Olhão council has given up trying to collect money owed in rent from its stock of social housing and has simply written it off, to the cheery delight of skint residents
The council agreed in its October assembly meeting to write off rent arrears and in the future to reduce its 15% interest charge on overdue rent, and replace it with a gentler but by no means cheap 5.5% on monies outstanding.
"The overdue debt was forgiven and those who have benefitted must comply with the rules in the future," according to the council led by mayor Miguel António Pina.
How the tennants that have been paying their rents will feel about this move remains to be heard and the €150,000 written off is a bold move for a council with considerable levels of overall debt.
According to the council, a portion of its long-term debt (€6 million) is related to the construction of social housing and it has 720 houses let to poorer members of society. It would be preferable that some income was coming inbut not, it seems, essential.
The change to the interest rate charged is included in the new Regulation on the Assignment and Management of Social Housing and now is the same as interest rates charged on debts to the state and other public entities, explained the council.
The council now will strive to engage with tenants who build up debts so that they can pay "according to their means."
"This is social equality and it is intended for all citizens of this county," said the mayor, Antonio Miguel Pina.
