Affordable Housing
Subsidized housing is subject to a special legal regime that may affect its purchase, sale, rental, adjudication, price, use and even its transfer by inheritance, divorce or termination of condominium.
Although the term VPO is usually used to refer generically to any housing subject to a public protection system, legally not all subsidized housing is the same. Depending on the autonomous community, the date of construction, the applicable housing plan and its classification, we can find VPO, VPP, VPPB, VPPL, PUBLIC HOUSING, SUBSIDIZED HOUSING FOR RENT, SPECIAL REGIME HOUSING, GENERAL REGIME HOUSING AND OTHER MODALITIES.
This diversity is especially important when it is intended to carry out an operation with the property. Two apparently similar homes may be subject to different regimes, with different price limits, requirements for the purchaser, duration of protection or procedures before the Administration.
Therefore, before buying, selling, renting, inheriting or modifying the ownership of a protected home, it is necessary to identify what type of protection the property really has and what regulations continue to be applicable.
What is subsidized housing?
A subsidized housing is one that has been subject to a public protection regime and must meet certain conditions related, among other things, to its use, the sale or rental price, the characteristics of its recipients and the conditions established in its classification.
Protection may involve obligations and limitations such as:
- To use the home as a habitual and permanent residence
- Respect a maximum sales price
- Respect a maximum rental income
- Meet the requirements to transfer the property
- Check that the buyer meets the required conditions
- Request authorisations or make administrative communications
- Respect possible rights of first refusal and withdrawal
- Maintain certain conditions during the protection period
- Return aid or benefits in certain procedures
These obligations are not identical for all social housing. The applicable regulations may depend on the date of qualification, the autonomous community, the type of development and the public programme to which the housing was linked.
VPO, VPP, VPPB and VPPL: different types of subsidised housing
The acronyms used to identify subsidized housing can generate confusion. The term VPO or Social Housing is still the best known, but there are other categories that respond to different legal regimes.
Therefore, knowing only that a home is “officially protected” is not usually enough to determine what operations can be carried out on it.
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Social Housing (VPO)
The term VPO continues to be commonly used to refer to homes subject to some type of public protection. However, under this acronym you can find properties classified according to different plans and regulations.
There may be important differences between a public subsidized housing, a private housing, a general regime housing or a special regime housing. Therefore, when you are considering selling, renting or disqualifying an old Social Housing, it is especially important to check its file and its specific qualification.
Housing with Public Protection (VPP)
The expression Housing with Public Protection or VPP is used, among other territories, in the Community of Madrid to identify housing subject to a certain public protection regime.
The VPP acts as a general category within which there have been different modalities depending on the price, the characteristics of the property, the access regime or the regulations according to which it was classified.
Housing with Basic Public Protection (VPPB)
The VPPB is one of the categories used in the Madrid regulations. Its regime may affect the maximum price, the conditions of transfer, the requirements demanded of the purchaser, the possibilities of renting and the duration of protection.
Therefore, before carrying out any operation with a VPPB, it is necessary to check which is the regime corresponding to its classification and avoid automatically applying the rules provided for other protected housing.
Limited Price Public Protection Housing (VPPL)
VPPLs are also part of the protected housing regimes used in Madrid. Although they share certain characteristics with other modalities, their conditions do not necessarily coincide with those of a VPPB.
These differences can be relevant in a sale, a rental, a subsequent transfer or a consultation about the maximum price allowed.
Public and private subsidised housing
Another important distinction is that between publicly promoted subsidised housing and that promoted by private entities.
The former are promoted by an Administration or by entities belonging to the public sector and may be subject to specific conditions for the adjudication, occupation and maintenance of the right to housing.
Privately promoted subsidised housing may be promoted by companies, cooperatives or other private operators, but they are also subject to the limitations of the corresponding protection regime.
Subsidized housing for rent
Public protection is not limited to housing intended for sale. There are also subsidized rental housing that may be subject to maximum rent limits, requirements for tenants, occupancy obligations or restrictions on their transfer.
Before formalising or modifying a rental contract, it is advisable to check whether the lease is allowed and what conditions must be respected.
Special regime, general regime and other modalities
The Autonomous Communities may use different classifications. In certain territories there are categories such as special regime protected housing, general regime or limited price housing.
