REPUBLIC OF LITHUANIA LAW

ON SUPPORT FOR HOUSING ACQUISITION OR RENTAL

9 October 2014	No XII-1215

(As last amended on 3 December 2020 – No XIV-37)

Vilnius

CHAPTER I

GENERAL PROVISIONS

Article 1. Purpose and scope of the Law

1. The purpose of this Law is to lay down the principles of the provision of support for housing acquisition or rental to persons and families, the sources and forms of financing, the rights and duties of persons receiving support for housing acquisition or rental, as well as the conditions and procedure for renting social housing and municipal housing as well as selling municipal housing.

2. This Law shall apply to the following persons who have declared their place of residence in accordance with the procedure laid down in the Law of the Republic of Lithuania on Declaration of the Place of Residence or to persons who are entered in the records of persons who have not declared their place of residence:

1) citizens of the Republic of Lithuania and their family members;

2) nationals of any other Member State of the European Union or a country of the European Free Trade Association participating in the European Economic space and their family members;

3) foreigners holding a permit of a long-term resident of the Republic of Lithuania to reside in the European Union;

4) foreigners who have been granted asylum in the Republic of Lithuania.

Article 2. Definitions

1. ‘Housing unit’ means a self-contained residential house, a flat or any other residential accommodation or parts thereof suitable for living by a single person or a family and meeting construction requirements as well as essential requirements (hygiene, fire safety, etc.).

2. ‘Flat’ means a part of a residential house consisting of one or several rooms, a kitchen and other premises separated from the common spaces, other flats or non-residential accommodation by partition walls.

3. ‘Housing leasing’ means the rental of a housing unit by which a lessor allows a tenant to manage and use the housing unit in return for payment, regardless whether he manages the housing unit by the right of ownership or he has the right to rent the housing unit by leasing granted to him by law or the owner of the housing unit, provided that the tenant acquires ownership of the housing unit upon the payment of the full price set out in the contract.

4. ‘Young family’ means a family in which each of the spouses or persons who have entered into a registered partnership contract is under the age of 36, as well as a family in which the mother or father, the guardian/curator who is under the age of 36 brings up alone one or more children or/and the child/children placed under permanent guardianship/curatorship.

5. ‘Person deprived of parental care’ means a person under the age of 18 whose both parents have died or whose sole parent has died and/or who is placed under temporary or permanent guardianship/curatorship.

6. ‘Usable floor space of a housing unit’ means the total floor space of the living rooms and other premises of a housing unit (kitchens, sanitary units, corridors, built-in closets, heated loggias and other heated ancillary spaces). The usable floor space of a housing unit shall not include the floor space of balconies, terraces, basements and unheated loggias.

7. ‘Person with disabilities’ means a person for whom, in accordance with the procedure laid down in the Law of the Republic of Lithuania on the Social Integration of the Disabled, either a severe or moderate disability or a working capacity level of 40 per cent or less has been established, or a person who has attained the old-age retirement age and for whom a level of special needs has been established.

8. ‘Municipal housing’ means a housing unit owned by a municipality or leased by it from natural or legal persons and included in the list of municipal housing stock approved by the municipal council or the municipal administration authorised by it.

9. ‘Sale of municipal housing’ means the transfer to private ownership of a housing unit and outbuildings owned by a municipality in return for a fixed amount of money (price) in accordance with the procedure laid down in this Law.

10. ‘Social housing' means a housing unit owned by a municipality or leased by it from natural or legal persons and included in the list of social housing stock approved by the municipal council or the municipal administration authorised by it, where such a list is part of the list of municipal housing stock. According to the terms laid down in this Law, social housing does not include dormitories, hostels, accommodation provided by employer, accommodation of social services establishments, municipal housing units which are rented not under the conditions of social housing rental.

11. ‘Family’ means spouses, persons who have entered into a registered partnership agreement and, if any, their child/children under the age of 18 or/and their child/children under the age of 18 who has/have been placed under permanent guardianship/curatorship, as well as a married person and his child/children under the age of 18 years or/and his child/children under the age of 18 who has/have been placed under permanent guardianship/curatorship and who is/are left by a court’s decision to live with the said married person because of the separation of the spouses, or one of the parents, guardians/curators and his child/children under the age of 18 or/and his child/children under the age of 18 who has/have placed granted permanent guardianship/curatorship, persons who are recognised by a court’s decision as family members. The family shall also include unmarried adult children who do not raise children and who are under the age of 24 and/or adult children under the age of 24 who were placed under curatorship before they attained the age of majority and who study at general education schools, vocational training schools, higher education institutions, adult children who have completed general education schools or vocational training schools and/or adult children who were placed under curatorship before they attained the age of majority, from the completion of the general education schools or vocational training schools until 1 September of the same year, persons with disabilities living with their parents as well as guardians/curators and the persons under their guardianship/curatorship living with them, parents of the spouses or persons who have entered into a registered partnership agreement, or parents of the person if they live together with that person, provided that all these persons are indicated in a claim for support for housing acquisition or rental.

12. ‘Adequate accommodation’ means a housing unit with a usable floor space per person or family member, measured when paying reimbursement of part of housing rental or housing leasing, of not less than 10 square metres and not more than 14 square metres.

13.’Housing loan partially reimbursed by the State’ means money of a lender entered on the public list of lenders (hereinafter: a ‘lender’) lent under a loan agreement to persons and families meeting the requirements laid down in this Law for the acquisition of a housing unit (whether for the purchase and/or construction of the housing unit) or for the reconstruction of an owned housing unit. Under this Law, part of the housing loan partially reimbursed by the State may be used to purchase a plot of land on which a housing unit is situated or is planned to be constructed.

14. Other concepts used in this Law shall be interpreted as they are defined in the Law of the Republic of Lithuania on Loans Relating to Immovable Property.

Article 3. Principles of providing support for housing acquisition or rental

Support for housing acquisition or rental shall be provided pursuant to the following principles:

1) equality – support for housing acquisition or rental is provided in such a way as to ensure equality between persons and families;

2) social justice – support for housing acquisition or rental is provided to persons and families on the basis of an assessment of their property, income received and other factors relevant to the social situation of the person and the family;

3) choice – support for housing acquisition or rental is based on the right of persons and families to choose between several forms of support for housing acquisition or rental;

4) effectiveness and efficiency – support for housing acquisition or rental is granted with a view to increasing the motivation of persons and families entitled to support for housing acquisition or rental under this Law to integrate into the labour market and to make rational use of available resources.

CHAPTER II

INSTITUTIONS RESPONSIBLE FOR SUPPORT

FOR HOUSING ACQUISITION OR RENTAL.

FUNDING OF SUPPORT FOR HOUSING ACQUISITION OR RENTAL

Article 4. Institutions responsible for support for housing acquisition or rental

1. Institutions responsible for support for housing acquisition or rental shall be as follows:

1) the Government of the Republic of Lithuania;

2) the Ministry of Social Security and Labour of the Republic of Lithuania;

3) municipal institutions.

2. The Government shall adopt legal acts governing the policy of support for housing acquisition or rental and perform other functions laid down in this Law.

3. The Ministry of Social Security and Labour shall:

1) shape the policy of support for housing acquisition or rental;

2) organise, coordinate and control the implementation of the policy of support for housing acquisition or rental;

3) coordinate the allocation of resources from the state budget, European Union support funds as well as from other financial sources for municipalities to provide support for housing acquisition or rental to persons and families;

4) lay down the procedure for examining claims for support for housing acquisition or rental;

5) perform other functions specified in this Law.

