Affordable Housing

In the dynamic and pressured landscape of Luxembourg’s housing market, innovative solutions are essential to address the growing challenges of affordability and community integration. One promising approach is the housing cooperative model, which offers an alternative to traditional homeownership and renting. These cooperatives emphasise communal living, ecological responsibility, and affordability, providing a sustainable and inclusive solution to the housing crisis. Cedric Metz, the president of Adhoc, Luxembourg’s first non-profit housing cooperative, offers valuable insights into the value of housing cooperatives, their role in Luxembourg’s housing market, and the future prospects for such initiatives in the country.

What are housing cooperatives and what is their added value?

Housing cooperatives are organisations that create and manage housing collectively, based on principles of self-help and self-responsibility. Members of a cooperative actively participate in the planning and design of their living spaces and social interactions. The primary value of these living arrangements lies in fostering community and social cohesion. Additionally, the housing is often constructed with ecological considerations and provides affordable accommodation below market rates, contributing to social stability and promoting sustainable living. Housing cooperatives are one form of community housing, next to co-living, rental house syndicates, and communities of owners. People who wish to live together join forces and jointly operate a building in whose flats they are granted the right to live. If economic profits are excluded, the co-operative operates on a non-profit basis.

What is the state of the housing market in Luxembourg and what role do housing cooperatives play?

The housing market in Luxembourg is characterised by high prices and a shortage of affordable housing. Demand far outstrips supply, leading to increasing rents and property prices. Housing cooperatives offer a valuable alternative in this context. They could create affordable housing and promote new forms of communal living, and like Adhoc can promote and raise awareness about the relevance of members not only receiving housing but also participating in the planning and design of their living environments. This potentially fosters a high level of social integration and mutual support.

What challenges do housing cooperatives and alternative housing models face in Luxembourg?

Housing cooperatives and alternative housing models are facing several hindrances in Luxembourg. One major issue is financing. Since these projects are often non-profit, accessing traditional funding sources can be difficult. Additionally, there is a significant need for political support. The housing market is heavily dominated by economic interests, making it challenging to implement socially oriented housing projects. Directly linked to that, the finding and acquisition of land depicts a significant challenge for implementing alternative forms of housing initiated by housing cooperatives due to low land availability, zoning restrictions and limited financing models. It is important to raise awareness among the public and decision-makers about the benefits of these housing models, and to provide them with adequate tools and competences to guide and support such projects from finding a site over adequate financing to facilitating the integration in the existing neighbourhood.

How does Adhoc operate?

Adhoc is a non-profit housing cooperative dedicated to promoting new housing forms and developing cohousing projects. In general, the cooperative provides members with housing that is ecologically built and socially oriented. Members actively participate in the planning of their homes and the structuring of their communal living. A recent pilot project of community housing in Luxembourg’s business district Kirchberg in cooperation with the public developer Fonds Kirchberg was shut down in beginning of 2021. Fonds Kirchberg established of conditions for the site Réimerwee that Ad-Hoc, as a non-profit cooperative, could not meet, such as selling the apartments and selecting residents based on social status. Thus, Adhoc decided not to participate in the tender and will instead focus on promoting social and ecological housing projects. Additionally, the housing cooperative advises those interested in setting up cohousing projects and informs the public and policymakers about the benefits of communal living. Currently, Adhoc is working on a collaborative housing project in Weiler-la-Tour.

Planned housing project in Weiler-la-Tour (Source: Adhoc)

What support do you see from local authorities and the government?

Political support is essential for the successful implementation of housing projects like those of Adhoc. Municipalities and the government should provide financial resources and establish legal frameworks that facilitate the creation and operation of housing cooperatives. Recognising and promoting the benefits of communal living models is crucial as well as encouraging non-profit organisations as relevant actors on the housing market. This does not only include financial support but also the provision of land, the adaptation of building regulations and adapted public procurement such as concept awarding. Additionally, capacity building regarding technical and regulatory expertise within the municipalities could support housing cooperatives, e.g. through counselling centres for those interested in the foundation process.

What is the future outlook for housing cooperatives in Luxembourg?

The future outlook for housing cooperatives in Luxembourg is promising but also challenging. If the demand on the housing market and political will for communal living is not increasing, it will remain difficult to implement alternative forms of housing. Rising housing costs and a desire for sustainable and socially integrated living contribute to increasing interest in alternative housing models. Adhoc is pursuing an alternative way, demonstrating that communal living is not only possible but also desirable. However, it is important that political frameworks continue to improve to provide sustainable support for these housing models.

Contact

Adhoc: info@adhoc.lu

References

Interview by CIPU with Cedric Metz, 24^th May 2024

Adhoc (English, French, German): https://www.adhoc.lu/

Introducing Kuebebierg, a new urban development in Luxembourg’s Kirchberg area managed by the Fonds Kirchberg, focused on creating a sustainable and inclusive community. With an emphasis on environmental responsibility, social diversity, and economic viability, Kuebebierg aims to set a benchmark for future urban projects. From promoting alternative transportation to supporting local agriculture, Kuebebierg offers a balanced approach to urban living that prioritizes harmony with nature.

Aim

The aim of the Kuebebierg project is to create a vibrant, environmentally conscious neighbourhood that promotes sustainable living, social inclusivity, and economic vitality. Through careful planning and implementation, the project seeks to establish Kuebebierg as a model for future urban developments, both locally and internationally.

Aerial view of the planned neighbourhood (Source: Güller Güller Architecture Urbanism)

The Kirchberg quarter located on the north-eastern plateau of Luxembourg city is the vibrant business district, hosting not only banking and financial organisations but also EU institutions. The Fonds Kirchberg, established in 1961, operates under the supervision of the Minister of Mobility and Public Works and is responsible for urbanisation and development of the Kirchberg Plateau. It manages its operations and investments independently, relying on proceeds from real estate activities. Its main tasks include construction, urban development, and road infrastructure, with a current focus on building affordable housing. The Fund utilizes leasehold and other rights for land development, emphasising sustainability and community involvement in its planning processes.

