Home Lyon Metropolis and UNIS Clash Over Condo Renovation Delays and Rent Control

Lyon Metropolis and UNIS Clash Over Condo Renovation Delays and Rent Control

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The ongoing dispute between UNIS Lyon-Rhône, a professional real estate syndicate, and the Métropole de Lyon escalated on December 2nd, when UNIS, alongside Untec Rhône-Alpes-Auvergne and BTP Rhône et Métropole, held a press conference to voice their concerns. The primary points of contention are the prolonged processing times for Ecoreno’v, the Métropole’s energy renovation subsidy for condominiums, and the perceived inconsistencies and adverse effects of rent control policies.

Ecoreno’v: A Stalled Renovation Program?

Ecoreno’v, a crucial subsidy offering up to 54,000 euros for condominium renovations, is at the heart of the controversy. According to UNIS, processing delays for these applications have stretched from six to twelve months, with some even reaching 24 months. This backlog has reportedly paralyzed 62 operations, affecting 3,000 housing units and holding up 75 million euros in renovation work.

Grégory Faty, President of the Technical Facade Treatment Commission of BTP Métropole, stated, “We are at a standstill on renovation projects. We estimate that 30 to 40% of our member companies’ turnover is blocked, and 80 to 100 hires have not been made.” The organizations question whether these delays stem from organizational issues or budgetary constraints, with Laurent Penicaud, National Vice-President of Untec, expressing doubt about the eventual disbursement of these subsidies.

In response, Renaud Payre, Vice-President of the Métropole de Lyon, responsible for thermal renovation of housing, assured that once a co-ownership receives approval from the Métropole and Alec (Local Energy and Climate Agency), funding is guaranteed. While acknowledging a “probable” increase in processing times, he attributes this to a surge in applications, a higher number of incomplete dossiers requiring more extensive review, and national budgetary uncertainties. Payre emphasized the Métropole’s commitment, noting that “the Métropole has injected 41 million euros into the renovation of the private housing stock since 2020,” coinciding with the Ecologists’ leadership of the collectivity.

Rent Control: Inconsistencies and Perverse Effects

The second major point of contention for UNIS Lyon-Rhône is the rent control framework, implemented since 2021. The syndicate argues that the current five-zone geographical division is inadequate, advocating for a system based on living space rather than the number of rooms. Furthermore, they propose that the energy performance certificate (DPE) of a dwelling should be a more relevant criterion than its construction year.

UNIS cited a report from the Clameur rent observatory, which suggests that the current rent control system could lead to a decrease in rental supply and hinder the financing of energy renovation works. The inability of owners to finance necessary renovations, due to rent caps, could force properties out of the rental market. This is particularly pertinent given the Climate and Resilience law, which prohibits the rental of G-rated DPE housing and will extend this ban to F-rated properties in 2028.

While UNIS Lyon-Rhône laments that the Métropole has not considered its proposals-such as increasing the number of zones, eliminating the room-based criterion, and integrating energy class-Renaud Payre asserts that UNIS, along with UNPI (National Association of Real Estate Owners) and Fnaim (National Real Estate Federation), are “fundamentally against rent control.” He accuses UNIS of being “entrenched in its positions,” decrying a “bad faith” approach and a “very complicated,” if not broken, dialogue.

Political Undercurrents and Future Implications

UNIS Lyon-Rhône maintains that its warnings about rent control inconsistencies are long-standing and that the recent press conference is not politically motivated. However, Renaud Payre suggests the timing is no coincidence, coming just three and a half months before the metropolitan elections (scheduled alongside municipal elections on March 15th and 22nd, with Payre later announced as campaign manager for Bruno Bernard). Payre alluded to the presence of Jean-Michel Aulas, a prominent opponent of the Ecologists, at UNPI 69’s general assembly in late November, implying a close relationship with UNIS Lyon-Métropole.

This clash highlights a broader tension between economic realities for property owners and the Métropole’s environmental and social objectives. The outcome of this debate will undoubtedly influence the future of housing, renovation, and rental markets in Lyon, impacting both residents and real estate professionals alike. The question remains whether a common ground can be found to reconcile these divergent perspectives for the benefit of the entire community.

Source: http://www.info-economique.com/actualite/etat-organismes-publics/renovation-des-coproprietes-et-encadrement-des-loyers-lunis-et-la

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