Construction & Real Estate

Exceptional Regime for Late Payment of Housing Rents: Demonstration of Income Loss

Ordinance No. 26-A/2021 of 2 February was published, amending the terms under which the demonstration of loss of income is carried out for the purposes of applying the exceptional scheme for situations of late payment of housing rents given the epidemiological situation caused by the SARS-CoV-2 coronavirus and COVID-19 disease.

According to the diploma, for the purpose of access to financial support corresponding to interest-free loans by the Institute for Housing and Urban Rehabilitation, I.P. aimed at supporting the payment of rents for housing leases with income shortfalls of more than 20%, the effort rate for lessees relevant to the granting of support is reduced from 35% to 30%.

In the assessment of the shortfall in income based on the gross monthly value of income from dependent employment, it is considered taxable income of a regular amount and paid on a monthly basis, before deduction of taxes and discounts, excluding meal allowances, daily allowances and holiday and Christmas bonuses, except if these are paid in twelfths.

Finally, we would like to highlight the obligation for borrowers to send the IHRU, I.P., in the month following each quarter in which they benefit from the loan, the proof of the continued fall in income.

The Order came into force on 3 February 2021.

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