Sareb agrees to transfer 75 homes to Balearic Islands government for social housing rental allocation

Sareb has reached an agreement with the government of the Balearic Islands to transfer 75 homes to be used as affordable housing for rent. The collaboration agreement was ratified this morning by the Balearic government’s minister for Territory, Energy and Mobility, Juan Boned, and Sareb’s director of Corporate Social Responsibility, Gaspar González-Palenzuela.

As established under the document signed, the regional government will manage the properties transferred over a four-year period. With the aim of meeting affordable rent needs, the amount tenants will be charged for rent shall not exceed 30% of their income. This will be computed in accordance with official protection housing regulations in effect in the Balearic Islands. Sareb assets are distributed throughout the islands of the Balearic archipelago.

Sareb and the Government of the Balearic Islands have undertaken a commitment to do any work needed to make sure that homes meet habitability conditions. In addition, Sareb will receive monthly compensation from the island government to cover property damage and civil liability insurance, residents’ association expenses and municipal taxes.

The Balearic Housing Institute (“IBAVI”), an agency of the Ministry, will be in charge of obtaining energy efficiency certificates in the event that any of the transferred assets so require. It will also cover, amongst others, regular home maintenance expenses or renters’ ordinary repairs and technical assistance, in addition to rental management and administrative costs. The regional government will also select the tenants and sign rental contracts with them.

“This agreement enables us to continue moving forward in our efforts to cooperate with regional governments toward helping families with limited access to housing,” explained Jaime Echegoyen, executive chairman of Sareb. Along these lines, he also indicated that the company is in negotiations at this time with other Autonomous Communities with which new agreements are expected to be finalised in the near future.

In October 2013, Sareb put a total portfolio of 2,000 homes at the disposal of Autonomous Communities in order for them to allocate the properties to their own social programs. Including this latest agreement, the company has signed five collaboration agreements since then, mobilising more than 1,100 apartments following agreements ratified with Catalonia (900), Aragón (80), Galicia (50) and the Basque Country (10).