Strengthening Latvia’s Housing Affordability Fund

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EU Funded Note

The Latvian government established the Housing Affordability Fund in mid-2022, a long-term self-sustaining financing model to channel investment into affordable housing. The fund is now being scaled up to ensure lasting impact on the Latvian housing market. This report identifies options for institutional arrangements, funding and financing opportunities, and operational tools to achieve this aim. It draws on the rich and diverse experiences of four peer countries in establishing and operating revolving fund schemes for affordable housing (Austria, Denmark, the Netherlands and Slovenia), and also reflects findings from engagement with a range of stakeholders in the Latvian housing sector.


Executive summary

The work presented in this report aims to support the Latvian Government in establishing a long-term self‑sustaining financing model to channel investment into affordable housing. This report provides background information on the Latvian housing market and the need to expand the affordable housing stock. It then identifies a series of Policy Actions that Latvia could consider to scale up the newly established Housing Affordability Fund, maximising its potential to address the country’s housing affordability and quality challenges. An overview of the main findings and recommendations is presented at the beginning of the report.


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