Government plans to buy out housing projects
The initiative to create a kind of reserve fund was first announced by Minister Henri Kox in the spring of this year. According to it, the government will buy up housing projects where work is unavoidable and the question of reimbursement is still open.
This will help solve several problems at once. First, it will save jobs for construction workers and prevent them from being reduced to part-time employment. Second, it will help companies unable to complete the project due to a drop in demand for apartments and houses. Thus, the developer will not go bankrupt. He will be able to put his energy into a more demanding project. Third, the number of housing units owned by the government will increase. This will make it possible to implement affordable housing programs and others.
The day before, Ministers Henri Kox and Yuriko Backes announced that the first five agreements to transfer projects to the state would be signed soon. The properties are in five cities, including Luxembourg, Differdange, and Ettelbrück.
The details of the agreements have not yet been made public. It is only known that the investment required to complete the projects is approaching the 69 million euro mark.
