Madrid has decided to change the rules of the game for subsidized housing and place registration at the center of access to both affordable rentals and purchases. The future Public Housing Regulations, which the regional government wants to approve in July, establish that in order to purchase social housing, applicants must generally prove at least ten years of residence in the Community of Madrid, while the threshold for renting is lowered to five years, following a wave of criticism of the initial idea of requiring a decade of residence for rentals as well. However, this new requirement will not affect buyers of subsidized housing prior to the new law.
Isabel Díaz Ayuso’s executive justifies this change as a way of “strengthening roots” and prioritizing those who have been living in the region for some time over new arrivals, but the practical effect is that thousands of potential buyers of subsidized housing are left out if they cannot demonstrate a long history of residence in Madrid.
The design of the new requirement is complex and full of nuances. The draft regulation stipulates that the minimum ten-year registration requirement will apply to all homes that are certified as subsidized and have a price limited by law—Basic Public Housing, Limited Price Housing, or new equivalent types— regardless of whether they are promoted by the administration or a private operator.
More requirements to access public housing
In addition, the Community is outlining a double filter: on the one hand, ten years of accredited residence in the region to be eligible for purchase or personal use, and on the other, an increase from three to five years of registration or employment in the specific municipality of allocation in programs such as the Plan Vive, which is presented as a large affordable rental park promoted by the regional government.
Following public rejection, the Community has announced that it will limit the registration requirement for applying for subsidized rental housing to five years, while maintaining the ten-year requirement for purchase and other uses, such as transfer of use. This reduction is accompanied by an internal relaxation: when the registration requirement is enforceable, it will be sufficient for only one member of the household to comply, which opens the door for couples or families with different residential histories to continue to access this type of housing if at least one person has been registered in Madrid for several years.
To prevent the change in rules from leaving thousands of families stranded, the text provides for several important exceptions: the ten-year registration requirement will not apply to those who, prior to the entry into force of the regulation, have already signed purchase or option to purchase agreements, obtained title deeds, or made down payments on the price of the home, nor to members of cooperatives who have contributed funds to purchase land or develop the project. In all these cases, it is understood that there is a prior legal and financial commitment that cannot be altered by a last-minute regulatory change, which is why they are “shielded” from the new registration filter.
The text adds clauses to veto access to subsidized housing for five years for people convicted of crimes related to illegal occupation, which the regional government presents as a measure to “protect public resources” and ensure that aid goes to those who “contribute continuously to the development” of the region.