The government approved a program to support investments in affordable housing

Prague – The government today approved a program to support investments by municipalities and regions in affordable rental apartments. Applications for funding can be submitted to the State Fund for Investment Support (SFPI) in October, with seven billion crowns prepared by the middle of 2026. An additional 3.5 billion crowns should be released by the National Development Bank starting next year, said Minister for Regional Development Ivan Bartoš (Pirates) after the cabinet meeting.

The minister also pointed out that the support will not be purely grant-based, but will be more focused on the use of repayable financial instruments, such as favorable loans. According to Bartoš, this will ensure long-term support for the creation of municipal and regional housing funds for affordable rental housing.

"This is an investment opportunity for municipalities and regions, which will be able to build or purchase affordable apartments for rent to people,” said Bartoš. He stated that increasing the number of municipal and regional apartments designated for rent at affordable prices will help young families, seniors, or other groups at risk of housing insecurity. At the same time, local governments will be able to ensure that they retain workers in essential professions through the offering of these apartments.

The amendment to the law defining affordable housing has been effective since the beginning of July. In affordable housing provided by the state, regions, and municipalities, rents in the first year must not exceed the amount calculated based on the costs associated with the construction or acquisition and operation of an affordable rental apartment. Additionally, it must be lower than comparable usual local rents. In subsequent years, the affordable rent may increase by inflation, but no more than four percent per year.

Households without their own housing may qualify for affordable housing up to a certain net income level, as well as victims of domestic violence or people in so-called preferred professions. These include healthcare workers, teachers, police officers, paramedics, and social services workers. Tenants in affordable housing will usually have a lease for up to two years with the option to extend for a fixed term.