The 10 key points of the new Decree-Law on urgent measures in housing approved in the Balearic Islands

24 October, 2023
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Civil
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Pablo del Estal


On October 4th, the Decree-Law 6/2023 of October 2nd on housing measures approved by the Government Council of the Balearic Islands came into effect. In this article, we highlight the most significant novelties of the new regulation:

1. It regulates a new type of housing called Limited Price Housing (hereinafter “LPH”), of a permanent nature, which may have a maximum area of up to 90 m2 and a limited price. This housing must be established as the usual and permanent residence of the users or beneficiaries.

2. It establishes the regional registry of Limited Price Housing and regulates its operating rules.

3. It introduces several temporary urban planning measures in the Urban Planning Law – for licenses applied for within two years from the entry into force of the Decree-Law and executed within a maximum period of three years from the start of construction – in order to increase the supply of LPH:

It exempts compliance with the residential intensity parameter determined by planning (up to a maximum density of 60m2 of residential buildable area per plot) and the mandatory parking reservation for requests to change the use to residential for commercial premises, offices, or any analogous definition located in buildings where multifamily residential use is allowed.

The maximum housing density is modified between 60 m2 and 90 m2 depending on the case.

It allows a change of use on undeveloped plots:

- From public endowment to residential use for protected rental housing. - From private facilities to residential use for LPH.

Allows actions to enable height growth on lands classified as urban areas where multifamily residential use is permitted. The excess building capacity beyond that allowed by urban planning will be entirely allocated to LPH.

In all cases, the City Councils, within the scope of their powers, may decide not to apply these provisions or may exempt them in certain cases.

4. Regarding habitability issues:

It regulates a new regime for obtaining the habitability certificate for homes in an inadequate or irregular situation, and for those for which the adoption of measures to restore urban legality is no longer applicable.

It adds the dependency for any use, which must have a minimum usable area of 28 m2, and allows the minimum acceptable composition for free housing to consist of one dependency for any use and one bathroom.

5. It extends the maximum duration of the concession to establish surface rights on owned assets to up to 75 years in favour of individuals or private legal entities for the construction of affordable rental housing or endowment accommodations.

6. The special regime applicable to legalize unfinished buildings with expired permits extends to other buildings in inadequate condition or in a ruinous state and will apply when their purpose is for LPH.

7. Allows the conversion and change of use from tourist accommodation establishments or undeveloped tourist-use plots to residential use in the case of tourism and economic unfeasibility or for reasons of opportunity and suitability. However, the new homes resulting from this operation will have the status of LPH.

8. It includes the possibility of temporary closure of the establishment or tourist-use dwelling as a provisional measure parallel to actions or omissions classified as an offense.

9. It introduces new figures in the Housing Law of the Balearic Islands aimed at addressing temporarily the housing needs of certain groups through the payment of rent or fees.

Endowment Accommodation: prioritising displaced public employees covering healthcare, teaching, and security needs, among others; especially vulnerable groups; youth; seniors; individuals with social needs arising from gender-based violence or eviction processes or similar situations.

Accommodation with complementary common spaces (Co-living): This type of accommodation can be implemented on plots with allowed residential uses, except for single-family homes. It will be arranged as a single registry unit and will be allocated to the entirety of a property or part thereof.

10. Adds to the sanctioning regime of the Housing Law of the Balearic Islands new infractions related to LPH, ranging from a minor offense, such as failing to specify the limitations provided for LPH in the deed of sale or loan, to very serious offenses, such as dedicating limited-price housing to unauthorized uses.

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