The Fonds Kirchberg launched a competitive consultation process to develop an urban design charter establishing objectives for the landscape of the Kuebebierg area, a major land reserve belonging to the public organisation. The 33-ha area is located in a so-called deferred development zone (zone d’aménagement différée, or ZAD). The winning team of the consultation process presented its project in March 2022. The consortium is led by the Güller Güller Architecture Urbanism office in Rotterdam and Zurich, cooperating with Zeyen+Baumann, Atelier Alfred Peter, Etienne Ballan, Cabane Partner, RR&A, ZEFCO, Ecolor, Ville en Œuvre and Belvédère.

Activities

With its circular design and ecological focus, Kuebebierg aims to create a vibrant, liveable community that integrates seamlessly with its surroundings. Activities within the neighbourhood are guided by a holistic vision that embraces the area’s natural and urban characteristics, prioritising principles of sustainability and community well-being.

Promoting Active Mobility: Kuebebierg prioritises diverse mobility options to reduce reliance on individual cars. Direct and secure routes for pedestrians and cyclists are integrated, along with the commissioning of a new tram line to enhance public transport accessibility.
Limiting Car Circulation: With only one vehicle access point and a ratio of 0.5 cars per dwelling, Kuebebierg encourages a shift away from car-centric urban planning. Shared spaces accommodate various modes of transportation, fostering a safer and more vibrant urban environment.
Creating Vibrant Public Spaces: The heart of Kuebebierg features a bustling square, reminiscent of traditional city centres, offering a diverse mix of shops, restaurants, and recreational amenities. These vibrant public spaces serve as focal points for social interaction and community engagement. A linear park and the tram line will connect public spaces, crossed by the spaces “Porte Frieden” and the “Place du Kuebebierg”.
Maximising Renewable Energy Production: Kuebebierg embraces energy efficiency by prioritising renewable energy sources. From efficient building design to on-site energy production and storage, the district aims to minimise its carbon footprint while ensuring optimal living conditions for residents.
Fostering Social Diversity: With a balanced mix of housing typologies and amenities, Kuebebierg promotes social inclusivity and diversity. Affordable housing options, coupled with accessible public services and recreational facilities, create an environment where people from all walks of life can thrive.
Living circularity: the planned programme for the site, the architecture and the infrastructures are all aiming for a high standard regarding carbon footprint, local consumption and low energy demands, etc. In this context, the concept includes for example an urban farm and gardening.
Farming in the City: The city farm project aims to maintain agricultural activity on one of the last remaining sites on the Kirchberg Plateau worked by farmers. It promotes biodiversity through more extensive green space management and offers multifunctional farming activities, including grazing, market gardening, and agro-tourism, contributing to economic, environmental, and socio-cultural services within the community.

Place du Kuebebierg (Source: Güller Güller Architecture Urbanism)

Status of Implementation

The implementation of the project started in 2022. At the western tip of the district, where the city farm and orchards are also planned, initial work began at the end of 2023 (planting trees and exploratory drilling for geothermal energy). This part of the district will also be included in the exhibition LUGA – Luxembourg Urban Garden taking place in 2025.

Outlook

The winning project for Kuebebierg embodies a vision of urban living in harmony with nature. By integrating topography and green spaces, creating pedestrian-friendly environments, and prioritising sustainability, Kuebebierg sets a new standard for future urban developments.

As construction progresses, Kuebebierg aims to become a living testament to the possibilities of sustainable urban planning. The aim is to achieve a district development plan for 2025, build infrastructure in 2027 and initiate the construction of housing in 2029. With its innovative approach and commitment to environmental and social well-being, Kuebebierg represents not just a neighbourhood but a vision of a more sustainable, inclusive, and resilient urban future.

Contact

Fonds Kirchberg: info@fondskirchberg.lu

References

Fonds Kirchberg (French): https://fondskirchberg.public.lu/fr/concepts-urbains/quartiers-futur/kuebebierg.html

Communication of the Luxembourgish government (French): https://gouvernement.lu/fr/actualites/toutes_actualites/communiques/2022/03-mars/02-urbanisation-terrains-kuebebierg.html

Paperjam article (French): https://paperjam.lu/article/kuebebierg-quartier-tourne-ver Record of the project presentation (French): https://www.youtube.com/watch?v=G56wT-yC8mw&t=38s

The Master Programme for Spatial Planning in Luxembourg, known as “Programme directeur d’aménagement du territoire” (PDAT) 2023, is the central element of the country’s spatial planning policy. Serving as a framework for a sustainable development of the national territory and for enhancing the quality of life of all citizens, the PDAT defines an integrated strategy for sectorial policies with a territorial impact and defines guidelines, objectives and measures for the government and municipalities. The newly adopted PDAT (21 June 2023), which was prepared by the Department of Spatial Planning in cooperation with an interministerial working group, builds upon a large public participation process in 2018 and the international consultation “Luxembourg in Transition” in 2020—2022.

Structure and objectives

PDAT 2035 (Source: Département de l’aménagement du territoire (DATer) 2023)

In order to frame the strategy, objectives and measures, the PDAT was developed in accordance with the following four guiding principles:

Increasing the resilience of the territory
Safeguarding territorial, social and economic cohesion
Ensuring a sustainable management of natural resources
Accelerating the transition of the territory to carbon neutrality

Based on those guiding principles, three policy objectives and a cross-cutting objective have been identified, addressing the development issues highlighted in the spatial analysis as well as the challenges imposed by climate, environmental, geopolitical and health crises:

1. Concentration of development in the most suitable places: Central to the PDAT’s mission is guiding sector policies and supporting municipalities in locating essential functions and services in the most suitable places. This aims to facilitate access to services, anticipate and reduce mobility needs as well as plan for critical infrastructure.

By guiding future development, the PDAT enables efficient infrastructure planning and a cost-effective implementation of sector policies. The territorial strategy encompasses an urban hierarchy based on Central Places (centres de développement et d’attraction, CDA), which is supposed to steer the spatial distribution of population (i.e. development) and employment growth (i.e. attraction) in a sustainable manner.

2. Reducing land take: The PDAT focuses on limiting the process of converting natural, agricultural or forest land into built-up areas. Decreasing land take offers several benefits, including mitigating the effects of climate change, preserving natural and semi-natural areas, minimising flood risks, protecting biodiversity, and fostering carbon sequestration. The goal is to gradually reduce land take from by 2035 and tend towards no net land take (zéro artificialisation nette du sol) by 2050.

