Funding for the restoration of areas should be allocated to green buildings that replace the original constructions

Prague - The government will discuss on Wednesday the proposal of the Ministry for Regional Development (MMR) to change the drawdown of financial resources from the State Fund for Support of Investments (SFPI) for the renewal of brownfields. The fund would newly support only projects that replace at least 80 percent of previously built-up areas and exceed it by a maximum of five percent. At the same time, new buildings must have at least 20 percent lower consumption of non-renewable energy than completely energy-inefficient buildings, and ecologically significant greenery must not be present at the construction site. This follows from the proposal published in the public electronic library of the legislative process.

"Already during the acceptance of applications for grants in the call, it became clear that the rule, as formulated, became a fundamental obstacle for the majority of applicants, specifically for eight out of ten. According to the ex post analysis of already submitted grant applications, it was found that out of ten applications, eight would meet the new wording of the conditions compared to the original two," stated the MMR in the explanatory report.

The Chamber of Commerce opposed the proposal during the commenting procedure. According to them, the change will only complicate the possibility of applying for support even more. "The submission report indicates that the regulation adopted in January 2023 proved to be non-functional in practice after six months due to overly strict requirements for supported revitalization buildings. We fear that by adding another cumulative condition and the proposed amendment to the text, this obstacle will not be removed," stated the Chamber of Commerce.

The SFPI will manage a budget of 4.25 billion crowns next year. The funds will be used for housing support, revitalization, and regeneration of areas.

Expenditures from the state budget for MMR grant programs will decrease by 1.27 billion crowns next year. The largest saving of 800 million crowns will be recorded by the program for regional development support. Support for affordable housing will also decrease by 200 million, and support associated with promoting tourism in the regions will decrease by 150 million.

MMR will operate with a budget of 15.1 billion crowns next year, which is seven billion crowns less than this year. The ministry, according to its previous statements, will strive to supplement national grants from European sources.