Minister Opens Low-Rent Housing and Meets Entrepreneurs During Visit to Vidzeme
On 9 October, Minister of Economics Viktors Valainis paid a working visit to Vidzeme, where in Sigulda he visited the education center “Roboskola” and the regional office of the Investment and Development Agency of Latvia (LIAA), and in Valmiera met with representatives of several companies and participated in a ceremonial key handover event for a low-rent housing construction project.
At the start of the visit, Viktors Valainis travelled to Sigulda, where he visited Latvia’s first STEAM (Science, Technology, Engineering, Arts and Mathematics) education center – “Roboskola.” There, he familiarized himself with the technologies and modern teaching tools used in educating students. The establishment of a branch of the science center in Jelgava was also discussed.
In Sigulda, the Minister also visited the LIAA regional office, where he met with company representatives developing digital products with high potential in global markets.
Later, the Minister travelled to Valmiera, where he visited in person the PATRIA armored vehicle manufacturing facility, the construction company SIA “AIMASA”, and the metalworking company SIA “METĀRO”, discussing current business challenges and future development plans.
At the conclusion of the visit, V. Valainis took part in a ceremonial event, symbolically handing over keys to tenants of the low-rent housing construction project. The project developer, SIA “Valmieras Namsaimnieks,” has constructed 120 apartments in two residential buildings located at 11 and 13 Ķieģeļu Street, which are expected to accommodate more than 300 residents, including 116 children.
“Ensuring access to housing that meets modern living standards is one of the key priorities of the Latvian Government and the Ministry of Economics. Housing availability has a significant impact on economic development and the overall well-being of the country. At present, interest in the programme is very high: eight loan agreements have been concluded for the construction of 476 apartments, and a further 11 projects, involving approximately 950 apartments, are currently under evaluation,”
emphasized Minister of Economics Viktors Valainis.
The total cost of the Valmiera apartment building project amounts to EUR 12.1 million, of which EUR 9.5 million is an ALTUM loan from the European Union Recovery Fund, and EUR 2 million is an ALTUM VAT cost loan. The remaining amount is covered by the project developer. Both buildings were constructed in accordance with the highest energy efficiency standards, achieving an A+ energy efficiency class. This level exceeds both the regulatory requirements for new buildings and the conditions set by the support programme.
To address housing affordability challenges by providing long-term loans and capital rebates to real estate developers, the Ministry of Economics has developed and, since November 2022, has been implementing a low-rent housing construction support programme. The aim of the programme is to promote the construction of affordable rental housing intended for households with insufficient income. Initially, the programme’s funding was set at EUR 42.9 million, but in response to a significant increase in construction costs, it was increased to EUR 84 million.
Within the framework of the rental housing programme, a Housing Affordability Fund has been established — a self-financing fund into which loan principal repayments and a portion of rental income (50% of rental revenues) are returned. Once sufficient funds have accumulated in the fund, additional projects will be able to receive support, thereby avoiding an additional financial burden on municipalities.