Dynamics of soil artificialisation 2007-2018 (Source: Département de l’aménagement du territoire (DATer) 2023)

To achieve this, the PDAT puts forward a planning culture that promotes urban regeneration, multifunctionality and efficient land management.

3. Cross-border spatial planning: Taking into account the functional linkages between Luxembourg and its cross-border functional region, the PDAT recognises the need for a concerted territorial development in the Greater Region (Grande Région). To address ecological and climate transition challenges, the Master Programme promotes territorial development strategies for cross-border functional areas, consultation with neighbouring regions in the framework of planning processes, and cross-border resource management.

4. Collaborative Governance as a cross-cutting objective: In the PDAT, governance is considered to be a cross-cutting objective, emphasising the coordination required for effective spatial planning. This is meant to happen horizontally across sector policies, vertically between the State and municipalities, as well as through public participation.

Time Horizon

The PDAT2023 is meant to unfold in two phases: 2023-2035 and 2035-2050. The first period until 2035 will act as a transition phase, which contributes to reversing the current development trends. Actions will focus on identifying and adopting instruments for the implementation of the Master Programme as well as initiating pilot projects and stakeholder connections.

The second phase, from 2035 to 2050, will ensure a steady transition and reverse the trends in question by the implementation of the strategies, while monitoring the developments as well as adapting approaches as needed.

Programme directeur d'aménagement du territoire 2023 - Stratégies territoriales - Portail de l'aménagement du territoire - Luxembourg — Vision 2050 in the PDAT (Source: Département de l’aménagement du territoire (DATer) 2023)

Implementation

In order to achieve the above-mentioned policy objectives in the given timeframes, two territorial strategies have been developed at different scales. First, the national territorial development strategy “Leitbild 2050” envisions a carbon-neutral and resilient territory, emphasising green, yellow and blue networks, the concentration of development in accordance with the urban hierarchy, and a sustainable mobility. This national territorial development strategy has also been broken down to so-called action areas (espaces d’action) at a functional-regional level. In this context, territorial visions for the three urban agglomerations have also been developed. Second, the territorial development strategy at the level of the Greater Region promotes cooperation in cross-border action areas, in accordance with the Interreg VI Greater Region programme. This cooperation fosters integrated territorial development in cross-border functional areas, complementing previous approaches by addressing challenges linked to the environment and natural resources. The implementation of strategies will be fostered through the adaptation of existing regulatory instruments and the potential creation of new ones.

Conclusion

The Master Programme for Spatial Planning in Luxembourg sets a forward-looking and ambitious territorial vision. By addressing climate change, resource preservation and sustainable growth, the PDAT paves the way for the ecological transition of the territory. Through clear strategic objectives and cross-sectoral coordination, Luxembourg is taking a further step towards sustainable development and enhancing citizens’ quality of life.

References

Master Programme for Spatial Planning in Luxembourg – “Programme directeur d’aménagement du territoire” (PDAT) 2023 (French): https://amenagement-territoire.public.lu/content/dam/amenagement_territoire/pdat-programme-directeur-damnagement-du-territoire-4072023.pdf

Spatial planning portal (French): https://amenagement-territoire.public.lu/fr/strategies-territoriales/programme-directeur.html

During the first workshop organised by the CIPU office in 2023 and held on the 27^th of June, the participants delved into the concept of multifunctionality in the city, focusing on different scales (building/parcel, district, city). They had the opportunity to explore various planning examples and engage in discussions about the obstacles, potentials, and instruments associated with multifunctional urban use.

The day started off with an informative guided tour of the hosting location, the 1535° Creative Hub in the city of Differdange. The location symbolises creativity and innovation in Luxembourg. Established in 2013 by the city of Differdange, the Creative Hub got named after the melting temperature of iron at 1535°C, paying homage to the industrial heritage of the site and the whole city. Today it hosts creative and cultural start-ups, small- and medium-sized enterprises, artists, a co-working space as well as e.g. rentable music studios. More than just the physical space, the 1535° Creative Hub follows a community-driven approach, facilitating collaboration and sharing of expertise among its members. It functions as an open platform fostering synergies and networking, connecting actors from the cultural and creative industry and creating an open-minded environment for the sector.

After discovering the site, the workshop participants received input on functional mix in urban areas and its current relevance in Luxembourg. As a cross-cutting topic in the Master Programme for Spatial Planning 2023 (Programme Directeur de l’Amenagement du Territoire), it is primarily addressed under the objective of reducing soil artificialisation. In addition to that, the topic is considered under the objective of concentrating of different functions through e.g. creating Centres of development and attraction (Centres de développement et d’attraction). Furthermore, two examples developed during the Luxembourg in Transition Process (LiT) were presented, i. e. the densification strategy for the cross-border town Esch-sur-Alzette (LU) and Audun-le-Tiche (FR) as well as the plan for the commercial area Foetz to be transformed into a mixed-use zone. The local input was complemented with several examples from international multifunctional planning processes form Paris, Bern, Linz, Hamburg, Brussels and Anderlecht.

Finally, the participants delved into discussions on multifunctionality in urban spaces. The focus was on exploring the potential of integrating multiple functions within city structures on different scales (building/parcel, district, city). Through interactive sessions and planning examples, the workshop shed light on the obstacles, potentials, and instruments associated with multifunctional use in various contexts.

Working in groups, the participants explored multifunctionality in three key areas: commerce and services, production and manufacturing, and the creative sector and culture. These discussions considered the different existing scales, including the city, districts, and individual plots. The fourth group addressed the multifunctional use of housing in combination with schools, shopping centres, and industrial sites. These group sessions provided valuable insights into the challenges and opportunities associated with integrating different functions within urban structures. The results were then presented and discussed in plenum. The results of the discussions will be available on the CIPU Website soon.

By examining multifunctionality at different scales, the workshop encouraged innovative approaches to urban planning and development. The participants considered the potential of multifunctional spaces to (re-)vitalise communities, optimise resource utilisation, and promote sustainable development. The workshop held within the CIPU framework offered a platform for collaboration and knowledge sharing, bringing together diverse perspectives from local and regional/national stakeholders as well as from thematic experts. It highlighted the importance of considering multifunctionality as a crucial aspect of contemporary city planning as well as which challenges need to be addressed by already existing and potential instruments.

