The longer this health crisis continues, the more difficulties are arising, especially for those whose business activities were suspended and now do not have the same income as before. To that end, the Canarian Government by means of the Housing Department published a Resolution outlining the terms to apply for financial aid to make rental payments on the primary home.
This financial aid is only for your primary home and for natural persons, so companies cannot apply. Those who have taken out loans through their banks via ICO can also apply so that this loan can be cancelled. The terms and conditions are as follows:
- Applicable for persons who due to the COVID-19 health crisis have been furloughed, had their working hours reduced, are unemployed, or if self-employed, have suffered a substantial financial loss
- The total income of the family unit (those who reside at home) cannot exceed 1.613,52 euros a month
- The rental amount plus expenses and basic utilities of the home must be equal or greater than 35% of the family’s joint income. There are exceptions if income is greater than 1.613,52 euros (if it is a single-parent household, if there are persons older than 65 years of age, if there are persons who are dependents or have a disability)
- Financial aid covers up to 100% of the rent, limited to 900 euros a month and for a maximum period of six months. If the application is approved, the applicant would receive an initial payment to cover previous months as long as proof of payment to the landlord is provided, and from there, payments will be made monthly
- If the applicant took out an ICO loan, this financial aid will either partially or fully cover said loan and for a maximum of 5.400 euros. In this situation, the payment would be made in one full payment
- The applicant will receive payment directly if they have proved payment of rent to the landlord, but if they have been unable to pay due to the situation, the Housing Department would make the payment to the landlord instead
- BASIC DOCUMENTS/ INFORMATION TO PROVIDE: (1) Complete copy of the rental contract that details the method of payment (2) Provide receipts for payment of the last three months (3) Names and ID numbers of the family unit (4) Electricity bill (5) Water bill (6) Telephone/ mobile bills (7) Community of Owners bills if payable by the tenant (8) Detail total income received in the family unit (9) Calculation of total income vs. expenses to determine criteria of 35% of joint family income as explained previously (10) Contract for ICO loan (11) Bank account details
- The application in the form of a Sworn Declaration or Affidavit must be submitted online via www.gobiernodecanarias.org/vivienda using the applicant’s Digital Certificate or Clave PIN. If the applicant does not have the ability to file the application online using these methods, the alternative is to call 928 301 012 (Province of Las Palmas) or 922 470 012 (Province of Tenerife) and the Agent will ask a series of questions etc., so all paperwork must be prepared. Unfortunately, unless an Asesor or representative has an official Power of Attorney granted by a Notary Public, only the interested party can submit the application
- This financial aid is compatible with other rental benefits the applicant may be receiving as long as the total does not exceed 100% of the total rent due. In that case, the financial aid would be reduced
- If the application is approved but the applicant’s circumstances changed, they are obliged to inform the Housing Department, otherwise they run the risk of having to return the funds received and a penalty. The same applies if false information is used to obtain benefits
- EXCLUSIONS: (1) The funds cannot be used for commercial premises (2) If the applicant or members of the family unit own a property or have use of a property in Spain (3) If the landlord is another family member (4) If the property in question is classed as social housing awarded to the applicant by the Canarian Government
This Program has initial funding of 5,3 million euros, which may be increased by 51% if required, reaching a sum of 8 million euros, however, once funds run out, the Program will be suspended.