Portuguese municipalities face hurdles in rehabilitating state-owned ruins

Municipal leaders in Portugal are calling for legislative changes to address the difficulty of rehabilitating state-owned properties. Many urban centers contain buildings and land owned by the state that are currently derelict, degraded, or in ruins, creating a stark contrast to the urgent social need for affordable housing.

Local authorities aim to transform these assets into public housing through programs such as Controlled Cost Housing (HCC) and Affordable Cost Housing (HCA). However, they face significant bureaucratic obstacles and heavy requirements, particularly when dealing with properties under the jurisdiction of Estamo.

A major point of contention is the current law, which requires municipalities to purchase these properties based on strict market valuations. This forces local governments to pay high prices for buildings that often require extensive and costly renovations. Officials argue that this financial burden hinders the ability to increase the public housing stock and revitalize urban areas.