Politis

New Plan for Affordable Housing Announced by State Aid Control Service

Published December 30, 2025, 19:22
New Plan for Affordable Housing Announced by State Aid Control Service

The State Aid Control Service has announced a new plan for affordable housing, based on amendments to the Regulatory Framework for state aid. The main change concerns the eligibility of compensation for Services of General Interest (SGIs) in the field of affordable housing, aiming to increase the availability of housing through renting or homeownership. The aid will be granted to market operators for the construction, renovation or conversion of buildings, as well as to cover accessibility and climate resilience requirements. Beneficiaries will be selected based on household income in relation to market prices and household composition, taking into account other factors such as employment in essential social roles, disability, age, student status or single parenthood. The plan includes safeguards to limit competition and affordability indicators, while maintaining provisions for social housing for disadvantaged groups. In addition, the annual compensation limit for SGIs is increased from €15 million to €20 million, excluding affordable housing. Social services, air and sea connections to islands, as well as compensation for airports and ports, remain excluded, with increased requirements for passenger traffic. Finally, the plan requires the publication of aid exceeding €1 million in a national or European register, as well as clear terms for the provision of public service, the calculation and control of compensation, and the avoidance of overcompensation.