Cataluña Will Fine Banks That Do Not Lease Out Foreclosed Homes

11 March 2015 – Expansión

The Generalitat will impose fines of up to €90,000 on banks that have homes (on their balance sheets) resulting from mortgage foreclosures and the assignment of deeds in lieu of payment, which are in a poor condition and as a result, are not leased out. The 72 municipalities with the highest demand (for housing) will be forced to transfer affected homes to the Generalitat, which, after refurbishing them, will lease them out for a maximum period of ten years. This is one of the measures contained in a law introduced to address urgent housing measures, which the Government of Artur Mas (CiU) announced yesterday.

The text also empowers the Generalitat and the town halls to exercise ‘their pre-emptive rights and rights of first refusal’ for all of the homes that have resulted from mortgage foreclosures and the assignment of deeds in lieu of payment, that the bank wants to sell. The objective is to prevent packages of properties ending up in the hands of international funds and evicting the tenants from those homes.

Original story: Expansión (by A.Z.)

Translation: Carmel Drake

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