The social allocation of confiscated real estate

The new system

At the end of criminal proceedings, the State may take ownership of real property permanently confiscated as the proceeds or instrument of an offence. In some cases where criminal law allows it, the state can become the owner of all property through general confiscation (this process is different from the seizure of property carried out during the investigation phase, that is, before any judicial decision).

In France, these assets are managed by Agrasc (Agency for the Management and Recovery of Seized and Confiscated Assets), which sells them to supplement the State budget, repay creditors, compensate civil claimants, or fund specific initiatives (e.g., addiction prevention programs, witness protection).

Since the Law of April 8, 2021 (aimed at improving the efficiency of local justice and criminal response), associations of general interest, as well as associations and foundations recognized as being of public utility, may temporarily benefit from assets acquired through illicit means that have been finally confiscated by court order.

Real estate that can be made available to associations

The Decree of November 2, 2021, which sets out the implementing rules for this measure, aims to match the needs of associations and those working in the public interest as closely as possible.

Eligible properties must be:
- Vacant;
- Managed by Agrasc;
- Subject to permanent confiscation.

These properties may benefit associations, for which real estate costs often represent the largest expense.

The associations concerned

Under the Law, eligible associations include those whose activities fall under section b of 1° of Article 200 of the French General Tax Code (CGI), as well as associations and foundations recognized as being of public utility, and accredited organizations under Articles L365-2 and R365-2 of the French Construction and Housing Code.

Forms of Making Available

The provision of real property is temporary and not a gift. It is governed by a contract, which may be: 

• a precarious occupancy agreement of the private domain; or
• a lease contract.

When an association that engages in project development activities—such as acquisition, construction, or rehabilitation of housing or accommodation facilities—is approved by the regional prefect at its headquarters, it may benefit from a building lease or an emphyteutic lease.

How to apply?

Eligible confiscated properties are advertised by Agrasc on its website under the 'Social Allocation Request' section or on www.associations.gouv.fr.

An association wishing to benefit from the provision of seized or confiscated property must submit an application dossier to the Director General of Agrasc. This dossier must include, in particular: a description of the intended use of the property; and its contribution to the public interest.

The application must comply with the requirements specified in each dedicated Call for Manifestations of Interest (AMI).

View current Calls for Manifestations of Interest (AMI)

Control of the association benefiting from the provision

The beneficiary association must annually report to Agrasc on its use of the property in accordance with the contract concluded with Agrasc. This report must include all information necessary to verify: the proper execution of the provision contract; and the maintenance of the property in good condition.