4. Municipal councils shall perform the functions specified in this Law.

5. The municipal administration shall:

1) determine whether persons and families are eligible for support for housing acquisition or rental;

2) not later than one month before 1 May of the current year, inform in writing the persons and families receiving support for the rental of housing and reimbursement of part of housing leasing about the obligation to declare assets (inclusive of income received) in accordance with the procedure laid down in the Law of the Republic of Lithuania on the Declaration of Assets of Residents;

3) organise and sell municipal housing units and outbuildings;

4) in order to determine whether a person or family is eligible for support for housing acquisition or rental, apply in accordance with the procedure laid down in the Law on the Declaration of Assets of Residents to the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania for information about declarations of assets (inclusive of income received) of a person/his family who claims support for housing acquisition or rental, a person/his family entered on the List of Persons and Families Eligible for Social Housing Rental, a person or family who benefits from support for housing rental or a person or family receiving reimbursement of part of housing leasing;

5) when taking a decision to enter a person or family on the List of Persons and Families Eligible for Social Housing Rental, inform in writing of the availability and conditions of reimbursement of part of housing rental or housing leasing;

6) perform other functions specified in this Law.

Article 5. Funding of support for housing acquisition or rental

1. Funding of support for housing acquisition or rental shall consist of cash receipts obtained in accordance with the procedure laid down in this Law and appropriations from the state budget and municipal budgets.

2. Reimbursement of part of housing rental or housing leasing shall be funded from the state budget.

3. Special targeted grants of the state budget to municipal budgets for reimbursement of part of housing rental or housing leasing shall be distributed, transferred, adjusted, used and accounted for in accordance with the Methodology for Calculating Funds of Special Targeted Grants to Municipal Budgets approved by the Minister of Social Security and Labour of the Republic of Lithuania.

4. The development of social housing stock shall be funded from the state budget, municipal budget, the sale of municipal housing and other legitimate funds used in accordance with this Law, the programme for the development of social housing stock approved by the municipal council or other strategic planning documents of the municipality which provide for the development of social housing stock.

5. Housing rental for a period of at least five years from natural or legal persons to the municipalities of Vilnius City or Vilnius District, Kaunas City, Klaipėda City, Palanga City or Neringa shall be funded from the state budget by covering 70 per cent of the rental price of rented housing and 80 per cent of the rental price of rented housing for other municipalities, ensuring the necessary funding of housing rental in municipalities referred to in this paragraph. State budget funds intended for coverage of housing rental from natural or legal persons shall be distributed, transferred, adjusted, used and accounted for to municipal budgets in accordance with the procedure laid down by the Minister of Social Security and Labour.

6. Special targeted grants to municipal budgets from the state budget shall be used to administer reimbursement of part of housing rental or housing leasing for up to 4 per cent of the funds allocated to reimburse part of housing rental or housing leasing. The Minister of Social Security and Labour shall lay down the specific percentage of the funds allocated for the administration of reimbursement of part of housing rental or housing leasing as well as the procedure for distributing, transferring, adjusting, using and accounting for the use of such funds.

7. Support for the purchase of housing through subsidies to cover part of the housing loan partially reimbursed by the State shall be funded from the state budget.

CHAPTER III

FORMS OF SUPPORT FOR HOUSING ACQUISITION OR RENTAL AND DETERMINATION OF THE ELIGIBILITY FOR SUCH SUPPORT

Article 6. Forms of support for housing acquisition or rental

1. Support for housing acquisition shall be provided by way of:

1) granting subsidies to recipients of housing loans partially reimbursed by the State to cover part of the housing loan partially reimbursed by the State;

2) reimbursing part of housing leasing.

2. Support for housing rental shall be provided by way of:

1) letting social housing;

2) reimbursing part of housing rental.

3. Persons and families eligible for more than one form of support for housing acquisition or rental may only benefit from one of the forms of support set out in paragraphs 1 and 2 of this Article at a time.

Article 7. Claiming support for housing acquisition or rental

1. Persons and families who meet the requirements laid down in Articles 8, 9 or 10 of this Law, in order to receive support for housing acquisition or rental, shall submit a claim for support to the municipal administration in accordance with the place of residence declared by a person (in the case of a family, by one of the family members selectively) pursuant to the procedure laid down in the Law on Declaration of the Place of Residence or, if a person does not have the declared place of residence, to the administration of the municipality in which he is entered in the records of persons who have not declared the place of residence, by submitting a claim for support for housing acquisition or rental in the form approved by the Minister of Social Security and Labour.

2. If the documents and/or data necessary to determine a person’s or family’s eligibility for support for housing acquisition or rental are contained in the state registers/cadastres, departmental registers, state information systems or the municipal administration obtains them from state and/or municipal institutions, agencies, enterprises and organisations on request and/or under data supply agreements, the person or the family shall not be required to submit those documents and/or data. Data processors of state registers/cadastres, departmental registers, state information systems as well as state and/or municipal institutions, agencies, enterprises and organisations must, at the request of the municipal administration, provide free of charge to the municipal administration the documents and/or data necessary to determine a person’s or family’s eligibility for support for housing acquisition or rental.

Article 8. Eligibility for housing loan partially reimbursed by the State and for reimbursement of part of housing leasing

The following persons and families shall be eligible for housing loan partially reimbursed by the State and for reimbursement of part of housing leasing, provided they meet all the requirements set out in this Article:

1) those who have declared their assets and the received income in accordance with the procedure laid down by the Law on the Declaration of Assets of Residents; the value of the declared assets and the income which, included in the income received by the person or the family pursuant to Article 17 of the Law of the Republic of Lithuania on Cash Social Assistance for Low-Income Families, do not exceed the amounts of income and assets set out in Article 11(1) of this Law;

2) those who acquire the first home in the Republic of Lithuania or meet one of the following conditions:

a) those who, within five years preceding the submission of the claim for support for housing acquisition and at the time of submission of such claim, do not own any housing unit and have not benefited from this form of support or financial incentive for young families acquiring the first home pursuant to the Law of the Republic of Lithuania on the Financial Incentive for Young Families Acquiring a First Home;

b) those who own or, within five years preceding the submission of the claim for support for housing acquisition, owned a housing unit the usable floor space of which (the sum of usable floor spaces of all the currently owned housing unit and/or housing units previously owned at the same time in the Republic of Lithuania) per person or family member is less than 14 square metres, or the owned housing unit, regardless of its usable floor space, is physically depreciated by more than 60 per cent according to the Real Property Cadastre. Support shall be granted to recipients of housing loans partially reimbursed by the State for the purchase, construction (part of the loan being used for the purchase of a plot of land on which the housing unit is situated or is planned to be constructed), for the reconstruction of the owned housing unit, or when reimbursing part of housing leasing;

c) a person with disabilities or a family which includes a person with disabilities owns a housing unit not adjusted to the needs of persons with disabilities. Support shall be granted only for the reconstruction of housing units owned by the recipients of housing loans partially reimbursed by the State to adjust them to the needs of persons with disabilities.

Article 9. Eligibility for rental of social housing

1. The following persons and families shall be eligible for the rental of social housing, provided they meet all the requirements referred to in this paragraph:

1) those who have declared their assets and the received income in accordance with the procedure laid down by the Law on the Declaration of Assets of Residents; the value of the declared assets and the income which, included in the income received by the person or the family pursuant to Article 17 of the Law of the Republic of Lithuania on Cash Social Assistance for Low-Income Families, do not exceed the amounts of income and assets set out in Article 11(3) of this Law;

2) those who do not own a housing unit in the Republic of Lithuania or an owned housing unit is physically depreciated by more than 60 per cent according to the Real Property Cadastre or the usable floor space of an owned housing unit per person or family member is less than 10 square metres, or less than 14 square metres if the family includes a person with disabilities or a person suffering from the severe form of a chronic disease recorded in the list approved by the Government or an institution authorised by it.

2. Eligibility for the improvement in the rental conditions of social housing shall be enjoyed by persons and families residing in social housing leased by a municipality if the usable floor space of social housing leased to them per member of the family is less than 10 square metres or, in the cases set out in paragraph 1 of this Article, is less than 14 square metres, or if they are eligible for the improvement in the rental conditions of social housing in accordance with the normative standards of the usable floor space of a social housing unit as set out in Article 15 of this Law, or if the person or member of the family becomes disabled and, due to the impairment of mobility or self-care functions, a specifically adjusted social housing must be leased to him /the family.

3. Persons and families with whom a social housing rental agreement is terminated due to them breaching the terms and conditions of the social housing rental agreement shall become eligible for the rental of social housing after five years from the termination of the social housing rental agreement, unless a shorter period is laid down by the municipal council.

