Girona landlord loses €8,800 in municipal social housing scheme

Girona property owner faces €8,800 loss after trusting municipal social rental scheme

What happens when an individual hands over their home to a local government social housing program? A resident of Girona has the answer. After participating in the Office Municipal de Vivienda’s 60/40 program, he found his apartment returned empty and damaged. Restoring it costs €8,800. The Girona City Council, led by the CUP party, offers him just €1,600.

The 60/40 program: A risky bet for owners

Girona’s 60/40 social rental program worked like this: the owner transfers the property to the council, which rents it to vulnerable families at 40% of market rates. The owner receives 60%. In theory, a secure business backed by public funds. But when the contract expired last June, the owner wanted to recover the flat to rent it independently. He faced a surprise: the council wouldn’t return it. According to his testimony, he visited the office in May and was told the handover would be delayed. When he finally got the keys back, the apartment was devoid of furniture, with damages and, according to some reports, broken installations.

€8,800 vs. €1,600: The compensation gap

The owner estimates he needs €8,800 to replace all furniture and repair damages. The council, meanwhile, offers €1,600. The difference is stark, raising questions about who bears the real risk in these programs. Legally, transfer contracts usually include clauses on the property’s condition, but in practice, administrations rarely cover all damages. A detailed notarized inventory would be the only guarantee, but it isn’t always done. Additionally, proving damage was caused by tenants rather than normal wear and tear is difficult, as urban lease laws apply restrictive criteria.

Lessons from a recurring experience

Beyond this specific case, this episode illustrates the risks of trusting administrations with private assets. Lack of diligence in returns, insufficient insurance or guarantees, and bureaucratic slowness are recurrent problems. Many owners have had similar experiences in other municipalities with social rental programs. Public debate often pits those defending public intervention as a solution to the housing emergency against those preferring the free market. Here, the lesson was expensive: €8,800 that the owner likely won’t fully recover, though he could pursue legal action for administrative liability.

So next time a city council offers a social rental program with seemingly advantageous terms, read the fine print carefully. Remember that the risk of non-payment or damage remains. Girona has set the price: €8,800.