The 85-million-euro credit agreement – out of the 100 allocated to this credit facility – has been approved today, 15 million of which had already been approved previously. It is estimated that these loans could finance the refurbishment of up to 10,000 homes pertaining to 1,000 property owners' communities
Barcelona, 20th October 2020. - The Government has today approved an agreement that authorises the Catalan Housing Agency (AHC), reporting to the Ministry of Territory and Sustainability, and the Catalan Finance Institute (ICF) to sign a collaboration agreement, allocated with a maximum of 85 million euros to further the facility of loans to property owners' communities for the rehabilitation of residential buildings.
In April 2019, the ICF and the AHC signed a preliminary agreement meaning an important change in access to credit for investments made by property owners' communities, filling a highly demanded gap in the entire sector. For the very first time, property owners' communities that need to carry out works will have access to credit under preferential terms, allowing them to cover the full amount of the investment. The facility features a total allocation of 100 million euros, 15 of which had already been approved in 2019.
This credit facility is intended to fund investments in refurbishment, energy efficiency and accessibility by property owners' communities
Larger-scale works, such as energy efficiency
This type of loan makes it possible to cover works with a greater scope and cost more easily. It allows for major renovations, as communities have the money they need at the right time, to be repaid within 15 years, and with extremely low interest, which in most cases means small monthly payments that are affordable for residents.
Actions such as improving the energy efficiency of homes, which often implies a major investment, can be undertaken and, with the monthly energy consumption savings generated by the improvement work, a large part of the monthly loan instalment can be paid for. Besides the energy savings entailed by these improvement works, they also provide greater comfort to homes, which appreciate greatly.
Loans for solvent communities
In order to be able to access these loans, property owners' communities must be solvent, as they must accredit an NPL ratio equal to or below 5%. The minimum credit amount is 30,000 euros per community, up to a maximum of 20,000 euros per home.
Loan applications must be submitted and formalised online through the ICF digital platform www.icf.cat.
100 million euros to refurbish up to 10,000 homes in Catalonia
This credit facility has 100 million euros allocated to it, and the loans will have a fixed rate of interest which will be subject to a 2% reduction by the AHC. The repayment period will be a maximum of 15 years. Furthermore, the operations will entail the assumption of risk by the AHC.
It is estimated that these loans could finance the refurbishment of up to 10,000 homes in 1,000 communities, with a minimum amount of 30,000 euros per community.
About the ICF
The ICF is the public financial entity of Catalonia. It has as a main mission to promote the funding of the entrepreneurial fabric in Catalonia in order to contribute to the growth, the innovation and the sustainability of the Catalan economy. In this sense, it commits itself actively to the achievement of the Objectives of Sustainable Development in accordance to the Agenda 2030 of the United Nations.
The ICF acts as complement of the private financial sector, offering an extense range|gamma of solutions of funding centered on loans, guarantees and investment in venture capital. Since 2014 it is a member of the European Association of Public Banks|Benches (EAPB), that he|she groups big part of the banks|benches and the public financial entities that work in Europe.