The initiative will be carried out through surface rights on two municipal plots. This system allows the land to remain publicly owned, while the buildings will be temporarily owned by private developers. They will undertake the investment and management, ensuring long-term social control of the land and meeting the requirements for incentivized affordable housing.
The model, supported by regional regulations, establishes a regulated rent for ten years, not exceeding the prices set by the Government of the Canary Islands for social housing. Although the law permits increases of up to 20%, the council has decided not to apply any, strictly maintaining VPO prices to protect future tenants.
After the decade of regulated rent, the properties will revert to the council, which will offer residents the option to purchase them at an affordable price, significantly lower than market rates, a crucial aspect given the area's high real estate pressure.
The Mogán City Council has decided not to apply any increases, strictly maintaining VPO prices to protect future tenants.
The contract is divided into two lots on Zaragoza Street, in Motor Grande. One lot includes 72 homes with garages and storage rooms, with a 30-month execution period and a budget of 8,229,129.70 euros. The second lot plans for 130 homes, also with garages and storage rooms, requiring project drafting and with a 38-month execution period and a budget of 15,836,114.45 euros.
The council has implemented specific tax incentives to reduce costs, including a 97.5% discount on the Construction Tax (ICIO) and full exemption from administrative fees. No fee will be charged for the use of municipal plots, and a 50% discount on Property Tax (IBI) will apply during the rental exploitation period.
Additionally, the council will receive only 5% of the final sale price of each home. This model will be exclusively applied to the developments in Motor Grande.
