11/02/20

New measures to improve access to public housing

The Generalitat de Catalunya, using its jurisdiction regarding housing, signed the Legislative Decree 17/2019 regarding urgent measures to improve access to public housing. These are the key points of the urgent measures this Decree implements:

1.- IRREGULAR USE OF HOUSING

Empty properties:

  • The property that is permanently unoccupied for 2 years without just cause. The occupation without title (squatting) does not prevent it from being considered an empty property, although it is accredited that legal actions have been initiated for the recovery of the possession.

  • Unfinished vacant buildings with more than 80% of the construction works executed.

2.- SANCTIONS FOR IRREGULAR USE OF HOUSING 

  • The Generalitat and the Town Halls can impose fines (very serious infraction €90,000 to €900,000).

  • In the case of empty homes owned by private legal persons: The fines will be €1,000 / month for housing with a maximum of 50% of the price of the house. The breach of the social function may be declared to initiate the procedure of forced expropriation.

3) DEFINITION OF LARGE REAL ESTATE HOLDERS

  • Legal entities, venture capital funds and private individuals owning more than 15 properties (homes).

  • Exception: when they have 15% of the occupiable space of the property qualified as public housing homes destined to rent.

4) OFFERING RENTS FOR SOCIAL HOUSING

  •  They must be offered before filing a lawsuit for eviction for non-payment.

  • They have to be offered by the “big holders”, be they natural or legal persons.

  • It is mandatory to offer it to people or family units that are at risk of residential exclusion.

.According to income:
The Sufficiency Income Indicator of Catalonia (IRSC) is an economic value that indicates the threshold from which citizens have access to a series of social benefits.

-1 person:  income less than 2 IRSC.
-Cohabitation units: income below 2.5 IRSC.
-Disabilities: income less than 3 IRSC.

  • It is mandatory to communicate the offer to the Town Hall and the Agencia de la Vivienda de Catalunya (Housing Agency of Catalonia) within 3 days of its completion.

  • The duration of the new contract will be at least the same as that contemplated by the current LAU (Ley de Arrendamientos Urbanos, Spanish Rental Law) and mandatory for the landlord. Upon completion, the tenant will be entitled, on a one time basis only, to one new contract (in the event that the tenant continues to be at risk of residential exclusion). 

  • The price of social housing rent will be calculated according to the family unit’s income applying a series of corrective factors:

  • 10% (if less 0.89% IRSC).

  • 12% (if less than 0.95% IRSC).

  • 18% (if equal to or greater than 0.95 IRSC).

5. - RENTAL PRICE REFERENCE INDEX

Landlords who rent above the reference index may not benefit from public assistance aimed at rent promotion. 

 

 

 

 

 

 

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