More funding from the European bank to build more public housing

Housing Glossary

You will find information here on all topics relating to housing in Barcelona

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Accrued interest

The interest applied as a penalisation when the debtor does not comply with repayment obligations. The amount must be established in the contract.

Active supermortgage

This allows the client to choose their loan's benchmark index (MIBOR at three months, six months or a year) so that payment can benefit from lower interest rates sooner.

Adaptable instalment

Characteristic of UCI superloans that allow the borrower to not pay one instalment a year for the first three years if there are problems due to holidays, extraordinary expenses, etc.

Advanced cancellation fee

A commission arising from the financial risk involved in the advanced cancellation of an operation. The applied commission compensates the financial institution for its financial losses.

AEDE

Direct state aid for paying the deposit on a property.

Affordable housing

Group of social housing or dwellings from social renovation projects that are sold or rented at below-market prices.

Affordable rent

The cost of renting these dwellings is below market prices after being included in operations concerning the rented flat pool, social renovation or social housing promotions.

Amortisation

Payment made to repay a loan.

Amortisation period

The duration of the loan. The contract establishes the date of the first and last payments. The longer the period, the lower the payments are, but the higher the interest. You therefore pay more in the end. The monthly instalment should not exceed 35% of your net income.

API

Estate agent. A qualified professional who acts as an intermediary between the two interested parties to facilitate the signing of a real estate contract, which can be a rental agreement, a sales agreement or another similar contract. They usually charge a percentage of the sales price as compensation or commission.

Applicant

A citizen who makes a registration application to the Barcelona Social Housing Applicants Registry, and who represents the other members of the dwelling unit included in the application.

APR

Annual Equivalent Rate. Effective annual cost of the mortgage in terms of interest, commissions and the repayment period. To compare loans, it is not enough to just look at the lowest APR, you also have to compare the conditions, the repayment period and the distribution of instalment payments.

Arbitri municipal de plusvàlua

Former denomination of the capital gains tax on landed property.

Assessment

The value of a dwelling certified by a specialised assessment company, in accordance with the mortgage market law. This certificate not only indicates the real value of the property, it also serves as a reference for obtaining the necessary financing.

Authorisation

Document in which the owner authorises the tenant to carry out building work in the dwelling's interior.

Housing. An additional eighty million euros to build housing with affordable rents.

The Full Council gave its unanimous approval for the Municipal Institute for Housing and Renovation (IMHAB) to seek an additional eighty million euros in funding from Europe’s public bank for the construction of over two thousand public homes with affordable rents in the city.

The funding from the European Investment Bank (EIB) and the Council of Europe Development Bank (CEB) will thus amount to 264.2 million euros, covering 85% of the investment for 31 housing developments and 2,059 publicly owned rental homes.

The IMHAB is set to sign a new loan with the European Investment Bank for 36.2 million euros, extending its existing loan of 59 million euros, and with the Council of Europe Development Bank for a further 44 million euros. The IMHAB will receive the funding needed as work of the various projects is executed.

These operations will allow public housing to be built with affordable rents for over 5,100 people. Most of the projects, the first of which are now ready, should be completed in the next three years.

The funding from the European public bank is essential so that 80% of all new housing by the City Council can be for rent and at the same time the city can meet the goals in the Right to Housing Plan 2016-2025. The other 20% of new housing corresponds to formulas such as leases and cohousing projects, but always with formats which guarantee the land and the use of the housing remains under public ownership and control.