Definition of affordable income will depend on "always household income"

Regarding the new program approved by the Government - New Generation of Housing Policies - aims at ensuring the difficulties of acquiring housing. With this came a rather timely question: what is an affordable income? Then Secretary of State for Housing, Ana Pinho, explained that this concept will always be defined according to the income of families, although some programs predict that an income that is 20% below the market price can be considered affordable.

 

One of the programs created under this new initiative is the Affordable Rental Program, which offers tax benefits to owners who practice lower incomes. These owners can benefit from exemption from taxation on property income, in addition to a reduction of at least 50% of the Municipal Property Tax (IMI), and may even be exempt from paying this tax, by decision of the Municipal Assembly.

 

However, in the document currently under public consultation, it is unclear what is meant by "affordable income". First, the document defines that the maximum base value will be 20% lower than the market reference value, depending on the square meters, the typology and the area / location where the dwelling is located, and is subject to additional reductions in cases where there is recourse to investment support instruments and / or programs and measures that may be developed by municipalities, making public support proportional to the social function of housing.

 

The National Institute of Statistics (INE) surveys the average price per square meter of real estate sales, but not rent. This price survey, the government acknowledges, has to be done. Instruments to be created next year include "price indices and housing accessibility", which facilitate the regular availability of accurate pricing and accessibility information in the housing market. The aim is to provide a basis for the establishment of the limit on the value of rents under the Accessible Rental Program and for the monitoring, evaluation and strengthening thereof.

 

The Government also stated that access to the Affordable Rental Program implies making the rental value and rental income values ​​compatible, with the creation of limits on the rate of effort. In many municipalities, this requirement is not compatible with the previous one, since an income value 20% below the market price will be above an effort rate of 40% (the usual value) for a family with the average salary. In these cases, it was unclear which of the rules overlapped.

 

Given these doubts, it is explained that it will always be the effort rate to define what an affordable income is. And that income will always be considered before rent prices are defined.

 

The goal will be achieved through various programs. "The exemption from income tax and the benefits of IMI and IMT make housing accessible to a group of households. It is the zero level of measures "to facilitate access to housing, he said. "Cumulatively" there will be measures such as investment support for rehabilitation, which will be all the higher as the owner's price is lower. In this case, the rule of rents shall prevail 20% below the market price.

 

"Our goal is to promote access for all, by allocating State support in proportion to the function of the fires. The lower the income, the greater the State's support. Each instrument helps, cumulatively, the income to come down, so that, as a whole, we can cover the widest range of families, "he concluded.

 

Source: APEMIP