Albania proposes new social housing funding model

A new draft law for social housing, recently released for consultation by the Ministry of Economy and Innovation, aims to transform how the state finances and expands housing support.

The proposal allows public institutions the right to develop and sell housing at market prices, with the intention that these revenues will be used to fund social housing programs. This introduces a “free market housing program” into the legal framework of social housing.

Key components of the draft include the creation of a Sovereign Guarantee for facilitated loans and a tripling of the legal threshold for immediate grants. Additionally, the draft allows local government units to develop mixed-destination projects that combine social rental housing, low-cost housing, and market-rate housing within the same development.