Repairing panel houses will probably be easier

PRAGUE - It will probably be easier to renovate panel buildings. Minister for Regional Development Radko Martínek is proposing that alongside housing owners' associations, a major property owner or a group of people who agree to it should also be able to receive state grants for loans aimed at repairs, modernizations, and regeneration of panel buildings. Currently, this is not possible. The government will discuss the proposal on Wednesday.
The proposed measure should also help simplify obtaining grants for panel building repairs, as it will not always be necessary to submit a building permit with the application. Until now, this has been a condition for obtaining a loan, even in cases where authorities do not issue building permits for certain modifications. This applies, for example, to window replacements, provided they do not change the character of the building, or facade painting.
Martínek's proposal also includes several items that the republic must meet due to compatibility with EU law. For instance, loans may also be provided by banks that do not have a branch in the Czech Republic. Interest subsidies may also be granted for loans in foreign currency.
The State Housing Development Fund provides interest subsidies, which has allocated 900 million Czech korunas for this purpose in this year's budget. The original budget estimated 400 million, but due to high interest in this support in the first four months of this year, the fund's budget was increased by 500 million korunas.
According to experts, the pace of repairs of panel buildings, where about four million people live, needs to be accelerated. It is estimated that a total of 300 to 400 billion korunas is needed for these purposes.
From 2007 to 2013, the Czech Republic will be able to obtain funds from the European Union for these purposes. It is expected that 8.3 billion korunas will go from EU and Czech sources for the repairs of panel buildings and revitalization of housing estates. The country can obtain up to 85 percent from European funds, which amounts to over seven billion korunas. The final amount will be known once it is approved by the European Commission. It is anticipated that this will happen by the end of the year.