<MPSV>Investment in the creation of social housing would be 3 billion per year</MPSV>

Praha - Investment in the acquisition of social housing in the Czech Republic should amount to three billion crowns per year for a period of ten years from the start of the relevant law. The total costs in the first year after the introduction of the law are expected to be around 4.6 billion crowns. This follows from the analysis of the impacts of the establishment of social housing prepared by the Ministry of Labor and which ČTK has at its disposal. According to the document, "affordable rental housing" could potentially serve around 270,000 households in the future.
    The government committed in its program declaration and coalition agreement to prepare and pass a law on social housing. According to the original plan, it was supposed to come into effect in 2017, with the government expected to finalize its outlines by the summer. However, the concept that the law is to be based on has not yet been approved. The cabinet was supposed to approve it at the end of June, but the coalition could not agree on it and requested an impact analysis. Prime Minister Bohuslav Sobotka (ČSSD) recently admitted that the original deadline will likely not be met.
    According to the upcoming concept, social housing will have three tiers - crisis accommodation, social housing, and affordable housing. In the analysis, the Ministry of Labor describes three variants of this model that do not differ significantly. The expenses are also roughly the same. The distribution and number of required apartments would be determined by municipalities. The law would regulate who would qualify for assistance. It is likely to be people threatened with losing their homes or those spending more than two-fifths of their income on reasonable accommodation.
    In the first variant, social housing would only include social and affordable apartments, while crisis accommodation would be ensured by the current social services - shelters and dormitories. Municipalities would issue certificates to applicants eligible for assistance. Appeals would be handled by the region. The costs in the first year would amount to 4.6 billion. Of this, three billion represent investment grants, 1.36 billion would be grants for social workers, 50 million would be for the creation of a housing register, and additional millions would cover approximately 450 officials managing the agenda.
    According to the second variant, social housing would include affordable and social apartments along with a new social service "crisis housing". Employment offices would decide on applications, while appeals would be handled by the Ministry of Labor. Costs for the first year are expected to be 4.62 billion, with more bureaucratic positions.
    The third variant, which the Ministry of Labor prefers, also includes crisis, social, and affordable housing. People would submit applications to the municipality, which would issue certificates and manage social and affordable apartments. Appeals would be handled by the region. This model is expected to cost the same as the first, i.e., 4.6 billion for the first year.
    If the government does not adopt the concept, it would not fulfill its program and would waste the work of experts. This could also affect the drawing of European funds that could be used for housing. Moreover, expenditures on housing benefits would continue to rise, the authors pointed out. In 2011, the state paid out 5.49 billion in housing benefits and supplements, while last year it reached 12.09 billion. According to the Ministry, the construction and reconstruction of apartments could have a positive impact on the economy and employment, and market rents could also decline.
    The ministry wants to prepare a detailed economic analysis only for the selected variant. The concept envisions a ten-year period. However, according to the authors, the timeframe can change based on "political directives."