Aid for food and housing

THE REGIONAL government has approved the decree law comprising three measures to relieve the effects of inflation and high interest rates.

These are the ‘bono cesta’ €90 voucher for buying food announced two weeks ago, help with variable rate mortgages and the extension of rent subsidies for people aged under 30.

The mortgage aid is available to residents who have a variable interest rate mortgage on their primary residence in the Valencia region and will subsidise the payments they have made over the 21 months previous to the date of application.

A total fund of €6 million has been assigned for this programme, which could be increased up to €18M according to the number of applications received.

There are two types of aid depending on the gross income of the family unit and the proportion of this which has to be dedicated to paying their mortgage.

A sum of €600 is being offered for households with gross annual incomes of €25,200 or less whose mortgages account for 40% or more of their net annual income.

There is also €300 for higher gross incomes, of €33,600 or less, who spend 50% or more of their net annual income on their mortgages.

To qualify, applicants must prove their gross incomes for the year 2021 and have a variable interest rate mortgage on their primary residence formalised before June 30, 2022, with an interest rate revised after April 1, 2022, and which cannot have been for a total amount of more than €240,000.

The percentage of the financial burden of this mortgage against net annual income over the last 12 months is calculated according to the gross income figure provided.

A household or family unit is defined as a couple who are not legally separated or a registered civil partnership (pareja de hecho) and their direct descendants and parents or grandparents who all share the same address as of December 31, 2022.

The number of people in the household must be declared with an official declaration of responsibility.

Meanwhile, the ‘bono cesta’ scheme was launched yesterday (Thursday), in the form of a pre-paid card that can be used all at once or for a series of purchases of food at participating shops.

A total budget of €48.44M has been assigned for this fund.

The cards are valid for four months from their date of issue and the initiative is open until July 14.

This is available to residents whose fiscal address is in the Valencia region and whose annual income in 2021 did not exceed €21,000.

Further information is available from the telephone helpline 96 099 01 07, or the website https://bono cesta.gva.es

Once applications have been checked, the decision will be communicated by text message or email and the cards will be issued via a distribution network throughout the region.

Finally, the national government ‘bono de alquiler joven’ (youth rent voucher) scheme has been extended with an additional €30M from the regional government so that an additional 8,900 young people under 30 can overcome the financial difficulty of moving out of their parental home.

They can receive €250 per month over the course of two years.