Rental aid from the Community of Madrid Covid-19

The rental aid from the Community of Madrid to help minimise the economic and social impact of COVID-19 on housing rentals.

Individuals who are renting their usual residence in the Community of Madrid and who are in a situation of economic and social vulnerability as a result of the COVID-19 are eligible for this aid.

Rental aid from the Community of Madrid

Basic requirements

The following requirements must be met:

That the person who is obliged to pay the rent is, as of 1 March 2020, unemployed or in a Temporary Employment Regulation File (ERTE). Or that he or she has reduced his or her working hours due to care, if he or she is an employer, or other similar circumstances involving a substantial loss of income. This does not include all the income of the members of the family unit in the month prior to the application:
In general, the limit of 3 times the monthly IPREM (Public Indicator of Multiple Effect Income). Official IPREM 2020 value: 537.84
This limit will be increased by 0.1 times the IPREM for each dependent child in the household. The increase applicable per dependent child shall be 0.15 times the IPREM for each child in the case of a single parent household.
- This limit shall be increased by 0.1 times the IPREM for each person over 65 years of age in the family unit.
In the event that any of the members of the family unit has a declared disability equal to or greater than 33%, a situation of dependency or illness that permanently incapacitates them to carry out a work activity. The limit foreseen will be 4 times the IPREM, without prejudice to the accumulated increases per dependent child.
In the event that the person obliged to pay the rent is a person with cerebral palsy, mental illness, or an intellectual disability, with a recognised degree of disability equal to or greater than 33%. Or a person with a physical or sensory disability, with a degree of recognized disability equal to or greater than 65%. As well as in the cases of serious illness that incapacitates the person or his/her carer, in an accredited way, to carry out a work activity, the limit foreseen will be 5 times the IPREM.
That the rental income, plus expenses and basic supplies, is greater than or equal to 35% of the net income received by all the members of the family unit, in the month prior to the application. For these purposes, “basic expenses and supplies” means the amount of the cost of electricity, gas, heating oil, running water, and fixed and mobile telecommunications services. And the possible contributions to the community of owners, all of them of the habitual residence that corresponds to satisfy the tenant.

Additional requirements

In addition, the following requirements must be met:

Possess Spanish nationality. In the case of foreigners, they must have legal residence in Spain.
Have signed a rental contract for a habitual residence in the Community of Madrid. Formalized in the terms of Law 29/1994, on Urban Rentals. With express inclusion of the means and form of payment to the lessor.
To be able to accredit the payment of the last three monthly payments. Unless the contract is for a shorter period, in which case the payment will be credited from the beginning of the contract. In the event that the lessee has requested the reduction or moratorium in the payment of the rental income established in Article 4 of RDL 11/2020, of 31 March, he or she must be up to date with the payment of the three monthly payments prior to the date of the request for the moratorium.
It is important that the application be signed by all the holders of the rental contract or by their legal representatives.

Exclusions

The grant may not be awarded when:

The person or persons renting or any of those who have their habitual and permanent address in the rented dwelling are in any of the situations indicated below:

They are owners or usufructuaries of a dwelling in Spain. These circumstances will not be considered to exist when the right falls only on a part of the property. And it has been obtained by inheritance or by transmission mortis causa without a will. This requirement will also be waived for those who, being owners of a property, prove the unavailability of the same. Due to separation or divorce, or any other cause beyond their control. Or when the dwelling is inaccessible due to the disability of its owner or of any of the persons who make up the cohabitation unit.
They are related in the first or second degree of consanguinity or affinity with the owner of the dwelling. Or are partners or participants of the individual or legal entity that acts as the lessor.
When the beneficiary or beneficiaries are in any of the circumstances set forth in Article 13 of Law 38/2003, General Subsidies.
Renters of subsidised housing owned by the Community of Madrid and its autonomous bodies are excluded. Or of the Madrid City Councils and the Companies and Municipal Entities of the latter, which are subject to a special regime of rent reduction.

Amount of aid

100% of the monthly rent with a maximum of 900 euros per month. Not including the rest of the economic obligations assumed in the contract. For example, community expenses, service expenses, supplies, fees and taxes.

If the transitional financing aid provided for in Article 19 of RDL 11/2020 had been obtained. This aid may be up to a maximum of 5,400 euros with which the payment of the rent will be totally or partially satisfied.

Term of the aid

The aid may be granted for a maximum period of 6 months, the first month being in April 2020.

The eligible period will start to be calculated from the monthly rent following that in which the situation of economic and social vulnerability caused by the COVID-19 begins.

In the event that the lease is terminated during the eligible period. The amount of the aid will be reduced proportionally, taking into account the date of termination of the lease.

Frequently Asked Questions

When can I apply?

The application can be submitted from May 13 to September 30, 2020.

How can I apply?

Using the official model, and Annexes included in the Order.

For the duration of the State of Alarm, preferably by electronic means. It can also be presented in person at the Post Office. For reasons of prevention and security, it is advisable to present the application by telematic means as a priority.

Granting of aid

Duly completed applications whose applicants meet the requirements will be favorably resolved as long as credit is available.

The chronological order of presentation will be taken into account when granting the credit. They will be considered as submitted when they meet all the required documentation, and once corrected, if applicable.

Once the available credit has been exhausted, any applications received subsequently will be decided upon unfavourably. The exhaustion of such funds will be communicated through www.comunidad.madrid

Additional issues to be considered.

This assistance is compatible with any other rental assistance the tenant may receive. Even if it is under the State Housing Plan 2018-2021 itself. Regardless of whether or not a loan has been taken out through the transitional financing aid of Article 9 of RDL 11/2020. As long as the total of the aid does not exceed 100% of the amount of the rent for the same period. In accordance with the provisions of Article 19.3 of the General Law on Subsidies. In the event that this limit is exceeded, if the aid corresponding to this programme is granted, it will be reduced by the necessary amount until this limit is reached.

Beneficiaries of aid under the programmes shall be required to notify immediately any change in the conditions which may justify or would have justified such recognition. Even during the processing of the application, to the Directorate General for Housing and Rehabilitation. And that could determine the supervening loss of the right to the aid. In particular if the rental contract has been terminated during the eligible period. Failure to notify these changes will be sufficient cause for the initiation of a file to reimburse any amounts that may have been unduly collected

Within six months of the day following notification of the award of the grant, the beneficiary must provide the Directorate-General for Housing and Rehabilitation with bank statements of payment for all months of the subsidised period. In order to be able to verify that the rent has been paid by the tenant to the landlord. Or a certificate from the financial entity accrediting the total or partial cancellation of the transitory financing aids regulated in article 9 of RDL 11/2020, of 31 March.

Infringements

Concealment or misrepresentation of the data on the basis of which the applicant was granted the aid shall lead to its revocation. The amounts received shall be reimbursed and interest on arrears shall be charged. That it will accrue from the time of payment of the subsidy until the date on which it is agreed that the refund is due.

Similarly, the amounts received will be reimbursed and interest on arrears will be charged. In the event that the beneficiary incurs any of the causes set out in Articles 36 and 37 of Law 38/2003 on General Subsidies. Or fails to comply with the obligations provided for in Article 8 of Law 2/1995 of 8 March on Subsidies of the Community of Madrid.