The criteria for allocating the homes (all apartments) have yet to be fully specified. The town hall anticipates that there will be a register of applicants that will prioritise certain profiles of applicant above others. Fundamentally, though, and as the planning department is making clear, these homes will not fall into the category of social housing. Targeted at the middle class, they will be for people whose income takes them beyond the threshold to access social housing but who cannot afford market rates for apartments.
As the terms are at present, it will be the developers who select applicants - those whose income is such that they can guarantee rent payments. However, the town hall notes that this is not a binding proposal and that the final method for selection will be worked on and agreed by the different parties.
For the town hall, a key advantage is that it will be able to quickly introduce homes onto the market without having to invest anything. The six plots are valued at 5.5 million euros; the town hall will save building costs of around 37 million.
The land will be transferred for a maximum of 75 years, and the developers (or their subcontractors) will manage the developments. They will bear the costs of operating the developments, while the most conservative calculations indicate that over the period of 75 years, they will generate gross income of up to 61 million euros for just one of the six plots - the largest one with 114 apartments in Son Ferragut. For another site, this one with 35 homes, the gross income is put at 28 million euros. These calculations don't take account of upward adjustments in rent.
In addition, the specifications as they are at present envisage there being commercial units on the ground floor. What type of unit hasn't been specified. The prices for these, unlike the apartments, will not be regulated.
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tranq tranquerYou're right, whoever made that decision should be sacked. Imagine the chaos there in the summer.
You think this is stupid ? Just wait till you see what they have done with the airport short stay parking which presumably will get to the MDB tomorrow.
Here we are again with ample amount´s of miss info and a lack of clarity regarding how this is possibly going to work and everyone snapping and banging on the table , Developer´s are business people if they invest they need to make a profit as they invest money to build these house´s , Ferrari doesn't sell car´s to people who will not be able to pay for the car as this will not work so before screaming about how bad this is check it out there is no free ride as far as I know anywhere .
'it will be the developers who select applicants' Who the hell came up with this decision? You couldn't make it up!
If Mallorcians think this a fair way to allocate rented property then they should hang their heads in shame. This will become the norm throughout Mallorca when such building land becomes available. So if you are low income and what the developers say working class then tough,get a sleeping bag !