Florence’s First Excluded Citizen: Pochi Soldi e Sindaci

Sara Funaro, the Deputy Mayor of Florence and the National Association of Italian Municipalities (ANCI) delegate for housing policies, stated on June 24, 2026, that the Italian government’s national housing plan requires a complete overhaul due to insufficient funding and the exclusion of mayors from the decision-making process. Funaro reported that the rental fund has been depleted, leaving municipal governments unable to support residents facing housing instability.

Funaro’s critique focuses on the disconnect between central government directives and the operational realities of city administrations. She argued that the current “Piano casa” (Housing Plan) fails to provide the financial resources necessary to address the housing crisis in urban centers, specifically citing the lack of available capital in the funds designated for rental assistance.

Why is the rental fund depletion a critical issue?

The “fondo affitti” serves as a primary mechanism for providing subsidies to low-income families and vulnerable populations to prevent evictions and ensure access to affordable housing. According to Funaro, this fund is now “svuotato,” or emptied, which shifts the financial burden of social housing support from the national government to local municipal budgets.

In Florence, this shortage coincides with a tightening rental market. The city has seen a significant shift in housing stock toward short-term tourist rentals, which has reduced the supply of long-term residential leases and driven up prices for permanent residents. When national rental funds are unavailable, the city administration must either absorb these costs or leave residents without support.

This financial gap creates a systemic risk for municipal budgets. Local governments are expected to manage the social fallout of the housing crisis—including increased homelessness and residential instability—without the corresponding federal funding promised in national policy frameworks.

How does the exclusion of mayors impact housing policy?

Funaro, speaking in her capacity as an ANCI delegate, emphasized that the government designed the housing plan without sufficient input from the mayors who must implement it. She stated that the exclusion of local leaders results in a top-down approach that ignores the specific geographic and economic variances between different Italian regions.

ANCI represents over 7,000 municipalities across Italy. The organization argues that housing policy cannot be standardized from Rome because the challenges in a metropolitan hub like Florence differ fundamentally from those in smaller rural communes. For instance, Florence deals with “overtourism” and the gentrification of the city center, while other regions may face total population decline and abandoned housing stocks.

By excluding mayors from the planning phase, Funaro claims the government has created a plan that is functionally disconnected from the needs of the territory. This lack of coordination often leads to bureaucratic delays in fund disbursement and the creation of eligibility criteria that do not align with the actual demographics of the people in need of housing.

What are the economic implications for Florence?

The housing crisis in Florence is not merely a social issue but a business and economic challenge. The conversion of residential apartments into tourist accommodations has created a high-yield environment for property owners but has squeezed the local workforce. Essential workers, including healthcare staff and service employees, are increasingly priced out of the city center.

This trend creates a labor shortage for local businesses that cannot attract employees who can afford to live within a reasonable distance of their workplace. Funaro’s demand for a “redone” housing plan includes a need for more aggressive interventions to reclaim residential spaces and provide sustainable funding for social housing projects.

The conflict between the city and the national government reflects a broader tension in Italy regarding the “Piano casa.” While the government may present the plan as a comprehensive solution in national reports, local administrators like Funaro argue that the actual appropriation of funds is insufficient to move the needle on affordability.

What happens next for the National Housing Plan?

Funaro and ANCI are calling for a renegotiation of the plan’s terms and a replenishment of the rental funds. The demand is for a collaborative model where municipal leaders have a seat at the table during the allocation of resources.

Whether the central government will respond to these criticisms depends on the upcoming budget cycle and the political pressure exerted by the network of mayors. If the funds remain depleted, Florence and other major Italian cities will likely continue to seek alternative funding sources or implement more restrictive local regulations on short-term rentals to protect the remaining residential stock.