Article 10. Eligibility for reimbursement of part of housing rental

The following persons and families shall be eligible for reimbursement of part of housing rental, provided they meet all the requirements set out in this Article:

1) those who have declared their assets and the received income in accordance with the procedure laid down by the Law on the Declaration of Assets of Residents; the value of the declared assets and the income which, included in the income received by the person or the family pursuant to Article 17 of the Law of the Republic of Lithuania on Cash Social Assistance for Low-Income Families, do not exceed the amounts of income and assets set out in Article 11(2) of this Law;

2) those who do not own a housing unit in the Republic of Lithuania or an owned housing unit is physically depreciated by more than 60 per cent according to the Real Property Cadastre or the usable floor space of an owned housing unit per person or family member is less than 10 square metres, or less than 14 square metres if the family includes a person with disabilities or a person suffering from the severe form of a chronic diseases contained in the list approved by the Government or an institution authorised by it;

3) those who have rented a housing unit owned by natural or legal persons (except municipalities) in accordance with the procedure laid down in Article 17(1) of this Law.

Article 11. Annual amounts of income and assets of persons and families valued for the purpose of determining eligibility for support for housing acquisition or rental

1. The following persons and families the value of whose assets and income declared in accordance with the procedure laid down in the Law on Declaration of Assets of Residents, where such income is included in the income received by the person or the family pursuant to Article 17 of the Law of the Republic of Lithuania on Cash Social Assistance for Low-Income Families, do not exceed the following amounts shall be eligible for support for housing acquisition:

1) the annual net income of a person without a family comprises 106 amounts of state supported income (hereinafter: the ‘SSI’) and the assets comprise 129 amounts of the SSI;

2) the annual net income of a family of two or three persons comprises 148 amounts of the SSI and the assets comprise 262 amounts of the SSI;

3) the annual net income of a family of four or five persons comprises 178 amounts of the SSI and the assets comprise 349 amounts of the SSI;

4) the annual net income of a family of six or more persons comprises 30 amounts of the SSI per person and the assets comprise 83 amounts of the SSI per person.

2. The following persons and families the value of whose assets and income declared in accordance with the procedure laid down in the Law on Declaration of Assets of Residents, where such income is included in the income received by the person or the family pursuant to Article 17 of the Law of the Republic of Lithuania on Cash Social Assistance for Low-Income Families, do not exceed the following amounts shall be eligible for reimbursement of part of housing rental:

1) the annual net income of a person without a family residing in the municipality of Vilnius city or district, the municipality of Kaunas city or district, the municipality of Klaipėda city or district, the municipality of Palanga city or Neringa municipality comprises 62 amounts of the SSI and the assets comprise 93 amounts of ther SSI; the annual net income of a person without a family residing in another municipality comprises 51 amounts of the SSI and the assets comprise 56 amounts of the SSI;

2) the annual net income of a family of two or three persons residing in the municipality of Vilnius city or district, the municipality of Kaunas city or district, the municipality of Klaipėda city or district, the municipality of Palanga city or Neringa municipality comprises 122 amounts of the SSI and the assets comprise 168 amounts of the SSI; the annual net income of a family of two or three persons residing in another municipality comprises 106 amounts of the SSI and the assets comprise 112 amounts of the SSI;

3) the annual net income of a family of four or more persons residing in the municipality of Vilnius city or district, the municipality of Kaunas city or district, the municipality of Klaipėda city or district, the municipality of Palanga city or Neringa municipality comprises 35 amounts of the SSI per person and the assets comprise 75 amounts of SSI per person; the annual net income of a family of four or more persons residing in another municipality comprises 31 amounts of SSI per person and the assets comprise 56 amounts of the SSI per person.

3. The following persons and families the value of whose assets and income declared in accordance with the procedure laid down in the Law on Declaration of Assets of Residents and included pursuant to Article 17 of the Law of the Republic of Lithuania on Cash Social Assistance for Low-Income Families in the income received by the person or the family do not exceed the following amounts shall be eligible for support for social housing rental:

1) the annual net income of a person without a family residing in the municipality of Vilnius city or district, the municipality of Kaunas city or district, the municipality of Klaipėda city or district, the municipality of Palanga city or Neringa municipality comprises 46 amounts of the SSI and the assets comprise 93 amounts of ther SSI; the annual net income of a person without a family residing in another municipality comprises 40 amounts of the SSI and the assets comprise 56 amounts of the SSI;

2) the annual net income of a family of two or three persons residing in the municipality of Vilnius city or district, the municipality of Kaunas city or district, the municipality of Klaipėda city or district, the municipality of Palanga city or Neringa municipality comprises 91 amounts of the SSI and the assets comprise 168 amounts of the SSI; the annual net income of a family of two or three persons residing in another municipality comprises 80 amounts of the SSI and the assets comprise 112 amounts of the SSI;

3) the annual net income of a family of four or more persons residing in the municipality of Vilnius city or district, the municipality of Kaunas city or district, the municipality of Klaipėda city or district, the municipality of Palanga city or Neringa municipality comprises 26 amounts of the SSI per person and the assets comprise 75 amounts of SSI per person; the annual net income of a family of four or more persons residing in another municipality comprises 23 amounts of SSI per person and the assets comprise 56 amounts of the SSI per person.

4. In determining the eligibility of persons and families for support for housing acquisition or rental, the net income of persons and families shall be calculated after deducting personal income tax, state social insurance and compulsory health insurance contributions from the total income received. The income of persons and families received under an individual activity certificate shall be calculated after deducting the permitted deductions.

5. The standard value per unit space of declared immovable property shall be determined and published on its website by the data processor of the Real Property Register having regard to average market values of immovable property in cities, centres of municipalities and other spaces of the municipalities of Lithuania as on 1 January of each year.

6. In determining the eligibility of persons and families for support for housing acquisition or rental, the assets and income of persons and families shall not include received (outstanding) loans or portions thereof.

CHAPTER IV

PROCEDURE AND CONDITIONS OF SUPPORT

FOR HOUSING ACQUISITION OR RENTAL

Article 12. Procedure for granting housing loans partially reimbursed by the State and amounts thereof

1. The procedure for granting housing loans partially reimbursed by the State and subsidies to cover part of housing loans partially reimbursed by the State shall be laid down by the Government.

2. Lenders wishing to grant housing loans partially reimbursed by the State shall conclude agreements with the Ministry of Social Security and Labour or an institution authorised by it regarding a procedure for granting housing loans partially reimbursed by the State (funding of subsidies). Such agreements must set out annual limits on the granting of these loans, the procedure of payment of part of a housing loan partially reimbursed by the State (subsidy) and the requirement to record a mortgage against a housing unit acquired for a housing loan partially reimbursed by the State.

3. The general annual limits on the granting of housing loans partially reimbursed by the State shall be set out by the Minister of Social Security and Labour, taking into account the state budget allocations for the granting of housing loans partially reimbursed by the State.

4. The amount of housing loans partially reimbursed by the State must not exceed:

1) EUR 53 000 or the equivalent in any other currency for a person without a family;

2) EUR 87 000 or the equivalent in any other currency for a family of two or more persons;

3) EUR 35 000 or equivalent in any other currency for the reconstruction of an owned housing unit, regardless of the person’s family status.

5. A maximum of 25 per cent of the amount of a housing loan partially reimbursed by the State may be used for the acquisition of a plot of land which includes a housing unit or in which such a housing unit is planned to be constructed.

Article 13. Conditions of granting subsidies to cover part of a housing loan partially reimbursed by the State

1. A subsidy shall be granted to cover part of a housing loan partially reimbursed by the State to recipients of such loans provided that they meet the requirements laid down in Article 8 of this Law and that:

1) at the time of the submission of a claim for support for housing acquisition, they are formerly persons left without parental guardianship/curatorship who are under the age of 36, or their families, as well as families raising three or more children and/or children placed under permanent guardianship/curatorship, persons with disabilities or families which include persons with disabilities, 20 per cent of the amount of a housing loan partially reimbursed by the State (or the balance of such loan) is paid;

2) at the time of the submission of a claim for support for housing acquisition, they are young families raising one or more children and families in which one of the children’s parents is deceased, 10 per cent of the amount of a housing loan partially reimbursed by the State (or the balance of such loan).

