Government Proposes Exemption from Prior Inspection to Streamline Housing Finance
The Government has submitted a bill to the Assembly of the Republic that aims to streamline financing for affordable and public housing. Approved in the Council of Ministers on September 18, Bill Proposal No. 36/XVII/1.ª introduces a significant amendment to the special public procurement measures established by Law No. 30/2021. The central feature of the proposal is the creation of a temporary exemption from the Court of Auditors' prior inspection for financing contracts designated for housing projects.
This proposed exemption applies to financing agreements, and their associated guarantees, for the promotion, rehabilitation, and acquisition of properties for several key areas: affordable housing, public housing, and temporary accommodation, which explicitly includes student housing. The government's stated objective, as outlined in the bill's explanatory memorandum, is to accelerate the delivery of housing solutions by reducing administrative delays and costs. The document states the measure is intended to 'ensure greater flexibility in procedures, as well as the minimization of their respective prazos (deadlines), with a view to reducing the context costs associated with the disponibilização (provision) of solutions destined for public housing'.
The legislative change is designed to directly address bottlenecks in the current system. By waiving the requirement for a 'visto prévio' (prior visa) from the Court of Auditors, public entities and their partners can move more quickly from planning to execution. This is particularly relevant for projects facing tight deadlines or complex financing structures. For investors and developers, navigating the existing legal issues in property acquisition can be challenging, and this bill represents a potential simplification for a specific but crucial market segment.
The government has emphasized that this measure does not eliminate oversight. The explanatory memorandum clarifies that 'the fiscalização (supervision) of the execution of these contracts continues to be ensured in sede de fiscalização concomitante (through concurrent inspection)'. This ensures that while the upfront approval process is faster, accountability and proper management of funds remain under scrutiny throughout the project lifecycle. This approach balances the need for speed with the imperative of responsible governance.
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The scope of the exemption is not limited to direct project financing. It also extends to the acquisition of participation units in fundos de investimento imobiliário (real estate investment funds) that are dedicated to these housing purposes. This provision is designed to encourage institutional investment and the pooling of capital towards affordable and public housing goals. The exemption is set to be a temporary measure, applying to all relevant contracts and acquisitions celebrated or adopted until December 31, 2026.
This bill is one of the first concrete legislative actions following a series of government announcements over the past weeks aimed at addressing Portugal's housing challenges. By specifically targeting the financing pipeline, the government hopes to 'agilizar a capacidade de as entidades públicas recorrerem ao financiamento' (streamline the ability of public entities to resort to financing). The success of this measure will depend on its swift approval by Parliament and its effective implementation by public bodies and their partners in the construction sector.
The proposal reflects a strategic decision to prioritize the expansion of public and affordable housing stock as a key pillar of national housing policy. As the bill moves through the legislative process, its progress will be closely monitored by municipalities, developers, and financial institutions involved in the housing sector. Stakeholders are anticipating that a more agile financing framework will stimulate a new wave of development projects aimed at meeting the urgent demand for housing across the country. For detailed analysis of such regulatory shifts, investors often turn to specialized real estate lawyers to understand the full implications.
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