This explains why there is no single regulation applicable to all subsidised housing in Spain. The specific name, the housing plan, the date of qualification and the autonomous community can significantly modify the legal regime.
The qualification determines the legal regime of the dwelling
To find out which obligations affect a VPO, VPP, VPPB or VPPL, one of the fundamental aspects is to check the qualification of the home.
This information may allow us to know:
- The type of protected housing
- The applicable regulations
- The Qualification Date
- The duration of the protection regime
- The maximum price allowed
- Limitations on selling or renting
- The requirements for the buyer
Frequent operations and conflicts with subsidized housing
Legal problems usually arise when the owner decides to carry out an operation or when the Administration detects a possible breach.
Some of the most common situations include:
- Purchase and sale of subsidised housing
- Determination of the legal maximum price
- VPO, VPP, VPPB or VPPL rental
- Disqualification Request
- Overpricing Claims
- Disciplinary proceedings
- Appeals against administrative decisions
- Problems in the allocation of subsidized housing
- Inheritance or change of ownership
- Condominium Extinction
- Rights of first refusal and withdrawal
In all these cases, it is necessary to first analyse the specific regime of the property. The age of the property, the fact that it has changed ownership or that it is usually simply called VPO do not allow us to determine on their own which restrictions are still in force.
Lawyers specialising in subsidised housing
In the case of a VPO, VPP, VPPB, VPPL or any other type of protected housing, the first step must be to correctly identify its qualification and the applicable regulations.
From this analysis, it can be determined which restrictions are still in force, if there is a maximum price, what procedures must be carried out and what legal alternatives exist for owners, buyers, successful bidders or tenants.
At IN DIEM Abogados we provide advice on subsidized housing from a real estate and administrative perspective, both preventively before carrying out an operation and when there is already a conflict with another party or with the Administration.
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What is the difference between a VPO and subsidised housing?
The expression subsidised housing is broader. A subsidised housing or subsidised housing is a type of housing subject to public protection, but there are other categories such as VPP, VPPB, VPPL, special regime housing or public housing.
What is the difference between a BPPV and a PPPV?
VPPB and VPPL are types of protected housing used, among other territories, in the Community of Madrid. They can be differentiated by issues such as the maximum price, the surface area, the access requirements or the specific regime to which they are subject.
Do all subsidised housing have the same limitations?
No. The restrictions depend on the type of housing, the applicable housing plan, the autonomous community and the date of qualification. Therefore, before selling, renting or transferring a protected housing , it is necessary to check its specific regime.
How can I know what type of protected housing I have?
The documentation of the property must be reviewed, especially the qualification of the property, the deed, the registry information and, when necessary, the administrative file. These documents make it possible to determine which protection regime is still in force.
Can I sell a VPO, VPP, VPPB, or VPPL?
In many cases yes, but the transfer may be subject to a maximum sale price, requirements for the buyer, authorisations, administrative communications or rights of first refusal and withdrawal. The specific conditions must be reviewed before formalising the transaction.
Can I rent subsidized housing?
It depends on the protection regime. Some homes can be rented under certain conditions, while others require authorisation or are subject to a maximum rent. There may also be specific requirements for the tenant.
Does a protected home cease to be so with the passage of time?
Not necessarily. The duration of the protection depends on the regulations and the regime under which the housing was classified. It should not be assumed that a VPO or VPP has automatically become free housing just because certain years have elapsed.
Can a protected housing be disqualified?
In certain cases, the disqualification of a protected housing can be requested, but it is not always possible. The applicable regulations, the period of protection, the aid received and the conditions required by the Administration must be analysed.
What happens if a protected home is sold above the maximum price?
A sale above the legal maximum price can generate economic claims and administrative consequences. Depending on the case, it may also be necessary to analyze the validity of additional amounts or payments linked to the operation.
Can the Administration sanction me for failing to comply with the conditions of protected housing?
Yes. Certain breaches related to use, occupation, rental, transfer or price may give rise to a sanctioning procedure in the field of protected housing. The existence and seriousness of the infringement must be analysed in each case.
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Do you have questions about a VPO, VPP, VPPB or VPPL?
Each protected home may be subject to a different regime depending on its classification, the autonomous community and the date on which it was protected. At IN DIEM Abogados we analyse the documentation and applicable regulations to help you know what you can do with the property, what limitations are still in force and what steps should be taken before selling, renting, transferring or appealing an administrative decision.
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