International Property News

Czech housing funds for renovations reach 3.05 billion CZK

29th Sept 2008

Next year’s housing fund expenses will amount to Kc 3.05 billion

Expenses of the National Housing Development Fund (SFRB) will amount to Kc 3.1 billion in 2009; the fund will be able to conclude contracts next year for Kc 5.5 billion. Minister of Finance Miroslav Kalousek (Christian Democrat, KDU-CSL) provided the information about the approved SFRB budget last week, after the government meeting. The Parliament still has to approve the final shape of the budget. This year, the income should amount to Kc 1.25 billion, the total expenses to Kc 3.2 billion.

Kalousek said the main priority is the program under which high-rise panel apartment buildings (paneláks) are equipped with external insulation and repaired. This year, this program faces an urgent lack of money. Kalousek indicated the construction of social flats for young families is another priority.

In addition to paneláak repairs, the fund provides support for the construction of housing for rent. It offers guarantees to municipalities and private investors for the repayment of loans they will take to build flats designed for rental. It also offers low-interest loans up to Kc 300,000 to people of up to 35 years old to purchase housing.

Last year, the structure of the fund’s subsidy programs was more varied. However, in 2007, the government stopped eight of the 11 programs and introduced only one new one.

Kladno will build 58 new flats for senior citizens

Kladno, 25 kilometers north of Prague, intends to double its existing housing capacity for senior citizens in the next two years. The construction of two new buildings in Vrapice and the renovation of houses in Velvarská street, thanks to which 60 new flats will be built, will require the total investment of almost Kc 60 million. The objective is to double the capacity of housing for senior citizens from the existing 62 flats.

In Velvarská street, flats for senior citizens will be built in a house that used to be inhabited mostly by bad rent payers. Those who paid the rent properly were moved to comparable flats in a housing estate. The bad payers received worse housing or were moved out without compensation.

The city now has flats for seniors in a day-care establishment at Rozdelov, where it arranged the replacement of all windows and the facade insulation. The objective was to decrease operating costs. Minor repairs have already been taking place.

Source: CBW