Case Studies  The Lisbon Castle parish and the urban regeneration process

6.3. Economics, financing and beneficiaries

The carrying out of the work has been possible through the support and collaboration of the following financing programmes:

•  PROCOM (community fund for revitalising commerce in urban areas), bearing costs of the improvement and renovation work on commercial premises, the equipment and vocational training of the agents involved

•  PROCOM/URBCOM (community fund for the re-qualification of public space), financing of resurfacing works, rearrangement of public spaces and including new urban fittings

•  FUNDO DE TURISMO (community fund granted by the Ministry of Culture) bearing costs of exterior refurbishment of façades and roofs of all buildings

•  RECRIA/REHABITA (joint funding systems awarded by the National Institute of Management of State-owned Dwelling Resources, (IGAPHE) and the Lisbon City Hall) financing up to 65% of the total cost of works carried out on privately owned or municipal residential buildings (in the case of rental contracts pre-dating 1980) including reduction of Value Added Tax at 5% of the total cost of works on recuperated buildings with State support

•  LEI DO MECENATO , allowing sponsorship by private companies (CIN supplied construction materials and CEPSA sponsored the preparation of the architectural projects)

Therefore the most important beneficiary of the Castle intervention is the local population.

As for the owners, they benefit from loans and funds established in above-mentioned programmes. They are not responsible for re-housing tenants during the construction works. They are also exempt from planning, study and administration costs. At last the municipality prepares the entire administrative, very autocratic processes to apply for funding for them.

As the project is to be done by groups of houses, costs are scaled down which is another benefit. The City Hall assumes immediately the charges of the construction works while bearing all resting costs. There were established special conditions to make it easier for the owners to pay back the loans within 10 years.

However the following points define the owner's contractual obligations.

•  The City takes administrative possession of the buildings during the regeneration work.

•  It is forbidden to increase the rents after the conclusion of the work if it is higher than the “Social Rent “. (The “Social rent” is normally used for municipal buildings and is calculated according to the tenant's economic situation and income).

•  The buildings that were regenerated by the municipality can only be alienated after repayment of all awarded municipal loans.

The contract also states that the owners who do not join the project lose their rights to financial support as defined in the above-mentioned conditions.

6.3 Economics, financing and beneficiaries    6.4 Work in progress