The European Parliament asks Spain explanations for the suppression of VPO aid to 300,000 families

  • In 2013, the Spanish government eliminated the extensions of the subsidies to the loans to buy VPO.
  • Some 300,000 families were forced to pay monthly extra costs of between 90 and 300 euros for their loan.
  • The European Parliament asks the Executive to justify the retroactive elimination of the subsidy extensions of the loans.

Viviendas de VPO

In 2013, the reform of the Law on measures to make the rental of housing market more flexible approved by the Government of Mariano Rajoy meant the elimination of the extensions of subsidies for loans to buy Official Protection Housing (VPO). Some 300,000 families were affected by the cut of the Executive; families that have been forced to pay monthly extra costs of between 90 and 300 euros for their loan.

The subsidization of loans to acquire VPO is an aid that the State granted to buyers with limited income to contribute to the payment of mortgage interest- Nicezoop. These subsidy subsidies involved a subsidy to a proportional part of the monthly mortgage payment of a public housing. The amount depends on the housing plan to which the beneficiary is hosted. They were a right that had been recognized by the housing plans of previous governments.

The government violated European legislation on the right to housing Until the Ombudsman’s office – in September 2013 – he asked the executive to change his position. At that time, the institution asked the Ministry of Development to pay the aid recognized by the CC AA. In fact, some of them continued to recognize the financial aid, but the beneficiaries could not collect it because they did not have the approval of Development.

In April of this year, a group of people affected traveled to Brussels to make their situation known to the Petitions Committee of the European Parliament. A representation of the National Coordinator of Affected VPO -occurs a group of affected people of the Valencian Community- denounced to the MEPs that the Government “has violated the basic European legislation on the right to housing, violating the principles of legal security, good faith and legitimate trust that protects an individual against unpredictable changes in the rules “.

Now, the European Parliament has requested by letter to the Spanish Executive more information to justify the retroactive elimination of the extensions of subsidization of VPO agreed loans since there is the possibility that it would infringe European regulations. According to the National Coordinator of Affected VPO, this request also includes the requirement of information on the evolution of the interest rates of the protected housing.

Injurious interest rates

Injurious interest rates

The Euroc√°mara has also addressed a letter to the Generalitat Valenciana to investigate the defaults in housing aid that, for more than 6 years, affected more than 60,000 families. On May 20, the Valencian Courts approved a similar resolution to proceed with the initiation of the investigation.

Even the Ombudsman asked the Executive to change its position With the information it receives, the European Commission will issue a new report. According to those affected, this document could require the Spanish Government to return the aid to the 300,000 families affected and a downward change in the interest rates that are being set for protected housing. The types applicable to the protected housing are set by the Ministry of Development from the IRPH indicator.

However, as denounced by the National Coordinator of Affected VPO, in its case the rates have followed trends above those of the free market, characterized by the decline of the Euribor. Affected families believe that this could contravene European legislation on housing, in particular, by the refusal of Brussels to take the IRPH as a reference for sheltered housing.