Alicante VPO Income Limit Raised: €66,000 & PP Ties

by Mark Thompson

Okay, here’s a breakdown of the key facts from the provided text, focusing on the changes to housing regulations in the Valencian Community and the controversy surrounding the allocation of homes in Alicante:

1.the Controversy:

* 140 homes in Alicante were awarded under new regulations, and there’s concern that some recipients may have manipulated tax data to qualify, as their incomes are close to the new limit.
* The Department of Housing is conducting a verification process to investigate this possibility.

2. The Legal Changes (December 2024 Decree by Carlos Mazón’s Government):

* Increased Income Limit: The most significant change is a substantial increase in the income limit for eligibility for public protection housing (VPP). It rose from €46,800 (May 2023 decree) to €54,600 (base, December 2024 decree), with a potential maximum of €66,360 under certain conditions. This is a roughly €7,800 – €19,500 increase.
* IPREM Calculation: The income limit is now based on 14 payments of the Public Multiple Affect Income Indicator (IPREM), whereas previously it was based on 12.
* Increased Price per Square Meter: the price per square meter for VPP homes was increased to €2,400.
* Elimination of Permanent Protection: Privately-initiated VPP homes can now become market-rate rentals after a specified period, removing the permanent affordability requirement.
* Affordable Price Exmaple: A 90-square-meter home with a garage and storage now costs €289,000 (including VAT) under the new regulations.

3. Conditions for Increased Income Limits:

The income limit can be increased based on family circumstances:

* Disability/Dependency/Illness: +0.5 times IPREM per member with a 33%+ disability, dependency, or permanent incapacitating illness.
* Dependent Minor: +0.2 times IPREM per dependent minor.
* Family Member Over 65: +0.2 times IPREM per family member over 65.
* Family Member 18-35: +0.5 times IPREM per family member between 18 and 35.

4. History of Changes:

* 2021 Decree: Set the income limit at 4.5 times the IPREM (12 payments).
* May 2023 Decree: Increased the limit to 4.5 times the IPREM (12 payments).
* December 2024 Decree: Significantly increased the limit to 6.5 times the IPREM (14 payments), with potential for further increases based on family circumstances. This update came only seven months after the May 2023 decree.

5. justification for the changes:

* The Department of Housing cites a recommendation from the Consell Valencià de la Joventut (CVJ).
* The CVJ argued that young people’s salaries have increased, but not as quickly as housing prices, and that failing to update the IPREM would exclude them from affordable housing options.

in essence, the text details a significant overhaul of affordable housing regulations in the valencian Community, driven by a desire to make housing more accessible (notably to young people) but also raising concerns about potential abuse of the system due to the increased income thresholds.

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