Grenoble Ever since 2011 when ACORN Italy launched our campaign to take advantage of a unique handle passed by the national legislature allowing tenants to reduce their rent if their landlords were renting to them on the black market without paying taxes, we have been fighting back against the landlord counterattack. The victories for tenants exploiting the law were huge since by triggering registration of the landlord’s property their bounty was a reduction of their rent by 85 to 90% for the four-year term of a standard lease with a four-year option of renewal. The math is clear. If a tenant were paying 1000 euros in rent, they would then only be paying 150 euros saving more than 10000 euros a year, 40000 for four years, 80000 for eight years. Needless to say, the landlords had been happy to avoid paying taxes to the government, and were wild with rage about now having to both pay taxes and receive less revenue from their tenants.
Lawyers were a cheaper alternative for the landlords and they have yo-yoed back and forth to court with us since 2012. We took a hit from the Supreme Court in late 2013 ruling that there was a technical problem with the law. We managed to get legislation through the Senate that prevented the tenants who had seized the law’s opportunity with us from having to pay back the landlords for their lost revenues. We have introduced other legislation to correct the technical flaw and restore the original intent of the law.
Meanwhile another suit had ended up in the second high court of Italy which interprets laws and is called the La Corte Surprema di Cassazione or Supreme Court of Cassation. The decision of the Court which is final at the highest level has reopened provision – and the opportunity – for tens of thousands of tenants throughout Italy.
The Court ruled that if the landlord and the tenant had a verbal, oral contract rather than a written lease contract as required, then they had the ability to push the property to be registered and register the rent at the lower level as allowed by the original legislation. Part of the tenant’s claim and defense would be allowable based on the “moral” or “psychological” pain suffered by the tenant from not having a written lease and having been forced to find housing in the informal, black market so prevalent throughout Italy. The Court’s decision does not reopen the door for tenants with a written, but unregistered lease, but settles the matter for those who were forced to agree to an okey-dokey lease involving tax evasion.
The tide hasn’t completely turned for ACORN Italy’s work. We still have much to be done with our allies in the Senate to both nail down tenant protections and restore the comprehensive opportunity to all tenants, but in the meantime we’re gearing up to get the word out throughout Italy to tenants with wink-and-nod verbal leases that their opportunity is knocking and the door is wide open again. Needless to say, head organizer David Tozzo is drawing up major national recruitment plans to scale up ACORN Italy’s work to take advantage of the opportunity and the membership is soaring.