggests, furthermore, that the Commission include new flexible, specific objectives on public, not-for-profit, social, affordable, cooperative and sustainable housing in the revision of the ESF+ and the ERDF-CF regulations, in particular within policy objective 2 of CP for 2021-2027 on a greener and carbon-free Europe, policy objective 4 on a more social Europe and policy objective 5 on a Europe that is closer to citizens, in order to finance action on housing shortages, improve the quality and sustainability of housing, reduce energy costs, particularly for low-income households in which unemployed people, single parents, single women and tenants, among others, are disproportionately represented, and ensure that all citizens have access to affordable, sustainable and decent housing; emphasises that these specific objectives must be implemented in close collaboration with regional and local authorities where investments are deployed, ensuring alignment with their sustainable territorial development strategies, and suggests that such investments be included in the taxonomy of Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector, in accordance with Article 9 thereof; in this context, calls on the Member States and regional and local authorities to promote the inclusion of affordable housing, particularly for low-income households, in new construction projects, in a manner that reflects local housing market needs and social circumstances, while ensuring flexibility for Member States to define appropriate national or regional targets;

Added20. Calls on the Commission to propose the broadening of the scope of the CP funds support, beyond the promotion of energy efficiency or renewable energy in housing and social housing, to include water efficiency and refurbishing, and to integrate innovative and sustainable approaches that increase affordability, such as community land trusts, cooperatives and cost-rent models while ensuring housing solutions that align with circular economy principles that foster a more environmentally responsible housing sector; calls, in addition, for ESF+ resources to support complementary measures such as housing allowances for tenants and social inclusion initiatives linked to affordable housing; suggests adding specific measures to prevent and address homelessness, promoting Housing First and ensuring that low income households living in unfit housing and energy poverty can benefit from renovation;

Added21. Calls on the Commission and the Member States to ensure that CP investment in housing includes targeted measures for supporting young people, single-parent and low-income families, elderly people, women, children and marginalised groups affected by violence or discrimination in accessing affordable, safe and adequate housing; underlines that housing support must be part of a broader framework for social inclusion and protection, ensuring accessibility, security and dignity for all vulnerable groups; stresses that the use of EU funds for housing projects must avoid contributing to segregation or social exclusion;

Added22. Calls for better access to funding to support investment in the local energy transition, including energy efficiency, decentralised energy distribution, renewable energy and sustainable circular economy initiatives; stresses the need to further increase and better streamline CP investment in social, public and not for profit, energy-efficient, adequate, decent and affordable housing, as well as in tackling homelessness and housing exclusion; calls on the Commission and the Member States to fully integrate the ‘renovation wave’ strategy into housing policies, ensuring that renovations focus not only on energy efficiency and on addressing thermal bridges but also on transforming underutilised and abandoned buildings into affordable and accessible housing; encourages the Commission to facilitate public-private partnerships through the renovation wave strategy for large-scale urban renewal projects, and stresses the importance of ensuring that EU funding instruments adequately support public and not- for-profit housing, home owners, landlords, small property owners, and developers in upgrading existing housing stock;

Added23. Suggests that the Commission propose an additional co-funding rate up to 100 % and an exceptional pre-financing with respect to several targeted priorities on affordable housing, and that the investments in housing affordability be considered within the thematic concentration requirements and climate-related spending;

Added24. Asks the Commission to define a flexible common EU framework of social and affordable housing eligibility with transparent and non-discriminatory criteria that allow local and regional authorities to enhance the effectiveness of preventive interventions by identifying possible target groups, such as low- and middle-income households that are unable to obtain housing at market conditions, either owing to their financial situation or to their special needs, including people with disabilities, young or elderly people and people who need ERDF-CF and ESF+ support to access residential accommodation that is adapted to their needs, meets appropriate quality standards and is provided affordably; calls for particular attention to be paid to young people, especially in areas where most young people continue living in the family home; proposes the introduction of an ‘early warning’ system, including through tools such as artificial intelligence, to anticipate the risks of housing exclusion, while fully respecting the principles of transparency, data protection and non-discrimination;

Added25. Emphasises that access to adequate, decent and affordable housing is a fundamental social right and a prerequisite for social and economic participation and well-being, and calls for the integration of housing affordability considerations into all relevant EU employment and social policies; suggests the importance of promoting family-oriented policies; proposes the creation of a European charter clarifying the role of the national governments in the recognition and application of housing as a social right;

Added26. Notes that combining and complementing ERDF-CF, ESF+ and JTF grants with EIB financial instruments can contribute to increasing the leverage effect of investments and access to finance for property developers, builders and final beneficiaries by establishing a link with the European Green Deal; supports the creation of a dedicated housing facility within the structure of the EIB financial instruments; underlines, furthermore, the importance of promoting green procurement that sets environmental and social conditions; stresses that simplification of funds and transparency in the use of funds are essential for the efficient and strategic use of investments, and for a multiplier effect for financial efforts;

