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Low Cost Housing Scandal

The Trust Coalition has publicly denounced a situation that it considers to be “extremely serious” related to the ‘Residências CORTEL’ project.

At stake is a project that presented itself as a housing cooperative with the construction of 48 apartments at controlled prices, aimed at responding to the pressing need for housing for young people and middle-class families.

“However, the reality observable today contradicts these principles: as flats are being identified as Local Accommodation, constituting a blatant violation of the legal rules and cooperative spirit that justified public urban and financial benefits. This situation shows the need for greater transparency and supervision in the processes of sale of housing whose construction benefits from public resources, to prevent buildings from ending up having uses incompatible with the principles of cooperative housing,” condemns the CMF opposition party.

“This situation is unacceptable. It violates not only the regulations of the municipal licensing and the assumptions of housing at controlled costs, but also constitutes a fraud on the confidence of citizens and a perversion of public housing policy.”

The party demands: the immediate revocation of the Local Accommodation licensing in the properties in question; the opening of an internal investigation process at the CMF regarding compliance with the legal and regulatory criteria applicable to housing cooperatives and the exemption from municipal fees; the return of public benefits unduly granted, if the deviation from the cooperative purpose is confirmed; the determination of political and administrative responsibilities by the mayors involved in the deliberations and exemptions granted without due controls.

“It is time to stop the farce of affordable housing made at the expense of propaganda and favouritism. The people of Funchal deserve serious, transparent, and fair housing policies – and not to be constantly deceived by a model where privileges are for a select few!”

Meanwhile, CORTEL has issued a press statement:

CORTEL – Housing Cooperative of the Post Office and Telecommunications of Madeira, CRL.  States:

“Given the report by JM about the CORTEL residences (near Madeira Shopping), in which it was denounced, by Confiança, that there were cooperatives transforming apartments into AL, the management of that cooperative has informed that “these refractory cooperatives indiciarily (according to us) will have obtained the AL licenses, from the Municipality, in an indirect way, providing incorrect or false information.”

CORTEL’s management adds that it sought to obtain an audience with the Mayor of Funchal to cancel the same licenses. This meeting “only didn’t happen” because Cristina Pedra is on holiday.

Meanwhile, the board says it has made efforts to meet with the councilor in charge and, at the same time, in a recent meeting with IHM, “had the opportunity to raise awareness among the competent authorities of irregular behaviour at the site.”

In any case, “if the cooperators persist in their illegal action, CORTEL will take legal action to stop all AL activity and restore the housing development to low-cost housing for the community.”

Samantha Gannon

info at madeira-weekly.com

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