AID PROGRAM FOR COMPREHENSIVE REHABILITATION OF RESIDENTIAL BUILDINGS AND HOMES

Due to the doubts that our community members have regarding the NEXT GENERATION FUNDS, below we copy verbatim the article of the MINISTRY OF TRANSPORT, MOBILITY AND URBAN AGENDA, which is the general source for this article and where everything related to this aid program with EUROPEAN FUNDS is clearly reported. overall source: Government of Spain – Ministry of Transport, Mobility and Urban Agenda.

The rehabilitation program for economic and social recovery in residential settings, included in the investment 1 of the component 2 of the Recovery Plan, Transformation and Resilience (PRTR), aims to promote the rehabilitation of residential buildings, homes and neighborhoods. The distribution of the funds Next Generation EU among the final beneficiaries will be channeled through the Autonomous Communities and Cities, with which an agreement has been reached for the distribution of resources in proportion to the number of households in each region (Fuente: continuous household survey of the INE of 2020).

Through the program it is expected to reach the 510.000 housing renovation actions in the second quarter of 2026. Total, is expected to execute 510.000 rehabilitation actions throughout the period of application of the PRTR, which implies an average rate of 71.000 homes per year. In 2019 rehabilitated a little more than 31.100 homes and, Although it supposes a 10% more than 2018, the Government's objective is to multiply the activity by ten between now and 2030, arriving at 300.000 homes per year.

The overall objective of the actions is to reduce at least one 30% non-renewable energy consumption in homes and decarbonize and lower the demand for heating and cooling by at least one 7%. It is important to prove the reduction in consumption and for this an expert has to issue an energy certificate for the home or building before and after the action. The most effective way to reach the thresholds required under the PRTR is to act on the building envelope, placing insulation on both facades and roofs, and replace the carpentry with others with a thermal bridge break to prevent the cold from “seep” through the windows.

To meet these goals, The Government has approved a Royal Decree, a Royal Decree-Law and, posteriorly, a law, that include a set of measures and programs designed to develop the activity and support the actions eligible for subsidies under the Recovery and Resilience Mechanism (MRR) approved by Europe to alleviate the economic crisis caused by the Covid-19 pandemic. Specific, the texts allow the implementation of two of the main investments of the PRTR focused on the residential sector and that are endowed with 4.420 millions of euros: 3.420 million in residential rehabilitation (C2. I01) and 1.000 million to build 20.000 social rental housing, performance collected in Investment 2 of the component 2, Social rental housing construction program in energy efficient buildings (C2. I02). This page will develop the measures aimed at promoting the comprehensive rehabilitation of homes and residential buildings.

The Royal Decree-Law (RDL) of urgent measures to promote building rehabilitation activity, approved by the Council of Ministers at the beginning of October, reinforces the capacity of homeowner communities to carry out renovation works and improve energy efficiency. The text also articulates measures to facilitate access to bank financing for homeowners, usufructuaries and neighborhood communities through a new line of ICO guarantees, and fiscally favors works and actions that contribute to improving energy efficiency in homes and residential buildings through new incentives. Approved tax deductions have an assigned budget of 450 millions of euros.

The Royal Decree Law 19/2021 has been processed as a bill and has finally been published in the BOE theLey 10/2022, of 15 of June, of urgent measures to promote building rehabilitation activity in the context of the PRTR that, among other things, introduces a significant improvement in the treatment of rehabilitation grants, since they will not be included in the income tax base when they have been granted through different aid programs, such as those financed with funds NextGenerationEU.

For your part, the Royal Decree which regulates aid programs in the field of residential rehabilitation and social housing allows you to apply a total of 3.970 million euros charged to the MRR: 2.970 million for residential rehabilitation and 1.000 million for the construction of social rental housing. Regarding the funds for the rehabilitation and improvement of housing, the Autonomous Communities channel them to reach the final beneficiaries, either by signing agreements with the municipalities for the direct granting of subsidies, either through the publication of calls in simple competition addressed to the owners or usufructuaries of the real estate, to tenants, to neighboring communities, to public and private companies, entities and Public Administrations, among others. In the case of calls, The beneficiary projects will be selected in strict order of presentation of the applications until the funds are exhausted.. The regional governments will receive the aid via resolution of transfers between 2021 and 2023. The first of them, by 1.151 millions of euros, was executed in 2021. in the budget for 2022 others are established 1.389 million and in 2023 the last ones can be transferred 430 millions, reaching the 2.970 million allocated to programs managed by the Autonomous Communities and Cities. The funds have been distributed among the Autonomous Communities, Ceuta and Melilla according to the percentages shown in the following table in proportion to the number of households (Fuente: continuous household survey of the INE of 2020).

Programs and incentives: The residential rehabilitation plan is divided into five programs that include actions at the neighborhood level, building and housing; the creation of offices to provide rehabilitation support and counseling services, the distribution of aid for the preparation of the book of the existing building and the drafting of rehabilitation projects. in addition, The plan includes a series of tax benefits to encourage actions. To learn more about each of the programs and complementary measures, click in the corresponding box.

Link of interest:

https://www.mitma.gob.es/ministerio/proyectos-singulares/prtr/vivienda-y-agenda-urbana/programa-de-ayudas-para-la-rehabilitacion-integral-de-edificios-residenciales-y-viviendas

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