Parish Councils Would Get First Refusal on Property Sales and Room to Borrow for Housing, Under PSD and CDS Changes to the 2027 Budget

Portugal's parish councils would be able to buy property ahead of private buyers, borrow to build homes and take over state housing estates, under a set of changes to the 2027 State Budget tabled by the governing PSD and CDS-PP. The amendments, signed on 6 November by eleven PSD and CDS-PP MPs, Hugo Soares and Paulo Núncio first among them, would extend to the juntas de freguesia (parish councils, the smallest tier of local government) housing powers that the bill as drafted gives only to municipal councils.

Público reported on 9 November that the AD coalition has tabled nine housing-related amendments in all. The parish measures below are taken from the amendment texts themselves, published on parliament's budget pages. All four are still awaiting a vote in the budget committee.

What the parishes would be allowed to do

• First refusal on property sales. A new article, proposal 2312C, would give parishes a direito de preferência (a right of first refusal) on paid sales of property in their area, where the aim is housing, community facilities or urban regeneration. The parish would rank immediately behind the municipality, and the government would have 90 days to write the detailed rules.
• Homes seized for tax debts. The budget bill already gives the municipality first refusal when the Tax Authority sells a home seized in a tax enforcement case. Proposal 2300C would notify the parish on the same terms and let it buy too, with the municipality taking precedence if both want the property.
• Borrowing for housing. Under proposal 2288C, parishes whose budgets have averaged at least 1 million euros a year over their last three years of approved accounts could take out medium-term loans, as an exception to the local finance law, but only to invest in housing, student residences or nursery places under the Creche Feliz programme. Each loan would need the prior approval of the parish assembly and proof that the parish can repay it.
• State housing estates. The bill lets the social security and housing institutes (IGFSS and IHRU) and Casa Pia hand over housing estates free of charge to municipalities, local companies and charities. Proposal 1751C adds parishes to that list, provided they show they can manage the estate, and makes whoever receives it responsible for rehousing tenants if buildings are demolished for urban renewal.

The same borrowing amendment also lets municipalities use medium and long-term credit in 2027 to buy land and build or restore homes for sale at controlled cost, with each loan capped at five years and repaid as soon as the last home is sold.

Is there money attached?

No new money. The justification notes for the two preference rights say they bring no direct extra cost to the state, and that any purchase depends on each parish's decision and its own finances. This is separate from the earlier PSD and CDS amendment that guarantees no parish less money in 2027, which dealt with the parish grant rather than housing.

What it means for you

• If you sell a home and these rules pass, your parish as well as your municipality could have the right to step in and buy it, once the government publishes the procedure.
• Tenants in state-owned estates could in future have their parish as landlord.
• Nothing changes yet. The amendments are among a record number tabled to this budget. Under parliament's timetable, the budget committee votes on amendments on 18, 19, 20 and 23 November, and the final overall vote is on 24 November.