Expert group ignores referendum and constitutional mandate
A group of experts is proposing savings measures for the Fonds de Roulement for non-profit housing developers in order to ease the burden on the federal budget. This proposal has been heavily criticised as it contradicts both a recent referendum and the constitutional mandate to promote non-profit housing construction.
In order to reduce the burden on the federal budget, a group of experts commissioned by the Federal Council has examined a series of cost-cutting measures. One particularly controversial point is the cancellation of further contributions to the Fonds de Roulement. This fund offers low-interest loans to non-profit housing developers for the creation and renovation of housing and thus plays a central role in combating the housing shortage in Switzerland.
This proposal is in direct contradiction to the 2020 referendum, in which the Swiss people voted in favour of a framework credit of CHF 250 million until 2029 to strengthen the fund. The proposal to save on housing promotion has triggered a wave of outrage.
Disregard for the referendum and the housing shortage
For Eva Herzog, member of the Council of States and President of the Swiss Association of Housing Cooperatives, this savings proposal is simply unacceptable: “This proposal disregards the tense situation on the housing market and the housing shortage action plan, which provides for the strengthening of housing promotion. And it contradicts a clear referendum.” In fact, the population rejected the popular initiative “More affordable housing”, but supported the indirect counter-proposal, which strengthened the Fonds de Roulement as a key instrument for promoting affordable housing.
In the eyes of many critics, if the federal government were to implement the expert group’s proposal, it would be going against the will of the people. “That would be a breach of the agreement and a violation of good faith,” warns Herzog.
The constitutional mandate to promote housing
In addition to disregarding the referendum, the savings proposal also raises constitutional concerns. Article 108 of the Federal Constitution obliges the federal government to actively promote non-profit housing construction. However, the group of experts argues that this support should primarily be provided by the cantons and cities. A position that many consider to be incompatible with the current housing shortage in numerous Swiss cities.
“The federal government cannot shirk its responsibility here – especially not in the current situation, where there is an acute housing shortage in many places,” emphasises Eva Herzog. The promotion of non-profit housing construction is a national task that should not be shifted onto the shoulders of the cantons alone.
Growing housing shortage and the role of the Fonds de Roulement
The housing shortage in Switzerland has become one of the most pressing problems of recent years. The pressure on the housing market is constantly increasing, particularly in urban centres. The Fonds de Roulement offers important support to counteract the shortage. It enables non-profit housing developers to create new living space, renovate existing buildings and acquire land through low-interest loans.
“Cancelling this support would not only delay the construction of new flats, but also jeopardise the renovation of existing buildings,” warns Herzog. The fund is an indispensable instrument for ensuring socially responsible and sustainable housing construction, which is urgently needed.
Criticism of the proposed savings
The proposed savings are met with disapproval in many parts of society. Housing cooperatives and other non-profit housing developers are warning of the long-term consequences that such a savings proposal would entail. The Swiss Association of Housing Cooperatives is therefore calling on the Federal Council not to implement the cost-cutting measure in housing promotion.
“It is crucial that the federal government recognises its responsibility and does not leave the promotion of non-profit housing construction to the cantons and cities alone,” Herzog continued. Adopting the savings proposal would further exacerbate the already tense situation on the housing market and particularly affect those who are dependent on affordable housing.
A controversial savings proposal with far-reaching consequences
The expert group’s proposal to make savings on housing subsidies is causing controversy. It not only contradicts the 2020 referendum, but also the federal government’s constitutional mandate to promote non-profit housing construction. At a time of increasing housing shortages, it would be a risky signal to cut support for affordable housing. Criticism of this proposal is loud – and there are growing calls for the savings proposal not to be implemented.