MILAN EE AFFORDABLE HOUSING

Refurbishment and new construction of affordable housing for rent in central Milan. The units are owned by the CA GRANDA fund and managed by InvestiRE SgR.

The project is structured as an investment loan for the financing of eight main schemes located primarily in central Milan. One main scheme will entail the complete demolition and reconstruction of some 190 units for a total of 20 000 square meters. The remaining schemes will focus on the deployment of energy efficiency measures to increase the Energy Performance Class (EPC), as well as structural and safety measures.

The operation will result in a significant number of positive externalities such as improved integration of disadvantaged groups in the local spatial and social context and the improvement of the urban environment through urban regeneration. 

The Project is in line with the provisions of the 2022 Nice Declaration on Housing, the 2020 New Leipzig Charter, the 2016 EU Urban Agenda, and the EIB Urban Lending Review. Furthermore, it is aligned with the EU Energy Performance of Building Directive, the Bank's Energy Lending Policy, and will contribute towards the Bank's Climate Action targets. It is consistent with the Renovation Wave, which emphasises the importance of the energy-efficient renovation of the housing stock, and so is in line with the EU Green Deal. 

Taking into account that the housing sector interfaces with many aspects of a country's economy and a number of social development sectors, the project will contribute directly or indirectly to promote progress towards multiple Sustainable Development Goals (SDGs). These include for example poverty reduction (SDG 1), reduced inequalities (SDG 10), Sustainable Cities and Communities (SGD 11) and Climate Action (SDG 13)

The Project addresses a number of market failures, in particular the lack of available social housing supply as the market does not sufficiently cater for the demand of low and medium income people. In addition, the Project addresses sub-optimal investment flows into highly energy efficient and resilient new buildings.

EE investments in residential buildings suffer from a chronic lack of investments. The operation will contribute to reduce this gap. 

Through energy-resource savings, the operation will contribute to achieving social and public benefits that are not typically internalised in the investment rationale of private investors, including the reduction of carbon emissions and air pollution, as well as the increase of comfort and air quality in the dwellings.

The EIB brings a comprehensive financial contribution to the Project with financial benefit and customised terms.

Compliance with the relevant EU Directives will be verified during appraisal stage: EIA Directive 2011/92/EU amended by the EIA Directive 2014/52/EU, SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. The status of any environmental studies and public consultations related to the investments will be reviewed during project appraisal. Energy efficiency requirements in line with the EU Directive on the Energy Performance of Buildings 2010/31/EU will also be further assessed. It is envisaged that the project will contribute to urban regeneration and sustainable urban development in local neighbourhoods, generating significant positive social and economic benefits, including better health and living conditions for lower income groups, job creation during implementation and the promotion of social mix. These will be evaluated in depth during the appraisal of the project.

The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the Promoter is subject to the EU public procurement legislation then the Bank would duly inform the Commission Services and would require the Promoter to apply those rules.