Housing corporations are planning to invest in the province of Groningen. The plan is to build approximately 900 new homes in the next six years. In addition, the plan also entails the demolishing of more than 1,600 social housing units. This demolition program provides corporations a discount of 24 million euro on the property tax. This amount is immediately set aside for the construction of rental housing. In addition, an amount of 165 million euro’s is provided to invest in Groningen , The Marne and other regions in Eastern Groningen.
Also, existing homes improved and preserved. The program should partially counteract the shrinkage of the region, but also make sure that the degradation does not increase further. Since January 2014 , it is advantageous for housing associations to commit in new construction and demolition projects, because the tax deduction applies to investments. This applies only in shrinking regions, namely East Groningen , Limburg and Zeeland. The housing associations receive no less than 15 000 euro per demolished house.
The Dutch government has set aside 280 million in tax reduction fees for this program .