Contact

CIPU: cipu@zeyenbaumann.lu

References

CIPU website (French and German): https://site.cipu.lu/
PDAT 2023 (French): https://amenagement-territoire.public.lu/fr/strategies-territoriales/programme-directeur.html

Esch-sur-Alzette is the second largest city of Luxembourg and has a rich industrial heritage. Not least because of this heritage, the city is currently undergoing a significant transformation. At the forefront of this process is the visionary project Rout Lëns. Aimed at revitalising a former industrial site, Rout Lëns is set to become a sustainable and socially vibrant neighbourhood.

Aim

Population projections estimate that by 2050, the city of Esch will almost double to 220,000 inhabitants. To meet this growing demand, new infrastructure is needed. Rout Lëns fits this dynamic perfectly. The project will revitalise a disused industrial site of 10.5 h and transform it into a sustainable and liveable neighbourhood. The overall objective is to create a harmonious balance between urban development, community engagement, and environmental sustainability. The project seeks to develop a vibrant, inclusive, and environmentally conscious space where residents can live and work. In addition, the neighbourhood is being developed in the sign of social and intergenerational diversity. The visionary approach pursues the following objectives and aims to create:

A strong territorial identity: building a strong community aligned with the industrial heritage and rehabilitating it.
A simple and fluid daily life: enabling a dynamic and convenient life for residents through technological innovation, soft mobility and logistics.
A territorial, human and cultural link: encouraging initiative by connecting people and different users of the space such as residents, visitors, employees, shop owners and neighbours.
A resilient neighbourhood: creating a sustainable community and space with high adaptability to challenges and changes.

Partnership

The Rout Lëns project is driven by the collaboration of various stakeholders and in close cooperation with the municipality. IKO Real Estate leads the project, supported by the architecture-urbanism agency Reichen et Robert & Associés, along with the landscaper Agency Phytolab. For the first two buildings Tatiana Fabeck and Carta Reichen and Robert & associés were contracted. The participatory process is guided by CityTools, an agency specialised in sociological and urban planning projects that incorporate local community input. This partnership ensures that the development of Rout Lëns remains aligned with the needs and wishes of its future inhabitants. Furthermore, the project is aligned with the Luxembourg government’s sector plan for housing, and the city of Esch-sur-Alzette has acquired almost 300 housing units, ensuring that 30% of the housing in the new district will be affordable housing.

Activities

The implementation of the project follows four founding pillars:

The urban structure – Industrial Culture Alley: The “Allée de la Culture Industrielle » will be a pedestrian route linking the five industrial heritage facilities which have become user-friendly, multifunctional places (Magasin TT, Halle des Turbines, Halle des Soufflantes, Portique de la Mollereï et Poste d’Aiguillage).
The built form – A stratified neighbourhood: a variation of building height will give multifunctionality to each stratum and diversity of uses such as hanging gardens, urban gardening, terraces, unobstructed views and a different atmosphere at each level of altitude.
The place of nature – A vegetal feeling: The masterplan of Rout Lëns prioritises well-being and nature in the real-estate project by e.g. planting almost 700 trees in the district.
A sustainable & innovative neighbourhood: the district will be adjusted towards innovation in terms of sustainable mobility, architecture, urban development, and energy supply consumption including waste management, urban farming and circular economy approaches.

The development of Rout Lëns is a participatory process that actively involves the local community. Through surveys, workshops, and consultations, residents and stakeholders had the opportunity to contribute their insights, ideas, and concerns during the first phases and will continue during its further implementation. This inclusive approach empowers the community to shape the future of their neighbourhood, fostering a sense of ownership and local identity.

The project includes housing of all sizes, from studios to flats with 1 to 4 bedrooms, including low-cost accommodations. The integration of affordable housing supports the project’s aim of creating a high degree of social mix within the neighbourhood. Although 81% of the area is dedicated to housing, it will not be only a residential neighbourhood since other uses will be included, such as schools, community and public services, shops and private services as well as offices and shared workspaces.

The Well Community certification guarantees that all buildings developed in Rout Lëns meet high-quality standards, focusing on the well-being of the residents. The certification prioritises air and water quality, natural light sources, and overall physical and psychological comfort. The incorporation of green spaces, including an urban forest, flower-filled meadows, and small habitats, will enhance biodiversity and provide pleasant environment with high quality of stay.

Soft mobility solutions will be prioritised to encourage sustainable transportation options, such as walking, cycling, and public transportation. A comprehensive network of shared mobility services, cycle paths, Bus Rapid Transit (BRT) and a high-speed tram line will ensure convenient accessibility to and within the neighbourhood. The connectivity and spatial planning are designed to align the new neighbourhood with surrounding residential areas and extend the city centre instead of depicting any competition for the rest of the city. In addition to that, the district is planned to be carbon-footprint-neutral and will try to recover grey water (wastewater from showers and sinks) and it will be supplied with geothermal energy. You can learn more about the energetic concept of the project in the first session of the CIPU lecture series from May 2023. You can find the recording here: https://www.youtube.com/watch?v=G88Gm22oHy4

The district will be constructed in three phases. The Eastern part will be constructed from 2024-2029, followed by a transition phase in 2028 resulting in construction phase 2 and 3 from 2030-2033. This way, certain sectors will be functional and habitable before the whole neighbourhood will be finished in 2035.

The new school. Copyright: Tatiana Fabeck, 2022

Outlook

Rout Lëns is a transformative project that envisions a sustainable, resilient, and socially inclusive neighbourhood in Esch-sur-Alzette. By combining innovative design, community engagement, and environmental management, Rout Lëns is set to revitalise the former industrial site into a liveable urban space. The project’s commitment to open-mindedness, innovation, inclusion and heritage is reflected in the four pillars of its vision. The realisation of Rout Lëns as is good practice of revitalising an industrial site and creating a sustainable and innovative urban space aligned with its heritage.

If you want further information and get a glimpse at how the district is going to look like, you can find more information, maps and visual material on the official website where you can also subscribe to the newsletter.

