The rent controlled sector concerns most of the apartments located in buildings constructed or completed before September 1st, 1947 and enables “protected” tenants, mainly Monegasque people and “Children of the nation”, to benefit from dwellings at controlled rents, fixed by the State and lower than those in the non-regulated sector. Such dwellings are subject to Law No 1.235, which also aims to protect their rights.
However, in essence, this housing stock is declining over the time because of destructions, since new buildings do not include to restitute dwellings subject to this law, as there are currently no measures imposing it.
That’s the reason why the National Council has recently submitted to the Government the draft law No. 1006 in order to stop the reduction of this stock and to allow its renewal in order to always ensure the social role of the State towards a population that is dear to it.
But how to reconcile the general interest as well as the one of the owners?
On one hand, by allowing the State to acquire a certain number of new apartments belonging to the regulated sector, and located in the rebuilt buildings, and therefore enabling “protected” tenants to still have access to low-rent dwellings, which will also be more modern and comfortable.
And on the other hand, by allowing the owners to have, as of right, an increase of the buildable volume compared to the one of the destroyed building, which they will be able to freely enjoy without the constraints applied under Law No. 1.235. In addition, other compensation will be provided, such as the re-housing of evicted tenants by the State (whereas this task is currently carried out by the owners), as well as the payment of an additional indemnity.
However, prior to any demolition, the owner and the State will have to reach a prior agreement on the terms and conditions of the operation.
If it is passed and voted, these measures will enable to find in new developments a number of square meters subjected to the Law No. 1.235 equivalent to the destroyed surface areas and to have brand new regulated housing stock.
From now on, the Government must confirm its position and the action it intends to give to this draft law.