The State Housing Plan will create 36,000 jobs

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The new agreement signed with the Autonomous Communities on the State Housing Plan will create 36,000 jobs.

In 2013 the BOE published the "Royal Decree 233/2013, of April 5, which regulates the State Plan for the promotion of housing rental, building rehabilitation, and urban regeneration and renovation, 2013-2016". Since then, many things have happened and few real and effective things related to this Royal Decree that was considered an important boost to the construction sector and specifically, through the urban rehabilitation, regeneration and renewal with special emphasis on the creation of a larger rental market than the current one to facilitate access to sectors of the population with fewer resources.

We finally have news!… The Council of Ministers has approved an agreement that authorizes the signing of collaboration agreements between the Ministry of Public Works and all the Autonomous Communities (except the Basque Country and Navarra) for the execution of the State Plan for households.

How does the 2013-2016 State Plan aid management work?

The agreement signed for the execution of the State Housing Plan has seven key points:

The agreed loan subsidy program:

The subsidy is an aid that is deducted from the mortgage loan payment. Subsidy aid granted under previous housing plans is maintained to help mortgage debtors with fewer resources to meet their loan obligations.

A rental assistance program:

The objective is facilitate access and stay in rental housing for sectors of the population that have economic difficulties. As beneficiaries are natural persons of legal age with an income limit lower than 3 times the IPREM (€ 22,365.42), adjustable according to the number of members and composition of the coexistence unit, which ensures that the families most in need. The monthly rent must be equal to or less than € 600.

The aid will be up to 40% of the rental income, with a limit of € 2,400 per year per home and a maximum term of 12 months, extendable until the end of the Plan. The affected persons will have preference in the eviction procedures.

Program for the promotion of public housing for rent:

This program aims to create a public park of protected housing for rent on land or buildings of public ownership. The beneficiaries include public administrations, public bodies, foundations and associations declared of public utility, NGOs and private companies with surface rights.

The Grants will reach a maximum of € 250 per useful m2 of the home in proportion to its surface, of up to 30% of the cost of the building with a maximum limit of € 22,500 per home.

The program includes rental housing in rotation: for living units with incomes up to 1.2 (€ 8,946.17) times the IPREM. The rental price may not exceed € 4.7 per month / useful m2; and protected rental housing: for coexistence units with income between 1, 2 and 3 times the IPREM (between € 8,946.17 and € 22,365.42). The rental price may not exceed € 6 per month / useful m2. At least 50% must be rental housing in rotation.

Building rehabilitation promotion program:

This program is aimed at promoting intervention actions in buildings and facilities to improve their state of conservation, guarantee accessibility and improve energy efficiency. The properties must be older than 1981 and at least 70% of their surface must have residential use as housing and constitute the habitual residence of their owners or tenants.

Beneficiaries include communities of owners, groups of communities or sole proprietors of residential buildings.

The aid will be up to € 4,000 per dwelling for conservation; up to € 2,000 per home to improve energy efficiency (€ 5,000 if the building's energy demand is reduced by 50%); up to € 4,000 per home to improve accessibility. The amount may not exceed 35% of the budget; exceptionally in the case of improvement of accessibility 50% and in any case € 11,000 maximum per home.

Program to promote urban regeneration and renewal:

The objective of this program is to finance the joint execution of rehabilitation works in buildings and homes, urbanization or redevelopment of public space or construction to replace demolished buildings, within a defined area: minimum 100 homes, except for exceptions ( Eg: historic centers or rural areas).

Those who assume responsibility for the comprehensive implementation of the scope of action: Public Administrations, communities of owners, groupings of communities, consortia, entities or private companies may benefit from it.

The aid will be a maximum of 35% of the budget, with a ceiling of:

  • Up to € 11,000 per renovated home
  • Up to € 30,000 per home built to replace another demolished
  • Up to € 2,000 per home for the urbanization work.
  • € 4,000 per year (maximum 3 years) may be added per unit of coexistence to be relocated.

Building evaluation report implementation program

The IEE is a report regulated in Law 8/2013, of June 26, that analyzes the state of conservation, accessibility and energy efficiency of the building.

The purpose of this program is to promote the implementation and generalization of a Building Assessment Report (IEE) that includes the analysis of accessibility conditions, energy efficiency and state of conservation, through a grant that covers part of the expenses of professional fees for its issuance.

Neighborhood communities, groups of communities or sole proprietors who carry out the evaluation report before the end of 2016 will be able to benefit from the same.

A grant of € 20 per home will be granted with a maximum of € 500 per building and 50% of the cost of the building report.

Sustainable and competitive cities promotion program.

The purpose of this program is to finance the execution of projects of special importance: improvement of neighborhoods, historic centers and centers, substitution of slums, eco-neighborhoods and tourist areas.

As beneficiaries are the territorial public administrations, owners of residential buildings, communities of owners, consortia, associative management entities.

How much money is the investment of this agreement with the CCAA and its benefit in jobs?

How always!… One thing is what they tell us and the other, what it will really be. Of course 36,000 jobs there are many but I am hopeful that this goal will be met. Actually if we do rough numbers, dividing the investment between the possible jobs, and between three years ((3,795 M / 36,000 Workers) / 3 Years = 35,138 Euros / Year). It touches for each worker around € 35,000 / Gross-Year…. Closing my eyes very tightly, very tightly, I can imagine my new life!

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