Breaking News: Rent Assistance Payments Halted by Caf, What Tenants Need to Know

Housing assistance plays a crucial role in the budgets of many households by reducing the monthly rent burden. Until now, this assistance was directly given to the tenant, who would then pay the landlord. Starting January 1, 2027, however, there will be a notable exception.

This change stems from the Kasbarian law enacted in 2023, with several implementing decrees issued this February 12. The aim is to better manage the increased incidents of non-payment observed in recent years. Many real estate networks have noted a rise in payment delays following the health crisis and inflation, with some agencies experiencing rates exceeding 3%. Although specific figures are not discussed, this generally translates to more complex cases for both landlords and tenants.

The first major shift is in the definition of a payment default. Previously, the Caf defined a default when the total unpaid rent (including charges) reached twice the monthly rent amount after deducting housing assistance. Essentially, this required a precise calculation, subtracting any housing assistance already received, to see if the threshold was met. This process was often complicated and confusing.

From 2027, the rules will become more straightforward. Two scenarios will be enough to establish a default. The first: a debt exceeding 450 euros, including charges. The second: three months of unpaid rent, even if the total is less than 450 euros. There will no longer be a need for complex calculations involving housing assistance. Once one of these criteria is met, the landlord has two months to report the situation to the Caf, providing details about the tenant, the amount due, and the period in question. This triggers a specific procedure. And this is where the method of disbursing housing assistance might change. Previously, in the event of non-payment, a landlord could request the assistance be paid directly to them. Under the new regulations, this shift to direct payment to the landlord will be facilitated and processed more swiftly once the default is acknowledged.

For the tenant, this means that housing assistance will no longer pass through their bank account. Instead, it will be sent directly to the landlord, who will receive part of the rent directly. The tenant will see their debt reduced by the amount of the assistance, preventing it from accumulating too quickly. This mechanism does not eliminate the remaining debt, but it helps to mitigate the snowball effect.