Dispute over Short-term Vacation Rentals
In the heart of Madeira, the picturesque city of Funchal is embroiled in a heated debate over its affordable housing project, "Residências CORTEL." The controversy revolves around accusations that some units intended as affordable cooperative housing are being rented out as short-term tourist accommodations on platforms like Airbnb.
The political coalition Confiança has been at the forefront of these accusations, calling for tighter controls and questioning the oversight of successive PSD administrations in Funchal. Key parties involved include the Confiança coalition, the PSD administrations, and the current mayor, Cristina Pedra, who has publicly praised the project despite the controversies.
The largest opposition party in the Madeira Regional Parliament, the JPP, led by Élvio Sousa, is demanding an "urgent parliament hearing" with the head of Funchal City Council and the president of the housing cooperative. The JPP currently has 11 MPs, but it's not clear whether Sousa is a part of Funchal City Council or the Confiança coalition.
The issue was initially raised by councillors from the Confiança coalition, led by the Socialist Party (PS). However, it's important to note that the JPP is not specified as a part of Funchal City Council or the Confiança coalition. The councillors from the Confiança coalition hold no executive responsibilities within Funchal City Council.
The Funchal City Council, led by Cristina Pedra, is currently governed by the Funchal Sempre à Frente coalition, comprising the PSD and CDS-PP, which holds an absolute majority in Funchal's local authority. The misuse of public investment is enabled by the permissive and complicit licensing practices of Funchal City Council.
The aim of the parliament hearing is to obtain full clarification and accountability regarding how such licensing was permitted in a publicly supported housing project. The opposition councillors argue that this undermines the intended purpose of affordable housing schemes.
As of late July 2025, no detailed public update on formal legal or administrative investigations beyond the political denunciations has been reported. The discourse remains primarily political and about regulatory oversight failings.
This practice directly contravenes local housing regulations, and it's essential to ensure that public funds are used effectively and efficiently for their intended purpose—providing affordable housing for the citizens of Funchal. The resolution of this controversy will undoubtedly have significant implications for the city's housing policies and the trust of its citizens.
The heated debate in Funchal over the "Residências CORTEL" affordable housing project has sparked calls for tighter controls and scrutiny of the political landscape, as the Confiança coalition accuses PSD administrations of oversight failures. The JPP, led by Élvio Sousa, demands a parliament hearing to question the Funchal City Council and the housing cooperative. This controversy, rooted in allegations of using public funds for short-term rentals on platforms like Airbnb, raises concerns about policy-and-legislation and politics in general-news.
