Domofrance, 60 years for housing

With its 60-year expertise, Domofrance presents its roadmap. It values the issues and challenges brought by the new Housing Law 2018. The subsidiary of the Action Logement group is also continuing its housing offer in the Bordeaux conurbation. Which is facing a sharp increase in its population…

Domofrance, a social vocation that has lasted for 60 years

The social landlord Domofrance has been working for 60 years on the accessibility of quality housing at affordable prices. While promoting “better living together” and accessibility to employment.

Domofrance is indeed one of the subsidiaries of the Action Logement Group. In France, it has about 5 million housing units, including 1 million social housing units. Thus Domofrance is the second largest provider of student housing in the Bordeaux region, just after the CROUS. The Action Logement group thus supports a policy of supporting employees in their residential and professional mobility. This policy prioritizes environmental issues as well as social mix.

Domofrance, 60 years old in the emergency housing service

Strengthening employers’ contribution to housing

Since 1953, the Action Logement group has managed jointly the Participation of Employers in the Construction Effort (PEEC). This financial obligation obliges all companies with more than 20 employees to pay 0.45% of the remuneration paid in the previous year. And this to devices in favor of the construction of housing. The obligation was put in place to make up for the lack of housing during the fifties.

The housing construction approach is based on the proximity of its local branches. They are thus the most able to understand the reality of the field and the local environment. This rapprochement is done through joint work with associations, local actors and structures already present on site in order to carry out harmonious projects, and which meet the demand.

Domofrance presents a positive result for 2017. A total of 27,000 homes are accounted for, with an annual investment of 212 million euros. These investments aim to fulfill the missions that Domofrance has set itself: to develop social and urban diversity by providing accessible housing, to work with communities and to support companies and organizations in order to achieve these goals.

A new legislative and territorial dynamic

The new presidential five-year term has brought new legislative changes to housing laws, as well as to the policy of building new real estate.

The first change is the decline in LPAs, which reduces financial assistance to housing researchers. It is accompanied, however, by the obligation on the part of social landlords to reduce the cost of rent in the social park at the same time. In addition, the tax rate on maintenance and construction work increases from 5.5% to 10%. These measures are likely to impact social housing construction forecasts, as landlords fear that the number of rentals or sales will decrease. These measures will be implemented from 1 April and will be retroactive from 1 February.

The 2018 housing law and the mobility lease

The second change relates to the Housing Act 2018. A new draft law, studied at the beginning of April by the Council of Ministers, brings changes concerning the types of residential lease, with the creation of the “mobility lease”, framed by flexible terms of conclusion and termination. The bill also provides for the simplification of urban planning rules, and the implementation of digital devices for the application for building permits online. The Housing Act 2018 also provides for the consolidation of housing organizations and the establishment of boards of directors for condominiums.

Strategic orientations at the service of accelerating access to housing

These legislative changes are accompanied by a five-year agreement signed between the state and the Action Logement group. The agreement sets out the strategic directions of the group and its subsidiaries with the first objective of accelerating housing production. 1200 applications for funding for social rental housing will be filed this year, and 200 social accession units will be launched. Domofrance also aims to strengthen the quality of life in neighbourhoods through the New National Urban Renewal Programme (NPNRU), which offers a protocol and financial assistance to adapt a city’s planning policy to social reality and economic issues.

With its singular career, Domofrance wishes to continue its progress and presents its ambitions for the years to come. The social enterprise has become one of the most important players in the creation of housing in Bordeaux. In all, eight major urban projects are part of Bordeaux Metropole’s even larger project.

Sources:

Press release Domofrance

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