Contact

Rout Lëns: info@routlens.lu

IKO Real Estate: communication@ikorealestate.eu

References

Rout Lëns website (English, French and German): https://www.routlens.lu/
IKO real estate (English and French): https://www.ikorealestate.eu/fr/projet/rout-lens/
Digital view of the district: https://iko.virtualbuilding.fr/iko-routlens-en/

https://iko.virtualbuilding.fr/iko-routlens/le-quartier

Many brownfield development projects are under way in the Grand Duchy of Luxembourg. ‘Porte de Hollerich’ in Luxembourg City, ‘Belval’ in Esch-sur-Alzette, ‘Wunne mat der Wooltz’ in Wiltz and ‘NeiSchmelz’ in Dudelange are a few examples. All these are creating new urban districts with living space for many additional inhabitants and businesses. The ‘NeiSchmelz’ project in Dudelange will provide an additional 1,000 housing units on a 40 hectare brownfield site.

Large-scale brownfield development projects present many challenges for their cities, especially energy. In addition, existing infrastructure struggles to satisfy the increased demand. For ‘NeiSchmelz’, an innovative energy concept was developed, to use photovoltaics and deep geothermal energy.

View on the steel mill in 1928, that occupied the area of ‘NeiSchmelz’. Source: City of Dudelange, 2017.

Rationale for action

Because of its size, the ‘NeiSchmelz’ brownfield development poses significant challenges for the existing energy network. This would need to be extended if not complemented with new production facilities. As infrastructure investment significantly increases the cost of such projects, an alternative solution was needed.

‘NeiSchmelz’ was therefore planned as an eco-district. Renewable and carbon-neutral energy will be produced on site, i.e. not relying on fossil resources to supply electricity or heat. There are no centralised renewable energy production facilities in the area, so future energy in the district must be produced on site.

Planners had to develop an energy concept that relies on different energy sources. These will be photovoltaic installations (roofs and open ground) as well as the first deep geothermal drilling in Luxembourg. However, being the first in Luxembourg to drill 2,000 meter down, experience is scarce and the viability and potential had to be determined first.

Objective

Deep geothermal drillings are costly and innovative measures require intensive scoping-studies and test drilling to investigate whether this energy source is financially viable.

The potential for geothermal energy around ‘NeiSchmelz’ is significant. This has led to further investigation to assess drilling for heating in the district.

A first study on geothermal potential in Luxembourg was a doctoral thesis at the German Research Centre for Geosciences and the Luxembourg Geological Service between 2010 and 2015. A more concrete feasibility study included several drillings to test technical details and feasibility.

Video of the ‘NeiSchmelz’ project from the National Fund for Housing ‘Fonds du Logement’, 2021.

Time frame

The first energy concept for the district was developed in 2014. In 2015 important geothermal energy potential in ‘NeiSchmelz’ was identified. A new energy concept was developed in 2017 building on geothermal energy as a primary source for heat. A feasibility study between 2017 and 2019 determined the potential in greater detail.

Key players

The driving force behind the district and the energy concept is the City of Dudelange. It approves the energy concept and the land-use plan as well as following up on implementation of the measures. The district is being developed in cooperation with the Luxembourg Ministry of Housing and the national fund for affordable housing ‘Fonds du Logement’. The Luxembourg Ministry of Environment and its energy department is also a key player for developing and realising the districts’ energy concept. The City of Dudelange can thus rely on the support of national institutions in developing and implementing the plans.

Implementation steps and processes

With little experience of deep geothermal drillings among the involved institutions, preliminary investigations were required. A feasibility study measured the geothermal energy potential including test drillings of 300 to 400 meters between 2017 and 2019 in the area of the future district. The feasibility study determined that deep geothermal energy could supply the entire district with heat. At 2,000 meters temperatures of 70° to 80° Celsius yield enough heat to supply the district with hot water.

Required resources

The preparatory analysis including the feasibility study and test drillings cost about half a million Euros. This was co-funded by 40 % from the Luxembourg European Regional Development Fund (ERDF) programme. The total resources planned for deep geothermal drilling is unknown.

Results

‘NeiSchmelz’ will be equipped with a district heat system powered by a centralised geothermal energy plant. In conjunction with photovoltaic installations and near-surface geothermal energy, ‘NeiSchmelz’ will be an energy self-sufficient development.

Experiences, success factors, risks

Geothermal energy is new to Luxembourg and knowledge of potential, techniques, feasibility and economic viability are still scarce. In developing the concept and the feasibility study, cooperation between specialised players is key to ensuring that knowledge is institutionalised. This will help when implementing similar projects in future.

Urban development concept for the ‘NeiSchmelz’ district. Source: City of Dudelange, 2017.

Conclusions

Geothermal energy means the heat for all ‘NeiSchmelz’ will be from a renewable energy source. In conjunction with extensive photovoltaic installations, the district will have energy self-sufficiency and be a zero-carbon emissions district. As such, it is the first in Luxembourg, offering important experience for future large-scale brownfield developments in the country.

Contact

Mr Patrick Hoss, Director of the ecological department of the City of Dudelange: patrick.hoss@dudelange.lu

References

Tageblatt, 2018: Newspaper article on the planned use of geothermal energy in Dudelange (in German): https://www.tageblatt.lu/headlines/das-heisse-potenzial-von-duedelingen/

City of Dudelange, 2019: Chronology of the development of the brownfield development ‘NeiSchmelz’ (in French): https://www.dudelange.lu/fr/projets-urbains/projet-neischmelz

The south of Luxembourg is marked by the heritage of the steel industry and mining. Large active and inactive industrial sites next to urban centres remind residents and visitors of the peak of heavy industry. Located in the south of Dudelange city centre, the Schmelz district was home to a steel mill until 2005. The 40-hectare site is now undergoing a major brownfield reconversion project.

Rationale for action

Following the steel crisis in the 1970’s, more and more steel mills closed. Since then, the ongoing structural change has also affected Luxembourg’s south. In 2005, the former Schmelz steel mill was closed, which created a 40-hectare industrial brownfield site next to the city centre. The municipality saw the opportunity and kick-started a process to convert the site into a new urban district.

Schmelz district during early 20th century. Source: City of Dudelange, 2019.

Objective

The central objective of the NeiSchmelz project is to construct a new district with housing, commercial and cultural areas connecting the districts of Italie and Schmelz to the city centre. Preserving the heritage of heavy industry is particularly important for the municipality. Therefore, the municipality intends to maintain the former industrial character, by preserving industrial artefacts such as the water tower and the floor plan of the factory buildings.

