photo. pirati.cz
It will be possible to use money from the Affordable Housing grant and loan program to build an apartment building, make building improvements, or buy a new apartment, which will contribute to solving the current housing crisis. Starting in October, the State Fund for Investment Promotion (SFPI) will offer soft loans for municipalities, regions, their organisations and other legal entities for CZK 7 billion until mid-2026. Next year, the National Development Bank will join with its instruments for another CZK 3.5 billion. The programme targets affordable rental housing for young families, needy professions and the so-called middle class in general and is part of the Ministry of Regional Development's wide-ranging Housing for Life reform.
The aim of the Affordable Housing Investment Programme is to increase the share of available rental flats, both through their reconstruction or construction and, in the case of municipalities, through the possibility of purchase. Due to the sharp rise in real estate prices and the reduced availability of housing loans, it has become impossible for many households to seek their own housing, and the demand for rental housing has therefore increased significantly. This increases the pressure on prices in this area as well. Public support for investment in the construction of affordable housing at below-market rents was made possible by the April notification negotiated by the Ministry of Regional Development with the European Commission.
"Thanks to the programme, up to 5,000 additional flats will be built. At the moment there is a minimum of them in the possession of municipalities. The new flats will help mainly young families, but also seniors and people with ordinary incomes. It will also allow municipalities to better respond to fluctuations in the labour market and to attract or retain workers in certain professions. These include teachers, health care workers, social workers, firefighters and police officers." added Ivan Bartoš, Deputy Prime Minister for Digitalisation and Minister for Regional Development.
The funds from the Affordable Housing Programme can be used to build rental flats either in newly built apartment buildings or in reconstructed buildings. The programme also supports the possibility of acquiring flats by purchase if the applicant is a municipality, a region and a legal entity established by them, a state contributory organisation, a registered church or religious society or a legal entity established by them and a public benefit legal entity.
"The amount of support can reach up to 90 % of the decisive expenses, the subsidy can be provided only in combination with a loan," says Daniel Ryšávka, Director of the State Investment Support Fund. "Details on the terms and conditions of the programme are available on the website of the State Investment Promotion Fund, which administers the programme. Regional Housing Investment Support Centres have also started operating in all regions. They will offer mayors suitable financing models for affordable housing projects and advise them, for example, on legal and technical issues," adds Daniel Ryšávka.
Affordable rental housing is a special category (as opposed to owner-occupied, cooperative or other forms). It will be provided to selected target groups at a set discounted below-market rent.
Preparation of housing construction in municipalities
The Czech Republic has long been struggling with insufficient construction of new housing, especially municipal housing. According to the results of last year's MMR survey, only about a third of the country's larger municipalities have had any experience with their own housing construction in the last eight years. About 70 % of all municipalities are dissatisfied with their housing stock.
"Unfortunately, the preparation of housing construction in municipalities is often hindered or completely stopped by a lack of funding or a lack of experts. We are therefore trying to remove these barriers. We have already supported the preparation of 72 housing projects at the Ministry of Regional Development. However, there is much more interest from mayors and mayoresses, so we have released additional funding. They can use it for the preparation of documentation or, for example, for the implementation of an architectural or urban planning competition," added Deputy Prime Minister and Minister Ivan Bartoš.
The Ministry of Regional Development has already offered a total of over CZK 1.4 billion from the National Regeneration Plan for the project preparation of local governments.
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