3°: Buildings financed by state-subsidised loans

Locations and local authority groupings with their own tax system may, by deliberation taken under the conditions provided for in Article 1639 A bis, totally or partially exempt, for the portion of property tax on built-up properties that falls to them, for a period that they determine, housing that is the subject of a rehabilitation lease pursuant to Article L252-1 of the Construction and Housing Code.

The reporting obligations of persons and organisations falling within the scope of the first paragraph are set by decree.

Housing leased, from 1 January 2005, under the conditions set by the articles L. 252-1 to L. 252-4 of the construction and housing code, are exempt from property tax on built properties for the duration of this lease. The loss of revenue resulting from this exemption is fully compensated.

For housing leased under the conditions set out in articles L. 252-1 to L. 252-4 of the French Construction and Housing Code, the municipalities and public inter-municipal cooperation establishments with their own tax system within whose territory social rental housing, as defined in article L. 302-5 of the same code, represent at least 50% of principal residences may, by a resolution passed under the conditions set out in I of Article 1639 A bis and for their share of property tax on built-up properties, abolish the exemption provided for in the third paragraph of this article.

When it is withdrawn under these conditions, the exemption continues to apply for housing leased prior to the date on which the deliberation was taken.

In respect of 2009, compensation for the revenue losses referred to in the third paragraph is reduced by applying a rate corresponding to the difference between the total amount paid in 2008 in respect of all the compensation referred to in I to X of Article 48 of Finance Act no. 2008-1425 of 27 December 2008 for 2009 and the total amount of this same compensation provided for this purpose for 2009 by XI of this same article.

In respect of 2010, the compensation calculated in accordance with the preceding provisions and to which the rate of change set in respect of 2009 is applied is reduced by applying a rate corresponding to the difference between the total amount to be paid in 2009 in respect of all the compensation mentioned in I to VIII of Article 47 of Law no. 2009-1673 of 30 December 2009 on the finances for 2010 and the total amount of this same compensation provided for this purpose for 2010 by IX of this same article.

For 2011, the rates to be taken into account for the départements for the calculation of the compensation referred to in the previous paragraphs are the reference rates relating to 2010 defined in B of V of Article 1640 C.

For 2011, the compensation calculated in accordance with the preceding provisions and to which the rate of change set for 2009 and the rate of change set for 2010 are applied is reduced by applying the rate defined in IV of Article 51 of Law no. 2010-1657 of 29 December 2010 on the finances for 2011.

For 2012, the same compensation, to which the growth rates set for 2009, 2010 and 2011 are applied, is reduced by applying the rate set for 2012 in III of article 33 of law no. 2011-1977 of 28 December 2011 on finance for 2012.

For 2013, the same compensation, to which the rates of change set for 2009, 2010, 2011 and 2012 are applied, is reduced by applying the rate set for 2013 in IV of article 31 of Law no. 2012-1509 of 29 December 2012 on the 2013 budget.

For 2014, the same compensation, to which the rates of change set for 2009, 2010, 2011, 2012 and 2013 are applied, is reduced by applying the rate provided for 2014 in IV of article 37 of the Finance Act 2013-1278 of 29 December 2013 for 2014.

For 2015, the same compensation, to which the rates of change set since 2009 are applied, is reduced by applying the rate provided for 2015 in III of Article 23 of Law no. 2014-1654 of 29 December 2014 on finance for 2015.

For 2016, the same compensation, to which the rates of change set since 2009 are applied, is reduced by applying the rate provided for 2016 in III of Article 33 of Law no. 2015-1785 of 29 December 2015 on finance for 2016.

For 2017, the same compensation, to which the rates of change set since 2009 are applied, is reduced by applying the rate provided for 2017 in X of Article 33 of Law no. 2016-1917 of 29 December 2016 on finance for 2017.

From 2018, the rates of change set since 2009 and up to 2017 are applied to the same compensation.

For the application of the foregoing provisions, the City of Paris is automatically substituted for the Commune of Paris from 1 January 2019.