Approved housing reserve fund funded by real estate sales tax.

New opposition proposal approved by the Socialists has a significant financial impact. After requesting a postponement of the vote, the Livre party was able to accept the creation of a new public fund for an immediate response to the housing crisis. The fund will provide temporary accommodation for those who will be homeless and help with rent and mortgage payments in certain situations. According to the text of the proposal passed Tuesday in a vote on the state's 2024 Budget, the Housing Emergency Assistance Fund would be created in the first quarter of next year. The idea is to allocate 25 percent of the proceeds from the real estate sales tax to this New Fund.

The difference in taxation on'The 'sale of property' was the reason for the reorientation of the financing model. The Livre party's initial proposal was to create an additional property tax to finance this new instrument. However, this ran into a problem as this tax is a municipal tax and not a central government tax.

The new emergency fund will also be subject to document regulation and will have broad''authority:

• Providing emergency assistance to those who are homeless and have no alternative solution, including the provision of temporary accommodation;
• Supporting the payment of rent under a lease or sublease for residential purposes, and mortgage payments to purchase, renovate, or construct their own permanent housing for qualified families in accordance with applicable regulations;
• funding or co-financing to support and house homeless persons, including the creation or improvement of existing facilities;
• financing or co-financing measures aimed at intervening in housing stock and public space to mitigate the effects of rising housing prices, such as''as gentrification or loss of place identity.

The proposal was rejected by the Initiative Liberal Party and the Chega Party. The Social Democrat, Bloc and Communist Party parties abstained from voting. In its justification, the Livre party notes the existence of other funds for specific situations, such as the Car Guarantee Fund, the Child Nutrition Guarantee Fund, the Wage Guarantee Fund or the Labor Compensation Fund. The initiative aims to help the dire housing crisis in Portugal by providing emergency assistance to those without their homes, supporting those paying rent and mortgages, and funding solutions to support and house homeless people, as well''public space improvement.