The Spanish government is preparing a new law to regulate social housing providers, a move welcomed by non-profit foundations in Catalonia and across Spain. The Ministry of Finance is considering a proposal from non-profit organisations like Hàbitat3 and Provivienda, which manage social housing.
These entities, grouped under ALIVAS, aim to create a new legal category for “social housing providers” to expand this segment of the residential market in Spain. Government sources told ARA that the bill is expected to reach Congress “as soon as possible” and will be processed by the Socialist group for a “faster” procedure with “fewer steps”. This new designation will formalise the role of organisations that manage social housing comprehensively, from development to rent management.
Expanding Social Housing Provision
Officials describe this approach as “a more global view than we currently have, without segmentation,” and consider it “the model to follow”. The new law aims to bring Spanish entities, which mainly acquire and manage existing homes, in line with Housing Associations in countries like the UK. These associations consistently expand their stock through development and acquisition.
The Spanish government sees these entities as a “successful model, led by Catalonia and the Basque Country, which must be extended to the rest of the country” and strengthened. In Catalonia and the Basque Country, these organisations have a greater presence. Ramon Bastida, director of the Chair for Decent and Sustainable Housing at UPF-BSM, said the future law will give these entities, which have “extensive knowledge and much experience in project management,” conditions that “allow them to expand” their work.
Albert Ferré, general director of Fundació Hàbitat3, Catalonia's third-sector social housing manager, predicted the law will offer tax benefits and access to subsidised financing. For example, foundations are currently excluded from some development aid, but as recognised providers, they would gain access, according to state executive sources. Housing Associations manage almost 100% of social housing in the UK. In contrast, Bastida explained that in Spain, “the bulk of social housing development falls to the public sector,” with significant public-private collaboration. Developers build homes on public land on the condition that they become part of the public housing stock after a set period.
From Decree to Law
The concept of “social housing providers” was initially part of the draft decree regulating the State Housing Plan but was removed from the final version, approved by Pedro Sánchez’s government a couple of weeks ago. Ministry sources reiterated their commitment to regulating this figure, but believe the regulation “must have the status of a law” and that the decree “was not the most appropriate instrument”.
Ferré welcomed the government’s decision, stating that ALIVAS’s proposal “surpasses” and incorporates “more nuances” than the decree’s approach. Bastida also supported the law’s enactment, noting that foundations and associations managing social housing are an unregulated sector. “We do not have a register of these entities, nor of how many homes they manage,” he explained. These organisations control some of the privately owned social housing units in Spain. According to Bastida, they manage “half or slightly less” of the 600,000 social housing units across the country, with the other half being publicly owned.
Moving forward, the proposed legislation aims to provide a clearer framework and greater support for non-profit organisations involved in social housing. This could significantly boost the availability and management of affordable homes, particularly in regions like Catalonia where such models have already shown success.
