One of the questions Goergen submitted to Minister for Housing Henri Kox was whether an auction would give an unfair advantage to wealthy individuals, with Goergen wondering whether auctioning off the flats is really the ethically correct and socially just thing to do. It is, according to Kox, because a particular emphasis is being put on equal opportunity and social inclusion.
Of the 80 flats on the "Gravity" site, the municipality of Differdange has bought back 48 in order to rent them out at affordable prices. Sixteen are to be sold at low prices, while another 16 are not subsidised but sold at "appealing" prices.
The state subsidised the municipality's purchase of the 48 flats with almost €18 million. In addition, the state also provided subsidies of about €2 million for the 16 flats which are to be sold at affordable prices. These 64 flats must not be auctioned off, Kox specified.
Regarding the other 16 housing units, the Minister acknowledges that two duplex and two triplex flats were found to be unsuitable for use as socially subsidised shared accommodation units.
The Ministry thus decided to auction these four flats off. The auction will go on for the entire month of March. Ultimately, the law of emphyteusis will apply. This grants the lessee perpetual rights to a property so long as it is properly cared for, and rent and tax are paid as due.
Kox also specified that this will not be a regular auction, but an auction "by sealed submission", meaning that prospective buyers will have to submit a single offer in the form of a letter to the notary. This process is meant to avoid an unreasonable increase in prices.
The municipality will invest any potential profits into new housing projects.
The minister added that the purchase of any one of the four flats is bound to the condition that the buyer must actually live in them. If this is found not to be the case, the municipality of Differdange will be able to invoke their right of repurchase.
