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Proença-a-Nova Municipal Council Promotes Applications for Rehabilitation Funding

7 November 2017

Applications for project financing under the Urban Rehabilitation and Revitalization Financial Instrument (IFRRU 2020) that are part of Urban Rehabilitation Areas (ARU), an initiative supported by the Proença-a-Nova town council, can already be submitted. According to the local authority, the owners of buildings located in ARUs in the county, destined for housing or other activities, who that wish to renovate them in full, including implementing the most appropriate integrated energy efficiency solutions, can now apply for financing from the program. “From a strategic point of view, the municipality considers urban rehabilitation and rental maximisation as one of its priorities, especially considering that the private sector is expected to react to our efforts to upgrade public areas, and this program provides the necessary support to leverage this process. All of this will be reflected in increasing asset valuations, the creation of housing and the increase in employment within the civil construction sector,” João Lobo, mayor of Proença-a-Nova, emphasised.

In terms of municipal support, emphasis should be given to the renovation of façades up to a maximum of €2,500.00 per property, a reduction of 60% in municipal taxes (exemptions to be granted when the property is legally allocated to the rental market) and the use of municipal technicians to monitor of urban rehabilitation interventions and aid in the removal of construction waste to accredited entities. A resolution is being drafted to extend IMI and IMT tax benefits to those who rehabilitate their real estate assets.

Also, owners of derelict buildings that do not take the initiative to restore the property or find alternatives to reverse the deterioration of their holdings will see their tax rates increased, triple in case of urban buildings that have been vacant for over a year and buildings in ruins. Such structures are considered those that, due to their precarious state of conservation, do not fulfil their intended function.

With respect to the Urban Rehabilitation and Revitalization Financial Instrument – IFRRU 2020, the grants correspond to loans with more favourable conditions for the developers than those currently found in the market, with a total investment per operation of up to €20 million. All individuals and companies that wish to rehabilitate buildings within the ARU of Proença-a-Nova must follow three steps: obtain a legal opinion as to the classification of their project from the municipality that will support the licensing process; contact a qualified expert to conduct the Energy Certification in order to increase the property’s energy efficiency; and apply for a loan at a branch of any of the selected banks: Santander Totta, Banco Português de Investimento (BPI), Millennium BCP and Banco Popular Portugal (further information is available on the Housing Portal).

Original Story: Construír

Translation: Richard Turner