Madrid City Council provides preferential financing for refurbishments

Madrid City Council provides preferential financing for refurbishments

With the aim of giving homeowners and homeowners' associations access to preferential financing when carrying out renovation work on homes and buildings, the Delegate for Housing Policies and President of Empresa Municipal de Vivienda y Suelo (EMVS Madrid), Álvaro González, today signed an agreement with representatives of eight banking institutions.

Thanks to this agreement, Madrid City Council will facilitate the financing of works in housing related to energy efficiency, safety and accessibility improvements, as well as those aimed at improving conservation, regeneration and urban renewal.

"We are aware of the importance of housing and building renovation in the creation of a more habitable and sustainable city, and of the difficulty that it can be to obtain financing for the works", said González, who valued "the importance of this agreement, as it encourages both residents and homeowners' associations to apply for the current grants, in turn speeding up the process of the works".

In 2020, Madrid City Council signed a protocol with the Official Credit Institute (ICO) and a first agreement with four banks (Deutsche Bank, Unión de Créditos Inmobiliarios, Ibercaja and Banco Sabadell) which is now updated and extended to another four: Caixa Bank, Bankinter, Triodos Bank and BBVA.

In addition, this new agreement also includes other aid that was not included in the 2020 agreement, such as municipal subsidies for the refurbishment of buildings and housing included in the Rehabilita Plan and the Adapta Plan and those for neighbourhoods in the Transforma Tu Barrio Plan, all from the Housing Policy Area, as well as those from the Next Generation Funds.

Actions included

Given that the municipal rehabilitation plans subsidise a significant part of the works but not all of them, this agreement facilitates the financing of the rehabilitation works at very advantageous interest rates for the beneficiaries, always below those established in the market, and also allows them to apply for 100% of the cost of the works in advance.

Preferential conditions below market rates

In this way, thanks to the agreement signed by EMVS Madrid and eight of the most important banking institutions, interest rates below market rates have been achieved. Following the 2020 agreement, more than 1,300 homes, distributed among 75 homeowners' associations, benefited from financing worth 13 million euros with an average loan of 175,000 euros.

EMVS Madrid manages regeneration and rehabilitation actions in housing and buildings within the framework of both state and municipal housing plans, including the Rehabilita Madrid, Adapta Madrid and Transforma tu Barrio plans, and those included in the Recovery, Transformation and Resilience Plan, financed with Next Generation funds.

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