Multiloc – A partnership with the city of Paris

MULTILOC' is a unique system introduced by the City of Paris in 2015.

It is intended to mobilize, on the territory of Paris, vacant housing in the private sector, in favor of families and young working people of the middle class, thanks to a vast network of real estate professionals, committed alongside the city to the success of this project. In order to promote the long-term rehousing of households, the rents offered in MULTILOC' are 20% lower than the amount of the reference rents set by order of the Prefect.

This system is also part of the ambitious policy led by the City of Paris, to fight against long-term vacancies in housing in Paris. Specific advantages are thus provided to encourage owners of vacant accommodation (for more than a month or more than 6 months) to put their property up for rent.

The operation of the device and what is expected of operators in a few key words:

Partnership agreement : it binds the real estate players and the city and sets the framework for this collaboration and the commitments of each of the parties. It can be signed by any real estate professional providing proof of the guarantees required for the exercise of activities related to real estate management, and holder of the professional card.

Prospecting and rental mandate : the contracted operators ensure the prospecting, then the management of the accommodation.

The owner who commits to MULTILOC' receives guarantees and particularly incentivizing premiums. During the mandate, the operator is remunerated through management fees charged to the owners, and according to its usual practices.

Tenants : they are sought by the contracted operator and must receive income that is below the intermediate housing ceilings (PLI). Examples for 3 typical family compositions:

Household category – Tax income 2013 – Monthly income (average)

Single person – €41,629 – €3,469

2 people – €62,217 – €5,185

4 people or 1 person with 2 dependents – €89,584 – €7,465

Housing characteristics

Duration of prior vacancy required:

• Minimum 1 month
• When vacancy > 6 months (dwellings permanently vacant), the premiums are higher

Type of lease:

• Common law lease (law of July 6, 1989)

Lease term :

• 3 or 6 years, renewable

Type of rental offered:

• > 14 m2

The rent :

• Rent 20% lower than the reference rent for the district fixed by decree of the Prefect on the basis of the work of OLAP, amount fixed each year by decree of the Municipal Council.

Tax advantage (subject to agreement with the ANAH):

• Possibility of obtaining a tax deduction of 30% on gross property income in the event of a ceiling on the rent at the level of the "intermediate rent" of the ANAH

Rehousing and Rental Intermediation Office Housing and Habitat Department – ​​Paris City Hall: dlh-multiloc@paris.fr

Guarantees and premiums paid to the owner

Flat-rate premium for entry into the system:

• €2,000 upon signature of the 1st management mandate.
• Frequency: once and for a single rental

Rehabilitation premium (in the case of long-term vacant housing):

• €7,000 or €8,000 (possibility of a bonus*) that can be mobilized up to the costs incurred
• Frequency: once and for a single rental

Premium for restoration or embellishment work:

• €2,000 or €3,000 (after application of the bonus*) that can be mobilized up to the costs incurred
• Frequency: can be mobilized for the duration of the management mandate, and for a single rental

Premium for restoration or embellishment work:

• €2,000 or €3,000 (after application of the bonus*) that can be mobilized up to the costs incurred
• Frequency: can be mobilized for the duration of the management mandate, and for a single rental

Technical diagnostics funding package:

• €250 (for 2015, amount reviewed annually) that can be mobilized up to the costs incurred
• Frequency: once and for a single rental

Annual lump sum for partial coverage of the unpaid rent guarantee:

• €400 (for 2015, amount reviewed annually)
• Frequency: every year from the 1st rental until the end of the mandate

Lump-sum contribution to the financing of a smoke detector:

• €10 (for 2015, amount reviewed annually)
• Frequency: Only once per accommodation and for a single rental

Fixed bonus for renewal of the management mandate:

• 1000 €
• Frequency: at each renewal of the 3-year management mandate executed at term