On 11 December, Minister Ollongren (Ministry of the Interior and Kingdom Relations) informed the House of Representatives of the intention to launch the Transformation Facility, a financing facility for inner-city transformation, in January 2019.
The transformation facility is an implementation of Van Gijzel's recommendation to set up a revolving fund. This fund contributes to preparing inner-city locations for mid-range rental housing. The minister has broadened this scope and made the facility available for other inner-city (residential) developments as well.
Through officials at the Ministry of the Interior and Kingdom Relations, Minister Ollongren asked BNG Bank to assist the ministry in setting up and structuring this facility. The transformation facility offers short-term loans to finance the preliminary phase of housing projects. Ownership of the facility has been transferred to SVn. SVn acts as administrator and checks whether the projects meet the conditions.
The minister has indicated that she would only be prepared to make €38 million available if the market participates as a co-financier. BNG Bank was therefore the first to pledge its cooperation and is prepared to co-finance suitable projects. This will enable us to double the impact of the facility.