The Government has carried out at the last minute a extension of two of the star measures in terms of rent that he announced in the first weeks of a state of alarm to alleviate the effects of covid-19: microcredits to pay the rent and that are channeled through banks and the ICO, and the aid that the autonomous communities manage . The deadline for applications in both terms expired on September 30.
The green light ‘in extremis’ of both measures will be carried out through two Ministerial Orders approved by the Ministry of Transport, Mobility and Urban Agenda (Mitma) and that has already collected the Official State Gazette (BOE).
In the case of microcredits from the ICO, the new deadline for applications is November 30 and may be formalized until December 31, while in the case of aid managed by the Autonomous Communities, the extension is ‘sine die’, although within the framework of the current 2018-2021 Housing Plan. In other words, all the aids related to the rental of housing that are part of the specific covid-19 program may be requested until the end of next year (provided there are funds for it).
In this sense, Executive sources recall that the State transferred in April almost 450 million euros to the Autonomous Communities, of which 100 million corresponded to an extraordinary fund for rental assistance due to covid-19 and the rest, with the Annual endowment of the Housing Plan. However, many autonomies claim that resources are insufficient to meet the flood of requests received, even after increasing the budget initially planned. An example of this is Catalonia and the Canary Islands, which were forced to stop the reception of new applications in June, a few weeks after opening the call.
And what do these measures consist of?
– Rental aid through the ICO: They are loans for a maximum amount of six monthly payments of up to 900 euros per month, which represents a total amount of 5,400 euros. These ‘mini-credits’ are 100% guaranteed by the State and will not entail any cost for the beneficiary, nor expenses or interests to families that, as a result of the pandemic, find themselves in difficulties to face the rent of their housing rentals habitual.
The term to return the money is six years, extendable for another four more years (10 years in total), although partial or total repayments can be made on the amount requested without the bank being able to apply commissions for it.
>> Check here for more information on requirements and documentation to present
– Rental aid through the Autonomous Communities. This is a line of aid of a maximum of 900 euros per month for six months and 100% of the income (if this limit is not exceeded), and an additional 200 euros for basic supplies, community and maintenance. Money that can be used to pay the rent or the loan signed with the ICO that we mentioned in the previous point.
The tenant is in charge of requesting rental assistance for covid-19 in their autonomy of residence, although it is the owner of the home who receives the amount directly. Each region sets its own requirements; for example, the maximum amount to be received or specific conditions for groups such as victims of gender violence or especially vulnerable people. At the moment it remains to be seen whether the regions in which the submission deadline had already expired or those that keep the aid frozen will reactivate the call.
>> Consult more information about the aid in each Autonomous Community
No evictions, contract extensions and moratoriums until January
The content of both Ministerial Orders promoted by the Portfolio headed by José Luis Ábalos is in addition to the measures approved yesterday by the Council of Ministers: the automatic extension of rental contracts that expire in the coming months, the stoppage of evictions due to non-payment of the rent and a deferral of the monthly payments when the owner of the home is a large holder or a public entity.
Specifically, the Ministry explains that “The housing lease contracts that can qualify for the extraordinary six-month extension are extended until January 31, 2021, in the same terms and conditions of the contract in force, provided that a different agreement had not been reached between the parties and that the owner (natural person) had not communicated the need for the home for himself, in compliance with the deadlines and conditions established in article 9.3 of Law 29/1994, of November 24, on Urban Leases “.
It has also been extended until the end of January the suspension of eviction procedures and releases for those tenants in vulnerable situations that they are left without a housing alternative. Finally, “it also extends until January 31, 2021 the possibility of requesting a moratorium or partial forgiveness of rent when the landlord is a large holder or public entity, in the terms established in the aforementioned Royal Decree-Law 11/2020 “. The measure, therefore, does not affect small homeowners, but those who have at least 10 estate.
According to the regulations, the large holder can decide between making a 50% reduction of the debt that has been generated or a debt restructuring within a period of up to three years.
>> Check here for more information about the requirements of this moratorium
Finally, the Government has also given the green light to an extension of the deadlines for access the electricity social voucher. Family units in which any of their members are unemployed, have ERTE or have had their working hours reduced due to care may have a direct reduction in electricity bill until June 2021.
The extension is also made for entrepreneurs who face similar situations and who are therefore suffering a substantial loss of income. The electricity social bond already benefits 1.3 million consumers.
Mortgage moratoriums end
Despite the extension of the moratoriums related to rent, the Government has not announced extensions for the application deadline for the moratoriums in mortgage matters, which also expire this week.
However, financial sources assure idealista / news that the sector is open to negotiating individually with clients who have problems paying the loan installment, despite the expiration of the terms.
Extension of the social bonus until June 2021 for those affected by the covid-19
The Royal Decree-Law 30/2020, of September 29, of social measures in defense of employment also includes the extension of the social bonus to groups in a situation of economic vulnerability caused by the current covid-19 crisis.
This extension of the discount on the electricity bill will be applied if the owner of the supply, or any of the members of his family unit, is unemployed, Temporary Record of Employment Regulation (ERTE), or has seen his working hours due to care, if you are an entrepreneur, or other similar circumstances that involve a substantial loss of income.
If previously the income from the year prior to the application for the social bonus was taken into account, now it is necessary to present the total income of the members of the family unit from the previous month. They will have the right to receive it if they meet the requirements until June 30, 2021. After that date, you can continue under the protection of the rest of the cases provided for in Royal Decree 897/2017, of October 6.
The electricity social bond already benefits 1.3 million consumers. The electricity social bond also extends to the term bond. In addition, the prohibition to cut the supply to vulnerable groups.
–