NeiSchmelz will offer approximately 1 000 new housing units. The new district should be multifunctional, mixed and attractive also for locals. By involving the Housing Fund (Fonds du Logement) in the development, housing will also be available for prices below market value, which will further promote a social mix.

The new district will have easy access to Dudelange city centre, to surrounding districts, to green recreation areas and to the national traffic infrastructure. In addition to existing railway lines for example, there will be new traffic infrastructure within the new district and towards the surrounding areas (pathways, bike lanes, roads).

Time frame

The development started in 2008 and is ongoing (2021). The participatory phase started back in 2009 and the interim use concept was developed in 2011. A decontamination study and negotiations between the steel company (Arcelor Mittal) and the state were finalised in 2016. Since then, urbanistic concepts are being developed and implemented.

Key players

City of Dudelange, Housing Fund (Fonds du Logement), Luxembourg state functions (environment and water management administration, public roads and bridges administration (all under the Ministry of sustainable development and Infrastructure), CFL (national railway company)), Luxembourg EcoInnovation Cluster, developers, architects, civil society (community and social enterprises) and private developers.

Positioning of the NeiSchmelz district in relation to Dudelange centre (in the upper half of the picture). Source: City of Dudelange, 2019.

Implementation steps and processes

After the former steel mill closed in 2005, the municipal administration issued a call for proposals in 2006 to gather ideas for future use of the site. In 2008, there was a decision to create a new urban district with a focus on housing. A national call for development proposals was launched in 2009. In 2010, the NeiSchmelz proposal was awarded and planners were contracted to develop the master plan for the district. In parallel, a concept to decontaminate the area was elaborated. In the meantime, an interim use concept was initiated and the master plan was finalised in 2012. Negotiations between the steel company, who owned the site, and the state finished in 2016, transferring ownership of the site to the state-owned Housing Fund.

Alongside implementation, a participatory process involving the public was organised. From 2009 to 2016, local residents and interest groups could incorporate their ideas for the interim use and final state of the conversion. This was achieved through information campaigns, multiple consultations and workshops. Presentations of the project highlight changes introduced through the public consultation procedure to illustrate to citizens how their contribution has influenced the project.

In order to develop the site, the municipal land-use plan (PAG) had to be changed. For the technical implementation, the city will rely on four so-called PAP (partial land-use plans). These act as building permits and were submitted for approval in late 2017.

Required resources

Since the project is implemented stepwise, the required resources cannot be specified. A key aspect for the project, however, was the acquisition of the site from the steel company.

Results

So far, there are few results of the conversion project. 1 000 new housing units will create living space for around 2 000 new residents. Additionally, there will be new commercial areas as well as public and semi-public areas for social and cultural exchange. A large area in the centre of the district will be for businesses, targeting start-ups and innovative enterprises. Building permits, in the form of partial land use plans for the new district were submitted for approval in late 2017 and approved in 2019.

Experiences, success factors, risks

Reconversion provides the opportunity to bring new types of land use into an urban area. NeiSchmelz creates a new residential district with businesses and public spaces. At the same time, the project illustrates how cultural heritage from the steel industry can be preserved while changing the usage of the site.

This industrial reconversion is a large-scale project that benefits from multi-level governance arrangements. In particular for the negotiations with the globally acting industrial companies, it was important to involve a national player.

The project is similar in size to other conversion projects in Luxembourg. For most of these projects, the sheer size in relation to the immediate surroundings and existing urban fabric poses special challenges for planners and architects.

Conclusions

NeiSchmelz illustrates that participatory processes, if implemented thoughtfully, have an impact on the length of a planning process. Participation, however, is key to acceptance of the new project and should thus represent a central pillar in the planning process. A good project requires effort and time.

Contacts

Ms Eva Gottschalk, Chief planner of the City of Dudelange: Eva.Gottschalk@dudelange.lu

References

City of Dudelange, 2021: project website: http://www.dudelange.lu/fr/projets-urbains/projet-neischmelz

City of Dudelange, 2013: participation report: http://www.dudelange.lu/fr/Documents/2013_Neischmelz-Rapport.pdf

In 2013 there were some 995 hectares of vacant building land in Luxembourg which are classified as ‘Baulücken’. They are connected to infrastructure such as electricity and waste water. In principle, they are immediately available for construction and thus can tackle short- and intermediate-term needs for housing. To stimulate the use of these plots, the state has initiated the so-called ‘Baulückenprogramm’ (vacant lot identification and mobilisation programme). In Dudelange, the first project under the national programme is now underway.

Rationale for action

Tackling the housing shortage is a key priority on the political agenda in Luxembourg. By constructing more housing units, the shortage of living space can be reduced and prices could drop. Additionally, developing the vacant lots avoids urban sprawl. However, a limiting factor is their ownership structure as developing the lots for housing requires a consent of the owner. Only 6 % of these 995 hectares belong to public actors (state, municipalities and public funds). 94% belong to the private sector.

Owner structure of ‘Baulücken’ in Luxembourg: the majority is owned by private individuals (82.2%), followed by businesses (11.7%), municipalities (4.3%) and the state (0.7%). The structure shows the need to inform and cooperate with private owners in mobilising ‘Baulücken’ for urban development. Source: Ministry of Housing, 2016.

Objective

The national ‘Baulückenprogramm’ aims at activating these lots for the construction of housing. Developing these areas does not require long administrative procedures and it is possible to develop them relatively quickly. A first objective of the programme is to identify the lots and to make owners aware of how their lots could contribute in satisfying the demand for housing. In this process, municipalities act as intermediaries between the state and private owners.

Time frame

2014 – today

Key players

Land owners, municipalities as intermediaries and the state (Ministry for Housing) setting political targets and contracting external consultants. During the implementation of the programme, private and public landowners are and will be involved.

Implementation steps and processes

In 2014, the programme was initiated by the Ministry of Housing alongside other measures to revitalise housing construction and to address the shortage of housing in Luxembourg. Among these other measures are hereditary leaseholds, pre-emption rights for public actors, tax reform for housing, renting subsidies and ‘Baulandverträge’ (building land contracts).

Fictional example of the information brochure: the yellow ‘Baulücken’ provide the same surface as the red greenfield development. Source: Ministry of Housing.

The Ministry of Housing launched the programme, external consultants conducted the analysis and municipalities have to validate the results. Addressing private owners by providing information on the added value of the property and explaining the concrete advantages of mobilising specific lots should stimulate development. Public authorities should act as an interlocutor and advise owners to develop their property privately.

