SFRB will support the construction of rental apartments with loans of up to one billion

Prague - The State Housing Development Fund (SFRB) plans to support the construction of rental apartments with low-interest loans amounting to 1.02 billion crowns. This is included in the SFRB budget for next year, which the government will approve at its Wednesday meeting. The fund is to operate only with its own funds, receiving no contributions from the state budget at all.
    The budget does not account for direct subsidies to support housing. The fund will provide new support only in returnable forms of loans and guarantees for the repayment of commercial loans. "The implementation of these support tools is significantly more efficient; support can be provided within the framework of the revolving use of the fund's assets," noted Marek Ženkl from the communication department of the Ministry for Regional Development (MMR), which submitted the SFRB budget proposal to the government.
    A total of 1.02 billion crowns will be allocated next year for low-interest loans for the construction of rental apartments and loans for repairs and modernization of residential buildings. The budget will also allow for potential loan assistance to owners of flood-damaged housing projects up to 20 million crowns.
    The financing of the fund will also be affected by the EU financial instrument JESSICA, which will provide low-interest loans for the reconstruction and modernization of residential buildings amounting to a total of 577 million crowns. Of this, 288 million crowns is expected to be drawn in 2014.
    The only form of subsidy will be assistance to young people, whereby the principal is reduced and the corresponding annual part of obligations arising under the Panel program is paid out upon the birth of a child.
    The fund originally requested 150 million crowns from the state budget for part of the program's mandatory expenses. However, this was rejected by the Ministry of Finance, so the fund will also cover these expenses from its own budget.
    Last year, SFRB operated with a profit of 500 million crowns. The income of SFRB, which operates with its own funds and also distributes contributions from relevant EU funds, reached 1.7 billion crowns last year, while expenditures amounted to 1.2 billion crowns. Income increased compared to plans mainly due to the fund receiving 600 million crowns from European funds for the new JESSICA program.