Consideration of the specificities of lending to public housing or not-for-profit entities
ADC exposures to public housing or not-for profit entities across the Union that are regulated by law and that exist to serve social purposes and to offer tenants long-term housing should be subject to the treatment referred to in paragraph 23 and 24 where both of the following conditions are met:
The intended use of the property is exclusively for lease;
The property being financed is subject to a regulation specifying the eligibility to qualify for social/public housing, including criteria for applicants in relation to their income, their family size, their residency status, and requirements for the construction, including the size of each unit or being barrier-free.
For the ADC exposures mentioned in paragraph 22, the requirement for a significant portion of total contracts, as outlined in Article 126a(2)(a) of the CRR, should be considered fulfilled if, for the project under consideration and for each type of social housing units in the project, the number of applicants exceeds the number of social housing units available for lease. Where the number of applicants is not available for a specific project, but is available at municipality level, the comparison between the number of applicants for each type of social housing units and the number of social housing units available for lease can be performed at municipality level.
For the ADC exposures referred to in paragraph 22, the appropriate amount of obligor-contributed equity for the purposes of Article 126a(2), point (b), of the CRR should be set according to the requirements of the paragraphs 19 to 21 of these Guidelines, with the following adjustment:
[Reducing the equity threshold]: the ratio of the amount of the obligor-contributed equity to the residential property's value upon completion referred to in paragraph 19 should be equal to or higher than 20%.
[Allowing subsidies and grants committed to the obligor]: The subsidies and grants referred to in paragraph 20, point (b), also include the subsides and grants committed to the obligor in order to cover the incurred costs of the project, including subsidies committed in the form of funds derived from state-backed, unsecured junior loans with preferential interest rates, as measured in the currency of the financing for the obligor and at the moment of the calculation of capital requirements.