New by-law on first refusal to use more housing for social policies
The Full House has approved the new by-law regulating the right to first refusal, whereby the City Council gets priority in the purchase of buildings. The new regulation means that this right can be passed on to local residents and non-profit organisations to use housing for social policies. Since the City Council started its acquisition policy, its has acquired over 1,600 homes that are now part of the city’s public housing stock. Over 315 of these were purchased using the right to first refusal.
Views of C/ Princesa from a balcony
Regulation of criteria and exercise of the right to first refusal
The regulations prioritise the purchase of buildings with more than ten homes, empty flats and buildings with vulnerable people, people with disabilities or located in neighbourhoods at risk of gentrification. If an acquisition is made, the maximum price may not exceed the average sale price for the neighbourhood, discounting the cost of renovation if needed.
Right of first refusal in favour of third parties
The City Council will be able to renounce the purchase of a building and pass on the right to third parties or organisations that promote public housing, people occupying the building legally or private non-profit promotors that have the goal of protected housing.
The by-law will also allow for joint acquisitions between the City Council and these beneficiaries, providing the City Council owns at least a third of the property. In the case of purchases, local residents must represent at least 60% of the homes in the building, comply with the access conditions of the register of applicants for protected housing and demonstrate financial solvency.
The by-law should also have a website with access so that organisations that benefit from it can check the buildings subject to the right of first refusal and which the City Council has no interest in.
Final approval by the Full Council
The new by-law forms part of the municipal strategy to boost the public housing stock in every way possible and use the right of first refusal in operations that add more housing in dense areas where it is difficult to build new blocks.
