Affordable homes in the north of Sweden

This project concerns an investment loan to support investments in social and affordable housing for rent in the Municipality of Skelleteae, which is situated in the Västerbotten County of northern Sweden. The housing programme includes 743 affordable housing units, including a specific housing programme for students.

The aim of the operation is to contribute to urban development and regeneration, and address strong demand for housing in the Municipality of Skellefteå, where the waiting list reaches 46,000 applicants. Upper Norrland, County of Västerbotten and Skellefteå in particular is at the core of a green transition of a necessary transformation of the current metal industries to new green production methods. The project aims to provide safe, comfortable, and affordable housing options to address the strong demand for housing in the region. The affordable housing programme includes the construction of new units for rent, while the student housing programme provides affordable and convenient options located near campus area and other amenities.

The Project comprises the construction of new public housing units for rent, contributing to the promotion of integrated urban development and social integration objectives of the municipality of Skellefteå. The investment components will be part of well-defined integrated local urban development plans and will facilitate the development of sustainable and inclusive communities, while contributing to the promotion of social mix and addressing the high demand for housing in the region of Sweden which is undergoing reindustrialization of its economy.

The Project will contribute to a more balanced local residential market by supporting housing supply, thereby addressing the existing need for housing across the income spectrum with a focus on low and middle-income households, and also students. The EIB financing will tackle the market gap resulting from an insufficient affordable housing supply by offering a long maturity at attractive financing costs, needed to keep rent levels low.

The operation supports the EU's and Bank's priority in the energy efficiency sector and the EIB's climate action objectives, through the implementation of energy efficiency projects in residential housing. The financing of this project is in line with the Bank's lending priority objectives on Energy Efficiency and the transversal objectives on Climate Action (mitigation and adaptation).

The implementation of the energy efficiency projects financed under this operation will contribute to the achievement of Sweden's National Energy Climate Plan. In turn, it supports the EU and national targets for energy efficiency. The operation is fully aligned with the EU Energy Performance of Building Directive (EPBD) and Energy Efficiency Directive (EED).

The project quality is very good due to its focus on sustainability and addressing climate vulnerabilities. It is targeting vulnerable social groups in an efficient way and the governance structure is robust.

Skellefteå values the Bank's investment loan product with long maturities and long draw-down periods that match the financing needs of the City's housing portfolio. The EIB loan provides for a diversification of external funding sources at competitive terms and conditions especially as the loan can be linked with grant financing under the Public Sector Loan Facility (Just Transition Mechanism) initiative.

The Bank will require that the investment comply with EU environmental legislation as well as comply with the principles and standards of the Bank's Environmental Policy Statement.

The promoter is subject to the public procurement regime. The Bank will require the Promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation: Directive 2014/24/EU, Directive 2014/25/EU, as well as Directive 92/13/EEC and 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU (OJEU), as and where required.