Cort will control the expenses paid by the tenants of 166 limited-price homes in the development company.
The successful bidder will have to pay the property tax on the buildings to be built in Camp Redó and Son Ferragut.
Palma City Council has included an addendum to the construction and operation contracts of the 166 limited-price housing that will be built in the city, to control the expenses charged by the development company to tenants. Thus, it is established that the Real Estate Tax (IBI) must be paid by the company awarded the contract for the real estate projects to be built on two plots in the neighborhoods of Camp Redó and Son Ferragut, except in the cases of discounts provided for in municipal ordinances.
However, maintenance, service, taxes (except for the IBI) and common areas will be paid by the tenants, but these costs must be reflected in the rental agreement and with amounts appropriate to the date of the document. Three months before beginning operation of the building, the company must submit to the City Council a detailed annual budget of the expenses necessary for the proper operation of the property. These accounts will include services, taxes, charges, and liabilities based on the surface area of the dwelling.
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Once the first fiscal year is over, the company will submit a detailed report to the municipal corporation with the rental income and the provision of the aforementioned services to "verify that no additional costs are generated beyond the market price," the Councilor for Finance, Civil Service, and Internal Affairs explained this Wednesday.
The company must also submit to Cort a detailed list of expenses charged to tenants with supporting documents, within three months of the end of the first fiscal year so that the City Council can oversee that the expenses are incurred in accordance with the spirit of the contract.
Starting in the second year, the City Council may request a new report and the corresponding supporting documentation. "This set of measures legally protects the operation of these homes, by guaranteeing accessibility under adequate conditions and offering rents at affordable prices," she noted.
