In the evolution from the draft law at the end of September to its introduction as a bill last Monday, the Valencian Institute of Finance (IVF) received a new role. The Consell included in the Companion Law the ability for the Generalitat’s public bank to guarantee home purchases in the Valencian Community. This added responsibility was not part of the regulatory changes in the initial version of the Accompaniment Law.
According to the draft law approved by the Regional Government together with the budgets at the general assembly meeting last Monday, in vitro fertilization is described as capable of providing guarantees to individuals seeking to obtain a home. This option appears as an addition under the Purposes and Functions of the financial arm of the Consell, an amendment introduced under Article 24 of Title III of the Accompaniment Act on administrative organizational measures and restructuring of Instrumental Public Sector entities.
The IVF’s functions center on directing activities mainly toward the productive sectors of the Valencian Community, including small and medium enterprises and entrepreneurs. The sole exception to these functions is real estate promotion, unless it concerns protected housing or financing of plans designed by the Administration or public institutions.
They are fulfilling their duties
The recent change means that individuals will be allowed to purchase any home with the approval of this financial institution. The measure aims to ease access to housing, though it remains unclear whether it will apply to all individuals or be targeted at a specific group such as youths. This is part of the legislature’s intent.
To formalize this direction, the regulatory amendment proposed by the Valencian Government, supported by PP and Vox, adds to part 1 of IVF’s functions by once again including the possibility of granting guarantees for the acquisition of housing to individuals. In this framing, the agency is empowered to fulfill its functions. These include granting loans, credits, guarantees and other forms of security in favor of private companies and organizations, as well as making contributions and managing venture capital funds. The new addition includes a home purchase guarantee.
This new function also required an adjustment by the regional manager. It affects section 2, setting the conditions for accessing financing provided by the Generalitat’s public bank. The requirement narrows to companies that have their registered office or the core of their activities in the Valencian Community. It now adds a presumption that private individuals may also be eligible, provided they have administrative residence in the Valencian Community.
[citation: regional government records, AST-2024 Accompaniment Act amendments]