The Spanish association of managers of public housing and land (AVS), consisting of government agencies that promote social housing, have sent a letter to the Finance minister, Maria Jesus Montero, in which he claimed that Councils are able to devote their surplus to build social housing.
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“it Is fundamental to ensure the Housing Policy proposed by the new Government that will allow the budget surplus and therefore the remainder of the municipal treasury to address the funding of public housing programs affordable for both rental and sale through their consideration as Investments Financially Sustainable (IFS)”, holds the association in the letter sent to the Treasury.
The AVS, integrated by 26 agencies of public administration of housing of different communities, calls for a change in the Law of Budgetary Stability and Financial Sustainability approved in 2012. This standard regulates a protocol for balancing the public accounts and set balances that in times of booms the ilbet public administrations to save for when they come badly given. By that, it prevents the Councils to allocate their savings to investments that are not sustainable (IFS). And the definition of these is very restricted.
Surplus since 2012
“After the legislation passed in the last few years, with the excuse of the application of criteria-crisis, the public managers have been unable to maintain their traditional performance of promotion of public housing protected to the most disadvantaged sections of the population”, adds the letter.
The city councils recorded a budget surplus since 2012 and have reduced their debt considerably since then. In fact, they have accumulated in the banks more than 25,000 million euros in current accounts for not being able to spend your savings. However, the current Government has agreed with the Federation of Municipalities and Provinces (FEMP) a flexible concept of investment financially sustainable for the mayors to be able to spend more.
“it Is inconceivable that there are councils that, with a high demand for social housing on the part of the citizens, with floor of the Municipal assets sufficient for this purpose and funds from budgetary surplus, it cannot be used to satisfy this demand for housing as needed and demanded by the society,” says the association in the letter.