Rama changes his mind: 3% of social housing can be given in Lek

From 2018, whoever builds more than 2000 m² is obliged to donate 3% of the surface for social housing. The law allows builders to give 3% of social housing in the place where they build or elsewhere. But Prime Minister Edi Rama considered the second opportunity unfair. Last year, Rama declared that 3% of social housing would be provided only where it was built. Verifications show that Rama's commitment was not fulfilled, although the law was changed.

Esmeralda Topi

Six years ago, the socialists approved the law on 'Social Housing' in the Assembly. For any residential construction over 2,000 m2, 3% of the surface must be given for social housing - the law stipulates, opposed from the beginning by the builders.

The latter have two options: give 3% of the area required for social housing in the place where they are building, or in case of impossibility, give it somewhere else.

But Prime Minister Edi Rama considered the second alternative unfair. According to him, 3% for social housing should be given in the facility where it was being built.

"You have to give that 3% where you build, not you build here and give me 3% at the end of the world because some people will live in the center and there are some others who will stay at the end of the world to have close sheep.", declared Rama for years, promising to revise the law on this point.  

"We will look at this so that 3% is given where you build, as much as it belongs to the people in Tirana who should benefit from those programs," the prime minister emphasized last October.

What happened?

Last year the law on 'Social Housing' underwent several changes, one of which affected Article 19 – which defines the contribution of the private sector in the creation of the public fund for social housing.

Article 19 of the Law on 'Social Housing' amended

The amendments decided that the rules of implementation of this contribution will be determined by the decision of the Council of Ministers.

The VKM, approved seven months after the prime minister declared that 3% should be given in the place where it was built, left unchanged the possibility of paying 3% of the physical surface somewhere else - not necessarily where it is built.

"...in case of impossibility to give it to the residential construction area that is being built, the private entity immediately gives it to another residential construction area," - it is written, among other things, in VKM.

But it doesn't end there. The decision created another opportunity for builders by allowing the passing of 3% of the area in lek value and not construction, a practice followed by the Municipality of Tirana for five years.

In 2019, through a decision of the Municipal Council, the Municipality of Tirana modified the method of collecting the tax, giving builders the opportunity to convert 3% of the physical surface of the building into monetary value.

In the event that the taxable surface in favor of the Municipality of Tirana, according to the provisions of this decision, is offered by the private developer to be paid in the value of lek, the conversion of the surface is calculated by multiplying the taxable surface by the reference value of the housing in the area for which he has applied for construction permit, according to the determination made with instructions from the Ministry of Finance and Economy.'

cONcluSiON

Contrary to what Rama stated, the builders still have the option of repaying 3% for social housing in the place where they build or elsewhere. In fact, the government already legitimizes the conversion of the requested area into lek - a practice followed for five years by the Municipality of Tirana. Therefore, based on the verification carried out and the data collected, we will categorize as false the statement of Prime Minister Edi Rama that 3% for social housing should be given where it is built. / Faktoje.al

Neni 19 i ligjit për ‘Strehimin Social’ i pandryshuar

Neni 19 i ligjit për ‘Strehimin Social’ i ndryshuar

VKM

‘Në rast se sipërfaqja takuese në favor të Bashkisë Tiranë sipas parashikimeve të këtij vendimi, ofrohet nga zhvilluesi privat që të paguhet në vlerë leku, konvertimi i sipërfaqes përllogaritet duke shumëzuar sipërfaqen takuese me vlerën e referencës