The government approved an increase in housing fund expenditures by 1.1 billion crowns

Prague - The government today approved the proposal from the Ministry of Regional Development (MMR) to increase expenditures of the State Housing Development Fund (SFRB) for this year by 1.1 billion to 4.12 billion crowns. This money comes from the funds that remained from last year. Revenues are expected to remain at 1.24 billion crowns. MMR communicated this to ČTK.

"With the proposed amendment to the budget for 2020, the fund requests an increase in the expenditure limit in the area of program expenditures by 1.1 billion crowns, which will be fully covered by the fund's free resources without entitlement to the state budget," stated the documents for the government meeting.

The approved proposal anticipates that the additional funds will be used for the Construction for Municipalities program, which the government approved last year. The state provides municipalities with a 100% subsidy for the construction of social housing. However, this applies to a maximum of one-fifth of the units in a specific building. For the rest of the units, the municipality can either take an advantageous loan from the housing fund or a regular commercial loan. The subject of the subsidy should be expanded to include extensions, annexes, and renovations. Municipalities must ensure that when a 100% subsidy is provided, the social purpose housing will be maintained for at least 20 years.

Of the additional funds, 650 million crowns will be allocated for the acquisition of social housing, and another 350 million crowns is designated for the loan component of the program for acquiring affordable housing. The remaining 100 million crowns is to be spent on the regeneration of public spaces in housing estates.

The State Housing Development Fund gathers money intended to support housing. It operates with its own funds and also distributes contributions from relevant European Union funds. Its goal is to support private and municipal investments in the construction, repair, and modernization of apartments.

This year, the fund is expected to be renamed to the State Investment Support Fund and expand its activities to include sustainable development of municipalities, towns, and regions as well as tourism. The amendment was signed by President Miloš Zeman in mid-March. The bill will come into effect three months after it is published in the collection.

According to the ministry, renaming the fund and the associated expenditures will cost about 880,000 crowns. The costs include, for example, the replacement of forms, stamps, payment orders, or adjustments to the website.