IHRU to Loan Up to 100% of Rents for Lowest-Income Families

21 April 2020 According to an article on Economia Online, tenants who suffer from decreased income due to the state of emergency may apply for a loan from the Institute of Housing and Urban Rehabilitation (IHRU) to cover rental payments. The loans would, in most cases, comprise just a part of the monthly rent but, in the case of low-income households, could reach 100% of the monthly amount.

According to the Law 4-C/2020, which came into force on April 7, housing tenants “may apply to the IHRU for an interest-free loan to make up the difference between the amount of monthly rent due and the amount resulting from the application to the household’s income of a maximum effort rate of 35%, to allow for the payment of the rent due, and the household’s remaining disposable income may not be less than the index for social support (IAS).”

At first glance, it appears that when a household’s remaining disposable income is below IAS, currently €438,81, the IHRU would not grant the loan. But a government official stated that “whenever the disposable income is below the IAS, the IHRU can finance a higher amount than it would normally.”

Original Story: Economia Online – Rita Neto

Translation/Summary: Richard D. Turner