ERLANGEN SOCIAL AND AFFORDABLE HOUSING

The project concerns the deep energy refurbishment of existing and the construction of new social and affordable housing units, going 20% beyond the standards of nearly zero-energy buildings (NZEB+) by the municipal housing company of the City of Erlangen, Germany.

The operation will finance an investment programme aimed at increasing the number of available social and affordable housing units and to carry out comprehensive upgrades to the existing housing stock. The operation is expected to ameliorate shortages in social and affordable housing supply for low- and medium-income households and contribute to urban regeneration and renewal. Part of the investment programme will aim to improve the energy efficiency of the housing units and to reduce the CO2 footprint.

The Project involves the new construction and refurbishment of social and affordable housing units with high-energy efficiency standards in Erlangen, Germany. The Project meets UN Sustainable Development Goals, various EU Sustainable Urban Development goals and Energy Efficiency targets, and municipal housing objectives. It addresses a number of externalities and sub-optimal investment flows. The Project will increase the supply of social and affordable housing for rent and contribute towards improving the social mix and social inclusion. The modernisation of the existing housing units will improve the resident's living conditions and quality of life. More widely, the Project will contribute to urban regeneration with improvements to the quality and attractiveness of the built environment.
This will be the borrower's first long-term unsecured loan (apart from shareholder funding) and it will increase the affordability of the borrower's substantial investment programme by helping it to optimise its asset encumbrance levels with a view towards mobilising attractive mortgage funding from promotional and/or commercial banks. The Bank's financing will also offer further important benefits such as a long loan maturity and flexibility with respect to availability period, interest rate arrangements and drawdowns, which will enable an optimal alignment with the implementation modalities of the Project.

National environmental legislation has been harmonised in line with the relevant EU Directives 2011/92/EU Directive (EIA) and 2001/42/EC (SEA). The Bank's appraisal will focus on the Promoter's environmental management capacity to properly apply the EU SEA Directive 2001/42/EC, the EU EIA Directive 2011/92/EU, as well as the requirements of the EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC, where appropriate. The applicable energy efficiency requirements in line with the EU Directive on the Energy Performance of Buildings 2010/31/EU, as well as the status of any environmental studies and public consultations related to the housing investments will also be reviewed during project appraisal.

The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions.