Housing Zurich cantonal government opposes pre-emptive right for municipalities

The Zurich cantonal government rejects the cantonal housing initiative. The initiative provides for a right of first refusal on land for municipalities. Instead, the cantonal government proposes increasing the framework credit for cantonal housing promotion loans from CHF 180 million to CHF 360 million.

The cantonal government considers the right of first refusal for municipalities provided for in the popular initiative to be too serious an encroachment on property rights, as it announced on Friday. It therefore recommends that the initiative be rejected.

Instead, the government wants to strengthen non-profit housing construction with a counter-proposal. To this end, the framework credit for cantonal housing promotion loans is to be doubled from 180 million to 360 million.

The initiative wants to give the municipalities the option of regulating the right of first refusal on properties to promote non-profit housing and retirement homes in a decree. If a plot of land is then to be sold between private individuals, the municipality can exercise its pre-emptive right and purchase it on the agreed terms.

In the opinion of the government council, such a procedure puts private companies at a disadvantage on the real estate market. Furthermore, it would not create any additional affordable apartments.

Promoting residential construction with loans

By increasing the framework credit for cantonal housing promotion loans, the cantonal government wants to promote construction activity instead. In addition to increasing the credit, the corresponding ordinance is also to be amended so that loans of up to 25 percent of the total investment costs can be granted in future. The current maximum is 20 percent.

The Cantonal Council will next deal with the initiative and the counter-proposal. The voters will have the final say.