A municipal source told the Lusa news agency that the project falls under the Local Housing Strategy and the Housing Access Support Program (*1.º Direito*), with funding secured through the Recovery and Resilience Plan (PRR). The initiative aims to improve living conditions for 1,472 families across the Quinta do Freixo, Afonso Costa, Bela Vista, Alameda das Palmeiras, Forte da Bela Vista, and Quinta de Santo António neighbourhoods.

In a statement, the Setúbal municipality noted that the rehabilitation process for municipal public housing began in 2023 in the Manteigadas neighbourhood; the first rehabilitated homes there were handed over to residents in February 2024, with the final ones delivered in November 2025. Manteigadas was the first neighbourhood to complete the rehabilitation project, with a total of 113 refurbished units already handed over to residents.

According to the municipality, during construction, more than 300 families were temporarily displaced from their homes and housed in specially prepared modular units, a guesthouse, or other accommodation arrangements.

The results of the intervention were presented on Saturday during an initiative organised by the Setúbal City Council, which included a public session at the School of Education of the Setúbal Polytechnic Institute and a visit to the renovation works in various municipal neighbourhoods.

Quoted in the press release, Setúbal’s Deputy Mayor, Maria do Carmo Tiago, described the investment as representing "an unprecedented effort to transform the municipal housing stock" and an investment "in the dignity, quality of life, and future of thousands of Setúbal residents."

During the session, Maria do Carmo Tiago added that the ongoing intervention "requires a collective commitment" and urged residents to preserve the newly restored assets, noting that "an opportunity of this magnitude is unlikely to arise again."

Paulo Ribeiro, the Secretary of State for Internal Administration, who attended the ceremony, highlighted the important role the Recovery and Resilience Plan (PRR) has played in reviving public investment in housing and advocated for continuing this effort beyond the conclusion of the European program.

According to the municipality's statement, the official also noted that the government plans an additional €10 billion investment in the housing sector, aiming to increase the supply of public and controlled-cost housing.