The Housing Scheme to Mobilize €3.8 Bn by 2016

21/07/2014 – ExpansionPro

The Ministry of Public Works approved the Royal Decree containing the State Housing Scheme which regulates property rentals, building rehabilitation and urban regeneration and renovation.

Total investment in the Scheme will reach nearly €3.8 billion. The Ministry led by Ana Pastor will contribute with €2.3 billion, whereas the Spanish regions with €216 million. The remaining €1.27 billion will flood-in from private investment.

The measures stated in the 2013-2016 Scheme foresee granting rental assistances for 200.000 families, rehabilitating 50.000 homes, subsidizing the interest payment in case of 230.000 mortgages and creating 36.000 jobs within the three years.

Speaking of the rent, in majority the assistance will be given to elderly people with limited income (lower than €22.365 annually) and renting a dwelling for less than €600 monthly. Pastor assured the aid will equal up to 40% of the income with a €2.400 cap.

Another program aims at establishing a subsidized housing stock for rent comprising land and public buildings. The assistance will be paid at 250 Euros per square meter with the construction cost restriction of 30% (up to €22.500 per dwelling). The victims of evictions will have the pre-emptive right.

When it comes to building rehabilitation, the Minister told the edifices built before 1981 will fall into this program. Moreover, 70% of their area shall be of residential nature. The assistance foresees €4.000 for maintenance and €2.000 for improvement in their energy efficiency.

The urban renovation plan embraces a defined number of houses (minimum 100, exceptions excluded) which will receive an aid of maximum 35% (up to €11.000 for each refurbished home).

 

Original article: ExpansiónPro (by C. Villaroya; also in: La Voz de Galicia)

Translation: AURA REE

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