Minister of housing Marc Hansen and minister for social security Romain Schneider said they were in the process of developing a “new model”. The fonds de compensation would buy land or buildings to then rent them out to the social real estate agency (Agence immobilière sociale) for 20 years.
The AIS will guarantee rent payment to the Fonds de compensation and a return of 2.5%. The collaboration between ministry, Fonds du logement (Housing Fund) and Fonds de compensation was hailed as a change of paradigm by the housing minister.
The Fonds de compensation currently manages real estate worth around €410 million. If the Grevenmacher project goes well, the ministry may decide to launch 12 more similar projects.