2. A subsidy granted to persons and families to cover part of a housing loan partially reimbursed by the State may be used to make the downpayment of this loan in accordance with the procedure laid down by the Government.

3. If a housing loan partially reimbursed by the State is granted for construction of a housing unit, persons and families eligible for a subsidy to cover part of a housing loan partially reimbursed by the State, this subsidy shall be paid only after the construction of the housing unit has been completed in accordance with the procedure laid down in the Law of the Republic of Lithuania on Construction.

4. If a recipient of a housing loan partially reimbursed by the State has become eligible for a subsidy to cover part of the housing loan partially reimbursed by the State after obtaining the housing loan partially reimbursed by the State from the annual limit on the granting of housing loans partially reimbursed by the State as set out in respect of lenders, the subsidy shall be calculated on the basis of the balance of the housing loan partially reimbursed by the State outstanding on the date on which the recipient of the housing loan partially reimbursed by the State requested the lender to modify the agreement with the lender for the granting of a housing loan partially reimbursed by the State.

5. If a recipient of a housing loan partially reimbursed by the State, after benefiting from the subsidy referred to in paragraph 1 of this Article, becomes eligible for a larger subsidy, referred to in paragraph 1 of this Article, he shall in addition be granted a subsidy in the amount of the difference between those subsidies (hereinafter: an ‘additional subsidy’). The amount of the additional subsidy shall be calculated on the basis of the balance of the housing loan partially reimbursed by the State outstanding on the date on which the recipient of the housing loan partially reimbursed by the State requested the lender to modify the agreement concluded with the lender on the granting of the housing loan partially reimbursed by the State. The recipient of the housing loan partially reimbursed by the State wishing to benefit from the additional subsidy must have fulfilled the debt obligations arising from the loan agreement entered into with the lender up to the date on which he requests the lender to modify that agreement.

6. In the event that a recipient of a housing loan partially-reimbursed by the State, who has been granted a subsidy to cover part of the housing loan partially reimbursed by the State, repays to the lender the housing loan partially reimbursed by the State earlier than within five years or transfers the housing unit acquired for the said loan into the ownership of another person within the first five years from the conclusion of the loan agreement, the subsidy granted by the State shall be recovered from the recipient of the loan in accordance with the procedure laid down in the agreement on the granting of the housing loan partially reimbursed by the State (funding of subsidies) recipient, and the amount of the subsidy recovered shall be transferred to the state budget.

Article 14. Establishment and use of a municipal housing stock

1. A municipal housing stock shall consist of social housing units and municipal housing units which are rented:

1) in the case referred to in Article 20(6) of this Law;

2) by decision of a municipal council, to persons and families who, under the Civil Code of the Republic of Lithuania, may not be evicted from their accommodation without providing them with another accommodation;

3) by decision of the municipal council, to persons and families who have an employment relationship or a relationship equivalent to its substance with the municipality or its agencies;

4) by decision of the municipal council, for other purposes pursuant to the Law of the Republic of Lithuania on the Management, Use and Disposal of State and Municipal Assets.

2. Information on social housing units and municipal housing units which are rented to persons and families in the cases referred to in paragraph 1 of this Article shall be published on the website of a municipality in accordance with the procedure laid down by the council of that municipality.

3. The development of a social housing stock shall be take place in accordance with this Law, the effective territorial planning documents, the social housing stock development programme approved by a municipal council or other municipal strategic planning documents providing for the development of the social housing stock.

4. The development of a social housing stock shall take place through the construction of new or the reconstruction and adjustment of existing buildings, the purchase of residential houses, parts thereof, flats, or their acquisition in other ways, the rental of housing units owned by natural or legal persons for a period of at least five years, as well as through the taking over by municipalities, in accordance with the procedure laid down by the Law on the Management, Use and Disposal of State and Municipal Assets, of redundant, unoccupied accommodation or accommodation occupied by persons and families meeting the requirements laid down in Article 9(1) of this Law.

5. Municipal housing shall, taking into account the need for social housing, be entered in a social housing stock by decision of a municipal council or the municipal administration authorised by it and shall be used to provide housing for persons and families eligible for social housing.

6. Municipal housing rented to persons eligible for rental of social housing and families may not be sold or otherwise transferred into the ownership of other persons.

7. Housing units of a municipal housing stock may not be sub-rented.

Article 15. Normative standard of the usable floor space of a social housing unit

1. The usable floor space of social housing per person or family member may not exceed 14 square metres, except where:

1) account must be taken of the need to provide separate rooms for persons with disabilities, for persons suffering from severe forms of chronic diseases recorded in the list approved by the Government or an institution authorised by it, for parents and children over the age of 9, and for children of different sex over the age of 9;

2) the social housing stock contains only those unoccupied social housing units the usable floor space of which per person or family member exceeds 14 square metres;

3) a single-room flat is leased; in this case, the usable floor space of the apartment may not exceed 40 square metres;

4) the social housing stock does not contain unoccupied social housing units specifically adjusted for persons with disabilities having the impairment of mobility or self-care functions the usable floor space of which is less that 14 square metres per person or family member (in the case of leasing of a social housing unit specifically adjusted for persons with disabilities having the impairment of mobility or self-care functions).

2. In the cases referred to in paragraph 1 of this Article, the decision on leasing of social housing of a larger usable floor space shall be taken by the municipal administration.

3. In the case of leasing of social housing to persons and families who have acquired into ownership a housing unit the usable floor space of which is less than that set out in Article 9(1)(2) of this Law, the total usable floor space of the owned housing unit and rented social housing unit per person or member of the family shall not exceed 14 square metres, subject to the exceptions referred to in paragraph 1 of this Article.

Article 16. Accounting for persons and families eligible for rental of social housing and the procedure for renting social housing

1. Persons and families meeting the requirements laid down in Article 9(1) of this Law, as well as persons and families eligible, in accordance with Article 9(2) of this Law, for the improvement in the rental conditions of social housing shall, upon submitting an application to the municipal administration in accordance with the procedure laid down in Article 7 of this Law, be included in the List of Persons and Families Eligible for Social Housing Rental on the basis of the date and time of registration of the application with the municipal administration. This List shall be processed in accordance with the procedure laid down by the director of the municipal administration. The persons and families included in the List referred to in this paragraph shall be divided into the following groups:

1) young families;

2) families raising three or more children and/or children with permanent guardianship/curatorship;

3) persons without parental guardianship and their families. This group shall consist of persons formerly left without parental guardianship who are under the age of 36 or their families, as well as persons without parental guardianship who are over the age of 16, upon application by their statutory representatives/curators, but social housing rental shall be offered to them only after full civil capacity has been acquired, provided that they meet the requirements set out in Article 9(1) of this Law;

4) persons with disabilities, persons suffering from chronic illnesses included in a list approved by the Government or an institution authorised by it, and families with such persons;

5) tenants of social housing eligible for the improvement in conditions of social housing;

6) the general group. This group shall comprise all persons and families not falling within the groups referred to in points 1, 2, 3, 4 and 5 of this paragraph.

2. Persons left without parental guardianship who have reached the age of 16 or more shall, upon application by their statutory representatives/curators, be included in the List of Persons and Families Eligible for Social Housing Rental, but social housing rental shall be offered to them only after full civil capacity has been acquired, provided that they meet the requirements set out in Article 9(1) of this Law.

3. Persons and families included in the List of Persons and Families Eligible for Social Housing Rental and receiving reimbursement of part of housing rental shall not be removed from the List of Persons and Families Eligible for Social Housing Rental.

