The government agency that handles funds from the sale of passports has allocated €50 million for the building of 500 social housing units.

A memorandum of understanding for the purpose was signed on Wednesday by the National Development and Social Fund (NDSF) and the Housing Authority in the presence of the prime minister.

The Prime Minister said the building of the 500 units was part of the biggest social housing project ever and reflected the state’s commitment to help the under-privileged.

Dr Muscat had first announced the project during a Labour Day public meeting last year.

Social housing, he said, was a means to help people improve their situation. The government, he said, was trying to change mentalities and people who managed to advance should not necessarily continue to stay in social housing.

“We need to fight the sense of entitlement and look towards social mobility,” the Prime Minister said, adding, however, that what had already been done would not be changed.

Dr Muscat said the government was promoting social integration and building social housing units within development zones, while not disturbing ODZ areas.

He also referred to the white paper on rents, saying a balance had to be struck between those who had invested in the property market and young people who often had to take 40-year loans for their house purchases.

Parliamentary Secretary Roderick Galdes said the new housing units would be built on 22 sites in 12 localities: Paola, Kirkop, Rabat, Żabbar, Mellieħa, Luqa, Żurrieq, Żebbuġ, Qormi, Siġġiewi, Qrendi and Marsaskala.

Some 680 units are separately being built in 16 localities.