Added27. Encourages the Commission and the EIB to include strict, transparent, inclusive and fair allocation mechanisms, as well as social and sustainable conditions for the final beneficiaries of EU funds and financial instruments; stresses that a balanced approach involving both public or not-for-profit housing and private sector participation through public-private partnerships should be pursued to optimise housing stock and ensure efficient use of resources; takes the view that affordable housing programmes may include – but should not be limited to – public ownership of properties, land and buildings owned by central and local public authorities; considers, to this end, that public entities should be allowed to have access to the private sector, under the supervision of the public authorities, while also ensuring strong support for social housing providers and other not-for-profit entities engaged in the provision of affordable housing; underscores the importance of prioritising the lowest income groups that are disproportionately affected by the cost of housing;

Housing affordability in the future cohesion policy beyond 2027

Change 2

Removed13. Notes that investments in affordable and sustainable housing for low-income and middle-class populations should be one of the upcoming strategic priorities of EU cohesion funds under the next multiannual financial framework post-2027 and that the renovation wave strategy must be anchored into regular CP programmes to ensure its continuity;

Added28. Notes that investment in affordable, decent, accessible and sustainable housing, including measures such as social, public and not-for-profit housing and affordable rental schemes for vulnerable people, low- and middle-income households and particularly large families, should be one of the strategic priorities of the upcoming EU cohesion funds under the next multiannual financial framework post 2027 and that the renovation wave strategy must be anchored into regular CP programmes to ensure its continuity without imposing excessive burdens on property owners; stresses the need for binding accessibility standards and universal design in all EU-funded housing projects, in line with the UN Convention on the Rights of Persons with Disabilities, prioritising investment in housing adaptations, smart assistive technologies, and renovations that enable independent living; stresses the need to pay particular attention to young and future generations, especially in areas where most young people are not economically independent and continue living in the family home, particularly students and early-career professionals, by supporting them in starting an independent life;

Removed14. Calls, furthermore, on the Commission to include in the future cohesion policy the promotion of territorial resilience and support for communities through the provision of resilient housing that can withstand the impact of natural disasters and the effects of unexpected events;

Added29. Calls on the Commission to develop comprehensive guidance and recommendations for the Member States on leveraging integrated multi-fund approaches to support large-scale investments in affordable and social housing, related infrastructure and community-based services that promote social inclusion and territorial cohesion; stresses the importance of using an appropriate mix of grants and financial instruments, recognising that grants are key for supporting social inclusion measures for tenants; considers that, alongside CP financing, other instruments such as Horizon Europe can support research and development projects in the construction sector and related technologies to address the housing crisis; calls on the Commission to work closely with national and regional authorities to simplify funding rules, streamline application procedures and provide quicker access to funds for affordable housing projects;

Removed15. Proposes including in the future cohesion policy an allocation of funds for housing made up of a minimum share of ERDF-CF and ESF+ funds on the basis of national and regional strategies on affordable and sustainable housing for middle- and low-income households in urban and rural areas;

Added30. Notes that investment in affordable and sustainable housing for populations in areas with particular demographic characteristics should be another of the strategic priorities of the upcoming EU cohesion funds under the next multiannual financial framework from 2027;

Removed16. Calls on the Commission and on the EIB to include in the future cohesion policy a specific duration requirement for operations involving investment in affordable and sustainable housing infrastructure from the CP funds; takes the view that the Commission must ensure that the land and the houses benefiting from EU funds remain in the hands of public authorities to create an EU public housing stock;

Added31. Calls on the Commission to ensure that any financing of affordable housing will not endanger climate spending contributions within the CP framework;

Removed17. Encourages the inclusion of long-term conditions for beneficiaries of CP funds on affordable housing to support the ‘right to stay’ in rent controlled areas of cities and the exclusion of short-term speculative investors;

Added32. Underlines the importance of protecting historical city centres and preserving European historic and cultural heritage when designing housing and energy efficiency initiatives; highlights the enormous potential for the sustainable renovation of empty and old buildings, emphasising resource efficiency, the provision of affordable housing, and the strengthening of social cohesion, particularly in villages and small communities; calls for CP to actively support energy-efficient renovations and investment in affordable housing that promotes net-zero emissions in line with the Energy Performance of Buildings Directive; calls, further, for incentives, including fiscal and technical support for local and regional authorities, to promote the renovation and reuse of unused or abandoned buildings, increasing the housing supply without additional land use;

