Understanding the process
This form of support was established by Ministerial Decree n°2011-538 of 29 september 2011.
The purpose of support for owners of residential premises subject to Act n°1235 of 28 december 2000, modifiée, is to enable the upgrading of the premises to meet standards as well as the restoration of the facade and renovation of shared areas of the buildings in question.
This support can be in the form of a grant or a loan.
Grants awarded are intended exclusively to contribute to the funding of upgrading work to meet standards of safety and comfort stipulated by Sovereign Ordinance n° 16590 of 29 december 2004 on housing under act n° 1235.
Loans are intended exclusively to contribute to works of the following nature:
- Upgrading to meet standards of safety and comfort as stipulated by Sovereign Ordinance n°16590 of 29 december 2004
- The restoration of facades of buildings that include residential premises subject to act n°1235
- The renovation of shared areas of buildings that include residential premises subject to act n°1235.
It is possible to receive both the grant and the loan.
Support is awarded up to a maximum limit corresponding to the relevant budget line.
To be eligible for this support you must:
- Be the sole proprietor of the premises in question
- In cases where there is joint ownership of the building, applicants must hold at least 50% of rights to the building or to the jointly own section of the building
- Not own more than 5 premises in the Principality
- Not own, either directly or indirectly, premises in the Principality with a total surface area exceeding 500m2
Exceptions may be made if the owner can prove that the majority of these premises are subject to the provisions of act n°1235.
- In cases where grants or loans are given for works to upgrade the building to meet standards your premises should be made available for rental as housing immediately after the completion of the work.
The amount of support offered as a loan or grant cannot exceed the costs of works to upgrade the building to meet standards, restore specific facades or renovate shared areas. These costs will be checked by the Department of Budget and Treasury.
The maximum amount awarded as a grant is:
- €6000 for a studio apartment
- €7000 for an F2 apartment (1 bed)
- €8000 for an F3 apartment (2 bed)
- €9000 for an F4 apartment (3 bed) or larger
The loan amount offered is limited according to the income of the owner’s household, in that repayment instalments cannot exceed 25% of this income.
Loans are subject to an annual interest rate of 1%.
The maximum period of the loan is 15 years.
Repayment of the loan is made in regular monthly instalments according to a repayment schedule.
You must submit the following documents to the Department of Budget and Treasury:
- A written request to His Excellency the Minister of State. This should be submitted to the Department of Budget and Treasury
- A deed of ownership
- Proof of the percentage share of rights if the building is under shared ownership
- A notarised document stating the number of premises owned by the applicant in Monaco and their total surface area
- Detailed quotes and estimates of the planned work
For upgrading work to meet standards (grant and loan) only:
- A statement to the Housing Department declaring the apartment vacant
- A declaration of conformity of the inspection agency (before and after the work)
For loans only:
- A mortgage status report supplied by the registrar of mortgages
- A copy of an insurance policy covering disability and death and/or a guarantor agreement
- A statement showing all sources of income as well as outgoings for the household over the previous 12 months
Your application and all required supporting documents should be submitted to the Department of Budget and Treasury.
Loans are subject to an administrative document from the Director of the State Property Authority before any loan is granted.
This document states the guarantees, such as mortgages, personal or bank guaranties or security deposits required to ensure the repayment of the loan.
Grants are made in the name of the recipient, who is the sole or joint owner of the property, as named in the application.
An account is opened at the Public Treasury in the name of the recipient from the date of registration of the loan agreement and following registration of the mortgage at the agreed rate. This procedure carries a fixed fee of €10.
The account is credited with the agreed loan amount and all payments made in the name of suppliers are debited.
The loan amount is paid only after inspection of records by the Department of Budget and Treasury (comparison of bills received as the work is carried out with the initial request).
You can, however, request a direct payment of a maximum of 30% of the total loan amount.
You must organise an inspection of upgrading work to meet standards by an inspection agency to show that the work conforms to standards as stipulated by Sovereign Ordinance n° 16590 of 29 december 2004.
In cases where grants have been awarded, the Minister of State can request repayment of the entire grant amount or a percentage of this amount in cases where the recipient has not met the stipulated condition of making the premises available for rental as housing or if the grant was not used to pay for upgrading work to meet standards. The same is true if, upon completion of the work, the recipient is unable to provide certification from the inspection agency as stipulated in article 35 of Act n° 1235 of 28 december 2000, modified.
You must make monthly repayments as stated in the repayment schedule.
You can make early repayment but should inform the State Property Authority of your intention by registered letter with acknowledgement of receipt at least a month before the scheduled date of the repayment.
The remaining payments become due immediately:
- In the event of the voluntary or forced sale, transfer, capital investment or donation of the properties related to the loan in question or of those offered as security
- In the event of the use of all or part of the loan amount for purposes other than those intended
- Upon failure to make outstanding payments within one month of receipt of a payment order. This order is sent by registered letter with acknowledgement of receipt following failure to make the scheduled payment (principal and interest) of three monthly instalments
- In the event of non-payment of insurance premiums on policies covering disability and death or fire
- In the event that the borrower makes a subsequent loan agreement without prior authorisation from the Director of the State Property Authority
- In the event that, upon completion of the work, the recipient is unable to provide, where necessary, certification from the inspection agency as stipulated in article 35 of Act n° 1235 of 28 december 2000, modified