4. Persons and families shall be removed from the List of Persons and Families Eligible for Social Housing Rental when:

1) a person or family acquires a housing unit into the ownership, unless the usable floor space of the acquired housing unit per person or family member acquired is less than that set out in Article 9(1)(2) of this Law;

2) the value of their declared assets or income, included pursuant to Article 17 of the Law of the Republic of Lithuania on Cash Social Assistance for Low-Income Families in the income received by the person or family, exceeds by more than 25 per cent the annual amounts of income and assets set out in Article 11(3) of this Law; the period of their inclusion in the List of Persons and Families Eligible for Social Housing Rental shall, for a period of three years from their removal from the List, be indicated in an annex to the List of Persons and Families Eligible for Social Housing Rental;

3) a person included in the List of Persons and Families Eligible for Social Housing Rental dies;

4) a person or family (all members of the family) moves to reside in the territory of another municipality or to another country which becomes his/their place of residence within the meaning of the Law on Declaration of the Place of Residence. A person or family (all members of the family) who moves to reside in the territory of another municipality and who applies to the administration of that municipality shall be included in the List of Persons and Families Eligible for Social Housing Rental of that municipality, taking into account the period of their inclusion in the List of Persons and Families Eligible for Social Housing Rental in the previous municipality;

5) social housing has already been leased to a person or family or reimbursement of part of housing leasing has already been paid to a person or family, unless the person or family residing in the social housing unit leased by the municipality is eligible for the improvement in the rental conditions of social housing;

6) a person or family has, without serious reasons, twice failed to express at the time determined by the municipal administration a written consent or refusal to rent a social housing unit offered to them, or a person or family has, without serious reasons, twice failed to express at the time determined by the municipal administration a written consent or refusal to rent a social housing unit offered to them, where such social housing unit meets the requirements for social housing defined in their application in relation to the space in which the social housing unit is situated or the storey of the building in which the social housing unit is situated. The municipal administration must submit a second offer of rental for the same social housing unit not earlier than ten working days from the date of the first offer;

7) they have been granted a housing loan partially reimbursed by the State;

8) he/they submit a written request to the municipal administration to remove him/them from the List of Persons and Families Eligible for Social Housing Rental;

9) at the end of the calendar year, a person or family fails to file a declaration of assets (inclusive of income received) in accordance with the procedure laid down in the Law on the Declaration of Assets of Residents by 1 May of the following year, or, for serious reasons (illness, in-patient treatment, injury, pregnancy, 70 calendar days before childbirth, during childbirth and 56 calendar days after childbirth (70 calendar days in the case of complicated childbirth or the birth of two or more children), due to an epidemic, a natural disaster or an accident declared on the territory of a municipality to the administration of which he/it applied for support for housing rental, due to the death, care or nursing of family members or close relatives, due to the enforcement of detention, remand, arrest, due to the execution of duties laid down in the Law of the Republic of Lithuania on National Conscription), by 1 June of the following year;

10) it is established that, when applying for social housing rental, a person or family provided information which is known to be incorrect as regards the assets, income received, family composition or declared place of residence, thus affecting the eligibility for the rental of social housing, or the person or family has not notified the municipal administration within one month of the change of the declared place of residence, the acquisition of the housing unit, the change in the material situation which has resulted in the exceedance of the amount of income and assets set out in Article 11(3) of this Law.

5. The municipal administration shall, not later than by 1 September of the current year, take a decision to remove a person or family from the List of Persons and Families Eligible for Social Housing Rental. Except in the case referred to in point 3 of paragraph 4 of this Article, the municipal administration shall inform the person or family in writing of the decision to remove this person or family from the said List within ten working days from the taking of the decision, in accordance with their last known place of residence.

6. Persons and families who have been removed from the List of Persons and Families Eligible for Social Housing Rental pursuant to point 2 of paragraph 4 of this Article shall, upon application to the municipal administration, be included anew in the List, taking into account the period of their previous inclusion in that List, provided that, at the time of the application, their annual amounts of income and assets subject to assessment do not exceed the amounts of income and assets set out in Article 11(3) of this Law and that less than three years have elapsed from the removal of those persons and families from the List of Persons and Families Eligible for Social Housing Rental.

7. Social housing shall be leased in accordance with the procedure laid down by the municipal council, pursuant to the order of precedence and upon the assessment of the period of their inclusion in the List of Persons and Families Eligible for Social Housing Rental. For a person or family residing in a social housing unit leased by a municipality and eligible for the improvement in the rental conditions of social housing, if the person or member of the family becomes disabled and a specifically adjusted social housing unit must leased to him due to the impairment of mobility or self-care functions, such social housing unit shall be provided without following the order of precedence.

8. In accordance with the procedure laid down by the municipal council, social housing may also be leased to the following persons and families not included in the List of Persons and Families Eligible for Social Housing Rental, provided that such persons and families do not own any other housing unit within the territory of the Republic of Lithuania:

1) to those who have lost the housing unit owned within the territory of the Republic of Lithuania as a result of fire, flood, severe wind or other circumstances beyond human control; in this case, a person or family must apply to the municipal administration in accordance with the procedure laid down in Article 7 of this Law within one year of the occurrence of the specified circumstances;

2) to persons with a working capacity of 0-25 per cent;

3) to persons who have attained old-age retirement age and who have a high level of special needs;

4) to families raising five or more children and/or children placed under permanent guardianship/curatorship;

5) to families in which three or more children are born together;

6) to families in which both spouses have a working capacity of 0-25 per cent and which raise a child/children or/and a child/children placed under permanent guardianship/curatorship;

7) to persons with disabilities who are alone raising a child/children or/and a child/children placed under permanent guardianship/curatorship;

8) to families raising children or/and children placed under permanent guardianship/curatorship, where at least two of them have a severe degree of disability established;

9) to families where at least two family members have a working capacity of 0-25 per cent and/or a high level of special needs when the family members have attained old-age retirement age;

10) to persons who are without parental guardianship and who have left homes of social care, group life and/or independent living.

9. Information about social housing units leased in the cases referred to in paragraph 8 of this Article shall be published on the municipality’s website in accordance with the procedure laid down by the municipal council.

10. Records of persons and families to whom social housing units are leased or who receive reimbursement of part of housing rental or housing leasing shall be kept in accordance with the procedure laid down by the Minister of Social Security and Labour.

Article 17. Procedure of reimbursement of part of housing rental or housing leasing

1. Persons and families eligible for reimbursement of part of housing rental and/or part of housing leasing shall apply in accordance with the procedure laid down in Article 7 of this Law to the municipal administration for reimbursement of part of housing rental or housing leasing by submitting in accordance with the conditions laid down in the Civil Code a housing rental agreement or a housing leasing agreement concluded for a period of at least one year under which they rent a housing unit owned by natural or legal persons (other than municipalities) and situated within the territory of the municipality in which the person or family has declared their place of residence or, if they do not have a declared place of residence, within the territory of the municipality in which they are included in the records of persons who do not have a declared place of residence. A housing rental agreement or a housing leasing agreement must be registered in the Real Property Register of the Republic of Lithuania.

2. The municipal administration shall take a decision regarding the payment of reimbursement of part of housing rental or housing leasing no later than within 30 calendar days after the person or family applies for reimbursement of part of housing rental or housing leasing. Reimbursement of part of housing rental or housing leasing shall be paid in respect of the period from the conclusion of a housing rental agreement or a housing leasing agreement, provided that the municipal administration takes a decision to pay reimbursement of part of housing rental or housing leasing, but not earlier than from the application of a person or family for reimbursement of part of housing rental or housing leasing.

3. Reimbursement of part of housing rental or housing leasing shall be paid in respect of the preceding month (when paying for the first time where the municipal administration takes a decision to pay reimbursement of part of housing rental or housing leasing, for the entire period from the conclusion of a housing rental agreement of a housing leasing agreement, but not earlier than from the application of a person or family for reimbursement of part of housing rental or housing leasing) and shall be transferred at the latest by the twenty-fifth calendar day of the current month to the tenant or, at the written request of the tenant, directly to the landlord. Reimbursement of part of housing leasing shall be paid for a maximum period of 30 years from the registration of a housing leasing agreement in the Real Property Register.

4. Reimbursement of part of housing rental or housing leasing shall be paid and reimbursement overpaid shall be repaid in accordance with the procedure laid down by the municipal council.

