The housing fund expenditures should rise to 2.73 billion CZK

Prague - The expenditures of the State Housing Development Fund (SFRB) for the next year are expected to rise year-on-year by about a quarter to 2.73 billion crowns. This is part of the proposal by the Ministry for Regional Development, which was approved by the government today. The cabinet's press office informed about this. Revenues are planned at 779 million crowns, which is 12.8 percent lower year-on-year.

Next year, no subsidy from the state budget is planned, which amounts to 108 million crowns this year. This was used to cover part of the subsidy expenditures arising from contractual obligations, including obligations from previous years. In 2019, the fund will cover these expenses from its own assets.

The largest part of the revenues consists of repayments from provided loans of 691 million crowns, while another 87 million crowns will come from selected interest and fees.

Of the expenditures, the largest portion will go towards loans to individuals and legal entities, amounting to 1.6 billion crowns. The second-largest item concerns the payment of interest subsidies on loans for the reconstruction and modernization of apartment buildings from 2001 to 2010, totaling 717 million crowns.

"In 2019, the fund will provide support in the form of low-interest loans for the construction of rental apartments, repairs, and modernization of housing facilities, including loan assistance in case of damage to the housing stock due to natural disasters, co-financing of the public space regeneration program supported by grants, and for the modernization or acquisition of housing for young people through a new government regulation," stated the Ministry for Regional Development.

The document also includes planned revenues and expenditures for the coming years. In 2020, expenditures will decrease to 2.68 billion crowns, and in 2021 to 2.6 billion. Planned revenues in 2020 will increase to 944 million crowns, and a year later to one billion.

The State Housing Development Fund collects money designated for housing support. It manages its own funds and also distributes contributions from relevant European Union funds. Its objective is to support private and communal investments in the construction, repair, and modernization of apartments.

The proposal by the Ministry for Regional Development, under which the fund falls, contemplates adding areas such as sustainable urban development or tourism to its existing activities. It should also be renamed the State Fund for Investment Support (SFPI).