The French government has proposed using part of the fines it pays for failing to rehouse vulnerable families to fund the building of social housing, as outlined in the draft budget law (PLF) introduced on October 1st by the Council of Ministers and sent to the National Assembly. The law known as the Dalo law, passed in 2007, guarantees the right to housing for the most disadvantaged and allows legal action against the government if it fails to meet this obligation. These penalties, imposed by courts, are not given directly to the affected households but instead go to the National Fund for Accompaniment in Housing (FNAVDL). For 2027, the government plans to allocate around 30 million euros to the National Fund for Housing Aid (Fnap), which supports the construction and renovation of social housing. The FNAVDL will continue to receive 50 million euros, while the Fnap’s budget is expected to stay at 275 million euros next year. The Fnap is partly funded by social landlords, who also benefit from the fund. However, additional funds allocated to overseas territories have been frozen this year. The goal of this measure is to provide a "structural response" to help low-income households find housing and to channel more money into housing construction, especially in overseas territories. In these regions, where the economic model of social landlords relies more heavily on state support—due to higher construction costs and lower rents—direct funding from the state has been partially frozen in 2026. According to the Social Union for Housing in September, only 105 million euros of the Unique Budget Law (LBU) have been released this year, compared to 236.5 million euros originally planned, or just 55% of the amount approved. As a result, many new housing projects are currently on hold in overseas territories. CDC Habitat, the state's social landlord, told BFM Business last week in Bordeaux that out of the 3,600 housing authorizations planned for 2026, only 2,300 have been approved so far. In a letter sent last week to housing sector professionals, Prime Minister Sébastien Lecornu pledged to "propose new resources" to more sustainably fund social housing construction in overseas territories. Over the past few years, costs related to housing disputes—primarily the Dalo penalties—have risen significantly, from 23 million euros in 2020 to 53.6 million euros in 2025, due to the increase in disputes related to the Dalo and DAHO (enforceable right to accommodation) laws, as noted in the 2027 PLF.