News

Porto com Sentido
11 May 2020
"Porto com Sentido" advances with an estimated investment of 4 million euros in order to reinforce the municipal accessible housing policy

The proposal of the "Porto com Sentido" program, which advocates for the inclusion in the rental market of properties that are currently destined to Local Accommodation, was approved today by the Municipal Executive.

In the project presentation, Rui Moreira pointed out that it is a "program identical to the one being created in Lisbon and that is being coordinated by the Government", in the sense that there may be "funds from the Central State that allow to broaden the scope of this program", something that should not, however, inhibit the Municipality's action right now, according to the Mayor of Porto.

"Porto com Sentido" aims to introduce in the housing rental market, properties of two types: housing currently in the local housing market or housing available in the property purchase and sale and rental market, with respect for the competitive mechanisms and full safeguard public interest.

Among the measures included in this proposal, emphasis is placed on the total exemption from the Municipal Property Tax (IMI) for buildings that enter into lease agreements with the Municipality of Porto under this initiative.

Prior to the signing of the lease, it is stipulated to carry out an inspection of the housing properties, in order to ensure that they are in adequate conditions of safety, health and comfort; an increase in income of up to 10% will be allowed for the rental of furnished properties; and the subletting of housing properties to families will be done upon prior registration and drawing. 

The municipality also guarantees the scrupulous and timely fulfillment of the rent payment obligation, given that, by contractual means, "the Municipality ensures that all risks and costs arising from any sub-tenant default are eliminated".

The base price set in the "Porto com Sentido” conditions will correspond to a "brake" rent price, which means that the supply and demand mechanisms will always work below this value, "the lease agreements by type may not be entered into. with the Municipality, establish income values ​​higher than those presented ", explains Ricardo Valente's proposal.

Under the conditions of the program, the Municipality also ensures that the "brake" value set for market inquiries is significantly below the known values ​​of the offer in the rental market for the set of parishes in Porto, of the value, actually contracted for that same universe, but also the median of INE indicators.

The price conditions under which the Municipality predisposes to contract already reflect the tax benefits that the fires mobilized for the program will benefit from, as regards the property income earned under the lease contracts concluded under the Porto with Direction, during the period of duration of contracts, either by applying the rules contained in the State Budget Law for 2020, or with regard to the exemption from IMI to be decided by the Municipal Assembly.

 

More than 4 million euros and investment in the regeneration of the city's social fabric

The estimated municipal investment for the "Porto com Sentido” program is over 4.3 million euros by 2022, for a total of one thousand lease agreements. This figure, which results from the consideration of an estimated average monthly income of 549 euros, less the estimated monthly income received by the Municipality (both with reference values ​​for 2020).

For Rui Moreira, this program is in line with the Municipality's policy for the housing market, recognizing that public instruments are manifestly insufficient and that it is not possible to dispense with joint work with the private market. Despite appearing in a context of crisis, this initiative takes advantage of it as "an opportunity" to "use urban rehabilitation for an urban regeneration project". In other words, the fact that there are private rehabilitation instruments that can be used to "regenerate the social fabric of the city", in addition to public policies "pure and hard of municipal public investment", but that cannot be done "only by the municipality".

The operational management of "Porto com Sentido” will be carried out through the municipal company Porto Vivo, SRU, considered by the City Councilor, Pedro Baganha, as "a fundamental and very interesting tool for the operationalization of this program".

Approved the creation of the program and the general conditions by the Municipal Executive, this document now goes for approval by the Municipal Assembly.

Copyright ©2020 Porto. City Council