Trudo has come up with a new idea to increase the number of homes built with smart buying options (Slimmer Kopen-fonds). This will make them more affordable for many Eindhoven residents.
The Trudo housing corporation has been offering people a house for sale with a 25 percent discount for about 20 years. This offer means that the corporation contributes a substantial part of the purchase price. The home then becomes more affordable to people with a modest budget. If they sell the house, they will pay back the discounted percentage.
Need for affordable homes
However, national legislation for corporations requires Trudo to have these homes on their balance sheet. As a result, less money is available for affordable new homes, which are so urgently needed. Therefore, the corporation has called in help.
Together with Rabobank and BNG Bank, Trudo is investigating the options for a Smart Buying investment fund that ‘takes over’ the discount on social owner-occupied housing. The homes can then be removed from Trudo’s balance sheet, leaving more money to build housing. The investors agree with the social importance of the fund, so they earn only a modest income from it.
The coming months will show whether the plan is viable. Trudo will talk to various regulators, including those for housing corporations. They must check whether the Smart Buying investment fund complies with the rules.
The fund will be 175 million euros, spread over ten to fifteen years. Trudo expects to be able to build about 700 new homes with this. It is not yet known when the fund will be ‘ready’ and who else will participate in this venture.
Translated by: Shanthi Ramani