Czech Regional Development Minister wants massive investments into affordable housing

Bartoš announced the news at a press conference launching the program. It is intended mainly for municipalities which want to build rental apartment units for low-income persons such as single-parent families or senior citizens.

The program has a budget of CZK 800 million [EUR 34 million] and will be administered by the State Fund for Investment Support (SFPI). Most of the support, CZK 500 million [EUR 21 million], is exclusively for municipalities, with the remainder earmarked for associations, charities and private developers.

“If we want to fundamentally improve the housing situation in the Czech Republic, the changes at all levels of the housing system have to be internally linked. It does not work to completely separate the steps from each other, such as adopting the legislation, investing into the construction of apartment units, or supporting the municipalities which are preparing such projects. Likewise, sensitive adjustments have to simultaneously be made to rental relationships and to association-provided housing and cooperative housing. All of that is covered by the brand of Housing for Life,” the minister said.

By 2025, a total of CZK 3 billion [EUR 130 million] will be expended from the SFPI to build apartment units. Currently the ministry is also completing negotiations with the European Commission for another CZK 8 billion [EUR 340 million] to come to the Czech Republic from the National Plan for Renewal.

“We want to also involve private resources or international institutions like the European Investment Bank. Our ambition is to send up to CZK 20 billion [EUR 840 million] in a controlled fashion to build affordable housing over the next few years. In almost all cases these are financial instruments with returns, a combination of subsidies and credit, so the money will be returned to the system in future years,” explained the minister.

The minister also informed the public about other housing measures planned. One is a law on housing support that is meant to arrange for affordable, quality housing for persons of low and middle income.

“According to the bill, contact points will be set up in municipalities with expanded competence to advise people with regard to their specific situations, for example, to aid them with finding new housing for an affordable price. They could also facilitate access to such housing by providing guarantees to apartment owners or the aid of social workers. In addition, they will map the housing situation in their area, which will facilitate better housing investments, for example. The ambition of the legislation is to assist up to 1.4 million people. Within 10 years, thanks to this help, the number of people facing housing shortage could be reduced by 30 % from what is about 154,000 people today,” the Ministry for Regional Development said in a press release; according to Bartoš, the ministry is also counting on creating advisory teams of experts who will aid municipalities in the regions with finding appropriate housing investment models on the basis of their local needs.