The Government, through the Ministry of Housing and Urban Agenda (MIVAU), has approved the distribution of 627,800 euros to Ceuta for the rehabilitation of housing, within the framework of the Recovery, Transformation and Resilience Plan (PRTR).
At its meeting today, the Council of Ministers authorised the proposal for territorial distribution and the distribution criteria of EUR 430 million between the autonomous communities and the cities of Ceuta and Melilla, coming from the PRTR, approved unanimously at the last Sectoral Conference.
“We made these payments conditional on December 31, 2024, to give CCAA more time and ease. And we have extended the deadline to present and sign the construction of new homes, which correspond to Program 6: “Construction of homes for social rent in energy-efficient buildings,” explained the Minister of Housing and Urban Agenda, Isabel Rodríguez.
European funds
“A last distribution that belongs to the Recovery Funds, which was achieved by President Pedro Sánchez in 2020. And, today, after four years of management, we can add value to Component 2, Implementation of the Spanish Urban Agenda: Urban Regeneration and Rehabilitation Plan, endowed with more than 5.52 billion euros, is already being enjoyed by the citizens of this country.”
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€3.42 billion for Rehabilitation Programme 1, which translates into: €2.97 billion for Effective Rehabilitation and €450 million in Tax Deductions.
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EUR 1 billion for Programme 6 for the construction of social rental housing in energy-efficient buildings.
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€1,080 million for the Public Buildings Rehabilitation Plan.
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20 million for the Urban Agenda.
And finally, 4,000 M of loans for promoters, “which we will launch in the coming weeks”.
“In other words, we have made an unprecedented effort in the shortest possible time. 9,520 million euros destined to the housing policy of our country with the objective of strengthening housing as the fifth pillar of the welfare state,” said Isabel Rodríguez.
The 430 million euros, whose distribution is authorized today, correspond to the “Rehabilitation Program for economic and social recovery in residential environments”, which is endowed with 3,420 million euros, to achieve 160,000 performances this year and 410,000 until June 2026. These funds are intended for changes, for example, of windows in a particular home, digitization, installation of solar and photovoltaic panels, aerothermia or improvements of green areas.
Today’s agreement, corresponding to the annuity of 2023, will have a distribution criterion as in the previous annuities, which was through the number of households according to the INE 2020 survey.
Distribution criteria
In turn, MIVAU has established two criteria to be met by December 31, 2024 to be able to transfer the funds:
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That the number of resolutions made by the CCAA or autonomous city exceeds 75% of the target.
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That the number of applications exceeds 75%, but it will have to be proven that those already resolved or executed exceed 50% of the aforementioned objective.
Therefore, from January 1, 2025, all the amounts corresponding to annuities 2022 and 2023 that have not been transferred (due to not having met the established requirements), will be distributed again between the communities and autonomous cities that have met.
The agreement authorized today by the Council of Ministers, “we will take it next Thursday, to the Sectorial Conference, which already approved it last January, unanimously,” explained the minister.
The amount of 430 million euros, appropriated in the General State Budgets for 2023, incorporated in the annuality 2024, will be distributed in proportion to the number of households of the Continuous Household Survey (INE) of the year 2020.
Tax incentives and case study
Within the Rehabilitation Programme, endowed with more than 3.42 billion euros, the minister has highlighted the allocation of 450 million euros for tax incentives. “Thanks to these incentives, which are budgeted and financed by this Ministry, anyone who carries out a rehabilitation work in their home can deduct a part of their cost in their next income tax return”, and has given an example.
“Marta makes a work of 5,000 euros in her property to improve energy efficiency, fulfilling the requirement of a 7% reduction in heating and cooling consumption. It receives an aid of 40%, which corresponds to 2,000 euros. That is, it would pay only 3,000 euros. But not only that, since, over those 3,000 euros, it would also have a deduction of income tax of 20%, which would be 600 euros. Therefore, Marta would pay half of what she would have paid without this rehabilitation aid.”
Rehabilitation Program Balance
The minister also said that “the balance of the investment of the almost 3.5 billion of this Rehabilitation Program is positive and the Government of Spain has already made 2,211 million euros available to the CCAA for housing rehabilitation and urban regeneration”.
Currently, 329 million euros remain to be distributed, corresponding to the CCAA of Andalusia, Asturias, the Balearic Islands, Murcia, Ceuta and Melilla. The second year of the year 2022 was linked to the fulfillment of an objective: certifying to the Ministry that they had already resolved aid for 25% of the intermediate objective of the Plan, before March 31, 2024.
“Most of the CCAAs have met the target, and for those that need a little more time, the Ministry has decided to extend this deadline until December 31, 2024, in order to transfer the money to the CCAA. However, they will have to increase the pace and reach the goal of 50% of resolutions and, in the case that they do not reach, the amount will be transferred to those that can accredit 75% of the resolutions,” said Isabel Rodríguez.
“This data is possible thanks to co-governance and collaboration between many actors,” added the minister, who thanked the other Public Administrations, Communities of Owners, Professional Associations of Architects and Technical Architects, Real Estate Agents, Property Managers and Financial Entities, as well as workers in the sector.
Signing of 44 agreements with CCAA regional
In addition to the rehabilitation, also within PRTR, the minister has valued the Program of construction of homes for social rent in energy-efficient buildings, endowed with 1 billion euros.
“This afternoon we will sign 44 agreements that translate into 3,233 new homes in 73 municipalities of 10 autonomous communities, agreements that have to be signed before March 31, 2024 and finalized in 2026. Agreements focused on co-governance with CCAA and City Councils to respond to Article 47 of the Spanish Constitution and to an objective that we have set ourselves: to turn housing into the fifth pillar of the Welfare State in this legislature”, the minister detailed.
“I would like to point out that the objective of the Ministry was to build 20,000 homes until 2026, and with which we will sign this afternoon, we will greatly exceed the commitment, since we will reach the approximately 25,000 homes in different phases: convenient, under construction or already delivered,” concluded Isabel Rodríguez.