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Sareb assigns 300 homes to the Madrid City Council for families at risk of social exclusion
28/01/2016

The Municipal Housing and Land Company (Empresa Municipal de la Vivienda y Suelo - EMVS) will manage them and select the tenants

With this agreement, Sareb has now committed a total of 1,765 homes for social uses, via all of the agreements reached to date


The Management Company for Assets Arising from the Banking Sector Reorganisation (Sareb) has reached an agreement with the Madrid City Council to temporarily assign 300 homes, which will be used for social needs. The agreement was signed this morning by María Serrano, CEO of the Municipal Housing and Land Company (EMVS), and by Jaime Echegoyen, Executive Chairman of Sareb.

The terms of the agreement, which shall be valid for 8 years, assumes that the EMVS will manage the assigned properties. This entity will also select the tenants for the homes as part of its social benefit programme framework. Up to 50% of these assigned homes can be occupied by families in default or without a rented or purchased property, in which case the EMVS will help to rectify these situations.

In exchange for assigning these properties, Sareb will receive a monthly consideration of 75 euros for the occupied apartments and 125 euros when the homes are vacant. This consideration will be used by Sareb to pay the insurance, community and extraordinary repair costs. The Madrid City Council will pay for all of the corresponding charges related to the management of the homes, as well as their day-to-day management and Property Tax (IBI).

"Sareb has demonstrated its commitment to Society and this second agreement with a large city council is yet another step forward in the development of our social policies, without straying away from the divestment mandate we have been assigned", explained Sareb's Executive Chairman, Jaime Echegoyen. The company is currently working on similar agreements with other large cities and autonomous communities, with the aim of "contributing to alleviate the housing problem that many families are going through" confirmed Jaime Echegoyen.

Sareb launched its social housing programme in October 2013 and doubled it in size in 2015, reaching 4,000 units. Since Sareb approved this initiative, it has assigned a total of 1,765 homes in seven agreements completed with autonomous communities (Aragon, Balearic Islands, Canary Islands, Castilla y Leon, Catalonia, Galicia and the Basque Country) and two city councils (Madrid and Barcelona). It is also currently talking with other communities and local institutions and is sure additional agreements will be signed shortly.

With the signing of the agreement with the Madrid City Council, now more than 6,000 people will benefit from the affordable rental housing assignment plans signed with Sareb.

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