The Government approves the conditions of the ICO guarantees of 1,100 million to promote the rehabilitation of residential buildings
The Council of Ministers has approved, at the proposal of the Ministry of Transport, Mobility and Urban Agenda (Mitma), the conditions of the line of guarantees for the partial coverage, by the State, of the financing of the rehabilitation works of residential buildings that contribute to the improvement of energy efficiency, within the framework of the Recovery Plan, Transformation and Resilience (PRTR).
With this new line, which will be developed through an agreement between the Ministry and the Official Credit Institute (ICO), guarantees can be granted for an amount of up to 1,100 million euros to partially cover the risk of future loans, which will not have any cost for the financial institution or for the owner or community of owners. Specifically, the State will guarantee up to 50% of the credits granted by financial institutions for residential rehabilitation actions within the framework of the PRTR, so that the financing mobilized by the ICO through these entities may reach 2,200 million euros.
The creation of the line is included in Law 10/2022, of June 14, on urgent measures to promote building rehabilitation activity in the context of the Recovery Plan. The approval of the agreement establishing the applicable conditions, criteria and requirements is a step prior to the signing of the agreement between Mitma and ICO for its full application.
Conditions, requirements and criteria
The objective of the new line of guarantees is to facilitate access to financing for the beneficiaries of the subsidies of the Recovery Plan, so that only those who receive European funds to carry out residential rehabilitation actions at the building level and at the neighborhood level, within the framework of Royal Decree 853/2021, can request them, of 5 October, which regulates the prTR’s residential rehabilitation and social housing assistance programmes.
That is, the collaborating financial institutions may only grant loans guaranteed by the State to owners or communities of owners who are going to carry out works to improve energy efficiency with the help of the NextGenerationEU funds, which are granted through the Autonomous Communities, Ceuta and Melilla, when they are carried out in the whole building (program 1 and 3 of the aforementioned Royal Decree 853/2021).
The beneficiary of the aid can request a maximum credit of 30,000 euros per home with a repayment term of up to 15 years, with the right to total cancellation or early repayment without commission or cost. The loans will be granted by the financial institutions that adhere to the ICO line.
The new line of guarantees is configured as another instrument for the take-off of rehabilitation activity in Spain, which adds to the aid programs, tax deductions and improvements in the regulatory framework promoted in recent months, and will facilitate the application of rehabilitation aid programs managed by Mitma.
And it is that the Recovery Plan includes an item of 3,420 million euros to promote residential rehabilitation until 2026. In total, it plans to transfer up to 2,970 million euros to the Autonomous Communities, Ceuta and Melilla to finance these actions. Last year, Mitma transferred 1,151 million euros to the autonomous communities and cities, according to the criteria agreed at the sectoral conference, and this year 2022 another 1,389 million euros are included in the General State Budgets, with which its endowment can be increased in the coming months.
Improvement of housing and residential buildings
These initiatives are part of a set of key measures to ensure compliance with our country’s commitments to promote building rehabilitation in the field of housing, within the framework of both the Long-Term Strategy for Energy Rehabilitation in the Building Sector in Spain (ERESEE), and the Integrated National Energy and Climate Plan (PNIEC) 2021-2030.
Thus, a moment of opportunity is formed for the rehabilitation and improvement of homes and residential buildings, through the existence of different measures and instruments that are unprecedented in terms of the amount and intensities of aid, and that make it especially attractive to carry out such actions, which will allow, while improving the quality of life and comfort of homes. and ensure the highest quality of buildings, contribute to strengthening a key sector of the Spanish economy in terms of activity and employment, with enormous growth potential in the coming years.