Sareb Grants 600 Homes for Social Renting

14/07/2014 – Economia Digital

Spain´s “bad bank” is going to award a part of its real estate portfolio to social rental. Since Sareb´s birth, its responsibles have been pressured by local administrations to take this step. The first to obtain the affordable dwellings was Catalonia.

The initial deal states each of the 600 houses shall be leased at the price of between €150-€400 monthly for four years (extendable to five). After this term, Sareb will recover the assets and subrogate the lease agreements. The main incentive for the bad bank is that it will not have to bear the communal costs, insurance, taxes and property taxes which will be divided among the 72 municipalities. From now on, the tenants will have to pay all these expenditures. The Catalonian Government will take the responsability of paying for management of the dwellings.

The properties included in the operations are so-called “atomized-dwellings” proceeding from asset transfers from the bailed-out entities to Sareb. No building has been embraced in the contract as the bad bank considers it easier to sell the entire block than shedding one flat by another.

Neither will be included the building presently occupied by the Mortgage-Affected Platform (PAH by its acronym in Spanish) in Sabadell (BCN) where 146 people live (58 of them are elderly), or the block in Salt (BCN) completely evicted by the Mossos d’Esquadra (Catalonian police) in December.

Sareb´s chairwoman Belen Romana said the talks are carried out with eight other regional authorities on signing similar deals.


Original article: Economía Digital (by Cristina Farrés)

Translation: AURA REE