Agreement for the social fund for rental housing

• They will be able to access people in circumstances of special vulnerability and who have suffered an eviction since January 1, 2008
• Prices range between 150 and 400 euros per month and the contract will last for two years, renewable one year
• The Federation of Municipalities and social organizations will advise on the procedures for awarding and monitoring

The essential content of what will be the agreement for the creation of a social fund for rental housing has been agreed today, which will allow its implementation from the first quarter of 2013. The fund will be constituted with some 6,000 homes owned by the financial entities for which low-amount rents will be set. People who have been evicted from their first home since January 1, 2008 due to non-payment of the mortgage and who are in a special situation of social vulnerability will be able to access.

The agreement has the backing of the Ministry of Economy and Competitiveness, Health and Social Services, Development, Bank of Spain, the Spanish Federation of Municipalities and Provinces (FEMP), the Third Sector Platform (Non-Governmental Organizations), and most of of financial institutions. The signing is scheduled for the third week of January.

The implementation of this social housing fund complies with the mandate to the Government included in Royal Decree-Law 27/2012 on urgent measures to strengthen the protection of mortgage debtors. Each credit institution will establish its own fund with an initial number of homes, although they may expand it. They will be offered to people who have been the subject of a demand for execution by the same entity that owns the fund.

Credit institutions will make available to potential beneficiaries, collaborating Municipalities and Provincial Councils, Non-Governmental Organizations that develop and execute social inclusion projects and the Coordination and Monitoring Commission, information regarding the homes included in their social fund, its basic characteristics (at least, address and area), its distribution by municipalities and Autonomous Communities, the requirements to access the lease and its basic terms. This information will also be available at the branches of credit institutions and on their electronic pages.

Individuals who have been evicted from their habitual residence and meet the following conditions may be tenants of the rental contracts for the homes included in the social fund:

1. That the eviction occurred as a consequence of a demand for execution, for non-payment of a mortgage loan, initiated by the same credit institution that constitutes the social housing fund.
2. That the eviction occurred on January 1, 2008.
3. That at the time of submission of the request is in the following circumstances:
   1. That the total income of the members of their family unit does not exceed the limit of three times the Public Indicator of Multiple Effects Income (1,597.53 euros per month at present).
   2. That none of the members of the family unit has a property.
4. That it is in a situation of special vulnerability. To this end, any of the following shall be understood as such:
   1. Large family, in accordance with current legislation.
   2. Single-parent family unit with two or more dependent children.
   3. Family unit of at least one child under three years of age.
   4. Family unit in which one of its members has declared a disability greater than 33%, a situation of dependency or illness that permanently incapacitates them for carrying out a work activity.
   5. Family unit in which the mortgage debtor is unemployed and has exhausted unemployment benefits.
   6. Family unit with which, in the same dwelling, one or more persons who are united with the holder of the mortgage or their spouse by relationship of kinship up to the third degree of consanguinity or affinity, and that any of its members are in personal situation of disability, dependency, serious illness that incapacitates them temporarily or permanently to carry out a work activity.
   7. Family unit in which there is a victim of gender violence.

The conditions of the lease are as follows:

1. The rental income will be between 150 and 400 euros per month, with a maximum limit of 30% of the total net income of the family unit.
2. The duration of the lease will be two years. However, the contract will be extended for a further year unless the leasing entity, after a revaluation of compliance with the eligibility requirements set forth in the preceding clause, concludes that these are no longer met.
3. The lessee shall be obliged to assign the property to his habitual residence and to keep it in the same conditions of use and habitability in which it was at the time of delivery.

Applications should be addressed to the credit institution, which will give priority to those situations of greatest need or social risk. To do so, they will request a report from the social services of the Town Halls or Provincial Deputation, which must issue a report within 15 days. Homes will be assigned before the end of each quarter, beginning March 31, 2013. Social organizations will advise on the process and facilitate access to information.

There will be a Coordination and Monitoring Commission in which a representative will participate, in addition to the social organizations (Third Sector Platform), the ministries that sign the agreement (Economy, Health and Development), the Bank of Spain, the FEMP and four representatives of the adhered entities designated by the Spanish Banking Association, the Spanish Confederation of Savings Banks, the National Union of Credit Cooperatives and the Mortgage Association.