Saturday, 15 March 2025
The Czech government has approved CZK 900 million in funding for the construction of affordable rental housing, with financing available as loans through the State Investment Support Fund (SFPI). The funding will initially support 64 projects, with further projects expected to receive assistance in the future, Prime Minister Petr Fiala (ODS) announced after a cabinet meeting.
At the beginning of February, 92 projects applied for financial support, with total aid expected to reach CZK 5.1 billion. Of this amount, CZK 3.2 billion is allocated for preferential loans, while CZK 1.9 billion is designated for one-time subsidies. The CZK 900 million approved today is the first tranche of the total loan allocation.
Finance Minister Zbyněk Stanjura (ODS) confirmed that the initial funding will come from the state budget reserve. Additional funding for loans will be considered in the 2026 budget and included in medium-term financial plans for 2027 and 2028. The subsidy portion of the program is already accounted for in the SFPI’s 2025 budget.
According to Regional Development Minister Petr Kulhánek (STAN), the government aims to prioritize projects that already have building permits, ensuring that construction can begin as early as spring when the construction season starts.
Loan and Subsidy Terms for Affordable Housing
Support from SFPI will be directed toward rental apartment construction, including new buildings, renovations, and expansions. The funding structure allows for immediate use of up to 40% of project costs while meeting specific criteria. The remaining amount can be covered by a subsidized loan at a rate tied to the EU base rate for the Czech Republic, reduced by up to three percentage points.
Loans can cover up to 65% of total project costs, and when combined with subsidies, they may finance up to 90% of an investment. The repayment term extends up to 30 years, with no penalties for early repayment. Both legal entities and local governments are eligible to apply for support.
This initiative marks a significant step in addressing housing affordability in the Czech Republic, with the government aiming to stimulate rental housing development through financial incentives and long-term investment.
Source: CTK
