Key Facts About Rental Assistance in the 2013-2016 Housing Scheme

21/07/2014 – Cinco Dias

Approval of the new 2013-2016 State Housing Scheme gives the green light for elimination of ownership of subsidized homes, continuity for mortgage subsidy included in the previous plans and the new rental assistance programs. Obtaining the last is conditioned by a number of requirements.

Who can benefit from the rental aid?

All natural persons in advanced old age meeting the following prerequisities: firstly, they shall be the tenant or be able to subscribe to a rental agreement. Secondly, the rented dwelling shall be the main and permanent residence of the lessee. Thirdly, there are limits for the income of people living in the rented property (whether or not they are the principal tenants said in the contract).

The income limits

The income limit will depend on the number of the people living together in the unit (so-called “cohabitation unit”). An adult computes once to Spain´s Public Revenue Index (or IPREM by its acronym in Spanish) which shows 532.51 Euros monthly. Each additional, 14 or more years old person computes 0.5, while each person below 14 computes 0.3.

Exceptionally, if amount stated in the application is lower than offered assistance, 22.365,42 Euros will be granted.

The “cohabitation unit”

It is a housing unit inhabited by a number of people, independently from their relationship or presence of their name in the rental agreement.

Can every tenant apply for the assistance?

No. The monthly payment cannot exceed €600. Each region may trim the limit.

The aid´s amount

The rental assistance may reach up to 40% of the monthly payment with an annual cap of €2.400 for each dwelling.

How long does the subsidy last?

Once granted, the assistance will be paid for the next 12 months with possibility of prolonging it until the end of the effectiveness period of the Housing Scheme (until 31st December 2016).

Will any group be given preference?

Yes. Apart from the general criteria of the areas with economical difficulties, people affected by eviction will have the preference.

Where to apply for the aid?

Applications will be examined by regional authorities.

What does the Scheme say about the stock for rent?

The Housing Scheme also includes creation of subsidized housing stock intended for rent over plots and public buildings.

How much will it cost to rent such a dwelling?

Rotation renting: for “cohabitation units” with a below €8.946,17 income. The price cannot be higher than 4.7 €/m2/month. Thus, an apartment of 60 m2 would be rented for 282 Euros monthly. They will represent 50% of the total.

Subsidized home: for units earning between €8.946,17 and €22.365,42 with a 6 euro/m2 pricing cap. For example, a 60 square meter flat cannot be leased-out for more than 360 €/month.

Who will manage the assistance?

The aids will be split among those who can promote this type of rentals: the public administrations and other institutions, common wealth foundations and associations, the NGOs and the private firms with the surface right.

What is the assistance for the rental stock establishment?

The aid will post 250 Euros per square meter. The limit for it will be of 30% of the total construction cost (max. €22.500 per dwelling).

Original article: Cinco Días (by C. C.)

Translation: AURA REE

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