5. The municipal administration shall draw up a list of housing units leased by natural and legal persons wishing to provide housing for persons and families on a rent basis. Information on such housing units shall be published on the municipality’s website in accordance with the procedure laid down by the director of the municipal administration.

Article 18. Amount of reimbursement of part of housing rental or housing leasing

1. For persons and families eligible for reimbursement of part of housing rental pursuant to Article 10 of this Law or for reimbursement of part of housing leasing pursuant to Article 8 of this Law, the amount of reimbursement of housing rental or housing leasing shall be fixed on the basis of the basic amount of reimbursement of part of housing rental or housing leasing determined by the Minister of Social Security and Labour, in accordance with the Government-approved Methodology for Calculating the Amount of Reimbursement of Rental Payments of Municipal Housing or Social Housing, or of Part of Housing Rental or Housing Leasing, and which may not be lower than the basic amount of reimbursement of housing rental or housing leasing as determined by the Government.

2. The amount of reimbursement of part of housing rental or housing leasing shall be recalculated on the basis of the Government-approved coefficient of recalculation of the basic amount of reimbursement of part of housing rental or housing leasing, which is determined by reference to average market rental prices, the number of family members, and may be recalculated depending on the possibilities of the state budget by taking account of changes in the consumer price index, prices and personal income, where these changes exceed 3 per cent.

3. When approving the coefficient referred to in paragraph 2 of this Article, the Government must ensure that the amount of reimbursement of part of housing rental or housing leasing would be not less than 50 per cent of the average market rental fee calculated per person on the basis of a normative standard of the usable floor space of an adequate housing unit. Reimbursement of part of housing rental or housing leasing may not exceed the amount of housing rental or housing leasing.

Article 19. Grounds for discontinuing and suspending the payment of reimbursement of part of housing rental or housing leasing

1. The payment of reimbursement of part of housing rental or housing leasing shall be discontinued for persons or families when:

1) the persons or families acquire a housing unit into the ownership, unless the usable floor space per person or family member of the housing unit acquired by the persons and families in receipt of reimbursement of part of housing rental or housing leasing is less than that set out in Article 9(1)(2) of this Law, or where the usable floor space per person or family member of the housing unit acquired by the persons or families in receipt of reimbursement of part of housing rental or housing leasing is less than that set out in Article 8(2)(b) of this Law;

2) the declared value of the assets or income of the person or family in receipt of reimbursement of part of housing rental, where the income is included pursuant to Article 17 of the Law of the Republic of Lithuania on Cash Social Assistance for Low-Income Families in the income received by the person or the family, exceeds by more than 25 per cent the annual amounts of income and assets set out in Article 11(2) of this Law or the declared value of the assets or income of the person or family in receipt of reimbursement of part of housing leasing, where the income is included pursuant to Article 17 of the Law of the Republic of Lithuania on Cash Social Assistance for Low-Income Families in the income received by the person or the family, exceeds by more than 25 per cent the annual amounts of income and assets set out in Article 11(1) of this Law;

3) the person or family fails to file an assets declaration (inclusive of the income received) at the end of the calendar year (until 1 May of the following year) in accordance with the procedure laid down in the Law on the Declaration of Assets of Residents;

4) the housing rental agreement registered in the Real Property Register expires;

5) the housing leasing agreement registered in the Real Property Register expires;

6) the debtor fails, within three months of the suspension of the payment of reimbursement of part of housing rental or housing leasing in the case referred to in paragraph 2 of this Article, to settle the debt for the housing rental or housing leasing or to provide the security referred to in Article 6.90 of the Civil Code corresponding to the amount of the debt.

2. The payment of reimbursement of part of housing rental or housing leasing shall be suspended by decision of the municipal administration for persons or families whose debts for the housing rental or housing leasing exceed the amount of the housing rental determined in a housing rental agreement or a housing leasing agreement for three months until the debt is settled or the security referred to in Article 6.90 of the Civil Code corresponding to the amount of the debt is provided. The payment of reimbursement of part of housing rental or housing leasing shall be resumed by decision of the municipal administration upon presentation by the person or family of documents certifying that the debt has been settled or the security referred to in Article 6.90 of the Civil Code corresponding to the amount of the debt has been provided. Once the payment of reimbursement of part of housing rental or housing leasing has been resumed, reimbursement shall also be paid for the period during which its payment has been suspended.

Article 20. Conclusion, modification and termination of a social housing rental agreement

1. A social housing rental agreement shall be concluded, modified and terminated in accordance with the Civil Code and this Law. The model form of a social housing rental agreement shall be approved by the Minister of Social Security and Labour.

2. A social housing rental agreement may be modified and another housing unit leased to a person or family if the person or family acquires the right to a social housing unit of a usable floor space which is other than the usable floor space of the rented social housing unit and which is in accordance with the normative standard of the usable floor space of a social housing unit as set out in Article 15 of this Law or if the person or family member becomes disabled and a social housing unit not specifically adjusted for persons with disabilities continues to be leased to him/his family.

3. A person or one of family members shall apply to the municipal administration for the modification of a social housing rental agreement by submitting an application accompanied by documents confirming the eligibility for a social housing unit of another usable floor space or documents confirming the eligibility for a social housing unit specifically adjusted for persons with disabilities. If the documents referred to in this paragraph are contained in state registers/cadastres, departmental registers, state information systems or if the municipal administration obtains them, on request and/or pursuant to data provision agreements, from state and/or municipal institutions, agencies, enterprises and organisations, persons and families shall not be obliged to submit such documents.

4. The municipal administration may also initiate modification of a social housing rental agreement if it is established that a social housing unit leased to a person or family does not comply with the normative standard of the usable floor space as set out in Article 15 of this Law or is not specifically adjusted for persons with disabilities.

5. A social housing rental agreement shall be terminated when:

1) a person or family acquires a housing unit into ownership, except where the usable floor space of the acquired housing unit per family member is less than that set out in Article 9(1)(2) of this Law;

2) the value of assets or income declared in accordance with the procedure laid down in the Law on the Declaration of Assets of Residents, where such income is included pursuant to Article 17 of the Law on Cash Social Assistance for Low-Income Families in the income received by the person or family, exceeds by more than 25 per cent the annual amounts of income and assets set out in Article 11(3) of this Law;

3) a person or family (all members of the family) moves to reside in the territory of another municipality or to another country which becomes his/their declared place of residence within the meaning of the Law on Declaration of the Place of Residence;

4) at the end of the calendar year, a person or family fails to file a declaration of assets (inclusive of income received) in accordance with the procedure laid down in the Law on the Declaration of Assets of Residents by 1 May of the following year, or, for serious reasons (illness, in-patient treatment, injury, pregnancy, 70 calendar days before childbirth, during childbirth and 56 calendar days after childbirth (70 calendar days in the case of complicated childbirth or the birth of two or more children), due to an epidemic, a natural disaster or an accident declared on the territory of a municipality to the administration of which he/it applied for support for housing rental, due to the death, care or nursing of family members or close relatives, due to the enforcement of detention, remand, arrest, due to the execution of duties laid down in the Law of the Republic of Lithuania on National Conscription), by 1 June of the following year;

5) in other cases provided for by the Civil Code.

6. If the value of assets or income declared by a person or family renting a social housing unit in accordance with the procedure laid down in the Law on the Declaration of Assets of Residents, where such income is included pursuant to Article 17 of the Law on Cash Social Assistance for Low-Income Families in the income received by the person or family, exceeds by more than 25 per cent the annual amounts of income and assets set out in Article 11(3) of this Law, this social housing unit shall, at the request of the person or family and in the cases provided for in the description of the procedure laid down by the municipal council, be leased as municipal housing at market prices in accordance with the Government-approved Methodology for Calculating the Amount of Reimbursement of Rental Payments of Municipal Housing or Social Housing, or of Part of Housing Rental or Housing Leasing, provided that the person or family does not own any other housing unit. A social housing rental agreement shall be concluded, modified and terminated in accordance with the Civil Code.

Article 21. Determination of the amount of social housing rental

1. The municipal council shall determine the amount of social housing rental in accordance with the Government-approved Methodology for Calculating the Amount of Reimbursement of Rental Payments of Municipal Housing or Social Housing, or of Part of Housing Rental or Housing Leasing.

