Torrevieja forced to return housing aid funds after failing to spend full allocation

Torrevieja City Council is required to return 105,421.27€ of the 245,771.27€ granted under the 2022-2025 State Housing Access Plan due to unused funds and a failure to justify the full expenditure. The municipal administration provided documentation for only 140,350€ of the allocated amount for the 2025 fiscal year, resulting in the reimbursement of nearly 43% of the total grant. This follows a similar situation last year when approximately 50,000€ from a 153,000€ grant was returned.

The financial penalty extends further as the repayment file includes 2,168.36€ in late payment interest, bringing the total amount Torrevieja must pay to 107,589.63€, according to the PSOE. The socialist municipal group highlighted that stringent local government requirements created a vicious cycle, noting that applicants were paradoxically asked to prove they were paying rent when they were actively seeking housing assistance. Although the regulations were amended in December, the changes came too late to prevent unspent funds from the period running from January 2024 to December 31st, 2025.

This development arrives ahead of the upcoming National Housing Plan 2026-2030, which anticipates an investment of 7 billion euros across Spain, including a joint investment of 798 million euros for the Valencian Community through state and regional funding. The opposition has questioned whether the governing Partido Popular team possesses the management capacity to execute these incoming resources effectively or whether further funds will be returned unspent.

The housing case mirrors other social service precedents in Torrevieja. Under the Co-responsibility Plan for childcare, the City Council reimbursed 226,964.96€ out of a 238,589.22€ grant alongside an 11,348.25€ late payment penalty. Furthermore, a 279,000€ grant for the Specific Care Service for People with Chronic Mental Health Problems was entirely rescinded, requiring a full refund plus 7,514.17€ in interest, while 75,618.87€ out of 168,250€ was ordered for repayment under the Specific Intervention Team for Children and Adolescents alongside a 3,780.94€ surcharge.

The Socialist Group has criticised the administration’s execution of social funds, warning that the continuous loss of subsidies and the generation of additional interest costs undermine essential public services and support for vulnerable citizens in Torrevieja.