The government's proposed law that extends the rental support measures that allow tenants in difficulties to use a loan to pay rent and non-residential tenants to defer rental payments has been approved in Parliament.
"The Assembly approved a proposal from the government that extends the deadline for granting loans for payment of rent by the Institute of Housing and Urban Rehabilitation (IHRU) until 1st September 2020. This extraordinary support in the context of the COVID-19 pandemic ensures that families have the time and conditions necessary to resume their lives with normality, foreseeing that the settlement of the amounts owed will be extended over time and therefore avoiding the burden of housing charges. It also allows landlords to receive the rent due on time," states the Government's website.
During the discussion, Ana Pinho, the Secretary of State for Housing in Portugal, said that although the state of emergency has already been lifted, "the social and economic difficulties motivated by the pandemic will continue", and "it is predictable" that there will be "a significant number of families that will take some time to recover their financial stability".
According to the government, this support from the IHRU for the payment of rent "is the most favourable and advantageous measure for both families and landlords. It creates the conditions for all families not to default on their rental contracts, and to regulate rent smoothly over time, and after an extended period, their working life and pay situation can be normalised. At the same time, landlords will receive the rent due on time", the government highlights.
It should be noted that in the final overall vote, the Portuguese Socialist Party (PS) and People-Animals-Nature (PAN) voted in favour and the other parties abstained.
Since 15th April, tenants and landlords with a proven loss of income have been able to resort to loans from the IHRU for the payment of rent, and the institute has already received around 1,800 requests for loans, a total of 3.5 million euros of support.
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