Social Housing: What It Is, Requirements, and Advantages

To support low-income individuals, the Public Administration in Spain promotes the concept of VPO, or Official Protected Housing, ensuring that the most vulnerable people, those with limited financial resources or special needs, can access their own home. We invite you to read on for more information on this topic.

What is official protected housing? 

An official protected housing unit (VPO) is a special type of housing construction allocated to vulnerable individuals at a price significantly lower than the market rate.

Each autonomous community has its own housing plans and special conditions for allocating them.

The owner commits to complying with a set of rules, such as using the house solely for residential purposes and as their primary residence. To sell it, they must wait a certain number of years. 

Types of official protected housing

Constructions of this type depend on the housing plans of each autonomous community and come in two types: those intended for rent and those built for self-purchase or sale. Learn how much capital gains tax is due on the sale of a property applicable.

 Below, we will detail these two types of VPO:

1.  Protected housing units intended for rent

Appraised Price Housing (VPT): These were initially constructions intended for purchase, but they are rented under a set of conditions.

Social Integration Housing (VIS): Exclusively for individuals requiring social protection. These are homes measuring less than 130m², and they are only for rent, with no option to buy.

Publicly Protected Housing for Rent (VPPA): Access to this type of housing is determined by the family's annual income. These are apartments between 110 m² and 150 m², the latter being for large families.

2.  Protected housing units for purchase or sale

Limited Price Housing (VPPL): These types of constructions can measure up to 150m², and are built exclusively on land designated for social housing.

Basic Publicly Protected Housing (VPPB). These will remain under the protection regime for 20 years, although in some cases the owner may sell them before that period, but at a price lower than the legal maximum.

Features of VPO housing

• In most cases, the area does not exceed 90 square meters, or 120 square meters for large families.
• If the housing is intended for people with disabilities or reduced mobility, it can have an area of up to 108 m2.
• They must be used for residential purposes only.
• Their prices are lower than the market price of housing in the area.

Requirements to access VPO housing

To be eligible for Official Protected Housing (VPO) in Spain, a series of established requirements must be met to ensure that these homes are allocated to those who need them most. The eligibility criteria are detailed below:

• Spanish citizens or those with permanent residency in the country are eligible for this program.
• Applicants must be of legal age.
• Neither the applicant nor their direct family members should own another home; furthermore, they must not have previously owned VPO housing.
• The applicant's income must not exceed three times the Public Indicator of Multiple Effects Income (IPREM). It is important to note that this limit may vary depending on the Autonomous Community.
• It is essential to be registered in the VPO housing applicant registry of the corresponding Autonomous Community.
• Individuals in vulnerable situations are also eligible for this program, including those with a disability of 30% or more, and victims of gender-based violence. Retired individuals facing mortgage debts that exceed their pension or who have minor children in their care are also eligible to apply for VPO benefits.

How to know if your home is officially protected housing?

To determine if your home is VPO, you can seek information from the public works department of your Autonomous Community.

You can also check with the property registry to see if it is registered under a housing plan or if it has a qualification certificate.

How is officially protected housing declassified?

The process of declassifying officially protected housing is the exclusive responsibility of the Autonomous Community that originally granted the protected status to the housing; only they can initiate and resolve the procedure to remove this protection.

There is a fundamental requirement to obtain the declassification of a VPO: the repayment of all public aid received by the owner, unless the minimum period determined for the housing to be considered market-rate has elapsed (usually a minimum of 30 years).

If declassification is requested before this period expires, the owner must reimburse not only the public aid originally received, but also the corresponding legal interest, from the moment the subsidies were granted until the final approval of the VPO declassification by the Autonomous Community.

How long must pass before VPO flats can be sold?

The classification as VPO housing has a time period set by each Autonomous Community.

Generally, a VPO-status home is released from restrictions after 30 years have passed since the purchase of said property investment; however, in many cases, official protected housing can be released from restrictions after 10 years from the initial sale.

If the official protected housing is still within its qualification period, it can be sold, but with authorization from the public administration and at the price it sets; in this case, the buyer must meet the requirements for acquiring it.

What are the advantages of a subsidized flat?

• The main advantage is the savings in the price of the housing; it is much lower than others in the area.
• You can access housing in optimal conditions in your own community, suited to your income.
• Depending on the autonomous community, you will receive other types of aid, such as easier access to loans, processing the reverse mortgage and enjoying certain tax benefits.

Disadvantages of a subsidized flat

• You will not be able to selling a house without a real estate agent for the period it is designated as protected (an average of 10 years).
• For as long as the property is classified as protected, it will have a limited sale price, meaning you won't be able to sell it at a free market price.
• They will be subject to regulated control for the entire duration of the protection.

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Conclusion

If you are interested in acquiring a second-hand subsidized housing unit, you must first verify that it is within its qualification period in the Property Registry. If you meet the eligibility requirements, you can then proceed with the mortgage application for the subsidized housing, exploring various options until you find the one that best fits your profile.