The government will release 800 million crowns to support the construction of rental housing

Prague - The government today approved the allocation of 800 million crowns to a program supporting the construction of rental housing. Most of the funds will be intended for municipalities, but a part may also be granted to private investors who build apartments in cooperation with the municipality. After the cabinet meeting, Deputy Prime Minister and Minister for Regional Development Ivan Bartoš (Pirates) informed journalists. The approved program aims to improve housing availability, and the Ministry for Regional Development will launch it this month.

Bartoš stated that 500 million crowns are designated for municipalities, and other funds may be obtained by legal entities, such as charities. Private investors can qualify for the contribution if they collaborate on construction with municipalities and provide at least a quarter of the built apartments for the municipalities' use.

"Municipalities will benefit from projects supported by private investors. In such cases, local administrations will be able to decide to whom at least a quarter of the apartments will be rented. We want to significantly strengthen this cooperation between municipalities and the private sector in the future," Bartoš said.

Apartments built with the provided support must be offered at a price typical for the area to prevent further increases in housing costs, Bartoš noted. They should primarily be occupied by people who have difficulty accessing real estate in the market in the given location and have no other housing options.

The support will consist of two parts: a grant of up to 25 percent and a favorable loan. In total, it can reach up to 90 percent of the costs. The funds will gradually return to the system and support further construction.

Bartoš also mentioned that support for rental housing should help increase its share in the Czech Republic. Currently, according to him, it accounts for about 20 percent, while ownership housing makes up 80 percent. Bringing the shares of both types of housing closer together would also contribute to achieving affordable prices, he said.