2. Grants

2.1. French Housing Agency

A system of grant aid for house improvement operates in France under the auspices of a government housing agency called Agence Nationale pour l’Améleration l’Habitat (ANAH).

The role of this agency has grown in prominence of late because of the growing priority that the government has given to housing conditions and the supply of housing.

The assistance is widely available across the country but, unfortunately, there is a tough test of resources and the rules of eligibility are not straightforward. The national rules are also varied by decisions made at a county level.

The grant is not given as of right, even though, on paper, you may be eligible. Each case is considered on its merits, within the boundaries of the main criterion.

We would be most interested to get feedback from you on how you have got on.

2.2. Eligible Persons

Owner-occupiers, tenants and landlords are eligible on condition, in all cases, that the property is occupied as a principal residence for at least 6 years, or let for 9 years, following award of the grant.

Accordingly, second homes and seasonal lettings are not eligible for assistance.

Where circumstances change and the property ceases to be occupied as a principal home or rented out, then some, or all, of the grant becomes repayable.

However, if there are strong professional, personal or medical reasons why it becomes necessary to relocate, then repayment of the grant can be waived.

Similarly, in the case of a landlord, the nine year letting period can be reduced to six if they require the property for their own occupation, or that of a family member.

Tenants on low incomes are eligible where the purpose of the works is to bring the property up to a legal standard of ‘decency’.

The grant aid is subject to means testing for owner-occupiers and tenants but this is not the case with landlords, provided they meet the letting criteria. Nevertheless, landlords on particularly low incomes are eligible to receive a higher amount and rate of grant aid.

The basic annual income limits for owner-occupiers and landlords are set out in the following tables. Remember, there is no means test for a landlord – merely that a low income gains access to a higher grant award.

It is also important to note that ‘income’ for the purposes of assessment is not your current or gross income but your fiscal de reference for the proceeding year as stated on your income tax notice.

The fiscal de reference is net income as determined by the tax authority, after taking into consideration allowances and deductions.

So, if you have recently relocated and you are looking for grant assistance, you will need to produce the income tax return from your home country.

Savings are not taken into account in the assessment of resources but, as the grant will only fund a percentage of the works, you will need to find your own resources for the balance of the expenditure.

Table: Owner-Occupiers

Household	Ile de France	Regions
1	€12376	€8569
2	€18166	€12532
3	€21815	€15703
4	€25473	€17609
5	€29143	€20156

Table: Landlords

Household	Ile de France	Regions
1	€8250	€6591
2	€9640	€12861
3	€14543	€11594
4	€13545	€17210
5	€28869	€15504

2.3. Eligible Properties

The property must be residential in nature and at least 15 years old.

The purpose of the works must be to improve the living conditions, security, energy efficiency, services or comfort of the occupants.

This definition clearly leaves for wide interpretation and the only way to get a definitive answer on your potential eligibility is to make enquiries to your local ANAH.

They are prepared to assist with the funding of a study in order to establish whether or not a property would be eligible.

The property need not necessarily be in a poor state of repair, provided that in one respect or another it does not meet current norms. This applies notably in relation to measures to improve energy efficiency.

Grant assistance is also available for works of adaptation for handicapped persons.

Landlords with more than one property in need of improvement are eligible for grant assistance on each property, provided the conditions of letting are met.

2.4. Eligible Works

The eligible works are widely defined and effectively, anything that is required to bring the property up to a minimum decent standard may be considered eligible.

Landlords, in particular, need to demonstrate that following completion of the grant aided works the whole property will be to a minimum legal standard.

However, given the amount of grant aid available it is not the purpose of the grant to finance the complete renovation of a derelict property.

Even though the property may be otherwise in a good condition, it may well still be eligible for grant assistance towards energy saving works.

The costs of conversion works are also eligible.

It is imperative that you do not start the works until the grant has been approved. However, if you have started some work, but need grant assistance with other, unrelated work, then you can still apply.

2.5. Level of Grant

The level of the grant will vary according to the type of works, the location of the property and the circumstances of the applicant.

Accordingly, we can only give you a broad rule of thumb here. Whilst the basic level of grant may appear to be low, these can be lifted depending on circumstances of the applicant and the property.

For owner-occupiers the basic grant is 20% up to a ceiling of €13,000, but both the percentage level of the grant and the ceiling can be increased to those properties in a very poor condition and/or to households on a very low income.

Thus, it can increase to 50%, up to a maximum grant of €30,000, where the property is in a designated housing improvement area or exceptionally where it is a serious state of dilapidation.

For landlords the percentage level of the grant ranges from 15% to 70% of agreed works. The highest level grants are only available where the property is in a very poor condition, and/or vacant for more than twelve months, and the landlord is prepared to let the property on a ‘low’ rent.

The actual amount of the grant will depend on the size of the property for which a standard square metre rate applies. In the provinces, the standard rate in 2007 is €500m², but up to €800m², around Paris, Geneva and the Cote d'Azur.

Similarly, tenants on low incomes can receive a grant of 70% up to an expenditure ceiling of €8000.

In all cases there may be increases in the level of the grant in those areas where access to the property market is particularly difficult.

All grant assistance is net of any taxes payable.

There are higher rates of grant for adaptations to a property for a disabled person.

If the property is within a housing improvement area called Opération Programme d’amélioration d’habitat (Opah), there is the prospect of additional assistance through the local or county council (see below).

2.6. Execution of the Works

The works cannot be started prior to authorisation by ANAH and must be completed within three years, although it is possible to be granted an extension due to family or other strong reasons.

The works must also be carried out by a registered building professional whose work is supported by an estimate of the costs of the works and invoices for payment.

Where the applicant is themselves a registered building professional who wishes to undertake the work, the amount of the grant is reduced by 10%.

2.7. Applications

The agency is has offices in all the counties of France.

In order to make enquiries of your eligibility you should contact the offices of ANAH located within the Direction Départemental d’Equipment (DEE) in your local préfecture.

A list of the offices can be located at ANAH.

2.8. Grant Aid/Loans from the Conseil Général

Many county councils (conseils généraux) have schemes of assistance available to for the improvement of improve accommodation, for home owners and landlords alike.

The assistance is often complementary to national schemes e.g. housing improvement areas under ANAH.

It may also be available to support the improvement of those areas designated as of particular architectural or historic interest, called Zones de Protection du Patrimoine Architectural, Urbain et Paysager (ZPPAUP).

Some regions are particularly active in offering assistance to new or existing guesthouse owners, although this is not universally the case, as there is a surfeit of guest houses in some regions.

The rules of eligibility are determined by each region, so we are unable to provide details here.

Best bet would be to first try the web site of your Conseil Général to find out generally if there is anything available and then follow it up with a visit.

You may also find that some local mairie offer financial assistance, often in the form of a grant to assist with improvement of the external façade of the property, particularly if located within an improvement area. Once again, their grant will be added to that available from Anah.

Next: Other Financial Assistance