Next Generation Funds for Public Buildings in Madrid: €480M and New PIREP 2026 Deadlines

Key data

The Community of Madrid and the Ministry of Housing and Urban Agenda have formalized an amendment that modifies the original 2022 agreement for the Program to Boost the Rehabilitation of Public Buildings (PIREP). With an allocation of 480 million euros from Next Generation EU funds, this program finances comprehensive energy rehabilitation of public buildings in autonomous communities. The amendment, published through the Resolution of July 1, 2026 (BOE-A-2026-15191), updates deadlines, execution conditions, and commitments for monitoring milestones and objectives required by the EU.

What does this regulation establish?

The amendment modifies the agreement signed in 2022 between the Ministry of Housing and Urban Agenda and the Community of Madrid in the following specific aspects:

The original 2022 agreement established the foundations of the PIREP program. This amendment does not replace that agreement, but rather adapts it to the new execution conditions and revised deadlines agreed with the European Commission for the PRTR.

Economic and operational impact

The 480 million euros of the PIREP program represent one of the largest injections of European funds specifically intended for energy rehabilitation of public buildings in Spain. For the Community of Madrid, this amendment has direct and immediate operational consequences:

• Critical Phase 2 deadline: Works must be completed and have a signed reception certificate before March 31, 2026. Actions that do not have this document on time may lose the associated European financing.
• Requirement for separate accounting: The administration must maintain separate accounting systems for PIREP expenses. This implies adapting budget management systems and ensuring traceability before state and EU audits.
• Non-negotiable technical criteria: Only actions that meet criteria for comprehensive energy rehabilitation, sustainability, and the principles of the European New Bauhaus are eligible for financing. Works that do not meet these standards cannot be charged to the program.
• Risk of fund recovery: Non-compliance with milestones and objectives required by the EU may result in the obligation to return the received funds, with the consequent budgetary impact for the autonomous community.

Who does it affect?

• Administration of the Community of Madrid: As a signatory to the agreement and responsible for the execution and justification of spending before the Ministry and the EU.
• Ministry of Housing and Urban Agenda: As the managing body of the PIREP program at the state level and responsible for monitoring milestones before the European Commission.
• Managers and officials responsible for public buildings: Directors of educational, health, administrative centers and other public properties included in the program, who must ensure the completion of works and the signing of the reception certificate before March 31, 2026.
• Comptrollers and public accounting officials: Must implement or verify that separate accounting systems for PIREP funds are operational and auditable.
• Construction companies and awarded consultants: That execute the financed works and must comply with the technical criteria for comprehensive energy rehabilitation and European New Bauhaus so that spending is eligible.

Practical example

A department of the Community of Madrid has been awarded the energy rehabilitation of an administrative building under the PIREP program. Works began in 2024 and were scheduled to be completed in June 2026. With the amendment, the maximum deadline for works to be completed and the reception certificate signed is March 31, 2026.

If the department does not obtain the reception certificate before that date, the action cannot be justified as eligible spending before state and European control bodies. This means that the Next Generation EU funds associated with that work may have to be returned, directly affecting the budget of the autonomous community.

Furthermore, if the department's accounting system does not have PIREP expenses separated from the rest of budget items, any audit—state or European—could question the traceability of spending, with the risk that the return of amounts not properly justified is required.

What should administrations do now?

1. Review the status of all Phase 2 works: Identify which PIREP actions are under execution and whether they can be completed with a signed reception certificate before March 31, 2026. Prioritize those closest to completion.
2. Verify the separate accounting system: Confirm with the comptroller that expenses charged to the PIREP program are recorded in separate accounts, with complete traceability and audited supporting documentation.
3. Check the technical eligibility of works: Ensure that all financed actions meet the criteria for comprehensive energy rehabilitation, sustainability, and principles of the European New Bauhaus. Works that do not meet them are not eligible for financing under the program.
4. Prepare justification documentation: Gather reception certificates, work certifications, invoices, and any documentation required for monitoring milestones and objectives before the Ministry of Housing and European control bodies.
5. Coordinate with the Ministry of Housing: Maintain active communication with the General Directorate of Urban Agenda and Architecture to confirm that the updated monitoring commitments in the amendment are being met on time and in full.

Official source

Consult complete regulation in official source

Notice: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-15191