- The norm protects the families most affected by the crisis and with family burdens
- The creation of a social housing fund with moderate rents is expected
The Council of Ministers today approved a Royal Decree-Law on urgent measures that establishes a two-year moratorium on the execution of evictions of habitual residence for a large group of citizens. In addition, it is launching the constitution of a social fund with housing for low-income rentals for those who have been especially hard hit by the economic crisis.
With this decision, the launch process (the last phase of eviction) is halted for two years for those families involved in such a process, provided that they meet certain requirements, so that they can continue residing in their usual home at no cost. The groups that will be able to benefit from the moratorium due to their special vulnerability are:
- Large families, according to current legislation.
- Single-parent family units with two dependent children.
- The family units of which a minor of three years is part.
- Family units in which any of its members has declared a disability greater than 33%, a situation of dependency or illness that incapacitates them temporarily or permanently, in an accredited manner, to carry out a work activity.
- The family units in which the mortgage debtor is unemployed and has exhausted the benefit.
- Family units in which one or more people with a relationship of up to the third degree live in the same dwelling with respect to the holder of the mortgage or their spouse and who are in a situation of disability, dependency or serious illness that temporarily incapacitates them or permanent, accredited, to carry out a work activity.
- Victims of gender violence, if the home subject to eviction is the usual one.
To qualify for the moratorium, there are also established scales of income and effort that represents the mortgage payment:
- That the family unit has an income less than or equal to three times the Public Indicator of Multiple Effects Income (IPREM). In 2012 this indicator is located at 513 euros per month, for which the income of the family unit must not exceed 1,597 euros per month.
- That the family has suffered a significant alteration in the mortgage burden (at least 1.5 times) in the last four years due to the economic crisis situation.
- That the mortgage payment exceeds 50% of the income of the family unit.
The Royal Decree-Law that has been approved today is going to be processed in the Courts as a Draft Law, in which it is planned to introduce improvements that guarantee a better operation of the mortgage market. Specifically, broader limits will be incorporated in the exclusion threshold for the application of the Code of Good Practice in evictions approved last March and signed by a vast majority of financial entities.
In addition, it is planned to improve the regulation of judicial and extrajudicial foreclosure procedures; complementary measures will be introduced to ensure the independence of appraisers of credit institutions and the possibility of choosing them; credits of special complexity will be regulated; abusive clauses will be avoided and measures will be included to avoid overindebtedness.
The Minister of Economy and Competitiveness, Luis de Guindos, has indicated that with these measures "the Government prevents the social groups most affected by the evictions from losing their homes", allowing them to stay there for two years and at no cost.