The government will launch 320 contracts for housing with affordable rents between 250 and 900 euros per month, under the program in which the state rents to landlords and then sublets to needy families and young people. This measure, which will cost €28.8 million until 2030, is part of the executive branch’s More Housing package and kicks off today with the signing of protocols between the Institute for Housing and Urban Rehabilitation (IHRU), the Estamo, a public company that manages the real estate of the state, Santa Casa da Misericórdia de Lisboa, the Institute of Financial Management of the Social Security and real estate agents.
The 320 properties are located in 16 municipalities, from north to south of the country, and are owned by private entities, Santa Casa da Misericórdia de Lisboa and the Institute of Financial Management of the Social Security. An official source of the Ministry of Housing revealed to Dinheiro Vivo the municipalities where it will be possible to place houses at affordable rents of the Lease to Sublet Program (PAS): “Vila Nova de Gaia; Amadora; Cascais; Ílhavo; Lisbon; Marinha Grande; Oeiras; Portimão; Porto; Silves; Sintra; Tavira; Torres Novas; Vila do Bispo; Vila Franca de Xira; and Vila Nova de Famalicão.”
Specifically, the government commits to enter into leases with landlords and pay them values at market prices, between a minimum of 400 euros per T0 in Vila do Bispo, in the district of Faro, and a maximum of 2200 euros per five-bedroom house (T5), in Lisbon, according to data from the Ministry, led by the Minister of Housing, Marina Gonçalves.
But these will not be the rents to be paid by the real recipients of the programme: young people up to the age of 35, single parents and households with an income drop of more than 20% compared to the income of the previous three months or the same period from last year. For example, the government undertakes to subsidize the rents and instead of the tenant paying 400 euros per month for a T0 in Vila do Bispo, he will have to pay a little more than half: 250 euros. In the case of T5, in Lisbon, with a rent paid by the state of 2200 euros, the eligible family only has to bear a monthly charge of 900 euros. In these two examples, the manager supports families with EUR 150 per month or 37.5% of the installment in the first case and EUR 1300 or 59% of the amount in the second situation according to DN/DV calculations based on the ministry provided information.
The PAS will imply a total expenditure of 28.8 million euros until 2030, according to the resolution of the Council of Ministers published this Tuesday in Diário da República, which “authorizes the Institute of Housing and Urban Rehabilitation, IP, to close the expenditures for the and executing 320 rental contracts for residential purposes with the owners, usufructuaries or superficies of properties available on the market for subletting at affordable prices, up to a maximum amount of 28,775,367 euros,” the diploma said. However, this total value may not exceed EUR 2.9 million this year. For 2024 the ceiling is 4.6 million euros and in 2025 5.2 million euros. In 2026 it may not exceed 5.4 million euros and in 2027 it has a maximum limit of 5.2 million euros. From next year, the amounts will decrease to 361.9 thousand euros in 2030.
The 28.8 million euros should be used to cover the expenses that the State will have with rents and the respective subsidization of the amounts charged to the final tenants and also with the commissions paid to real estate agents, such as Re/Max and Century 21, who have already revealed to the DV who will participate in this process. Part of the share of the total cost will be precisely to finance the real estate brokerage service. In this sense, the resolution of the Council of Ministers authorizes the IHRU “to incur the expenditures intended for the signing of the intergovernmental contract with Estamo – Participações Imobiliárias, SA, in the implementation of the Lease to Sublease program, up to a maximum amount of 537,600 euros, plus VAT at the applicable statutory rate”. This means that the 537,600 euros until 2026 is intended to reimburse brokers via Estamo.
Households of one person whose gross annual income is equal to or lower than the maximum of the sixth step (38,632 euros) are eligible to live in a home that falls under the PAS; from two people with a maximum income indexed to the sixth step plus 10 thousand euros; and more than two people in the sixth step, which also adds another 10,000 euros and another 5,000 euros per family member.
The value of the monthly income may not exceed 35% of the family income. The homes are allocated by lottery conducted by the IHRU at the request of interested parties.
To attract property owners (participation in the PAS is voluntary), tax benefits have also been introduced for contracts whose rental value does not exceed the general price limits per typology and depending on the municipality where the property is located. In this case, the owners are completely exempt from IRS or IRC. However, the value of the rent for the house can be up to 30% above the general limits, set in the tables of Regulation No. 176/2019, but in this case the incentive will be smaller, only a reduction in the IRS rate apply due to the duration of the contract. There is also the possibility of exemption from IMI if the municipalities where the homes are located agree to this.
The PAS prescribes that landlords must enter into leases for a minimum period of five years and a maximum period of 30 years, renewable, with a term of three years being allowed as an exception. Eligibility for applications requires new properties or properties that are being used for the first time after rehabilitation, or are in a “good” or “sufficient” state of conservation and cannot be furnished, with the exception of kitchen appliances.
Salomé Pinto is a journalist for Dinheiro Vivo
Source: DN
