Government: The European Commission must agree to support the renovation of panel houses

    PRAGUE - The European Commission must agree to the provision of state subsidies for the elimination of emergency defects in panel buildings. Until its decision is issued, the state will be able to provide subsidies to one recipient only up to a maximum of 100,000 euros (2.8 million CZK) over three years. Due to the insufficient volume of financial resources from the ministry, subsidies will now be provided by the State Housing Development Fund. The proposal by Minister for Regional Development Radko Martínko was approved by the government today.
    It is not possible to say exactly how long the notification, that is, the compatibility of the regulation with European Community law, will take. Based on previous experiences, it takes several months. However, if the notification is not successful by the end of February, Martínko plans to discuss this matter with the European Commission in March. "We will strive to ensure that the notification proceeds as quickly as possible," Martínko said after the government meeting.
    The fund has allocated 400 million CZK for this purpose for this year. The Ministry of Regional Development had approved budgets of 220 million CZK last year and the year before, which were managed to increase by several million during the year. Last year, around 6,000 panel apartments were repaired thanks to this program, while in 2003 it was approximately 10,000 housing units.
    The subsidy can cover a maximum of 40 percent of actual costs, but no more than 55,000 CZK for one apartment in a building. The recipient can be either a natural or legal person who is the owner or co-owner of a panel apartment building or apartment. Owner associations can also receive funding.
    The funds are designated for the repair of panel apartment buildings constructed between 1950 and 1990. They must be directed to the elimination of structural or functional defects and static defects of load-bearing structures, particularly foundations, load-bearing walls, staircases, or ceiling and roof structures.
    An additional 400 million CZK is allocated this year for interest subsidies for the repair of panel buildings, referred to as the Panel program. Last year, the fund had 200 million CZK more. In this case as well, the provision of subsidies is limited to 100,000 euros for one recipient over three years. The Ministry of Regional Development is still waiting for the notification.
    The State Housing Development Fund will spend 6.445 billion CZK on its programs this year. This is approximately half more funding than last year.