Italy: Florence and EIB join forces for new affordable housing plan

This article is published in association with European Investment Bank.

• The European Investment Bank (EIB) will support the Municipality of Florence in developing its new affordable housing plan, providing assistance in assessing the technical, economic and financial feasibility of the initiative.
• The assignment includes an in-depth analysis of the municipal real estate portfolio, the regulatory framework and the tools available, with the aim of expanding the supply of rental homes at accessible rates for households currently excluded from both public housing and the private market.
• The EIB’s advisory support will also help structure a solid and bankable programme, fully aligned with climate objectives and with the “Abitare Firenze” plan launched by the municipal administration.

The Municipality of Florence and the European Investment Bank (EIB) are strengthening their cooperation to address the growing challenge of access to housing. With funding from the InvestEU Advisory Hub, EIB Advisory experts will provide technical assistance for the definition of the new municipal affordable housing plan, with the goal of increasing the supply of rental homes for families that are not eligible for public housing and are underserved by the private market. Florence, as a member of the European Alliance of Cities for Housing, together with Barcelona, Athens, Rome, Dublin and Warsaw among others, took part in the delegation invited to the EIB headquarters, where the city had the opportunity to initiate an exchange that now takes shape in a unique partnership.

The initiative is part of “Abitare Firenze”, the set of measures introduced by the municipal administration to tackle the housing emergency. The city is taking the lead with extraordinary investments in public residential housing (€20 million over three years), exceptional allocations for rent support (€4 million per year), and further operations aimed at providing answers for different target groups in an urgent and priority area. This project focuses in particular on social housing, aimed at households with intermediate incomes unable to find suitable options in the current housing supply.

The first area of intervention is the former Lupi di Toscana barracks. In the area south of the boulevard, two clusters will be dedicated to social housing developments, complementing other works already underway at the site. The Municipality aims to expand the initiative by identifying municipal properties suitable for this purpose and developing a broader programme, based on in-depth technical and financial analysis, to create a substantial municipal stock of social housing capable of offering accommodation solutions for families that currently cannot find a satisfactory response either in the public sector or on the private market.

As part of the agreement, EIB Advisory will work closely with the Municipality to assess the technical, economic and financial feasibility of the plan. The support will include an analysis of the regulatory and socioeconomic context, mapping of the available real estate assets, the definition of sustainable financial models, and an assessment of the bankability of the investments, also with a view to potential future financing.

Through the feasibility study, the EIB will be able to assess the economic sustainability of the proposed investments. Sustainability may derive from a mix of the Municipality’s own resources (particularly the revenues generated by the Municipal Operational Plan) and an EIB loan that could be supported by social housing rents (which are set at moderated levels compared with values defined under current Territorial Agreements) generated by the new additional housing stock provided.

The technical assistance will help structure a solid and implementable programme in line with the city’s objectives and sustainable urban development strategies while also supporting faster approval and implementation processes for the planned interventions.

“Access to housing is one of the most pressing challenges for many European cities, and Florence is addressing it with an inclusive and sustainable vision. With our technical support we aim to help turn this vision into a concrete, robust and financeable plan that expands the supply of quality housing and supports climate-conscious urban development. This collaboration shows how EIB Advisory can help public administrations prepare effective investments with tangible benefits for citizens,” said EIB Vice-President Gelsomina Vigliotti.

“The City of Florence is the first municipality to conclude an agreement with the EIB on housing, precisely because we consider it an absolute priority as a local administration, and I would like to thank Vice‑President Vigliotti for being here today. We have our own buildable areas at our disposal, including the former Caserma Lupi di Toscana, as well as the Castello area, where urban plans already provide for social housing, together with other municipal properties that can be refurbished. Another fundamental aspect is the recovery of additional public assets belonging to other institutional bodies. The idea is to ask other public entities to make unused properties available to the municipality through concession for this purpose,” said Mayor Sara Funaro.

Supporting housing is a strategic priority for the EIB and is part of the European Affordable Housing Plan, which anticipates around €6 billion of financing in Europe in 2026. The Bank’s technical assistance, provided free of charge, is an essential tool for ensuring that projects are solid, sustainable and investment ready, turning public strategies into concrete actions that benefit citizens.

Background information

EIB Group

The European Investment Bank (ElB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships, and the savings and investments union. Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.

The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium-sized businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilises private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs.

In 2023, the EIF together with six EU Member States (France, Germany, Italy, Spain, Belgium and the Netherlands) launched the European Tech Champions Initiative, a fund of funds to scale up innovative startups. As of February 2026, this initiative has already enabled the creation of 14 European venture capital mega-funds and scaled up 40 companies, including 11 unicorns (with more than €1 billion in capital). Photos of the EIB Group’s representatives and headquarters, logo files and video B-roll for media use are available here.

EIB Advisory 

In addition to financing, the EIB Group offers advisory services that help public and private clients develop markets, build capacity and support high impact investment projects. In 2025 EIB Advisory helped accelerate project delivery and crowd in finance for 179 projects worth more than €80 billion inside and outside the European Union.   

About the InvestEU Advisory Hub

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery and growth. It helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof the multitude of EU financial instruments, making funding for investment projects in Europe simpler, more efficient and more flexible. The InvestEU Fund is implemented through financial partners that invest against an EU budget guarantee worth €26.2 billion. That guarantee will back investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment. The InvestEU Advisory Hub is the central entry point for project promoters and intermediaries seeking advisory support and technical assistance related to centrally managed EU investment funds. Managed by the European Commission and financed by the EU budget, the InvestEU Advisory Hub connects project promoters and intermediaries with advisory partners, who work directly together to help projects reach the financing stage. The InvestEU Advisory Hub complements the InvestEU Fund by supporting the identification, preparation and development of investment projects across the European Union. Together with the InvestEU Portal – the EU’s online matchmaking tool – we aim to strengthen Europe’s investment and business environment.