Lithuanian anti-corruption agency flags MP’s social housing sale proposal as corrupt

The Lithuanian Special Investigation Service (STT) has warned that proposals by MP Ligita Girskienė to allow municipalities to sell social housing to tenants via installment plans could create corrupt conditions, according to a report by public broadcaster LRT.

The agency’s criticism comes as the Seimas (parliament) narrowly approved the revised draft law for consideration this week, despite rejecting an earlier version in 2023. The STT argues the amendments would benefit tenants with privileged rental terms rather than low-income groups, contradicting the stated social welfare goals.

Under Girskienė’s proposal, municipalities could sell housing to tenants who have lived there for at least five years, declared it as their primary residence, and have no tax debts—without requiring competitive auctions. The STT highlights that vague criteria grant municipalities excessive discretion, risking misuse.

The agency also notes that Lithuania already faces a severe social housing shortage, with municipalities selling far more units than they acquire. In 2017, for example, 468 units were sold while only 188 were purchased; in 2018, 304 were sold versus 52 bought.

Girskienė defended her proposal, stating she had addressed legal concerns and dismissed corruption risks, as municipal councils—comprising diverse political factions—would oversee sales. She argued the plan responds to public demand, particularly from long-term tenants like teachers or police officers.

However, the Seimas Legal Department flagged unresolved issues, including unclear eligibility criteria for low-income tenants and ambiguity over whether auxiliary buildings could also be sold via installments. The department urged setting a fixed repayment period, as required in other asset-sale laws.

During parliamentary debates, opinions divided. Liberal MP Edita Rudelienė called the five-year residency requirement “too short,” while Social Democrat Laurynas Šedvytis opposed reducing municipal housing stock, advocating expansion instead.