The Latvian government has announced the allocation of an additional 18.4 million euros to its low rent housing construction support program. This brings the total financial support available from the Recovery Fund to 101.9 million euros, allowing for the construction of 1,128 apartments across various regions in Latvia. Since the program began in 2022, the available funding has nearly tripled, reflecting the government's commitment to addressing housing needs in the post-pandemic context.

As of early February 2023, ten loan agreements have been signed under this support program, facilitating the construction of 676 apartments, with 238 of those already completed and delivered for use in cities like Valmiera, Jelgava, and Bauska. Additionally, there is one project approved for 60 apartments, while eight more projects for the construction of 586 apartments are currently under evaluation. These developments indicate a proactive approach to managing housing shortages and providing more affordable living options.

The extra funding comes from the Ministry of Welfare and the Recovery and Resilience Mechanism programs. The mechanism, which is a financial instrument of the European Union, aims to aid member states in recovering from the impacts of the Covid-19 pandemic while simultaneously fostering long-term economic growth. This initiative not only addresses immediate housing dilemmas but also seeks to enhance overall economic stability in Latvia while investing in social infrastructure.