Confiança Accuses Officials of Misusing Public Resources
The political coalition Confiança has denounced the use of units in the “Residências CORTEL” housing project - originally approved as cooperative housing with controlled costs - as short-term tourist rentals. According to a statement released Saturday, at least one unit is listed on Airbnb for over €140 per night.
Confiança says this violates legal rules and the cooperative model that justified public financial and planning support. They accuse successive PSD administrations in Funchal of approving the project without proper oversight and argue that public support intended for affordable housing is being diverted for private profit. The coalition is calling for tighter controls on publicly supported housing developments.
Timeline of Approvals and Criticism
In 2021, Confiança questioned a proposal to allow an extra floor in the project, citing weak justification. They abstained from the vote, as they did again in 2023 when the project was granted a licensing fee exemption under the “controlled cost” regime.
Later that year, then-mayor Pedro Calado announced that 75% of municipal taxes were waived. In December 2024, current mayor Cristina Pedra and regional president Miguel Albuquerque praised the project as a model for affordable housing during its inauguration.
Miguel Albuquerque, used this project again as a banner for the PSD's supposed commitment to cooperative housing, promoting it as a model of access to housing for families and young people Funchal residents
Questions Over Cooperative Housing Principles
Confiança claims the cooperative violated its purpose by allowing entire units to be sold for investment and tourist rentals. They say this undermines the goals of affordable housing and erodes public trust.
This situation is unacceptable. It not only violates municipal licensing regulations and the premises of affordable housing, but also constitutes a fraud on the trust of residents and a perversion of public housing policy.
Confiança, Diário de Notícias Madeira
Opposition Calls for Investigation and Accountability
The coalition demands immediate revocation of the rental license, an internal investigation into the approval process, and the return of any public benefits wrongly granted. They are also calling for political and administrative accountability from both local and regional officials involved.
Source: Diário de Notícias Madeira
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