8 Health - Work - Social Security - Damage Caused by Natural Elements - 84 Housing - 841 Promotion of Housing Construction - CHAPTER ONE General Provisions (WFG)

This law aims to

b) facilitate the acquisition of home ownership.

The law only considers premises intended for primary habitation.

1. In its application, the law respects the plans and provisions concerning land-use planning.

2. It promotes the maintenance of suitable housing in urban or village areas.

3. It ensures respect for local and regional characteristics and preserves a fair balance between the different regions of the canton.

Dwellings taken into consideration must comply with federal, cantonal, and municipal provisions, especially regarding building regulations, environmental protection, and energy-saving measures.

Measures taken pursuant to the law may complement federal provisions regarding assistance for housing construction and home ownership.

Municipalities, acting alone or in cooperation with the State, may take all measures consistent with the purposes of the law.

**[1] 1 The State, in collaboration with the municipalities, establishes a construction and housing statistics.**

2. The Council of State shall enact the necessary implementing provisions. It may specifically require owners and property managers, as well as any other individuals capable of providing useful information, to inform the authority about the number of vacant apartments, the rental status of properties, or any other elements pertinent to the statistics.

3. The data collected for statistical purposes may not be used for other purposes. Data intended for publication or archiving must be anonymized in such a way that the identification of a particular natural person is not possible.

[2] 1. The state and the municipalities encourage the development of affordable housing.

2. The measures of encouragement may concern

b) the renovation of existing buildings.

3. The construction of affordable housing is declared to be of public utility.

1. Rent moderation is defined in proportion to a rent calculated on economic and non-speculative bases.

2. The Council of State determines this proportion.

To qualify for encouragement measures, a project must meet the price and quality criteria established by the Council of State.

The Council of State determines the required share of equity capital.

1. The incentive measures are primarily

c) the guarantee of loans.

They may also include

e) the granting of loans.

2. Incentive measures may be combined.

[3] 1. The State and municipalities may cover a portion of the interest on borrowed funds or their equivalent in equity.

2. However, the assumption of interest charges is only possible if the municipality contributes at least one quarter. In the case of municipalities facing particularly difficult financial situations, the Council of State may exceptionally reduce the municipal contribution and leave a correspondingly increased share to the State.

3. The implementing regulation determines the rate of coverage by public authorities based on tenants' income.

1. The State may guarantee advances made to reduce rents as part of a plan providing for their periodic adjustment until the full repayment of the advances and the compound interest thereon.

2. The rent installment plan must be approved by the competent department and cannot be modified without its consent.

The State may provide its guaranty for junior ranking mortgage loans to facilitate their granting and to maintain their interest rate as low as possible.

[4] 1. The State may acquire and make land available under conditions suited to the purpose pursued by this law.

2. Land acquisitions are primarily conducted by mutual agreement.

3. In the absence of an agreement, to address the shortage of affordable rental housing and facilitate the creation of such housing, the State may resort to expropriation. The Law on Expropriation for Public Utility, dated January 26, 1987 [5], shall then apply.

[6] 1 The real estate acquired pursuant to Article 15, paragraph 3, shall be promptly dedicated to construction. The construction obligation shall be noted in the land register.

2. Generally, they are transferred, either in ownership or in superficies, to the municipality where they are located if the municipality intends to develop low-cost rental housing there, or failing that, to welfare institutions or to developers involved in the construction of public utility housing.

3. The transfer is conducted at the acquisition value of the land by the State, increased by the incurred expenses.

When the capital market does not allow for the financing of a project, the State may grant loans secured by a mortgage.

Subject to those provided in Article 15, the incentive measures generally have a duration of 25 years.

1. If they are not subject to a staggered payment plan according to Article 13, the rents of a property that has benefited from a state incentive measure are subject to the supervision of the competent department.

2. They cannot be modified without its consent.

3. The Council of State periodically issues the applicable standards; these standards must allow for the maintenance of an economic operating plan for the property while safeguarding the objective pursued by the law.

1. In the case of Article 15, the duration of rent oversight is at least 25 years.

2. In the case of Articles 12, 14, and 16, the oversight has the same duration as the incentive measure.

1. In cases where the incentive measure consists of interest coverage, the dwellings may only be rented to individuals of modest means, in accordance with the standards set by the Council of State. Reasonable occupation of these dwellings must be ensured.

2. When a tenant's income exceeds the applicable standards, public assistance is proportionately reduced.

The housing may be a condominium apartment or a family home.

