July 26, 2021

The State will pay up to 4,000 euros for each reform required by the social floors assigned by Sareb


The State will cover with up to 4,000 euros the reforms that need the flats loaned by Sareb, the state real estate that was left with the toxic assets of the bank in 2012, to the Autonomous Communities. This is clear from the draft Royal Decree of the new State Housing Plan 2022-2025, that the Ministry of Transport and Urban Agenda has gone public to receive input.

The State will also pay between 150 and 175 euros per month for housing to the Autonomous Communities so that they can meet the transfer costs. Until now, Sareb received compensation of between 75 and 125 euros per month to cover the expenses of the neighborhood communities and the IBI, so this amount increases.

Sareb – better known as ‘the bad bank’ – has to date signed temporary agreements with 13 autonomous communities and 29 municipalities to transfer 3,048 homes for social purposes (data requested by Sareb from elDiario.es in March this year, although the 2020 Sareb report speaks of the figure now rising to 5,000). These homes are temporarily ceded in usufruct and serve so that Communities or Town Councils can offer them to vulnerable tenants at reduced prices.



According to the text of the new Plan, from its approval they will be able to rent them at a maximum price of 350 euros per month. The homes provided by Sareb will be allocated, as a priority, to victims of gender violence, people who are going to be evicted, homeless people and other “especially vulnerable people”.

As the houses are not usually in habitable conditions, in the agreements that the city councils and Sareb had been signing It was established that the reforms were half (50% assumed by Sareb and 50% by the specific administration).

At the beginning of 2020, the entity reached an agreement with the Government to increase the number of homes transferred by 10,000 (5,000 in the medium term and 5,000 in the long term). In that agreement it was established that “the Ministry of Transport, Mobility and Urban Agenda will partially assume the costs of the transfer and of the necessary rehabilitation and conditioning works.” The new State Housing Plan quantifies those expenses.

Although Sareb’s housing stock – which has a value of 18,787 million euros, according to its latest report – is supported by public money, because the State owns 45% and Europe forces its debt to be counted as public, the entity “cedes” the homes and charges for it because its obligation is to end up selling them to repay all the debt it assumed. The housing movements and even the new Minister of Social Rights and the 2030 Agenda, Ione Belarra, have claimed that this housing stock is the “germ to create a true public stock of social housing.”

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