2. The municipal council must, with funds of the municipal budget, reduce or exempt from social housing rental if the assessed monthly income of a person (in the case of a family, all members of the family) per person (in the case of a family, per family member) does not exceed the amount of 1.5 SSI, unless the municipal council sets a higher threshold for the monthly assessed income per person (in the case of a family, per family member).

Article 22. Duties of persons and families included in the List of Persons and Families Eligible for Social Housing Rental and/or persons and families in receipt of support for housing acquisition or rental

Persons and families included in the List of Persons and Families Eligible for Social Housing Rental and/or persons and families in receipt of support for housing acquisition or rental must:

1) declare the held assets (inclusive of income received) in the cases provided for in this Law according to the procedure laid down in the Law on the Declaration of Assets of Residents;

2) provide, in accordance with the application form approved by the Minister of Social Security and Labour and the annexes thereto, all the correct information proving the eligibility for support for housing acquisition or rental and the documents necessary to obtain that support. If the documents referred to in this paragraph are contained in state registers/cadastres, departmental registers, state information systems or if the municipal administration obtains them, on request and/or pursuant to data provision agreements, from state and/or municipal institutions, agencies, enterprises and organisations, persons and families shall not be obliged to submit such documents;

3) within one month from the change of the declared place of residence, the acquisition of the housing unit, the change in the material situation leading to the exceedance of the amounts of income and assets set out in Article 11 of this Law, the expiry of the housing rental agreement or housing leasing agreement or the loss of the eligibility for the reimbursement of part of housing rental or housing leasing, must inform the municipal administration about this fact. This shall be the duty of persons and families included in the List of Persons and Families Eligible for Social Housing Rental as well as persons and families in receipt of support for housing rental or reimbursement of part of housing leasing;

4) submit, by 1 May of the current year or, for serious reasons set out in this Law, by 1 June of the current year to the municipal administration a completed annex to the application the form of which is approved by the Minister of Social Security and Labour, indicating the income which, pursuant to Article 17 of the Law on Cash Social Assistance for Low-Income Families, is not included in the income received by the persons or families, provided that the person or family has received such income. This shall be the duty of persons and families included in the List of Persons and Families Eligible for Social Housing Rental as well as persons and families in receipt of support for housing acquisition or reimbursement of part of housing leasing;

5) having not declared by 1 May for serious reasons set out in this Law in the cases provided for in this Law according to the procedure laid down by the Law on the Declaration of Assets of Residents the held assets (inclusive of income received) inform the municipal administration about this fact by 1 June of the current year, produce supporting documents for these reasons and declare the held assets (inclusive of income received). This shall be the duty of persons and families included in the List of Persons and Families Eligible for Social Housing Rental as well as persons and families to whom social housing is leased.

Article 23. Recovery of support unlawfully received through the fault of persons and families in receipt of support for housing acquisition or rental

1. If the municipal administration finds that persons and families have failed to comply with the obligations laid down in points 2 and/or 3 of Article 22 of this Law when applying for support for housing acquisition or rental, the unlawfully received support for housing acquisition or rental must be repaid in full immediately or, at the person’s written request and by decision of the municipal administration, in instalments.

2. The decision of the municipal administration on the repayment of unlawfully received housing acquisition or rental shall be an enforceable document. If this decision is not complied with, it may be enforced in accordance with the procedure laid down in the Code of Civil Procedure of the Republic of Lithuania, provided that the costs associated with recovery do not exceed the amount to be recovered.

Article 24. Processing and provision of information

1. Data on support for housing acquisition or rental shall be processed by the municipal administrations in the Information System on Social Support for Families (hereinafter: the ‘ISSSF’).

2. In order to develop, organise and coordinate the implementation of a policy of support for housing acquisition or rental, the municipal administration shall, in accordance with the procedure laid down by the Minister of Social Security and Labour, provide the Ministry of Social Security and Labour with data on persons and families residing in the territory of the municipality and receiving reimbursement of part of housing acquisition or rental and, at its request, other data on such support which are not available in the ISSSF.

3. Municipal administrations shall publish the lists of the municipal housing stock and social housing as part of the municipal housing stock, as well as the List of Persons and Families Eligible for Social Housing Rental on the municipality’s website in order to ensure the transparency and clarity of compilation of such lists. The published List of Persons and Families Eligible for Social Housing Rental shall specify the forename, surname of a person (in the case of a family, a person who submits the claim for support for housing rental) and his personal number in the said list. These data shall be published on the municipality’s website until the person or family, pursuant to Article 16(4) of this Law, is removed from the List of Persons and Families Eligible for Social Housing Rental.

CHAPTER V

SALE OF MUNICIPAL HOUSING UNITS AND OUTBUILDINGS

Article 25. Cases of sale of municipal housing units and outbuildings

1. The sale of housing units owned by a municipality shall be carried out in accordance with the provision that the sale price shall not exceed the price which, in accordance with the procedure laid down in the Law of the Republic of Lithuania on Privatisation of Flats, could have been calculated prior to 1 July 1998 and adjusted to take account of inflation, in the following cases:

1) when the housing units are purchased by tenants who were issued before 1 July 1998 the permits for privatisation of their rented housing units in accordance with the Law on Privatisation of Flats by the Commission for Privatisation of Flats set up by the Seimas of the Republic of Lithuania in accordance with the procedure laid down in the Law on Privatisation of Flats;

2) when the housing units are purchased by tenants who have been recognised by a court decision as having the right to privatise their rented housing units pursuant to the Law on Privatisation of Flats;

3) when the housing units are purchased by tenants who have been evicted or for whom a decision has been taken to evict them from emergency housing units and premises included in the list of houses to be demolished according to the city/town development plan or in the list of buildings which are to be taken for public needs and which could not be therefore privatised pursuant to the Law on Privatisation of Flats;

4) when the owners of the premises buy the additional usable floor space of the housing units privatised pursuant to the Law on Privatisation of Flats, resulting from the taking of an inventory of the privatised flat, as well as the floor space resulting from the extension, with the consent of the municipal council, of the usable floor space of the privatised flat or from the reduction, with the consent of the municipal council, of the usable floor space of the common use premises of the residential building (in the case of the privatisation of dormitories and the transformation of them into flats);

5) when the housing units granted on the basis of lease to rehabilitated political prisoners, deportees or their widows/widowers and their children who have returned to the Republic of Lithuania are sold in accordance with the procedure established by the Government or an institution authorised by it;

6) when the housing units are purchased by tenants residing in the housing units which have not been returned to religious communities or associations, as well as by tenants who have been granted other housing units following their eviction from the housing units which have been returned to religious communities or associations;

7) in cases provided for in the Law of the Republic of Lithuania on the Restoration of the Rights of Ownership of Citizens to the Existing Real Property and/or other legal acts related to its implementation.

Note from the Register of Legal Acts. The provisions of Article 25(1) of the Law on Support for Housing Acquisition or Rental set out in Article 1 of Law No XIII-3147 shall be applied to persons and families in respect of whom the municipal council has taken, prior to the entry into force of Law No XIII-3147 (on 2 July 2020), a decision to sell housing units owned by the municipality in accordance with the procedure laid down in Article 25(1) of the Law of the Republic of Lithuania on Support for Housing Acquisition or Rental.

