Lisbon City Council wants to buy building in Arroios for affordable housing | Housing

The Lisbon City Council approved this Wednesday, March 20th, the acquisition of an urban building in Praça José Fontana, in Arroios, with a gross private area of ​​1062 square meters, for the value of 2.59 million euros, through the legal right of preference, which gives priority to a public entity in the purchase and sale of a property.

In a private meeting of the municipal executive, the proposal to submit the acquisition of the property to the municipal assembly, through the exercise of the legal right of preference enjoyed by the municipality of Lisbon, was unanimously approved.

The acquisition of the property is part of the policy of purchasing houses from private individuals so that the municipality can increase the supply of affordable housing.

Signed by the Mayor of Lisbon, Carlos Moedas, and the Housing Councilor, Filipa Roseta (PSD), the proposal states that “the property consists of nine floors, with the basement, the ground floor and the gallery intended for for commerce and the remaining six floors for offices”. Even so, “despite being currently allocated to services, due to its characteristics, it can be adapted to housing use and become part of one of the municipal housing programs (for example, affordable rent or residence for students and/or displaced teachers)”, reads in the proposal.

At the moment, the basement and ground floor of the property are encumbered with a non-residential lease contract, with a fixed term, which is in force until December 31, 2029, with a monthly rent of 1500 euros, with the company Power as its tenant. of Insurance, Lda. The remaining floors are “empty of people and goods”, and the property maintains the original construction and is “in a reasonable state of conservation”, it is indicated in the proposal.

Currently, the property is “encumbered by a voluntary mortgage in favor of a banking entity — a real burden subject to land registration, but subject to cancellation before the planned purchase and sale”, according to the proposal.

With a total gross private area of ​​1062 square meters, in total ownership with floors or divisions capable of independent use, the building at Praça José Fontana, numbers 4, 4A and 4B, was assessed with a tax asset value (VPT) of approximately 1.2 million euros, determined in 2022, and will be sold for a total value of approximately 2.5 million euros.

In the internal real estate assessment report carried out by the Municipal Directorate of Patrimonial Management (DMGP), it is mentioned that “both for the current use,”commerce and services”, and for the alternative use of “commerce and housing”, the value communicated to the acquisition of the building is appropriate, as it is lower than the market value”.

According to the proposal, the assumptions of public utility that underlie the right of preference legally attributed to the municipality are “fully met”, meaning that it must be exercised under the stipulated terms, even if it does not produce any effects before the visa or declaration of conformity of the Court of Auditors, since the value is more than 950 thousand euros.

The property in question is covered by the special protection zone (ZEP) of the former Liceu Camões (current Escola Secundária de Camões), classified as a monument of public interest, by the Urban Rehabilitation Area (ARU) of Lisbon and by the Reasoned Declaration of Deficiency Housing, within the scope of the preparation of the Municipal Housing Charter.

The executive of the Lisbon Chamber is made up of 17 members, seven of whom are elected from the Novos Tempos coalition (PSD/CDS-PP/MPT/PPM/Aliança) – which are the only ones with assigned responsibilities and govern without an absolute majority –, three from PS, two from PCP, three from Cidadãos Por Lisboa (elected by the PS/Livre coalition), one from Livre and one from BE.