ÚOHS is examining the controversial tender in Brno for starter apartments

Brno - The Brno city hall cannot sign contracts with companies that are supposed to build starter apartments for young families in the city. The investment of 151 million crowns excluding VAT was approved by the representatives in March. However, the anti-monopoly office issued a preliminary measure that prohibited the city from signing contracts with the selected companies. CTK was informed of this by the Deputy Chairman of the Office for the Protection of Competition, Kamil Rudolecký.
      The office is conducting administrative proceedings with the city hall, which it initiated on its own initiative. Rudolecký did not specify what exactly it is investigating in the tender.
The tender has previously been criticized by the Association for Starter Apartments Brno (Unistav, AMISTA investment company, Byty Horníkova). Brno excluded the association from the tender. However, the Office for the Protection of Competition stopped the administrative proceedings initiated at the request of this association, as the companies withdrew their proposal.
      The Brno TOP 09 party, which is in opposition, also criticized the tender. Council member Jaroslav Kacer submitted a proposal to the Office for the Protection of Competition in March. He questioned the transparency of the assignment and evaluation of the public contract. "I believe that there was a mistake already in the specification of the subject of the contract, where it was not stated how many apartments the city intends to purchase. Another non-standard step was to specify the minimum bidding price per square meter.Choosing two winners without a framework agreement is also surprising," Kacer stated in March.
      Brno wants to buy 84 starter apartments for young families from developers. The investment of 151 million crowns was approved by the representatives in March. In the selection process, two entities were chosen, the company Reko and a consortium of companies Impera. Each company will build an apartment building for the city in the Kamechy housing estate between Bystrc and Žebětín. The buildings are to feature one- and two-room apartments. The first tenants are expected to move in next year.
      The rent is expected to be 50 crowns per square meter. This is in line with what tenants of municipal apartments with regulated rents currently pay in most city districts. It is almost impossible to find rental apartments on the market for less than 100 crowns per square meter. People will be able to occupy the starter apartments for five years, after which they must move out.