1 To be eligible for a support measure, the applicant must establish

a) that they have the necessary personal funds;

b) that they could not carry out their project without the requested measure;

c) that the implementation of their project will not result in burdens disproportionate to their situation;

d) that the project meets their needs and those of their family.

2. The Council of State issues the applicable norms.

The project is only considered if it meets the construction and cost standards established by the Council of State.

The encouragement measures are as follows

b) guarantee of a payment schedule plan.

The State may provide its guarantee for junior mortgage loans in order to facilitate their granting and to keep interest at a rate as low as possible.

1. The State may guarantee advances granted to reduce housing costs as part of a plan providing for their periodic adjustment until the full repayment of the advances and the compound interest calculated thereon.

2. The schedule of cost distribution must be approved by the authority granting its guarantee and cannot be modified without its consent.

[7]

[8] The portion of interest borne by the State according to Article 12 is covered by an appropriation included in the State's budget.

1. The commitments made by the State pursuant to Articles 13, 14, 25, and 26 must themselves be secured by real estate collateral. The situation concerning properties belonging to a municipality is reserved.

2. Those for which performance is required shall be amortized in accordance with the financial laws.

1. The State Council is the supervisory authority of the law.

2. It enacts the implementing provisions.

3. It may establish areas within the canton where certain incentive measures provided by the law apply preferentially.

[9] 1 The department designated by the Council of State ensures the execution of the law.

2. It does so through the administration of state buildings.

3. The administration of state buildings is competent for all decisions related to managing a considered case; appeals to the department and then to the Cantonal Court are reserved.

[10] 1 The State Council appoints a cantonal housing commission at the beginning of each administrative period, consisting of eleven members chosen from various regions of the canton, including, notably, representatives from real estate sectors and tenant advocacy associations.

2. The commission is presided over by the State Councillor, head of the department. Its secretariat is managed by the cantonal housing office. The heads of the relevant services of the cantonal administration participate in its activities as needed.

3. The commission serves as an advisory body. It is consulted on matters pertaining to cantonal housing policy and on measures intended to implement it.

1. In order to be considered by the State during an annual exercise, projects for which interest coverage is requested must be submitted to the State Buildings Authority no later than January 31.

2. The department may exceptionally accept the examination of a file presented after this deadline.

3. Projects for which another incentive measure is requested may be submitted at any time.

The submitted projects must include a complete file containing, in particular

a) the plans of the building to be constructed or renovated or of the apartment or family home to be acquired;

b) a detailed financial plan;

c) the encouragement measures requested and their justification;

d) the justification of the project with respect to the established standards in this matter;

e) if possible, the approval of the construction or renovation plans.

1 No project can be taken into consideration after the start of its implementation.

2. Projects are taken into consideration based on their particular qualities and the interest they represent for the concerned area.

[11] 1. After obtaining the opinion of the relevant municipality, the department submits its proposals regarding the consideration of the project to the Council of State.

2. The Council of State rules with sovereign authority.

Any project taken into consideration shall be the subject of an administrative law agreement that regulates the rights and obligations of the parties.

Anyone who requests or directly or indirectly benefits from the granting of an incentive measure is required to provide complete and accurate information on all matters related to this measure.

1. A building that has benefited from an incentive measure cannot, without the consent of the department, be withdrawn from its designated purpose or alienated before the measure has concluded.

2. It may only be alienated if the purchaser, with the department's agreement, assumes the administrative law agreement related to the incentive measures.

1. Any encouragement measure taken pursuant to the law is recorded in the land register.

2. The record specifies the restriction on the right to alienate.

3. It is removed when the encouragement measure has ended.

4. The department is authorized to request the registration and consent to the removal.

[12] 1 Anyone who, intentionally or negligently, violates this law or its implementing provisions shall be liable to a fine up to 40,000 francs.

2. Attempt and complicity are punishable.

The present law repeals all contrary provisions, notably

a) Articles 19 to 27 of the decree concerning the encouragement of housing construction, dated March 25, 1968 [13];

b) Articles 1 to 9 of the decree concerning the encouragement of housing construction, dated March 21, 1972 [14].

The Council of State shall take all appropriate measures for the dissolution of the private law foundation established and governed by Articles 19 to 27 of the decree concerning the promotion of housing construction, dated 25 March 1968.

1 This law is submitted to the vote of the people.

2. The Council of State shall, if necessary, provide for the promulgation and execution of this law, fixing the date of its entry into force.

Law accepted in the popular vote on March 15 and 16, 1986, by 29,641 votes in favor against 10,934 against.

Law promulgated by decree on April 2, 1986.

The entry into force is set to take effect on July 1, 1986.