Barcelona mobilizes 140 million to build 1,000 social housing units

The Barcelona City Council has signed an agreement with the Official Credit Institute (ICO) and the Catalan Institute of Finance (ICF) for 140 million euros to facilitate the construction of 1,000 social housing units within ten years, under an affordable rental or co-housing regime. The council will support the operations with its guarantee, enabling access to financing, provided under good conditions by the ICO and the ICF, which will each contribute 70 million euros.

"It is the largest public credit operation in Catalonia and Spain ever undertaken by a city council," said the mayor of Barcelona, Ada Colau, at the presentation of the agreement, which she described as "historic, pioneering, and very important." For the mayor, this strengthens public housing in the Catalan capital, one of its major pending issues, as well as in the rest of Spanish cities.

The agreement is designed to provide credit to foundations and cooperatives that want to promote rehabilitation and construction projects, overcoming the obstacles these entities usually encounter, such as difficulties in accessing financing or land at reasonable prices. Therefore, the flats will be built on municipal land or municipal buildings will be rehabilitated, with the council freely ceding the right of surface for a period of almost 100 years.

Financing operations will cover up to 100% of the project cost, with a maximum limit of the appraisal value excluding land and based on current modules. For this year, the limit will be set provisionally at 120,000 euros per dwelling. Entities will be able to repay the loan within 30 years.

The City Council will be responsible for selecting the projects that can opt for this financing. For example, projects that incorporate energy improvements to reduce the ecological footprint and limit polluting elements will be valued. It will also be taken into account that they guarantee a price below market, with rents ranging between 600 and 700 euros per month. The local administration will also grant subsidies, with a value of between 7% and 15% of the cost of construction or rehabilitation.

1,100 more affordable rental flats in the metropolitan area

The agreement signed by the Barcelona city council, the ICO and the ICF joins the credit approved on Wednesday by the Barcelona Metropolitan Area (AMB). The metropolitan council has authorized the signing of a loan with the European Investment Bank (EIB) for an amount of 145 million euros. The resources will be used to build 1,100 affordable rental social housing units in different metropolitan municipalities.

The promotion of this housing stock will be carried out by the Metropolitan Institute for Land Promotion and Heritage Management (IMPSOL) and will be done over the next four years. The total investment of the AMB in this project will approach 200 million euros.