“The legislative process for Simplex is complete and will be presented to the Council of Ministers in the coming weeks,” stated Miguel Pinto Luz at the conference “Land Law: Changes to the RJIGT – Legal Regime of Territorial Management Instruments – Challenges and Opportunities” organized by the Association of Civil Construction and Public Works Industries (AICCOPN) in Porto.
The official noted that no one was pleased with the Simplex, which “was Simplex only in name,” and therefore the consensus for its amendment was broadened among business associations, professional orders, municipal councils, and banks.
“All those who, in some way, were questioning the previous Simplex,” he remarked.
Miguel Pinto Luz highlighted that the number of licenses issued, which did not increase, reflects how the “Simplex” did not function.
During his speech, the Minister of Infrastructure and Housing explained that while the Urban Simplex is pending approval, the Government is proceeding with ‘Built-to-Rent’ contracts and Public-Private Partnerships (PPP).
“I can reveal here that the ‘Built-to-Rent’ contract [availability of public properties for housing with affordable rent or price] is now enshrined in law to be taken to the Council of Ministers and will allow entrepreneurs to sign a trust contract, in this case with IHRU [Institute of Housing and Urban Rehabilitation], ensuring the longevity of public policies for a long period of 25, 30 years, so if a future government decides to change the laws and the regulatory framework unexpectedly, the entrepreneur can invoke that contract and be compensated in some way,” he explained.
He added: “On the PPP side, it’s the same, and therefore we want to encourage it a lot. We are currently finalizing the balance in terms of what is the available State heritage and we want this PPP process to be absolutely swift, meaning a private party joins, presents their intention for a particular State vacant property, and in very short steps, they can start implementing their project.”
The official emphasized that these contracts need to function symbiotically; otherwise, there won’t be enough dynamics from the private side.
Regarding the relationship with banks, Miguel Pinto Luz revealed that the Government will have news in the coming days.
“The Government is eager to work on finding new platforms to finance promoters with longevity and prioritize their loans with banks. Therefore, the State needs to step in to help,” he noted.
The minister stressed that the Government wants to create new housing credit mechanisms to facilitate and alleviate those buying, as the housing problem is severe and a scourge.
