In 2023, banks and investment funds operating in the Balearics were fined over 17 million euros for breaches of regional housing legislation.
The fines related to the attempted sale of VPO protected housing properties that had fallen into the hands of banks and funds.
It used to be the case that VPO homes, for which the government sets prices, could be sold at market values after 30 years. The government of Francina Armengol changed the legislation. Anyone wanting to sell a VPO after this period, or indeed before it expires, must notify the government so that it can exercise the right of first refusal and at a government-controlled price, effectively making it public property in perpetuity. Eighty banks and funds didn't do this.
Fines issued by the housing ministry in 2023 totalled over 19 million euros. Other infractions included failure to lodge rental deposits with the Ibavi housing agency.
The number of fines in 2023 was roughly the same as in 2022, but the 19 million-plus total was way higher than the 501,000 euros in 2022. The ministry attributes this to the fact that so many fines were imposed on large owners - the banks and funds - that are liable to much higher fines than others.