MADRID, July 28 (Reuters) - The newly-elected left-wing
mayor of Madrid on Tuesday overturned eviction orders for 70
families living in social housing and safeguarded more than
2,000 similar rental contracts.
The move is the latest by the administration of Manuela
Carmena, backed by anti-austerity party Podemos, to protect
housing in a country where a property boom-and-bust has resulted
in tens of thousands of families losing their homes.
"There were 70 processes under way, but today those families
have recovered their homes. Nobody is going to be thrown out on
the street," Carmena said after meeting activists.
Carmena took office in June after her Ahora Madrid ('Madrid
Now') alliance of community activists formed a coalition with
the opposition Socialists to end 24 years of centre-right
People's Party (PP) rule in the capital.
While Ahora Madrid is independent, it has the support of
Podemos, along with many other city administrations formed by
activists who took power in cities from Barcelona to Zaragoza
after May's municipal elections.
The contracts related to a 2012 deal by the Madrid social
housing body EMVS to sell five blocks of public housing to
Spanish real estate developer Renta Corporacion REN.MC for
around 21 million euros ($23 million).
The deal fell through, but tenants said they were asked by
the EMVS to sign new contracts putting a sell-by date on their
subsidised terms in the event of a sale, in order to make the
flats more attractive to sell to investment funds.
"The EMVS will no longer pressure the 220 families that live
in five blocks owned by them in the centre to leave and it will
stop the eviction processes for the 70 homes," the city council
said in a statement, adding it would safeguard a further 2,086
similar social rental contracts around the city.
Alberto Romeral, a pensioner who lived in one of the flats
under threat and leader of the activist group Yonomevoy ('I'm
not leaving'), said of the mayor: "We are grateful that she
looks out for the people of the city and their problems and does
not want to crush them."
Romeral's subsidised rent is 232 euros per month.
Carmena has met the heads of Spain's biggest banks to
discuss the problem of evictions, including Santander's SAN.MC
Ana Botin, BBVA's BBVA.MC Francisco Gonzalez and Bankia's
BKIA.MC Jose Ignacio Goirigolzarri.
The new administration has also set up a mediation service
for people who cannot pay their mortgage and banks. Over 50,000
mortgage holders were evicted in 2013 and 2014 in Spain.
Austerity-weary Spaniards deserted the ruling PP in droves
in May but opinion polls show Podemos, often aligned with
Greece's Syriza, has lost support amongst voters since the Greek
referendum and is trailing the two main parties ahead of
November's parliamentary election.
(Reporting By Sonya Dowsett; Editing by Janet Lawrence)
((sonya.dowsett@thomsonreuters.com; + 34 91 585 8328; Reuters
Messaging: sonya.dowsett.thomsonreuters.com@reuters.net))
Keywords: SPAIN EVICTIONS/