The Bucharest City Hall could start the development of six affordable housing projects in the capital’s six districts in the spring of 2017, Bucharest mayor Gabriela Firea said on Wednesday, according to local Agerpres.

The municipality has recently decided to set up a construction company that will build social apartments. The prices of these apartments will be half compared to the prices of apartments developed by private companies, because the municipality’s construction company will not aim to make profit, according to Firea. The apartments will be mainly sold or leased to young people.

“Dwellings for young people are called affordable housing. There will be two categories: some will be rented for sums lower than the ones on the private market while others will be sold with lower down payments and the possibility to pay in 20-25 years,” Firea explained.

The Bucharest City Hall will conclude partnerships with the district city halls to develop a new residential project in each district. If one district has a plot, but doesn’t have money, the City Hall will offer the funding through the municipality’s construction company. Other districts, which also lack the land, could buy it in public tenders or they could receive it from the Bucharest City Hall, according to Firea.

She said that Austria’s capital Vienna was a model to follow in terms of public administration. Vienna has holding companies that manage the most important public services such as environment, housing, public utility buildings, healthcare.

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editor@romania-insider.com