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Presentation of the project

The Fund owns 31,770 m2 of building land with utilities partially installed in the Rožna dolina area of Nova Gorica, which it purchased from the DUTB in 2019, with the funds for the purchase contributed by the Fund’s founder in the form of an increase in the Fund’s earmarked assets/equity.

The area is regulated by the Decision on the Municipal Detailed Spatial Plan Rožna dolina III. In spatial unit P1, land is owned by several different legal and natural persons (including from abroad). In the S2 spatial unit, the Fund is the sole owner of land with a total area of 15,779 m2. The land constitutes a complete unit on which the amendment of the zoning act will allow for the independent development of the project and the construction of multi-family residential buildings with 80 housing units for public rental. In 2021, the City of Nova Gorica selected the developer of the amendments to the Rožna dolina III (S2) DMSP for the S2 spatial unit.

Due to the importance of flood safety in the Vrtojbica river basin, the Municipality of Nova Gorica (MONG) and the Water Directorate of the Republic of Slovenia have concluded an agreement to ensure flood safety in the Liskur area. The project has thus become part of the Recovery and Resilience Plan (NOO), co-funded by the European Union. It concerns flood safety in the wider area – Rožna Dolina, Šempeter-Vrtojba and Gorizia. However, measures on the Liskur watercourse are key to ensuring flood safety in these areas. According to new data, a large area of the Rožna Dolina III OPPN has been identified as an area of medium and high flood risk, and the planned construction would therefore not be possible without invasive investment measures upstream. The new location requires the abandonment of the Housing Fund of the Republic of Slovenia and an amendment to the OPPN.

On 25 May 2023, the Housing Fund of the Republic of Slovenia received a letter from the Municipality of Nova Gorica in which the Municipality proposed that the Housing Fund of the Republic of Slovenia should abandon the construction in the area of the Rožna dolina III OPPN and conclude an agreement on the abandonment of the construction in this area. Unfortunately, the municipality has not yet proposed an agreement or suitable built-up areas to replace the abandoned building, and will be invited to do so in the future.

As the site is part of the projects known to be co-financed by the Council of Europe Development Bank (CEB) since 2021 and as such included in the Fund’s business and financial plans, the Fund would build 80 rental apartments on the site, and since the municipality has not specified the proposal or proposed specific and, in particular, suitable land with replacement under the legislation in force, the Fund will ask the municipality to do so, since until then the proposal cannot be considered in a substantive and professional manner in accordance with the operating rules of the RS Housing Fund and the legislation in force, and the relevant procedures cannot be carried out. According to the contract with the lender, the project is scheduled for completion by the end of 2025 and handover to tenants in 2026. The construction on this site is very important for the Fund as it is the only CEB Package 2 project in the Gorizia Statistical Region.