Lisbon Metropolitan Area Demands New State Funding for Public Housing Rehabilitation
The executive committee of the Lisbon Metropolitan Area (AML) has declared its intention to press the central government for a new, dedicated line of financial support for the rehabilitation of public properties. In an interview with the Lusa news agency, AML's first secretary, Carlos Humberto, stated that such a measure is "indispensable" to address the region's profound housing crisis.
The policy push comes as the 18 municipalities that form the AML, including Lisbon, Cascais, Almada, and Sintra, grapple with what Humberto describes as a "structural problem." He confirmed that a meeting with the Prime Minister was formally requested on September 10 to present the case for a new funding mechanism that would apply to properties owned by both the central and local state. The AML also announced the forthcoming creation of a regional housing observatory to provide continuous data on the crisis.
Humberto detailed the shortcomings of the current primary funding source, the national Recovery and Resilience Plan (PRR). He explained that while the PRR offers 100% financing in principle, its standard cost benchmarks are often too low to secure contracts in the current market, forcing municipalities to fund the shortfall. "I have many doubts that there are many municipalities that can, with the funds they receive from the PRR, compensate for the expenses they have," he said, noting that the PRR also excludes funding for surrounding public spaces and infrastructure.
This financial gap is hampering efforts to increase the housing supply. The AML municipalities submitted applications for around 26,000 housing units, mostly for rehabilitation projects, but only half have been approved. The AML is advocating for all eligible projects to receive 100% financing. However, Humberto acknowledged that even this would be insufficient, citing an outdated diagnosis that identified a need for 50,000 homes. He now estimates the real figure is "significantly higher," with the AML accounting for approximately 50% of the entire national housing deficit.
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The process is further complicated by what Humberto termed "very significant delays in responses" and payments from the Institute of Housing and Urban Rehabilitation (IHRU), as well as the fragile state of the construction industry and complex application procedures. In response, the AML has begun holding monthly meetings with all member municipalities to track the execution of PRR-funded projects.
The creation of the new housing observatory is a strategic step to ensure policy is based on current information. "Perhaps in a year we will be in a position to have the first data," Humberto projected. This initiative, combined with the demand for a new credit line, signals a coordinated effort by the region's mayors to force more effective action from the central government on the housing front.
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