Dialogos

EU Changes Rules for Affordable Housing – What Changes for State Aid

Published January 3, 2026, 07:00
EU Changes Rules for Affordable Housing – What Changes for State Aid

The European Commission has announced amendments to the Regulation on State Aid, aiming to increase the availability of affordable housing. The main change concerns the eligibility of compensation for Services of General Economic Interest (SGEI) in affordable housing, which will be granted to entities investing in the construction, renovation, or conversion of housing, as well as compliance with accessibility and climate resilience standards. Beneficiaries will be selected based on household income and composition, taking into account other factors such as social contribution. Furthermore, the annual amount limit for SGEI compensation is increased from 15 million euros to 20 million euros, excluding affordable housing. Social housing, SGEI services from hospitals, services serving social needs, air and sea connections to islands, as well as compensation for airports and ports, with increased passenger traffic requirements, are also excluded from the rule. SGEI assignment acts must include detailed information on the obligations of providing public service, the compensation mechanism, its calculation and control, as well as provisions to avoid overcompensation. Transparency is enhanced by the mandatory registration of compensation exceeding 1 million euros in a central register from 2028. Finally, a transitional period of two years is provided for the validity of existing aid measures, ensuring the continuity of support for beneficiaries.