Page 38 - U4SSC Compendium of practices on innovative financing for smart sustainable cities projects

The project was incentivized through the promotion of qualified loans of 80 per cent the maximum
prices of homes, garages and storerooms. These loans encouraged the renovation of private
households and were offered with a 20-year amortization and 3-year grace period, with a variable
annual interest rate of 3.96 per cent (for 2003). Homeowners were also offered subsidization – a
reduction of the monthly loan payments – according to their income level. In addition, complementary
aid was offered to young people, large families and single parents from the Junta de Castilla y León.

Observations

• Having city officials make the first move in the rehabilitation process using the public budget
was necessary to encourage owners of private buildings to commit to further rehabilitation.

• By moving forward with the upgrading of facades and other external elements using small
public budgets, private owners were willing to contribute more to the project.

• The support from private owners freed the public budget to finance further improvements of
public infrastructure elements, thus resulting in the complete rehabilitation of the historic city
centre.

Figure 6: Integral rehabilitation plan – Old Town of Ponferrada (Spain)

Before:

26 Compendium of practices on innovative financing for SSC projects | January 2023