Arico Faces Political Backlash After Losing €200,000 in Housing Funds

A bitter political dispute has erupted in the Tenerife municipality of Arico over the loss of more than 200,000 euros in funding. The local government—a coalition of the PSOE and PP—was forced to return the money, which had been earmarked for purchasing land to build subsidized housing.

The timing is particularly difficult, as Arico’s real estate market has surged by 33% over the past year, making it one of the most expensive areas in the Canary Islands. Víctor García, a spokesperson for the opposition party Coalición Canaria, has labeled the return of the funds a sign of administrative failure. He argues that the council’s inability to process licenses or launch projects is denying residents access to affordable housing. The opposition is now calling for municipal land in areas like Arico Viejo, El Río, and Abades to be handed over to higher authorities so that public housing can finally be built.

Mayor Andrés Martínez, however, rejects the claim that the council is at fault. He argues that the funds could not be used because the terms set by the Canary Islands Housing Institute are out of touch with current market prices. According to the Mayor, the grant’s 80,000-euro limit per property is far too low to buy land in the current climate—a concern he says he raised with regional officials, who failed to offer a more flexible solution.

This situation highlights the struggle of medium-sized towns to manage housing in a high-inflation market. While the opposition demands a change in local urban policy, the current government maintains that it has already offered land in La Sabinita, El Río, and Arico Viejo to the regional government. Ultimately, the conflict reflects a growing disconnect between the tools available to local councils and the reality of an increasingly unaffordable housing market.