Altum-Services-Enterprises-Loans for low-rent housing construction

Loans for low-rent housing construction

Loans for construction of public rental housing in the regions with the aim of improving the availability of housing for households that cannot afford housing on market terms.

 

About the loan

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A loan or mezzanine loan with a capital discount

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Capital discount of up to 30% of the total eligible cost of the project

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No limit on the maximum loan amount

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Altum loan repayable in up to 30 years

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Own co-financing from 5% of the total eligible cost of the project

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Eligible costs of up to EUR 59,447 (without VAT) on the average per apartment in a public rental house

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Interest rate starts at 0.69% per annum

Not eligible for financing will be construction projects that are implemented in the cities of Riga and Jūrmala and in the following territorial division units: Baloži town, rural areas of Ķekava, Olaine, Mārupe, Babīte, Salaspils municipality, and rural areas of Stopiņi, Garkalne and Carnikava.

Rent conditions

  • Monthly rent ceiling at EUR 5 per m2 *
  • The apartments will be rented out to households whose total average monthly net income, on which personal income tax has been paid as per statements from the State Revenue Service or the Credit Information Bureau, or an equivalent foreign tax administration, in the previous tax year or at the moment the apartment is available for rent is as follows:
    • Up to EUR 980 for a 1-room apartment
    • Up to EUR 1,635 for a 2-room apartment
    • Up to EUR 2,450 for a 3-room and larger apartments
  • 3-room and larger apartments will be available to households consisting of at least two persons
 
* Rent can be increased once a year in accordance with the annual average inflation rate in the country determined according to the Central Statistical Bureau’s data

 

Conditions of the loan programme for low-rent housing construction are regulated by Cabinet Regulation No.459 of 14.07.2022.