Aragón extends the deadline for justifying public housing grants until September 2027

The Department of Housing, Development, Logistics and Territorial Cohesion of the Government of Aragon has extended the justification deadline for subsidies destined for Aragonese municipalities for the construction of public rental housing or the rehabilitation of buildings for the same purpose. The decision is formalized in Order VFL/1345/2026, of July 22, published in the Official Gazette of Aragon (BOA) number 182, of September 18, 2026, within section III of Other Provisions and Agreements. The regulation modifies the call approved by Order FOM/971/2024, of August 19, and takes effect from the day of its publication.

From November 2026 to September 2027

The original call established in its fifteenth clause the deadline to justify eligible expenses until November 16, 2026, with the execution of the actions planned for October 30, 2026. The new order rewrites both calendars:

• Justification of the subsidized operation: new deadline on September 30, 2027.
• Eligible expenses: investments paid before the end of the justification period, admitting expenses incurred by the local entity between January 1, 2024 and September 20, 2027.
• Effects: the order takes effect from the day of its publication in the BOA.

The managing body justifies the extension based on article 36.3 of the consolidated text of the Subsidies Law of Aragon, approved by Legislative Decree 2/2023, of May 3, which allows for the agreement of an extension, provided it is before the end of the granted period, when there are reasoned grounds and the rights of third parties are not prejudiced.

Void Tenders and Abandoned Works

The monitoring of the execution level of the projects revealed objective circumstances affecting a significant number of beneficiary local entities. Among the technical incidents, the BOA highlights the appearance during the material execution phase of existing service works, installations, and infrastructures not contemplated in the approved projects, especially in excavation and foundation, which forced the review of technical solutions and the modification of projects.

To this are added problems in the procurement procedures:

• Declaration of void for numerous bidding procedures due to a lack of bidders, frequent in small-scale local entities or low-value contracts.
• Contractual resolutions due to the abandonment of works by the awarded companies, with the consequent need to initiate new tenders.
• Difficulties in hiring construction companies and a lack of material and human resources, due to the temporal coincidence of several investment programs from different administrations.

A third advance of 20% in 2026

The extension incorporates a new annuity and enables a third advance payment. The call allows for unsecured advances up to 90% of the total grant amount. 59% was paid in 2024 and 11% in 2025, leaving 30% pending justification. With the modification, an additional 20% will be advanced in the 2026 annuity to complete that 90%, and the remaining 10% will be paid upon justification in the 2027 financial year.

The General Comptroller’s Office issued a favorable audit report dated July 21, 2026, stating that, once the order is approved, the file will be forwarded for accounting processing and the necessary operations must be carried out to fund the 2027 annuity. The order bears the signature of Counselor Octavio López Rodríguez and exhausts administrative remedies: an optional appeal for reversal may be filed with the counselor within one month, or a contentious-administrative appeal may be filed before the Contentious-Administrative Chamber of the High Court of Justice of Aragon within two months.

The extension provides leeway for the beneficiary city councils to complete works hindered by unforeseen cost overruns and failed tenders, and provides liquidity to local entities through an additional advance, preventing the lack of justification within the previous deadline from forcing the reimbursement of funds already committed to public rental housing.

Source: Official Gazette of Aragon, number 182, of September 18, 2026, section III. Other Provisions and Agreements (official reference: BOA20260918009).