The Xunta de Galicia has just opened the period for citizens to take advantage of its loan program with subsidized interest to finance rehabilitation actions in residential buildings and homes.
After the publication of the call for these grants for the 2022 annuityinterested individuals and communities of owners may submit their applications from today until next September 1.
The regional contribution may reach 100% of the interest during the first years of the loan, although it will depend on the economic situation of each applicant. In this way, if the beneficiary family has an income of less than 4 times the IPREM, the Department of the Environment, Territory and Housing will assume all the interest for a period of 4 years; and if they are between 4 and 5.5 times the IPREM, the subsidy will be 80% for 3 years.
On the contrary, if the holder accredits an income of between 5.5 and 6.5 times the IPREM or if the applicant is a community of neighbors, they will not be entitled to any interest bonus although they will benefit from the advantageous conditions that guarantees these loans, such as, for example, the exemption of commissions.
For the granting of this aid in the form of a subsidy, the Xunta reserves an item of 400,000 euros, twice as much as in 2021. In any case, and taking into account the contributions that the owners will make, the forecast is that thanks to this measure, an induced investment of 5 million euros in housing rehabilitation works in Galicia.
IGVS agreement with financial entities
The loans are granted by financial entities that have an agreement with the Instituto Galego da Vivenda e Solo —Abanca, Caixa Rural Galega, CaixaBank, Banco Sabadell and Deutsche Bank— to be able to offer credit applicants under more advantageous conditions than those they would find in the market.
The owners have the possibility of accessing a loan of up to 60,000 euros, in the case of being with a mortgage guarantee, or of a maximum of 30,000 euros if it is with a personal guarantee, which they will have to repay in, at most, 180 installments (15 years). In the case of communities of owners, the limit amount of the loan will be 20,000 euros per home – twice as much as in 2021 – and the repayment period will be extended to 10 years.
As for the rehabilitation actions that may benefit from the qualified loan program, structural and constructive improvement works, habitability conditions and energy efficiency are included; adaptation to regulations on accessibility; adequacy of the general finish to the principles of good construction; and, for the first time this year, also expansion works, as long as they are linked to rehabilitation projects that involve an improvement in habitability, energy efficiency and/or accessibility.
The Instituto Galego da Vivenda e Solo launched this initiative in 2017 and, since then, has held five calls in which it awarded a total of 142 direct financial aid for interest subsidies.
These financial aids for residential rehabilitation are compatible with other programs called by the Xunta in order to support citizens in the promotion of works and interventions that contribute to the recovery of heritage already built.
Likewise, the program is part of the Xunta’s commitment to the beauty through the promotion of actions aimed at correcting the landscape impacts that buildings can cause in the environment due to the passage of time or due to poor conservation. In fact, this year’s call establishes that in the actions of repair, rehabilitation or conservation of facades, exterior carpentry or roofing of buildings, the criteria set out in the Galician Color and Materials Guide must be followed.
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