Administrative delays risk social housing in Alicante; three-batch tender stalls progress

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Administrative Procedure

From the Valencian Housing Department, led by the second vice president, Susana Camarero, there are accusations that the Botànic coalition and the central government have created a “total blockade” and an “unjustified delay” in building more than 600 publicly owned, energy efficient homes intended for social or affordable rent in Alicante province. The allegations point to neglect in award processes and in signing agreements between the different administrations by the previous Valencian government and by the housing ministry, which is viewed as stalling the housing aid program and risking the loss of Next Generation funds, financed by the European Union, amounting to 30 million euros in this case. Source: EVha and governmental reports

From the Housing Department, assurances are given that work is underway since the start of the current legislature to unlock and accelerate all administrative steps that allow these homes to be built. One of the problems concerns the bidding process for constructing 640 affordable rental homes across several plots in Alicante province. After the first call went unawarded, the Botànic government launched a second bid, according to the current regional administration, with industry stakeholders already warning that it could again fail to attract bids. Even with 30 million euros of European funds available to support the projects, the bid received only a single proposal, which was awarded in July 2023, a moment that coincided with Carlos Mazón assuming the presidency and the new regional government taking shape. Analysis by the regional government press office and EVha records

Despite the efforts claimed by the new Valencia government to speed up the start of construction for this tender, the chosen contractor awaits confirmation of funding requested from the ICO (Official Credit Institute, part of the Ministry of Economy). This situation has delayed provisional qualification applications and construction licenses, complicating the project’s feasibility and risking the loss of the EU funds allocated. All parcels planned for housing are owned by the Valencian Housing and Land Entity (EVha), which acts as a collaborating body. Through agreements with the Vice Presidency and the Ministry of Social Services, Equality and Housing, EVha manages the housing aid program. EVha project notes

Tres lotes

The competition was divided into three lots of parcels. The first and second lots correspond to Alicante province. The first lot, supported by 14.5 million euros in subsidies, includes three parcels in the l’Alquería area of Sant Joan d’Alacant, one on Ausiàs March Avenue in El Campello, and one in Rabasa. The second lot received 15 million euros in subsidies and comprises four parcels in l’Alquería de Sant Joan d’Alacant and two on Calle La Huerta in San Vicente del Raspeig. With these plots, 34 homes are planned for the city of Alicante, 58 in El Campello, 512 in Sant Joan d’Alacant and 36 in San Vicente del Raspeig. Consequently, these municipalities risk losing the EU funds if the national government does not fulfill its commitment and expedite the procedures that will permit these social homes to move forward. Data from the EVha planning documents

The third paragraph explains that the four municipalities depend on the timely administration of funds and permits, and the potential loss is framed as a consequence of bureaucratic delays impacting social housing access for residents with urgent needs in these Alicante towns. Public statements from EVha and the Conselleria

For this reason, the Housing Department is urging the national government to drop the excuses and accelerate the funding of the projects and the remaining procedures so as not to leave residents in these towns without high-quality, affordable public housing. In summary, the Valencian government, led by Mazón, contends that if funding and the other administrative steps are not expedited, the four cities will be left without these social housing projects in a climate where getting housing has grown increasingly difficult due to high purchase and rental prices. EVha’s legal services are examining the potential consequences if the awarded contractor does not begin construction. Legal analyses from EVha

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