Czech government to present affordable housing projects amid growing demand

The Czech government will present specific projects supported by the Affordable Housing Program at a press conference today, highlighting efforts to boost the construction of affordable rental apartments owned by municipalities and private entities. The initiative aims to ease the country’s housing crisis by offering below-market rental rates, particularly in high-demand urban areas.

The press conference, which will be broadcast live by the Czech News Agency at 16:00, will feature Prime Minister Petr Fiala (ODS), Minister of Regional Development Petr Kulhánek (STAN), Finance Minister Zbyněk Stanjura (ODS), and Daniel Ryšávka, Director of the State Investment Support Fund (SFPI).

The Affordable Housing Program, overseen by the Ministry of Regional Development (MMR) and SFPI, has been allocated CZK 7 billion until 2026. Applications for funding began on October 1, 2024, supporting the construction, renovation, and expansion of affordable rental housing.

Financial assistance includes subsidies covering up to 40% of project costs and low-interest loans covering up to 65%, allowing up to 90% of total investment costs to be financed. Loans have a maturity of up to 30 years with no early repayment fees. Municipalities and private legal entities are eligible to apply.

As of October 2024, SFPI was processing 44 applications worth CZK 2.5 billion, expected to deliver 725 rental apartments. Of this amount, CZK 930 million comes from direct subsidies, while CZK 1.55 billion is provided through preferential loans. Additionally, an earlier rental housing program approved 32 projects worth over CZK 1 billion, set to deliver 474 apartments, with three-quarters of them scheduled for completion in 2025.

The affordable housing initiative was initially developed under former Minister for Regional Development Ivan Bartoš (Pirates), who had called for increased funding for municipal rental housing. However, following his departure from the government, Finance Minister Zbyněk Stanjura (ODS) stated that funds would be released only after evaluating submitted projects.

Prime Minister Petr Fiala (ODS) has expressed reservations about Bartoš’s original proposal, arguing that it was too broad in scope. He indicated that the government coalition prefers a more targeted approach, focusing on excluded localities. Additionally, Fiala suggested that the government is considering mortgage guarantees for young people to improve housing affordability, making homeownership possible for single-income households.

With growing pressure to address housing shortages, the Affordable Housing Program is expected to play a crucial role in expanding the availability of lower-cost rental housing in the Czech Republic.

Source: CTK