Added33. Emphasises the urgent need to address the housing challenges faced by young people, who encounter increasing barriers to accessing affordable housing, particularly in high-demand urban areas and regions with high youth unemployment; underlines the need to integrate the Social Climate Fund more closely with CP instruments, particularly in supporting investment in social and affordable housing and targeted assistance to make rents more affordable for young people; stresses the importance of integrating young people and young families into national housing strategies and calls for tailored measures, including fiscal incentives, low-interest loans, rent guarantees and extensive guarantees to support first-time homebuyers; encourages the Member States to explore tax incentives for property owners who rent to young people or families under long-term contracts, helping to expand the rental market and stabilise prices; advocates the use of CP instruments to increase investment in student accommodation and affordable housing, ensuring access to stable housing opportunities supported by public transport, basic services and education, especially for young people from low-income households; suggests, therefore, that the future ESF+ post 2027 should aid housing access for young people through endorsements or other financial schemes in order to make borrowing more affordable;

Added34. Calls, furthermore, on the Commission to include in the future CP the promotion of territorial resilience and support for communities and families, especially in rural and islands areas through the provision of resilient housing that can withstand the impact of natural disasters and the effects of unexpected events, particularly in regions that are highly exposed to the impact of extreme weather events related to climate change; asks for EU funds to support housing reconstruction in the event of natural disasters and to promote the building back better principle; considers that climate risks disproportionately affect vulnerable populations, further hampering the ability of vulnerable groups to recover from disasters;

Added35. Believes that affordable housing support should prioritise conversions and renovations over new builds, and should promote climate-neutral, resource-efficient construction methods, collective housing and green mobility, to improve quality of life; stresses the need for all EU-funded housing investment to align with the European Green Deal objectives by ensuring high energy efficiency standards, reducing energy poverty and incorporating climate adaptation measures; calls on the Commission to urgently revise Annex I to the Common Provisions Regulation and, based on its examination, to recognise investment in social, affordable and sustainable housing as contributing to climate objectives, enabling Member States to meet ERDF climate-spending targets of 30 %; calls for a sustainable construction sector with the support of CP, using bio-based materials and true-cost pricing, including maintenance and environmental costs; stresses the importance, in this context, of strengthening the polluter-pays principle and promoting decarbonisation to achieve European Green Deal and Paris Agreement goals;

Added36. Proposes including in the future CP increased funding for housing on the basis of national, regional and local strategies on affordable and sustainable housing for vulnerable, low- and middle-income households, multi-child and single-parent families, including social and assisted living solutions for persons with disabilities and elderly people; recognises the role of local and regional authorities in developing these strategies; insists that this funding should contribute to social cohesion across the EU; recalls the importance of strong rural-urban linkages and the need for particular support for women in rural areas;

Added37. Calls on the Commission to include ending homelessness, combating inadequate housing and addressing energy poverty among the lowest income populations as explicit political objectives in the post-2027 CP, with robust funding dedicated to these priorities; calls, further, for housing access and associated services to be considered a key area within the future policy objectives, with a strong focus on supporting future generations and the urban agenda; stresses that housing-related measures funded by CP must respond to the needs and specificities of regional and local authorities and contribute to the cohesion goals of the Treaties; proposes that the Commission link investment in transportation and utility services with the provision of affordable housing. to ensure that beneficiaries have adequate access to essential services, and calls on the Member States to ensure consistency between national policies on housing, transportation and utilities;

Added38. Calls on the Commission and the EIB to include in the future CP a specific duration requirement, from a sustainability perspective, for operations involving investment in affordable and sustainable housing infrastructure from the CP funds, in order to avoid property speculation; takes the view that the Commission should create a legal framework enabling land and homes benefiting from EU funds to remain in the ownership or, as applicable, the management of public administrations, social housing providers and other not-for-profit entities, so that the final beneficiaries of the funds and the end users of these should retain ownership of the houses;

Added39. Recommends the inclusion of long-term conditions for beneficiaries of CP funds for affordable housing to support the right to stay in rent-controlled areas in cities, particularly in areas experiencing housing pressure due to tourism, gentrification or investment speculation, including inner cities, islands, outermost regions and coastal areas, without unduly disadvantaging legitimate real estate activities; recommends also the exclusion of short-term speculative investors by establishing safeguards against short-term speculative acquisitions, including restrictions on rapid resale; underlines the importance of ensuring the right to stay of citizens in areas suffering from a lack of suitable and affordable housing; calls on the Commission to issue specific guidelines on how to implement and enforce this principle across EU policies; calls for stronger integration of this principle as a cross-cutting principle in all EU policies, so that they support the objectives of social, economic and territorial cohesion, as set out in Articles 3 and 174 TFEU;

Added40. Calls on the Commission to incorporate the NEB as an autonomous programme in the 2028-2034 multiannual financial framework ,with enough financial resources to incorporate the values of the NEB in the initiatives and relevant future legislation promoted by the European affordable housing strategy;

Added41. Recalls that CP should encourage collaboration between architects, urban planners, promoters, engineers, construction workers and other professionals to ensure a holistic approach to urban and rural development and to contribute to solving the ongoing housing crises;

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Change 3

Changed18.42. Instructs its President to forward this resolution to the CouncilCouncil, the Commission, the European Economic and Social Committee, the Commission.European Committee of the Regions and the national and regional parliaments of the Member States.