Credit institutions contribute 3,974 additional homes to the Social Housing Fund

This new contribution to the FSV adds to the numerous initiatives deployed by the institutions to alleviate the situation of families facing difficulties in meeting their mortgage payments.

Spanish credit institutions have today contributed another 3,974 additional homes to the Social Housing Fund (FSV) destined for those who are unable to meet their mortgage payments.

With this new contribution, banks, savings banks, and credit cooperatives, members of the Spanish Banking Association (AEB), CECA, and the National Union of Credit Cooperatives (Unacc), will have provided a total of 9,866 homes to the FSV to be rented at reduced prices to families in situations of special need.

The incorporation of 3,974 new units has been reflected in the text of the Social Housing Fund Agreement, the renewal of which was signed today by representatives of the Administration, the Third Sector, and the aforementioned entities and associations.

The objective of this renewal, driven by the Ministry of Economy and Competitiveness, is to facilitate access to the homes of this Fund for families who have lost their homes in a foreclosure process after January 1, 2008, and who find themselves in a situation of particular vulnerability.

The FSV agreement has included other new features, such as the flexibilization of access requirements for housing and the modification of the allocation procedure, all aimed at increasing the number of potential beneficiaries and covering a broader spectrum of situations that require a solution from all involved institutions.

Additionally, credit institutions have been deploying a wide range of initiatives in recent years to assist families who have had or currently face difficulties in meeting their mortgage debts, with the main goal of helping families retain ownership of their homes or, in cases where they have lost their homes in a foreclosure process, finding a solution to assist those affected by this situation.

In this regard, the institutions:

• have renegotiated and improved mortgage conditions for over 500,000 families, allowing them to continue making payments and avoid the traumatic loss of their homes.
• have suspended evictions from their habitual residences for a significant number of mortgage debtors, in accordance with the commitment made publicly in November 2012, which was generalized from the entry into force of Royal Decree Law 27/2012, on urgent measures to strengthen protection for mortgage debtors.
• have accepted debt write-offs and offered dation in payment solutions for families at risk of exclusion, facilitating a social rental in the home they inhabited.
• have adhered to the Code of Good Practices in mortgage matters and to the FSV, promoted by the Ministry of Economy and Competitiveness, and have developed the initiatives and measures outlined in Royal Decree Law 27/2012.

Furthermore, most institutions carry out specific programs to facilitate access to housing for the most disadvantaged groups and offer employment search, training, and social assistance programs.