2. The following housing units and outbuildings owned by the municipality as well as parts thereof may be sold by a decision of the municipal council for the market value calculated in accordance with the Law of the Republic of Lithuania on the Bases of Property and Business Valuation, upon the valuation in accordance with the procedure laid down by the Civil Code of the tenant's investments that have changed the value of the object to be sold:

1) rooms and flats constituting only one facility with a part of the common use premises (and their appurtenances) in a flat or a residential building to be partially sold, with priority to the co-owners of this flat or residential building, as well as vacant dormitory rooms which may be allotted by a decision of the municipal administration to the owners of the adjacent sold housing units in order to enable the conversion of the dormitory rooms to flats;

2) outbuildings, parts thereof (except temporary buildings), other ancillary facilities and engineering structures used lawfully by the owners of the housing units, giving priority to the owners/co-owners of the housing units;

3) outbuildings, parts thereof, and lawfully used engineering structures situated within the estate of residential buildings, with priority given to the owners of these buildings in accordance with paragraph 3 of this Article;

4) the share in the partial co-ownership of housing units and outbuildings attributed to municipal housing units and outbuildings or its part pursuant to Article 4.82(2) of the Civil Code - to the co-owners or third parties, when this share of the common ownership or part thereof is, by a decision of the manager or owner of municipal flats and other premises pursuant to the Law of the Republic of Lithuania on the Management, Use and Disposal of State and Municipal Assets, recognised as unnecessary or not suitable (not available) for use for the purposes related to the use of the state or municipal flats or other premises. The provisions of Article 4.79 of the Civil Code shall apply to the sale of a share held in co-ownership;

5) municipal housing units which are rented under conditions other than social housing rental conditions and in which tenants have resided for at least five years from the conclusion of a housing rental agreement, irrespective of the housing rental conditions applied.

3. If outbuildings, parts thereof, engineering structures are intended to be purchased, the sale of which is provided for in point 3 of paragraph 2 of this Article, the manager of those buildings must notify the owners of a residential house in writing and offer to acquire them in accordance with this Law. If the owners of the residential house do not express their wish to acquire the outbuildings, parts thereof, engineering structures in writing within one month from the submission of the offer to acquire them in accordance with this Law, they may be sold in accordance with the Law on the Management, Use and Disposal of State and Municipal Assets.

4. Persons and families who have acquired a municipal housing unit and outbuildings in the cases provided for in this Article shall not be eligible for the support for housing acquisition or rental until five years have elapsed from the transfer of ownership of the municipal housing unit and outbuildings, with the exception of persons and families who have lost the purchased municipal housing unit and outbuildings as a result of fire, flood, strong winds, or any other circumstance beyond human control.

5. The municipal council shall approve the list of municipal housing units and outbuildings to be sold and publish it on the municipality’s website.

Article 26. Determination of the value of municipal housing units and outbuildings for sale

1. Property valuers (property valuation companies) selected in accordance with the procedure specified in legal acts governing public procurement shall determine the value of a municipal housing unit and outbuildings for sale in compliance with the Property and Business Methodology approved in accordance with the procedure laid down in the Law on the Bases of Property and Business Valuation.

2. The costs incurred by the municipality in determining the value of a municipal housing unit and outbuildings for sale shall be included in the sale price of the housing unit and outbuildings.

3. Persons and families who have terminated the procedure for the acquisition of a municipal housing unit and outbuildings shall be obliged to reimburse the costs incurred by the municipality in determining the value of the municipal housing unit and outbuildings for sale, no later than one year from the termination.

Article 27. Payment procedure for municipal housing units and outbuildings for sale

1. The sale of municipal housing units and outbuildings under the conditions set out in this Law shall be settled by payment of the set price no later than within three months after the signing of the sales contract.

2. If the fulfilment of the buyer’s debt obligation in respect of housing unit and outbuildings is secured by a lender who, prior to the signing of a sales contract, submits to this end a payment guarantee to the municipal administration, the municipal administration shall, by a decision of the municipal council and in accordance with the procedure laid down by the municipal council, be authorised to pledge to the lender, in order to secure the buyer's debt obligation, the housing unit and outbuildings being purchased by providing that the mortgage will take effect upon full settlement with the municipal administration for the purchase of the housing unit and the outbuildings, i.e. the price and the penalties in relation to this housing unit and the outbuildings have been fully paid and other obligations have been fulfilled.

3. A municipal housing unit and outbuildings for sale may be pledged if a buyer has paid the difference, if any, between the price of the property and the amount specified in the payment guarantee provided by the lender.

Article 28. Sales contract of municipal housing units and outbuildings

1. A contract of sale of a municipal housing unit and outbuildings shall be concluded no later than within one year from the submission of a valuation report of the municipal housing unit and outbuildings for sale by the property valuation company (property valuers).

2. A sales contract of a municipal housing unit and outbuildings shall stipulate the procedure for payment for the acquired municipal housing unit and outbuildings, the obligations of the buyer to fulfil the terms of the sales contract, to conclude a rental contract or a sales contract for a plot of land and other obligations of the buyer, the legal consequences of non-performance of the contract, and the procedure for the termination of the contract.

Article 29. Use of proceeds from the sale of municipal housing units and outbuildings

The proceeds from the sale of municipal housing units and outbuildings under the conditions set out in this Law shall be transferred to the municipal budget and used for the development of the social housing stock, after deduction of the costs related to the determination of the value of the municipal housing unit and outbuildings.

Article 30. Point of time for passing of ownership

Ownership of a municipal housing unit and outbuildings acquired shall pass to the buyer upon full settlement for the municipal housing unit and outbuildings sold.

CHAPTER VI

FINAL PROVISIONS

Article 31. Scope of the Law

1. For persons and families who rented municipal housing units before 31 December 2002 under the Law of the Republic of Lithuania on the Provision of Housing to Residents, the normative standards of usable floor space of social housing set out in this Law, the conditions of renting this housing shall not be changed and, therefore, an effective rental agreement shall not be modified, except in the cases provided for in the Civil Code or in the cases when, at the request of the persons or families renting these housing units, effective rental agreements shall be replaced with social housing rental agreements, provided that such persons and families meet the requirements set out in Article 9(1) of this Law.

2. 20 per cent of the outstanding balance of a loan shall be covered for persons and families who received loans on preferential terms before 31 December 2002 under the Law on the Provision of Housing for Residents, provided that Disability Group I or II has been established for a person or family member after 1 January 2003 or working capacity of 0-40 per cent has been established for him in accordance with the procedure laid down in the Law of the Republic of Lithuania on the Social Integration of the Disabled, or a person has attained the old-age retirement age and a level of special needs has been established for him, or a family member has been recognised as a child with disabilities, or a level of disability has been established for him in accordance with the procedure laid down in the Law on the Social Integration of the Disabled.

3. 10 per cent of the outstanding balance of a loan shall be covered for persons and families who received loans on preferential terms before 31 December 2002 under the Law on the Provision of Housing for Residents, provided that a person or family member has become ill after 1 January 2003 with the severe form of a chronic disease recorded in the list approved by the Government or an institution authorised by it, as well as for families in which a fourth child or more children has/have been born or adopted after 1 January 2003.

4. 20 per cent of the outstanding balance of the loan shall be covered for persons and families who received loans on preferential terms before 31 December 2002 under the Law on the Provision of Housing for Residents, provided that additional preferential terms specified in the said Law were not granted and that disability group I or II was established for a person or family member after 31 December 2002 or a family member was recognised as a child with disabilities.

5. 10 per cent of the outstanding balance of the loan shall be covered for persons and families who received loans on preferential terms before 31 December 2002 under the Law on the Provision of Housing for Residents, provided that additional preferential terms specified in the said Law were not granted and that a person or family member became ill before 31 December 2002 with the severe form of a chronic disease recorded in the list approved by the Government or an institution authorised by it or that a fourth child or more children was/were born in a family or was/were adopted before 31 December 2002.

6. The outstanding balance of a loan of the amount specified in the cases provided for in paragraphs 3, 4 and 5 of this Article shall be covered if persons and families have not exercised this right under the Law of the Republic of Lithuania on the Implementation of the Law on State Support for Housing Acquisition or Rental and for Renovation (Modernisation) of Multi-family Residential Houses.

7. Subsidies provided for in Article 13 of this Law shall not be granted to persons and families who are not referred to in paragraphs 2, 3, 4 and 5 of this Article and who received loans on preferential terms before 31 December 2002 under the Law on the Provision of Housing for Residents.

8. For persons and families to whom support for housing rental has been granted as of 1 January 2003, it shall be granted under the conditions and in accordance with the procedure laid down in this Law.

I promulgate this Law passed by the Seimas of the Republic of Lithuania.

President of the Republic of Lithuania	Dalia Grybauskaitė