Is it permissible to lend a distressed family 25,000 Saudi Riyals to renovate an uninhabitable dwelling, with the intention of recovering the amount from Zakat funds or charities from relatives and acquaintances?

It is permissible to lend money to a needy family for the repair of their dwelling and then count that amount as part of zakat, given that they are in debt (gharimin). It is not a condition to pay the zakat directly to them; rather, it can be paid to the creditor. There are three permissible approaches: direct lending, giving them the money with the intention of reconciling differences (islaah dhaat al-bayn) and then seeking reimbursement from zakat payers, or giving them another person's zakat with their knowledge and permission. It is also valid to pay zakat to the creditor on behalf of the debtor (gharim) without the poor person's permission. If a person pays a debt on behalf of another with the intention of reimbursement, it is valid, even without the debtor's permission, except in cases of zakat and kaffarah (expiation) which require the debtor's intention. However, if the debtor approves after the payment, it becomes valid, analogous to the story of Abu Hurairah with the dates of charity.