Experience from Germany has shown that information campaigns helped to convince 25% of private owners to develop their plots within the building perimeter.

Required resources

The process consists of multiple parts, so the resources required are unknown. The process is implemented by multiple actors with different motives and means, and thus estimating the required resources is not possible.

Results

The ‘Baulückenprogramm’ has just started and has not yet provided additional tangible results. The analysis of the municipal building pattern to identify vacant lots has not yet been completed for all municipalities in Luxembourg.

Communicating the identified vacant lots to municipalities is realised through an online platform providing tailor-made access. A first pilot under the national vacant lot mobilisation programme is realised in Dudelange, in the south of the country. To develop the 0.4 hectares of land in Dudelange, a first call for tender for proposals was launched in 2016. The call was organised in cooperation with the Ministry for Housing and the municipality of Dudelange, incorporating the Fonds du Logement (the national Housing Fund). The winning concept Um Bierenger Haff proposes transforming the former farm into 16 apartments for families and single households. It keeps the rural character of the district and has multiple meeting places for new and old residents.

Facade of the new units at ‘Bierenger Haff’ in Dudelange. Source: Ministry of Housing, 2017.

Experience, success factors, risks

Mobilising private owners of vacant lots through information campaigns is decisive where land is privately owned and inaccessible for developing housing. It is also essential that public stakeholders lead by example by developing vacant lots on publicly owned land.

However, it remains to be seen whether the programme will be successful without financial incentives.

Conclusions

The first project Um Bierenger Haff in the framework of the national ‘Baulückenprogramm’ is a pilot to see how vacant lots can be used quickly without an excessive administrative burden. It is also the first opportunity to test the connection between different levels of decision-making and different economic rationales on matters of housing (private, municipal, state). The experience will help future mobilisation of vacant lots.

Contact

Ms Carmen Wagener, Ministry of Housing: Carmen.Wagener@ml.etat.lu

Ms Eva Gottschalk, municipality of Dudelange: Eva.Gottschalk@dudelange.lu

References

Ministry of Housing, Fonds du Logement, ville de Dudelange, 2017 – Concours “Baulücke” à Dudelange (in French): https://gouvernement.lu/dam-assets/fr/actualites/communiques/2017/07-juillet/24-hansen-dudelange/Dossier-de-presse-_pdf_.pdf

Ministry of Housing, 2016: Lücke sucht Wohnung, neue Chancen für den Wohnungsbau (in German): https://gouvernement.lu/dam-assets/fr/actualites/communiques/2016/07-juillet/08-dudelange-bauluecken/SKMBT_C22416070511540.pdf

About 30% of land in the city of Luxembourg is owned by the municipality. Only about 246 of the publicly owned 1 600 hectares are classified in the local land use plan as building land, being connected to infrastructure and available for construction. With continuously increasing pressure on the housing market, the municipality is creating affordable housing for its citizens, through developing the ‘Baulückenprogramm’.

Rationale for action

Tackling the housing shortage is a key priority in Luxembourg overall, but especially in the capital, Luxembourg city, which is the main pole of attraction for people and businesses. By constructing affordable housing, the municipality can select tenants and owners from specific socio-economic groups. Developing vacant lots within the city can also avoid urban sprawl.

Houses built during the 1st iteration of the ‘Baulücken’ programme in 53-59, rue Schetzel.

Objective

The Luxembourg city ‘Baulückenprogramm’ uses vacant lots owned by the municipality to construct affordable housing. Developing such areas does not require long administrative procedures so construction can begin relatively quickly. More housing units can be created without developing land outside the existing urban fabric.

Time frame

There have been three rounds from 2006 to today (2021). The ‘Baulückenprogramm’ was first initiative of its kind in the country.

Key players

A joint working group of the municipality of Luxembourg (political players and municipal employees), Ministry of Housing and OAI (an organisation of architects and consulting engineers) organise the process and decide on proposals.

With the ‘Baulückenprogramm’, the municipality cooperates with private enterprises, architects and property developers. Developing concepts and plans for the vacant lots, while construction is organised through public procurement. Architects submit proposals for the housing design and private developers for the construction.

Implementation steps and processes

The ‘Baulückenprogramm’ is an umbrella term covering several implementation steps. The programme identifies vacant lots and implementation involves several rounds of planning and construction.

The municipality began identifying vacant lots based on information from satellite imagery, the land register and the local land-use plan. 73 potential sites were identified, for which district and individual records were created. Based on this information, the sites were presented to a working group, which selected the vacant lots to be developed.

The units are planned and realised in cooperation with architects and private real estate developers who build and sell the accommodation. The obligations and duties of developers are laid down in a contract with the municipality, clarifying the terms and conditions of transferring the units to future owners.

The units are allocated to residents through predefined selection criteria. A comprehensible and transparent checklist for each applicant allocates points based on individual socio-economic factors. A higher score indicates a greater possibility of being chosen as a future owner.

The selection criteria include the applicant’s age, family situation, working location and number of consecutive years lived in the city. There is a maximum score of 19 points (< 30 years of age, > 3 children, working in Luxembourg, living consecutively in the city for more than five years) and a minimum score of three points (> 45 years of age, no children, not working in Luxembourg, not living consecutively for more than five years in the city).

The units are sold through heredity leaseholds of 99 years. On a single lump-sum payment, the building land is transferred from the municipality to the developer (and finally to the future owner) and an annual user fee is required for the accommodation. Owners must personally reside in the units and cannot rent the property to a third person. The municipality also keeps a preemption right on all accommodation.

Apartment house built during the 2nd iteration of the ‘Baulücken’ programme in 1-13, rue des Forains.

Results

The first round of the ‘Baulückenprogramm’ was in 2006 for nine vacant lots. Construction finished in 2010. The second round was initiated in 2010 for four lots, which was finalised in 2015. The last and current round started in 2013 for five lots and construction have been finalised in 2018.

During the first round (2006-2010), 75 accommodations were built including 18 single family homes. The second round created 58 apartments (2010-2015) and in the third round 64 units were completed in 2018. In all 197 accommodations have been realised through the ‘Baulückenprogramm’ so far. All units built during the first two rounds were sold to individuals. About half the accommodation in the third round will also be sold with the rest to be rented as social housing or affordable housing. All units follow state of the art building techniques and design principles.

