The Ministry of Spatial Planning, Urbanism and State Property in Montenegro is preparing a new law to introduce a completely new housing policy model focused on affordable housing for citizens unable to resolve their housing needs on the market.
The key measure is the establishment of a National Housing Fund that will build, maintain, and lease apartments at favorable conditions. Priority groups include single parents, people with disabilities, young adults without parental care, seniors over 65, Roma communities, and others facing housing insecurity.
The law will also offer incentives to private investors through public-private partnerships, including subsidies, tax breaks, and land allocation. Part of the apartments in new developments would be reserved for housing support, aiming to increase rental housing availability, lower prices, and create a competitive, sustainable housing market.
The legislation will ensure equal access to housing support for employed workers from EU member states working in Montenegro, complying with EU regulations and supporting the free movement of labor.
The draft law, titled Law on Housing Support (updating the 2013 Social Housing Law), is scheduled for preparation by the end of 2025 and public consultation will follow. After government approval, it is planned to be submitted to parliament early next year.
The law aims to support not only socially vulnerable groups but all citizens unable to secure housing for social, economic, or other reasons. It will introduce stronger legal safeguards, including penalties to ensure fair and transparent distribution of housing support.
A dedicated public body will be created to manage the National Housing Fund at national, regional, and local levels. This institution will oversee construction, maintenance, rental management, and record-keeping for state-owned housing.
The Fund is expected to stimulate market competition in housing construction and rental sectors by setting higher standards in quality, affordability, and sustainable building practices. It will also encourage private sector involvement through public-private partnerships, generating jobs and expanding rental housing supply.
Funding for the Housing Fund will primarily come from state and municipal budgets, including earmarked revenues from property taxes, income from leased housing units, and taxes on unused housing.
Overall, the new law seeks to create a transparent, fair, and sustainable system of affordable housing accessible to a broad segment of Montenegro’s population, including vulnerable and marginalized groups, while aligning with EU standards.
