Andorra's PS Group Proposes Law for Housing Cooperatives to Boost Affordable Homes

The PS group in Andorra's parliament has proposed an 88-article bill to establish housing cooperatives under "cessió d’ús" models, providing a stable alternative to buying or renting amid the housing shortage.

Vice-president Pere Baró and councillor Laia Moliné presented the measure on Tuesday, arguing that existing laws fail to address these cooperatives adequately, so a dedicated framework would be more straightforward. Under the plan, cooperatives would own buildings collectively, granting members enduring usage rights to specific units without the ability to sell for profit. Departing members would reclaim only their reimbursable initial contributions, with the unit passing to another qualifying participant to maintain its housing purpose.

Moliné emphasized that this prevents properties from shifting to speculative uses: "Housing changes occupants but does not lose its purpose." Monthly fees would reflect actual costs detailed in a mandatory economic plan—including land, construction, financing, maintenance, insurance, taxes, management, and reserves—rather than market rates. She added that fees could rise only for justified reasons, such as financing increases, major repairs, or operational expenses, but not because local rents climb: "What cannot happen is that the fee increases simply because rents in the area have gone up."

Access criteria would be objective and non-discriminatory, with possible priorities for young people, seniors, single-parent families, or those with disabilities. Primary residency is mandatory, barring those with other adequate housing, though exceptions cover inheritance, disability, or special needs. Tourist lets are banned. Members act as active partners with equal voting rights in assemblies, irrespective of contribution levels.

The bill addresses life changes like separations, deaths, dependency, disability, gender violence, or absences—for example, allowing partners or children of deceased members to apply to stay if eligible. Cooperatives must pursue payment demands and regularization before ending usage rights.

Baró described it as "one more leg" to combat housing issues, alongside public housing, rentals, and private ownership: "We are not saying this model is the solution to the housing problem. We are saying it is one more leg that Andorra still does not have regulated." The pair anticipate government support, deeming rejection illogical given affordability needs, and expect cross-party amendments.

Public bodies could assist by granting long-term land rights while keeping ownership, or providing loans, guarantees, subsidies, and expertise. Cooperatives receiving such aid would face added transparency, oversight, and affordability rules. The model draws from examples in Switzerland, Uruguay, and Catalonia, with input from local groups like Arrel and Estaló, and parishes keen to contribute land.

The government has not commented.