Thomas Pinto Basto and Francisco Rocha Antunes discuss cost-rental models.
Thomas Pinto Basto, CFA, partner and director of Sustainable Finance at Stravillia Sustainability Hub, and Francisco Rocha Antunes, founder and chief executive of MOME Living, spoke to the Expresso newspaper about cost-rental models and what they could enable in the housing sector in Portugal.
The idea behind cost-rental is simple to explain, although demanding to implement: rents calculated on the basis of the actual cost of building, financing and maintaining the property over time, rather than its market value. Thomas Pinto Basto points out that the building’s sustainability will also play a key role: if, for example, an energy community is established within the building, the returns from these energy savings can be reinvested in the project to reduce rents.
This interview takes place within the context of a new affordable housing project, which proposes lower rents adjusted to residents’ incomes and the building’s costs. The model is expected to be completed within four years and will operate under a framework similar to that of housing co-operatives, involving co-operative members, investment funds and European funding.
Read the full article.