Funchal affordable housing and urban planning dispute

The Madeira Regional Government has initiated measures to secure land for affordable public housing in Funchal. In the Caminho dos Saltos area, two cooperatives have proposed developing a housing complex on approximately 5,580 square meters of land. This project, managed by IHM – Investimentos Habitacionais da Madeira, involves granting 50-year surface rights to a cooperative in exchange for transferring housing units valued at no less than 20% of the land's €1,122,000 valuation. Additionally, a regulatory decree was issued to protect 29,000 square meters in the Amparo site for two years to ensure its availability for future controlled-cost housing.

These regional interventions have led to political friction within the Funchal Municipal Council. Independent councilors and the CHEGA party have challenged the regional government, arguing that the municipality is losing its urban planning autonomy. Critics specifically point to Regional Regulatory Decree No. 16/2026/M, which requires prior authorization from the Regional Secretariat for Equipment and Infrastructure for certain urban acts in the Amparo area.

Expanding this dispute, the CHEGA municipal group has submitted formal requests to the Funchal Municipal Assembly demanding urgent clarifications on municipal housing management. Specifically, deputy Maria do Carmo Gomes highlighted concerns regarding the municipal company SocioHabitaFunchal, noting that approximately “one million euros in rent has remained unpaid for over a decade.” The party is seeking information on contract compliance, socioeconomic re-evaluations, and the criteria for housing allocation following allegations of fraud or illegal subletting. CHEGA also reiterated concerns regarding the Amparo land freeze, following the municipal council's partial suspension of the Municipal Master Plan (PDM) to allow constructions up to 20 floors.