Experiences, success factors, risks

The ‘Baulückenprogramm’ shows that municipalities in Luxembourg have an effective instrument to directly shape the supply of affordable and social housing. Emphasising building quality and design ensures residential buildings are integrated into their surroundings.

The programme was realised on vacant lots owned by the municipality. The majority of vacant lots in Luxembourg city are however owned by private individuals. The ‘Baulückenprogramm’ is a useful instrument to address the shortage of affordable housing in publicly owned areas. To mobilise private lots, other instruments and steps might be necessary.

Apartment house built during the 2nd iteration of the ‘Baulücken’ programme in 39bis, rue de Cessange.

Conclusions

The ‘Baulückenprogramm’ has seen the municipality pro-actively create affordable housing for residents. This enables the municipality to select future owners individually, offering affordable housing for specific socio-economic groups.

Contact

Urban development service,City of Luxembourg: urbandevelopment@vdl.lu

References

Presentation Ville de Luxembourg “Baulückenprogramm” (in French): https://docplayer.fr/23010248-Baulucken-historique.html

Fonds du Logement is the national fund for housing. It was established in 1979 and acts as a residential development company for Luxembourg.

Rationale for action

Housing prices in Luxembourg have increased steadily over the past 20 years. Among other reasons this is caused by a mismatch in supply and demand. High demand and limited supply had a multiplying effect on prices for housing. It has become increasingly difficult for large parts of the population to find housing, as the increase of their household incomes does not match the increase in property prices.

In 2013, a study identified that approximately 30 000 households need affordable housing within the country. This compares to a total of 4 000 subsidised units currently offered by public authorities.

Objective

With the creation of Fonds du Logement, the state implemented a public institution. The Fund follows the principle of a non-profit organisation that acts on behalf of the general public interest.

The Fund fulfils several tasks:

Renting out housing to people who are financially disadvantaged (i.e. providing social housing) and selling housing to people that are eligible for a housing construction premium (i.e. providing subventioned housing) through sale, leasehold or a combination of both.
The above task includes supporting the tenants and the family members of social housing units the Fund provides. In other words, the Fund assists tenants in fulfilling their obligations as renters. This reduces conflicts between tenants and ensures harmonious cohabitation within the buildings of Fonds du Logement and integration into the residential surrounding.
The Fund can also execute all other tasks in relation to housing projects of general public interest. The involvement is subject to agreement between the state and Fonds du Logement.
To guarantee functional and social mix in the districts where the Fund implements its tasks, Fonds du Logement can acquire, create, renovate, sell, rent or transfer surfaces of commercial, social or professional purposes. This applies for social, subventioned and non-subventioned housing. In complexes where Fonds du Logement sells or rents individual parts, it can act as trustee.
Implementing its tasks, the Fund can act individually or in cooperation with any other public or private entity. It is also equipped with the possibility to apply preemption and redemption rights on all of its sales for up to 99 years.
In accordance with the European Commission regulation on state-aid rules the mission of Fonds du Logement on general public service provision is limited to 99 years.

In general, the Fonds du Logement enlarges and maintains through its actions the public housing inventory dedicated for sale and for rentals. The Fund has the legal autonomy to develop by itself or in cooperation with municipalities, housing within the framework of existing municipal land-use plans.

Fonds du Logement logo. Source: Fonds fu Logement.

Time frame

1979 – today (2021)

Key players

Municipalities where projects are implemented, the state through the Ministry of Housing, architects and building companies in charge of implementation.

Implementation steps and processes

Fonds du Logement, in its capacity as a public residential development company, benefits from several legal advantages. It is attributed with a preemption right on land sales. For the units it has built, the Fund has the autonomy to contractually implement preemption, repurchase and redemption rights. The corresponding sales price is evaluated for each unit individually. By developing and enlarging the inventory of publicly owned subsidised housing, the Fund exercises the function of a public developer.

Tenants and buyers of units provided by Fonds du Logement benefit from subsidised prices. The Fund also leases units without intermediaries, supervising and supporting tenants of the social housing units. It therefore acts not only as a public developer but also executes social tasks.

Required resources

The Fund benefits from an annual budget provided by the state. During 2019, the budget amounted to EUR 507 million. More information can be accessed on the website of the Fund.

Results

The Fund owns and administers currently approximately 2 000 housing units and since its establishment, it has sold about 1 700 accommodations. With the recently initiated large-scale development projects, the number of housing units is expected to increase significantly during the coming years. Fonds du Logement is currently a major stakeholder in three major urban development projects, notably in Wiltz (‘Wunne mat der Wooltz’), Esch-sur-Alzette (‘Nonnewisen’) and Dudelange (‘NeiSchmelz’).

The Fund also guarantees a mix between functions in the projects it implements. An example therefore is the newly created district Nonnewisen in the city of Esch-sur-Alzette. Fonds du Logement was involved in creating housing as well as commercial surfaces for shops and businesses.

Experiences, success factors, risks

The recent rise in public development projects is expected to address the demand for affordable housing incrementally. Therefore, Fonds du Logement is also working on large-scale projects. Ongoing large-scale projects ‘Nonnewisen’, ‘Neischmelz’ and ‘Wunne mat der Wooltz’ in which the Fund is involved, will each accommodate between 1 800 and 2 000 residents. These projects will substantially help to satisfy parts of the demand for housing in the areas where they are implemented. The large-scale projects are implemented through innovative urban development techniques and processes that are based on the principles of circular economy.

In general, it is difficult for large-scale projects to integrate easily into the surrounding urban and social pattern. The sheer size of such developments in comparison to the surrounding creates new challenges. For example, ‘Wunne mat der Wooltz’ will create housing for 1 800 people, increasing the current population of the municipality of Wiltz in the north of the country by some 30%.

Conclusions

A public agency serving as a counterweight to the housing market is essential to provide social and affordable housing. Because of lower profit margins, private developers usually have little interest in creating housing for lower income households, leading to a market failure. Public institutions such as Fonds du Logement must mitigate this to avoid segregation and social marginalisation.

Contact

General E-mail address: info@fondsdulogement.lu

References

2019 Fonds du Logement annual report (in French)

Fonds du Logement Website