A chill has settled over construction sites in France's overseas territories. The social housing movement, through the voice of the Social Union for Housing (USH), accused the government on Tuesday of preparing an "unprecedented" cut in funding for social housing in the overseas territories in 2026. The target is the single budget line (LBU), this specific funding mechanism that directly supports construction and renovation projects in the overseas departments and regions, where even the smallest housing unit often costs more and is less easily financed than in mainland France.
Behind the rhetoric lie some striking figures. The USH (Union Sociale pour l'Habitat) mentions a "planned" budget of €127 million for 2026, divided among the five French overseas departments and regions (DROM): €15 million for Guadeloupe and Martinique, €24 million for French Guiana, €46 million for Mayotte, and €27 million for Réunion. The sector points out that the LBU (Local Budget Act) usually exceeds €200 million in commitment authorizations and that these have already decreased by 20% in the last two budget laws, even though the overseas territories had nearly 104.000 applications for social housing in 2025 and 64% of the population is eligible.
The "single budget line", the crux of the matter in the French overseas departments and regions (DROM)
The “single budget line,” the crux of the matter in the French overseas departments and regions (DROM). On the political front, the protest has reached the National Assembly. In Réunion, Jean-Hugues Ratenon (LFI), a member of parliament from Réunion, questioned the Minister for Overseas Territories, Naïma Moutchou, about the situation in Réunion: local landlords fear a drop from €85,65 million in 2024 to €27 million in 2026. The Minister's response was clear: “Contrary to what you say, the State is not backing down,” referring to simple management and oversight measures, and stating that an initial tranche representing “more than 50% of the allocated funds” had been notified to the prefects, with instructions to advance and quickly utilize the funds.
The very real anxiety remains for programs that don't wait for talking points. In Réunion, the regional association of social housing providers in the Indian Ocean (ARMOS-OI) warns of an "unprecedented disruption" and quantifies the needs: 1.832 new homes and 1.162 renovations, representing €70 million in requests, well beyond the anticipated budget. In these territories where insularity, earthquake and cyclone-resistant building codes, scarce land, and unpredictable weather drive up costs, social housing rarely has any leeway… and every budgetary decision is quickly reflected in the waiting lists.
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