“Cosy Lodge”: How this affordable housing program built in Montpellier flopped

The Cosy Lodge residence designed in 2016 should welcome its first residents in the second half of the year. Midi Libre – G. T.

In Plan des 4-Seigneurs, the Cosy Lodge residence was designed in an experimental framework in order to offer home ownership at a reasonable cost. A very different reality six years later where the number of homes for sale has been reduced by more than half… for prices in line with those of the market

The first residents of the Cosy Lodge residence, near the Plan des 4-Seigneurs, should move into their homes after the summer of 2025. However, this real estate complex of 22 homes built by the Angelotti group no longer has exactly the same characteristics as those imagined when it was designed in 2016.

€165,000 for a 3-room apartment

Under the impetus of its deputy for urban planning Stéphanie Jannin, the City then launched an experimental program. The challenge: for developers to deliver programs on four plots purchased from the community that guarantee access to property at an “affordable” pricefor households with limited resources. The following rates are announced in the specifications submitted to candidates: €115,000 for a T2, €165,000 for a T3 and €189,000 for a T4.

The objective for the City is thus to “participate in the relaxation of the local real estate market” and to comply with the local housing plan which has targeted the need to offer 20% affordable housing. The four operations are entrusted to different operators in Grisettes, Ovalie, Plan des 4-Seigneurs and Castelnau-le-Lez. In Montpellier, the Nove’la and Chrysalide residences were inaugurated at the end of 2019 and the beginning of 2020 with sale prices in line with the initial commitments.

Difficulties in series

For the “Cosy Lodge” program – initially called “Cottage du Plan” – the progress of the construction site is however much more complicated. In no particular order, a right of way on two neighboring plots, an additional cost in the development of the land, difficulties to which are added the beginning of the health crisis, then the inflation of the prices of materials. Clearly, the financial balance already fragile at the start, is no longer assured.

200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000

The T3 increases to €369,000

In December 2022, a modification of the project is agreed between the City and the developer. “Cosy Lodge” will no longer offer 22 affordable housing units – including 4 social housing units – but only 7 intermediate free apartments and fifteen rental units, including 4 in the social housing sector.

Last December, during the municipal council, Stéphanie Jannin publicly expressed her surprise at the development of this file. “To date, a real estate transaction appears to be currently being marketed on this land, with sale prices on the operator's website of €369,000 for a T3 and €399,900 for a T4” she observed, asking for explanations. “We are no longer responding to the initial public market. I don't want to argue, but access to housing is a problem, in Montpellier a little more than elsewhere. We have turned away from the general interest, this requires clarification” continues the former deputy for urban planning.

According to the deed of transfer of the plots, a clause stipulates that in the event of non-compliance with the sale prices, a penalty equivalent to 35% of the increase noted will be applied at the expense of the developer upon completion of the operation in its entirety.

Penalties recovered

“It is expected that the City will recover 35% of the capital gain. This will be a later stage. In this operation, we are mainly staying on social housing” indicates Laurent Nison, the current deputy for urban planning.

The change in the “Cosy Lodge” program illustrates, if need be, the strong constraints encountered by the construction and real estate development sector since 2020. As well as the difficulties, for a community, to have a lasting impact on market prices. “It was an experimental operation. It did not have the same framework as at present. Today, the land solidarity organization associated with the real solidarity lease is a new system that works well. It is a win-win tool” assures Laurent Nison.

Contacted several times, the Angelotti group did not respond to our requests. I subscribe to read the rest