Mogán City Council fails to find bidders for 202 affordable homes

The Mogán City Council has announced that the tender to construct and manage 202 affordable housing units in Motor Grande, Puerto Rico, has failed for a second time due to a lack of corporate bidders. The project, located on Zaragoza Street, was designed under a public-private partnership model using surface rights, allowing the municipality to retain land ownership while private companies handled investment, construction, and management.

To encourage participation, the council offered significant incentives, including a 97.5% reduction in the Construction, Installation, and Works Tax (ICIO), exemptions from surface rights fees, no land use canon, and a 50% reduction in Property Tax (IBI) during the rental period. Additionally, the council offered to cover 50% of the bank guarantees required for financing.

Mayor Onalia Bueno stated that the lack of offers highlights the difficulties of the public-private collaboration model and surface rights in the Canary Islands. In response to the failed tender, the City Council is considering executing the housing projects directly. The municipality has already secured funding for planned housing in Veneguera and is evaluating the economic requirements for projects in El Horno and Puerto Rico.