MMR has once again eased the conditions for subsidies for social housing, with 530 million CZK available

Prague - The Ministry for Regional Development (MMR) has once again relaxed the conditions for drawing European subsidies for the construction and reconstruction of social housing. For example, it has expanded the group of people eligible for social housing. It has called on municipalities and non-profit organizations to apply for funding. They can share an additional 530 million crowns. The ministry announced this today in a press release. It stated that since 2021 there have been seven calls for applications for EU subsidies from the Integrated Regional Operational Program (IROP) for social housing, with a total of 3.5 billion crowns available. So far, 120 projects have been registered for the construction or reconstruction of up to 869 social apartments.

"The most important news is that a large number of tenants will no longer have to meet the condition of housing need; it is sufficient that they do not belong to the 40 percent of residents with the highest income. This leads to a significant expansion of the target group," the ministry stated.

Social housing funded by European money has so far been available only for people in material need. It is intended for individuals such as the homeless, those from shelters, inadequate apartments, young people leaving children's homes, and others in need. Now, people from the bottom six income deciles should also be included. "It will now be sufficient for at least one-fifth of the apartments to be occupied by households meeting the housing need condition, and the remainder can be occupied solely based on income. For projects under public support, rents can be set at up to 60 percent of the market price," stated Rostislav Mazal, director of the managing authority of IROP. He added that more non-profit organizations will also be able to apply for funding, as a shorter track record in providing social housing will now suffice.

According to the information system on average earnings, last year half of the people in companies had a gross salary below 40,709 crowns per month, while half of employees in public services and the state earned below 45,256 crowns. The income threshold of 60 percent of lower earners would therefore be higher than these amounts. According to data from the Czech Statistical Office on incomes and living conditions of households for last year, the income in the sixth income decile amounted to 280,692 crowns net per person, or approximately 23,400 crowns per month.

The MMR has already eased the conditions for obtaining funds. According to Minister Petr Kulhánek (STAN), interest in subsidies increased last year after direct project cost coverage was raised by a fifth. The ministry reports that recently the number of registered projects has been increasing, with more apartments included in them. This March and April, the ministry recorded 25 new projects with more than 200 social apartments. The ministry stated in its press release that social housing funded by subsidies is still being created rather randomly and is not focused in areas with the greatest housing need. Therefore, a total of 300 million crowns from the remaining 530 million available for application will be directed towards less developed regions. MMR has called on municipalities and non-profit organizations to utilize funds for the construction and reconstruction of social housing.