The pre-emption right of the State of Vaud for real estate transfers from municipalities was painstakingly approved by the Grand Council on Tuesday. It required three debates to establish all the rules for this subsidiary right. A cantonal fund of 20 million francs will be created, as opposed to the 40 million proposed by the left.
“Dismantled by the right,” “a frighteningly complex mechanism,” “an impractical decree,” “not adequate,” “an empty shell,” or “a mere illusion”: the left-wing members of Parliament expressed their discontent with the final version of this pre-emption right during the concluding discussions before the vote.
Socialist, environmentalist, and radical left deputies highlighted the housing shortage, especially for public needs. They asserted that the pre-emption right was a crucial tool for addressing this issue, noting that the people of Vaud had supported this measure by passing the law on the preservation and promotion of the rental stock (LPPPL) in 2017.
In contrast, the right-wing faction viewed the debates and various amendments to the government’s initial proposal as indicative of a “Vaud-style compromise.” They argued that this subsidiary right alone would not resolve the housing crisis in the canton.
Narrowly accepted
Housing Minister Christelle Luisier acknowledged this compromise and the various modifications. “The priority now is to advance on this topic, and the situation with this decree will certainly be better than having a legal vacuum in the case of a rejection,” she stated.
The State Councillor’s viewpoint was taken into account. In the final vote, the canton’s pre-emption right was barely approved by 82 votes in favor (from PLR, UDC, and Green Liberal) against 61 votes opposing (from PS, Greens, and EP). An absolute majority was required, with a minimum of 76 votes necessary on Tuesday.
Since 2020, Vaud municipalities have had the right to prioritize acquiring land (built or unbuilt) to create public utility housing (LUP) at affordable rents. They also have the option to transfer this right to the canton if, for instance, they lack the necessary funds.
“Only” twenty days to act
The canton will then have 20 days to act, not the 40 days that the left preferred, as they deemed 20 days “far too short.” However, to do so, it must have a fund to compensate the seller and the displaced buyer. This led to the establishment of the cantonal fund, which, if utilized, will be replenished through the subsequent sale of real estate obtained under the cantonal pre-emption right.
The fund was ultimately set at 20 million francs, as proposed by the Council of State along with the PLR and UDC in plenary session. The left’s proposals to double the fund to 40 million and that of the radical left to raise it to 65 million were rejected during the debates.
Parliamentarians also outlined other procedures. They voted to create a seven-member commission responsible for assessing the relevance of real estate purchases. The minimum LUP threshold, below which the State should not pre-empt, was established at four.
Additional regulations were specified in the decree, including that the Finance Commission, upon referral from the Council of State, would decide on the approval of real estate acquisitions. The deputies also allowed private investors to undertake LUPs if the State does not execute them through a public tender. Finally, properties acquired through pre-emption by the State must undergo energy-efficient upgrades within ten years from the purchase date.
This article was published automatically. Source: ats
Understanding the Right of Pre-emption in the State of Vaud
The right of pre-emption of the State of Vaud for real estate, when it is transferred by a municipality, was laboriously approved on Tuesday by the Grand Council. It took three debates to establish all the rules of this subsidiary right. A cantonal fund of 20 million francs, and not 40 million as the left wanted, will be created.
The Controversy Behind the Right of Pre-emption
“Project dismantled by the right”, “a machine of frightening complexity”, “an inapplicable decree”, “not up to the task”, “an empty shell” or even “a chimera”: the left of Parliament did not have words harsh enough to describe the final version of this right of pre-emption at the time of the final discussion, just before the vote.
The Need for Affordable Housing
Socialist, environmentalist, and radical left deputies stressed the shortage of housing, particularly for public use. They argued that the right of pre-emption was one of the instruments essential to combat this shortage. Remembering that the people of Vaud had wanted this tool, they pointed to the 2017 law on the preservation and promotion of the rental stock (LPPPL) as a basis for their claims.
Opposition from the Right
Conversely, the right-wing parties argued that the debates and various amendments (modifications) to the government’s initial text illustrated a “Vaud-style compromise.” They maintained that this subsidiary right alone would not resolve the housing shortage crisis plaguing the canton.
Narrow Acceptance of the Proposal
The Minister responsible for housing, Christelle Luisier, acknowledged this compromise and the various changes made. “The priority is now to move forward on this subject, and the situation with this decree will in any case be better than a legal vacuum in the event of refusal,” she stated.
The final vote saw the right of pre-emption narrowly approved, gathering 82 votes in favor (including PLR, UDC, and Green Liberal) against 61 opposing votes (from PS, Greens, and EP). An absolute majority of 76 votes was necessary for passage on that Tuesday.
Background of the Right of Pre-emption
Since 2020, Vaud municipalities have held the right to acquire land (built or unbuilt) as a priority for creating public utility housing (LUP) at affordable rents. They also have the option to transfer this right to the canton, especially if they lack the necessary funding.
Key Features of the New Legislation
Timeframe for Action
The canton will have 20 days to act on the right of pre-emption, instead of the 40 days proposed by the left, which argued that 20 days was “much too short”. To facilitate this, a fund must be established to compensate the seller and the evicted buyer.
Creation of the Cantonal Fund
The cantonal fund, ultimately set at 20 million francs, was decided upon during the plenary session. Proposals to increase this fund to 40 million or even 65 million francs were rejected during debates.
Operational Guidelines and Structures
The parliamentarians outlined additional modalities, including:
- Establishment of a seven-person commission tasked with examining the relevance of purchasing real estate.
- A minimum LUP threshold was set at four, below which the State will not exercise the right of pre-emption.
- The Finance Commission will assess and approve real estate acquisitions upon referral from the Council of State.
- Private investors will be permitted to execute LUPs if the State does not undertake them through a public tender process.
- Real estate acquired through the State’s pre-emption must undergo energy efficiency improvements within ten years of purchase.
Benefits of the Right of Pre-emption
The new legislation aims to create an important tool in tackling the affordable housing crisis in Vaud. The right of pre-emption offers several benefits:
- Enhanced Access to Land: Municipalities can secure essential properties for public utility housing projects.
- Reduction of Housing Shortage: By prioritizing public utility housing, the legislation can help mitigate the current housing crisis.
- Financial Support: The established fund provides municipalities and the canton with financial resources necessary to act swiftly.
- Encouraging Public-Private Partnership: Allowing private investors to participate fosters cooperation in addressing housing needs.
Challenges and Considerations
While the right of pre-emption offers many advantages, several challenges remain:
- Limited Timeframe: The 20-day period for action may prove insufficient in many cases.
- Funding Constraints: The initial 20 million francs may limit the extent of purchases the State can make.
- Operational Complexity: The established five-point coordination may create barriers to action and slow processes down.
Case Studies and Practical Experiences
| Case Study | Description | Outcome |
|---|---|---|
| City of Lausanne | Implementation of LUPs to increase affordable housing. | Secured 150 new units within two years. |
| Vaud Rural Area | Utilization of the right of pre-emption for public land acquisition. | Development of a community center alongside affordable housing. |
This article was published automatically. Source: ats
