The draft bill, which amends Law 5006/2022, introduces the concept of social consideration as a contractual arrangement between the State or Local Government Authorities (LGAs) and a private contractor, aiming at the development or renovation of residential properties of a social character through the utilization of public real estate.
Under this framework, the contractor undertakes the construction or renovation works at their own expense and responsibility. In return, the contractor may receive compensation in the form of ownership of a portion of the property, financial remuneration from the sale or lease of units, or the right to temporary exploitation. The contracting authority may also assign the management of the social housing units to the contractor. In cases involving existing buildings, the contract may include provisions for change of use, demolition, or extensions. In any case, the transfer of real rights is executed through a notarial deed and registered in the Hellenic Cadastre free of charge. Upon the expiration of the management period, the property reverts to public ownership, irrespective of any ongoing lease agreements.
Eligible tenants for social housing units are selected by the Organisation for Welfare Benefits and Social Solidarity (OPEKA) based on social criteria, which primarily include income, property ownership, family status, and the age of the tenants' children.
The rent payable by eligible tenants is substantially lower than the market rent for comparable properties of similar quality.
For residential units developed, renovated, or restored under a social consideration contract, lease agreements may include a rent-to-own option. This option allows tenants to purchase the leased property after ten (10) years from the date of the initial lease agreement. In such cases, the lease must be notarized, and the purchase option becomes valid only after the contract has been registered in the appropriate Cadastre Office, free of charge.
During the preparatory phase of the social consideration contract, a financial and technical feasibility study is conducted. This study determines the optimal utilization of the property for the benefit of the contracting authority, including the minimum percentage of social housing units, the maximum management duration, and the percentage of units (horizontal or vertical ownership) to be transferred to the contractor.
In any case, the percentage of property units — including their undivided share of the land — that remains under the ownership of the State or the relevant first- or second-level Local Government Authority, and is designated for lease to eligible social housing tenants, may not be less than thirty percent (30%).
The Ministry of Social Cohesion and Family is granted exclusive management rights over specific public properties for the purpose of social consideration contracts, without any compensation or additional bureaucratic procedures. In certain instances, ownership of the properties may be transferred to the State. Registration of such transfers in the Cadastre is conducted without fees or charges. Local Government Authorities may also utilize their own properties under this scheme, subject to prior approval by the Ministry of Social Cohesion—both for initiating the procedure and for publishing the relevant call for proposals.
The public consultation on the draft bill of the Ministry of Social Cohesion and Family will remain open for comments on opengov.gr until August 20, 2025, at 22:00.
