CHAPTER IV : Grants and other revenue allocated by the Local Finance Committee

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Article L2334-40

French General Code of Local AuthoritiesIn force

Updated 7 Nov 2023

A budget allocation called the city policy allocation is instituted.

I. - The following are eligible for the urban policy grant:

Locations in overseas departments and the territorial authorities of Martinique and Guyana under the conditions defined in article L. 2334-41;

Local authorities in mainland France that meet the following three conditions:

1° The local authority was eligible for the urban solidarity and social cohesion grant provided for in article L. 2334-15 at least once during the last three financial years and was ranked, as far as municipalities with 10,000 inhabitants or more are concerned, at least once among the top two hundred and fifty pursuant to 1° of Article L. 2334-16;

2° The municipality has a proportion of the population located in a priority urban policy district equal to or greater than 16% of the total population of the municipality within the meaning of the first paragraph of Article L. 2334-2. The total population taken into account for the calculation of this ratio is that relating to the reference year used for the population located in a priority urban policy district;

3° The municipality is cited in the list of districts with the most significant urban dysfunctions taken pursuant to the II de l'article 9-1 de la loi n° 2003-710 du 1er août 2003 d'orientation et de programmation pour la ville et la rénovation urbaine, recorded on 1st January of the year of allocation, or there existed on 1st January 2021 on the communal territory at least one multi-annual agreement concluded with the National Agency for Urban Renewal, as referred to in article 10 of the same law.

Eligible metropolitan municipalities are classified according to a synthetic index of resources and burdens calculated on the basis of per capita financial potential, per capita income and the proportion of housing benefit recipients in the total number of dwellings in the municipality.

II. - The appropriations for the city policy grant are distributed between the departments as follows:

1° Initially, an initial envelope for overseas municipalities is distributed between the overseas departments and the territorial collectivities of Martinique and Guyana under the conditions defined in article L. 2334-41;

2° In a second phase, a second envelope intended for communes in mainland France is distributed between the departments in mainland France according to the following terms:

a) Three quarters, according to the allocations of eligible communes in each department, ranked according to the synthetic index of resources and burdens provided for in the last paragraph of I;

b) One quarter, according to the allocations of eligible communes in each department included in the first half of the ranking mentioned in the last paragraph of I.

When a commune ceases to be eligible for the allocation in 2017, the departmental envelope is increased over the following four financial years by an amount equal to 90% of the allocation calculated in 2016 in the first year and decreasing by one tenth each year thereafter. The necessary sums are deducted from the amount of the allocation before application of 2° of this II.

For the application of this article, unless otherwise stated, the data is assessed on 1st January of the year preceding that in respect of which the urban policy allocation is distributed and the population to be taken into account is that defined in article L. 2334-2.

III. - The State representative in the department allocates the credits from the departmental envelope in order to finance the actions provided for by the city contracts defined in Article 6 of Law no. 2014-173 of 21 February 2014 programming for the city and urban cohesion. By way of derogation from I, the representative of the State in the department may award a grant to projects in municipalities that ceased to be eligible for the allocation in 2017 during the following four financial years.

The grants must be notified, for at least 80% of the amount of credits allocated to the department for the current financial year, during the first half of the calendar year.

Before 31 July of the current financial year, the list of operations that have received a grant, the amount of the projects and the amount of the grant awarded by the State are published on the official website of the State in the department. If this list is amended or supplemented between this publication and the end of the financial year, a corrective or supplementary list is published in the same way before 30 January of the following financial year.

When responsibility for urban policy has been transferred by an eligible municipality to a public establishment for inter-municipal cooperation, the latter may benefit, by decision of the State representative in the department, from the urban policy grant on behalf of this municipality.

The terms of application of this article are set by decree in the Conseil d'Etat.

Mariela Petrova

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Mariela Petrova

Mariela Petrova

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