WHAT REGULATES THE PROPOSED LAW TO GUARANTEE THE RIGHT TO DECENT AND ADEQUATE HOUSING?

by | Oct 5, 2021 | Blog

Laura Arquero – Abogada en Figueras Legal

Just one year after the Catalan Rent Containment Law, Unides Podemos, ERC, EH-Bildu, Més País, Compromís and Nova Canàries have registered their proposal for the Law to Guarantee the Right to Decent Housing, which aims to regulate rental prices throughout Spain by modifying the current LAU, but also the law on mortgages and judicial regulation.

What is the purpose of the proposed Law to guarantee the right to decent and adequate housing?

Mainly, it is aimed at making real and effective the right of every person “to decent, adequate and affordable housing” throughout the Spanish territory, establishing as a main objective that the municipalities with the highest residential demand will have 20% of social housing available within a period of five years with respect to the total housing stock.

In the outline of this new regulation, the following measures are included to help people and families or cohabitants in residential exclusion:

  1. Limitation of the rental price in “stressed areas”.

This new bill enables the declaration of stressed areas if one of the following characteristics is met:

– That the average income exceeds 30% of the average income.

– That during five years an increase in prices of at least three points above the annual rate of the CPI of the corresponding autonomous community is accumulated.

In those areas under stress, the municipalities shall be empowered to apply the measures they deem appropriate, with the aim of determining the maximum rent in the leases based on the price index.

  1. Policies of control on leasing

Policies for the control of tourist rental are foreseen and a registry of rental contracts is created, which may be used by public bodies for the effective achievement of the purposes of the law and for statistical purposes. Furthermore, in order to protect the public housing stock, the sale is expressly prohibited, and the rental of housing is defined as the sole purpose of the law.

  1. In eviction cases

In cases of evictions, the proposed Law requires a proportionality trial, as well as the obligation of “adequate” relocation and social rental in certain cases. Also, it is proposed that the occupation of housing built by financial institutions should not be dealt with through the criminal courts, but through the civil courts.

In the cases in which the foreclosure results from a foreclosure proceeding, changes are introduced in the control of abusive clauses and in the regime for the adjudication of the dwelling by means of auction, limiting the liability to the mortgaged property and preventing the seizure of the only dwelling of the guarantors.

  1. Amendments to the Bankruptcy Law

This new housing law also provides for the modification of the right to a second chance, including amendments to the Consolidated Text of the Bankruptcy Law.

  1. IBI tax collection on empty homes

The proposal is to enable the municipalities to apply real estate tax (IBI) surcharges on the real estate property tax (IBI) on the empty homes of large forts.

In addition, the special tax regime of the Societats Anònimes Cotitzades d’Inversió Immobiliària (SOCIMIS) is annulled, which will be taxed under the general tax regime.

  1. New contracts and distribution of expenses in leasing contracts.

The information to be included in rental contracts is regulated, as well as the costs to be borne by tenants and lessees.

  1. Introduction of social benefits of supplies in case of vulnerability.

In those vulnerable groups, the aim is to guarantee the supply of electricity and water with a social tariff to be financed by the producing, distributing and commercializing companies.

 

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