<translation>MMR does not have a new version of the program for the construction of affordable housing prepared.</translation>

Prague - The Ministry for Regional Development (MMR) does not yet have a specific new form of financing for the program for the construction of affordable housing prepared. Minister for Regional Development Zuzana Mrázová (ANO) will first inform the government about its form. She said this in an interview with ČTK. According to Mrázová, several options are currently being worked on. However, the construction of publicly available affordable rental apartments should partially be financed from subsidies and preferential loans, as it has been until now.

According to the government’s economic strategy, 50,000 new apartments should be built annually in the Czech Republic by 2030. This would be about 20,000 apartments more than now. Of the total number, approximately 10,000 new apartments should be municipal, cooperative, or under the so-called affordable housing regime. According to Mrázová, each type of housing should make up about one-third of the total.

"Programs should be more specified according to the type of region and the need for housing. In some places, it will involve demolition and the construction of new, less capacious, higher-quality housing, and in others, it must be the construction of completely new housing, because it is lacking," Mrázová stated.

Mrázová mentioned at the end of February that the government would want to change the conditions for drawing support for the construction of affordable rental housing. She found the current form unsatisfactory. The previously earmarked seven billion crowns, which the former government counted on, will still be able to be used according to the conditions previously presented.

The program for the construction of affordable housing is managed by the State Investment Support Fund (SFPI). Former Minister for Regional Development Petr Kulhánek (for STAN) stated last September that 4.5 billion crowns had been guaranteed in the budget for 2026 for the construction of affordable rental apartments. The same amount was also confirmed for 2027 and 2028 in the long term.

However, the current government has revised the budget for 2026. According to Mrázová, the former government did promise money for the construction of affordable housing, but did not secure it. Thus, SFPI should receive 2.2 billion from emission allowances this year and several hundred million crowns for the preparation of some new programs according to the proposed budget.

Support for the construction of affordable housing should, according to the existing form of the program, be directed to the construction of rental apartments and can be used for new builds, renovations, or extensions. Part of the money can be immediately used for a maximum of 40 percent of the costs if certain requirements are met. The subsequent subsidized loan at the basic EU rate for the Czech Republic, reduced by up to three percentage points, can cover up to 65 percent of the project’s price. Overall, grants and favorable loans could cover up to 90 percent of the investment. The repayment period is up to 30 years, and early repayment is without fees.

In addition to the construction of affordable rental housing, the government also wants to focus on supporting the construction of cooperative housing. The state would finance this only in the form of preferential loans and there would be a separate program for it. The specific form of this program is now being prepared according to the Minister. However, it should be based on a previous SFPI program that dealt with the establishment of cooperative housing.