The Council of Ministers approved this Wednesday the creation of a line of guarantees for an amount of 2,000 million euros to cover, on behalf of the State, the financing to increase the housing stock for social rental or at an affordable price, as well as to improve the existing one.

As detailed by the Ministry of Housing and Urban Agenda, these funds are linked to the addendum to the Recovery, Transformation and Resilience Mechanism (MRR) of the European Union.

The measure is included in the Royal Decree-Law, approved this Wednesday at the last meeting of the Council of Ministers of the year, by which measures are adopted to address the economic and social consequences derived from the conflicts in Ukraine and the Middle East, as well as to alleviate the effects of drought.

This line of loans is related to the Addendum to the Recovery, Transformation and Resilience Plan, which establishes the development of a new investment, the ICO loan line to expand social housing, with a provision of 4,000 million euros from the loan tranche of the Recovery and Resilience Mechanism.

It was approved by the European Commission on October 2 and its creation will allow the construction of more than 40,000 public and private homes for affordable rental.

In this way, the line of loans to promote social housing will be complemented by a line of guarantees that will provide partial financial coverage for the implementation of projects for a maximum amount of up to 2,000 million euros for the construction of energy-efficient buildings or rehabilitation with energy efficiency criteria.

Through this Royal Decree-Law, the Ministry of Housing and Urban Agenda is authorized to develop, through an agreement with the Official Credit Institute (ICO), for a period of up to thirty-five years, a line of guarantees that offer partial coverage. of the State, for financing public and private developers in the form of a loan within the ICO Facility of the Recovery and Resilience Mechanism for the promotion of social housing.

The Ministry led by Isabel Rodríguez will distribute, through the ICO, the European funds of the Recovery Plan in the form of long-term loans for the construction of housing, on public or private land, and for the rehabilitation of buildings, both publicly owned. as private, that are going to be used as habitual housing for social or affordable rental.

The funds are aimed at public or private developers and will finance everything from the acquisition of public or private land and the construction of new housing, to the acquisition of public or private buildings to rehabilitate and/or rehabilitation actions.