Matosinhos Launches Bold Plan for 140 Affordable Rental Homes by 2025
Matosinhos Council Leads New Push for Affordable Rental Housing Through Cooperatives
Matosinhos, a pioneer in cooperative housing, aims to once again take the lead in promoting social housing—this time focused on affordable rentals. The municipality unveiled its Cooperative Housing Support Program on Friday, announcing it will grant housing cooperatives the free 90-year surface rights—renewable for an equal period—to four municipal plots, enabling the construction of 140 new homes.
For the next month, until May 24, cooperatives—either individually or in consortiums—can submit bids. The selection will prioritize those best equipped to manage the project from architectural design and licensing through construction, financing, and future property management.
The four plots are located in: - Matosinhos city center (Rua Eng. Fernando Cayolla) – 25 units - São Mamede de Infesta (Rua de Ormuz) – 40 units - Custóias (Rua Soares dos Reis and Rua Nova de São Gens) – 35 and 40 units, respectively.
This initiative falls under the New Generation of Cooperativism for Affordable Housing, established by Law No. 56/2023 (October 6), which emphasizes accessibility, sustainability, and community. At the program's launch, Luísa Salgueiro, Matosinhos mayor, highlighted the council's historic role in cooperative housing—"7,000 homes built after April 25, 1974"—and its commitment to pioneering this new model for affordable rentals.
The units will target vulnerable groups, including low-income families, young people seeking independence, and individuals with special housing needs. Rents will be 20% below market averages in the area, Salgueiro confirmed.
To support the projects, the council will: - Cover up to €75,000 in architectural design costs. - Waive urban planning fees and fast-track approvals via the "Green Lane for Affordable Housing" program. - Exempt cooperatives from property tax (IMI) during the surface-rights period. - Fund public infrastructure improvements (accessibility, surrounding public spaces), while cooperatives handle utility connections.
These projects also qualify for a reduced 6% VAT rate under the National Affordable Rental Program.
Financing Remains the Biggest Hurdle Despite these incentives, securing construction funding—entirely the cooperatives' responsibility—remains uncertain. Applicants must submit financial viability studies to prove their capacity to deliver. Salgueiro criticized the central government's unfulfilled promises: "The funding they announced never materialized."
When the New Generation of Cooperativism for Affordable Housing was launched, €250 million was pledged to fund cooperative construction, along with the creation of a state-backed public guarantee to support financing for cooperatives seeking bank loans.
However, as Luísa Salgueiro notes, "Matosinhos City Council has already met with the European Investment Bank, the IFRU [Portuguese Institute for Housing and Urban Rehabilitation], and the Development Bank, and no funding is available."
Guilherme Vilaverde, a founding member of the As Sete Bicas Housing Cooperative and one of the movement's most prominent advocates, attended the event and stressed "the importance of creating pilot projects that can be replicated by others." Yet he warned that only "cooperatives with resources and some assets" will be able to navigate the current financial constraints of this model.
Applications will be evaluated based on five criteria, each weighted at 20 points: the number of years the cooperative has been active; the number of housing units it has developed since its establishment; the social and economic initiatives it manages; the percentage reduction in rent compared to the government's Affordable Rent Decree; and the technical merit of the project.
The municipality will prioritize cooperatives that include shared spaces such as living rooms, common workspaces for remote work, coworking areas, study and reading rooms, play areas for children, and indoor or outdoor communal spaces for birthday parties, celebrations, and social events. Condominium-managed facilities—sometimes used as revenue sources, such as laundries and other support services—will also be taken into account.
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