DANA: Urgent measures for damages approved - RDL 6/2024 - Administrative, civil and commercial fields

In the BOE of 6 November, and with effect from 7 November 2024, Royal Decree Law 6/2024 has been approved, introducing a package of urgent measures to mitigate the effects of the DANA which, between 28 October and 4 November 2024, caused significant damage in several regions of Spain, including the Valencian Community, Castilla-La Mancha, Andalusia, Catalonia, the Balearic Islands and Aragon.

As a consequence of the heavy rainfall and flooding that occurred on 29 October 2024 due to a DANA that affected the Comunitat Valenciana, Castilla-La Mancha, Andalusia, Catalonia and, to a lesser extent, the Balearic Islands and Aragon, a first package of fiscal, economic and social measures is adopted, economic and social measures have been adopted to deal with the devastating effects that the DANA has had on the lives of thousands of people, in order to tackle and cover the various personal and material damages, and to mitigate the severe impacts that this natural catastrophe has had on the socio-economic sphere.

The most affected areas have been, in the province of Valencia, the area of Utiel-Requena, l'Horta Sud, la Ribera Alta and Baja and the Comarca de los Serranos; in Albacete, the municipality of Letur; in Cuenca, the municipality of Mira; and in Andalusia, various points in the provinces of Malaga, Almeria, Granada, Seville, Huelva and Cadiz, listed in the annex to the regulation.

The following is a summary of the main provisions of the regulation in the administrative, civil and commercial fields:

1. Support measures for personal and material damage

1.1 Death and disability grants

In cases of death or incapacity due to the DANA, grants of up to 72,000 euros will be awarded, without the need to prove financial dependency.

1.2 Compensation for damage to housing and household goods

The regulation establishes compensation for damage to homes with amounts ranging from 10,320 euros for damage to basic necessities to 60,480 euros for total destruction of the home. The documentation to prove ownership of the home is flexible and allows the use of municipal expert reports. The annual income limit for receiving this aid in cases of destruction or damage is also eliminated.

1.3 Subsidies for commercial establishments

Affected industrial, commercial and service businesses may receive up to 7% of the compensable damage, with a ceiling of 36,896 euros.

Application period

The application period is two months, until 7 January 2025, ensuring that those affected have sufficient time to compile documentation and process their applications.

2. Measures for local authorities

2.1 Coverage of emergency expenses

Local corporations will be able to cover up to 100% of the emergency expenses related to the DANA, although infrastructures under the competence of the Ministry of Territorial Policy and Democratic Memory are excluded. However, work carried out with the corporation's own resources and the cost of fire brigade, local police and civil protection personnel will not be financed.

2.2 Reconstruction projects

The Ministry may award grants to local authorities for projects to repair and rebuild public infrastructure, thereby supporting the restoration of basic and community services in the affected areas.

2.3 Elimination of small business franchise

In order to speed up compensation, the regulation eliminates the deductible for extraordinary risk insurance for companies with annual net income of up to 6 million euros, thus facilitating rapid access to the funds needed to start reconstruction.

3. Guarantee facility for households, businesses and the self-employed

3.1 Guarantee fund of EUR 5 billion

A guarantee facility of up to EUR 5 billion is established to finance affected households, businesses and the self-employed. These guarantees are backed by the Ministry of the Economy and will be allocated in accordance with European Union regulations on State aid, with the possibility of extension until 31 December 2025.

3.2 Garantías para acceder a avales

Para garantizar que los fondos se destinen a la recuperación, se establece un régimen de garantías y cobranza, que incluye la posibilidad de utilizar indemnizaciones de seguros y otras ayudas como garantía en la financiación.

4. Suspension of payment obligations on loans

4.1 Suspension of interest and principal on loans and credits

Natural and legal persons affected by the DANA, with income of less than EUR 6 million and loans secured on real estate in affected areas, may suspend interest and principal payments. This measure also benefits the self-employed and the agricultural, fisheries and forestry sectors, providing a critical financial pause.

4.2 Inclusion of leasing and working capital contracts

The suspension of payments is extended to leasing contracts and loans for working capital financing, thus covering a broad spectrum of financial obligations and reducing the economic burden for those affected.

5. Measures in the judicial, notarial and registry area

5.1 Suspension of procedural deadlines

From 30 October to 10 November 2024, procedural deadlines are suspended in all jurisdictional orders in the province of Valencia. However, exceptions are made for criminal proceedings and urgent proceedings in order to avoid irreparable damage.

5.2 Notarial assistance in the recovery of documents

In order to support those affected in the recovery of destroyed documents, notaries may provide services free of charge in urgent and telematic notarial acts in the affected areas. Notaries from other associations may be authorised to act in the Valencia Region under the supervision of the Valencia College of Notaries.

5.3 Access to registry services

The Association of Registrars will issue free property or asset location notes for those who have lost documentation. Specific information will also be published on the Registrars' Geoportal on the affected areas, ensuring equitable and cost-free access to these services.

5.4 Suspension of limitation and lapse periods

Limitation and expiry periods are suspended for the rights and actions of persons domiciled in affected municipalities or that must be exercised in affected judicial districts. This measure prevents those affected from losing their rights for reasons beyond their control.

6. Consumer protection measures

6.1 Suspension of deadlines for withdrawal rights

From 29 October 2024 until 31 January 2025, the deadlines for exercising the right of withdrawal and other contractual rights in the affected areas are suspended, protecting consumers who are unable to access goods and services due to the extraordinary situation.

6.2 Exemption from submission of documentation

In cases where documentation is irretrievable, consumers will be able to exercise their rights without the need to submit documents that are impossible to obtain due to the DANA.

SUMMARY:

Main measures in the administrative, civil and commercial fields for damages caused by the DANA