The new framework for social housing: Two implementation models defined by the joint ministerial decision

The new Joint Ministerial Decision sets out in detail the terms, clauses, and content of the contracts to be signed for the utilisation of public real estate, either through the construction of new housing or through the renovation and repair of existing buildings.

The regulation is considered pivotal, as it establishes for the first time a clear institutional framework for cooperation between the State and private contractors in the development of social housing. Its main objective is to give new purpose to inactive or underutilised public properties, transforming them into modern residential units with a social purpose.

The JMD stipulates that at least 30% of the housing units created will be allocated for social use. The remaining share may be utilised by the contractor as contractual consideration, in accordance with the terms of the agreement.

The decision provides for two main types of contracts. The first is the “construction contract”, which covers the development of new multi-storey residential buildings or standalone housing units, as well as the renovation or repair of existing properties. The second is the “construction and management contract”, under which the contractor assumes responsibility not only for construction but also for the management of part or all of the social housing on behalf of the contracting authority.

The choice of contract type is made either by the Ministry of Social Cohesion and Family Affairs or by first- and second-level local government authorities. Where the Ministry is the contracting authority, the decision to conclude or amend contracts rests with the political leadership of the Ministry, while for municipalities and regions the relevant provisions of local government legislation apply.

Particular interest lies in the framework governing the contractor’s remuneration. Under construction contracts, the contractor’s consideration may consist either of the transfer of specific horizontal or vertical property units or the proceeds from their sale to third parties designated by the contractor. Similarly, under construction and management contracts, remuneration for management may take the form either of a fee paid by the State or of income derived from the exploitation of the properties, through the collection of rents and common charges.

The decision also clarifies the duration of the contracts. For construction contracts, the duration covers the entire period up to the completion of the project, its administrative acceptance, and the warranty and maintenance period. In construction and management contracts, this is extended by up to 50 years for the management phase.

A significant part of the JMD concerns the technical and quality specifications of the projects. The contractor is required to construct or renovate the properties in accordance with the building permit, applicable legislation, and the standards of modern construction practice. The decision also mandates the use of appropriate, modern materials, the employment of experienced personnel, and the contractor’s full assumption of all costs and obligations.

At the same time, strict requirements are introduced regarding accessibility for persons with disabilities, energy efficiency, and the resilience of buildings to climate change. Buildings must be nearly zero-energy in performance, with provisions for proper ventilation, sunlight exposure, and fire safety.

The JMD further stipulates that the quality of materials and construction must be uniform across all buildings within a complex, while allowing for internal layout adjustments or modifications during the works, provided that common areas and ownership shares are not affected.

Special importance is also given to the condominium regulations governing social housing projects. These regulations will be binding on all owners and tenants and will include detailed provisions on the use of common areas, permitted and prohibited uses, the obligations of co-owners, building management procedures, and penalties in case of violations.

Regarding management, the contractor may undertake the conclusion of lease agreements with eligible social housing beneficiaries, the collection of rents and common charges, and the maintenance of both the housing units and shared facilities. The contractor may also represent the contracting authority in dealings with third parties concerning matters related to the social housing units.

Oversight of management will be carried out by the General Secretariat for Demographic and Housing Policy through a dedicated Social Housing Contract Registry, where data on contract progress, leases, and property management will be recorded. In cases of poor performance, the provisions governing public procurement and concessions shall apply.

With this new decision, the government seeks to establish an organised and transparent framework for the development of social housing in Greece. The challenge now lies in the swift activation of the first projects and the utilisation of public properties that have remained unused until now, with the aim of providing affordable housing to citizens struggling with rising housing costs.