Government Decree No. 107 / 2023 Coll.
Government regulation on the conditions for the use of funds by the State Fund for Investment Support by credit or subsidy to finance the construction of rental housing
Valid
Regulation
Effective from 20.04.2023
Text versions:
20.04.2023
19.04.2023
107
GOVERNMENT REGULATION
of 12 April 2023
on the conditions for the use of funds by the State Fund for Investment Support by credit or subsidy to finance the construction of rental housing
The Government orders pursuant to Section 9 of Act No. 211 / 2000 Coll., on the State Fund for Investment Support, as amended by Act No. 61 / 2005 Coll. and Act No. 113 / 2020 Coll.:
Subject matter
This Regulation regulates the conditions for the use of funds from the State Investment Support Fund (hereinafter referred to as the Fund) in the form of a subsidy or loan to cover part of the costs associated with the construction of a rental apartment or apartment with rental apartments in the Czech Republic.
Definition of terms
For the purposes of this Regulation:
(a) a rental apartment resulting from construction intended to ensure the housing needs of the tenant and members of his household;
(b) construction
1. new building of the apartment in the apartment house,
2. the construction of premises intended for purposes other than housing, with the exception of construction works in the family house,
3. the superstructure or extension to be created by the apartment, with the exception of the superstructure or extension in the family house, if the family house does not form an apartment house,
4. the construction work of a family house which is unfit for living if an apartment building with apartments suitable for living is established;
5. the construction of a residential building with apartments which are not eligible for housing, if a residential building with housing is created,
6. the construction of an apartment which is ineligible for housing if an apartment is eligible for housing,
(c) aid for grants or loans;
(d) floor area the sum of the floor areas of all the rooms of the rental apartment.
Aid applicant
The aid applicant (the applicant) may be a legal person having its registered office in the territory of:
(a) one of the Member States of the European Union;
(b) a State Party to the Agreement on the European Economic Area; or
(c) the Swiss Confederation.
Objective of aid
The funds from the Fund may be used and the aid may be granted for the construction of a residential apartment or a residential apartment.
Conditions for granting the aid
(1) Aid may be granted only on condition that:
(a) it does not have a non-payment on the date on which the application for aid was submitted, except for a non-payment for which it is permitted to wait his payment or to distribute his payment on instalments;
1. at the authorities of the Financial Administration of the Czech Republic,
2. the customs authorities of the Czech Republic,
3. insurance premiums and periodic penalty payments for public health insurance,
4. insurance premiums and social security periodic penalty payments and contributions to national employment policy;
5. with the State Fund; and
6. in the case of a local authority,
(b) is not in bankruptcy or liquidation and no application for bankruptcy has been rejected in the last 3 years prior to the application due to lack of its assets;
(c) is not the person against whom enforcement or execution is conducted;
(d) at the date of entry into force of the aid contract, it is not a firm in difficulty under the directly applicable European Union State aid Regulation (1);
(e) is not, at the date of entry into force of the aid contract, an undertaking to which a recovery order has been issued following a decision of the European Commission (2);
(f) has not been convicted of a criminal offence the nature of which relates to the subject-matter of the applicant's activity, an economic offence, an offence against property, an offence of acceptance of a bribe, a criminal offence of bribery or an offence of indirect bribery, unless it is regarded as not being convicted;
(g) is the sole owner of the land on which construction will be carried out or has the right to build during the repayment of the credit, but for at least the following 20 years;
(h) is the sole owner of the building in which the construction will be carried out or has the right to build during the repayment of the credit but for at least the following 20 years;
(i) has the funds to finance construction; and
(j) conclude an aid contract with the Fund.
(2) A loan may be granted if it is sufficiently secured for the benefit of the Fund at least up to its outstanding amount and the applicant demonstrates the ability to repay the loan.
(3) The use of funds from the Support Fund may be granted only on condition that:
(a) to local infrastructure under the directly applicable European Union Regulation (3); or
(b) under a small-scale aid scheme under the directly applicable European Union4).
(4) The application under the public aid scheme referred to in paragraph 3 (a) must be submitted before the start of the construction activity under the directly applicable European Union5).
The aid may be granted only on condition that:
(a) there is no burden on land and construction which would prevent the proper use of rental apartments, execution, security transfer or lien, with the exception of a lien established for the benefit of the Fund or State, or a lien or other instrument ensuring the recovery of funds for the provision of credit for the construction of such apartments;
(b) the land in which the construction is part or the land on which the construction will be carried out is not in the flood territory, or the immovable property is insurable against flood and flood and the water law office for that land has given an opinion on any restrictions on the construction conditions;
(c) the floor area of the rental apartment shall not exceed 120 m2; the aid may be granted only up to the cost of building 80 m2 of the floor area of the rental apartment; and
(d) construction is permitted under the building law.
Conditions for the handling of rental apartments
(1) Aid may be granted only if the applicant undertakes to comply with the following conditions for the period of repayment of the credit but always for at least 20 years:
(a) the rental apartment will serve the rental housing,
(b) the rent will be agreed in the case of a scheme under:
1. Paragraph 5 (3) (a), at the rate of the usual rent at the place and time,
2. Paragraph 5 (3) (b) shall not exceed the normal rent at the place and time,
(c) a lease contract shall be concluded for a fixed period of at least one year; if the duration of the lease contract is extended or a new lease with the same tenant is concluded, the subsequent lease period shall be at least 2 years;
(d) the owner's right to a rental apartment or apartment with rental apartments shall not be transferred to another person for the period during which the rental apartment or apartment with rental apartments will be used, and the rental apartment or apartment with rental apartments will not be subject to a lien for the benefit of a third party, except for the lien established for the benefit of the Fund, or if the Fund has given its prior consent; and
(e) the rental apartment or rental house shall be insured at the latest by the date of transmission of the documentation to the final evaluation of the achievement of the purpose of the aid by covering at least the period during which it is intended to serve the rental accommodation and at least against natural disasters and, as regards the rental apartment or apartment with apartments in the flood area, it shall always be insured in the event of flooding and flooding; the insurance must be arranged in such a way that, in the event of an insurance claim, the damage caused covers at least the amount of aid granted with the participation of the Fund up to the amount of the loan granted.
(2) In the event that the beneficiary of the aid is a legal person other than the municipality, the county, the voluntary association of municipalities or the legal person in which the territorial body has an absolute participation, the beneficiary must undertake to have at least 25% of the rental apartments occupied by tenants designated by the municipality in whose territory the rental apartment is located. If the municipality does not designate the lessee or provide the beneficiary of the aid with synergies in occupying the rental apartment within a time limit without undue delay, the lessee shall designate the lessee.
(3) In the case of aid under Section 5 (3) (a), the beneficiary undertakes to ensure that rental apartments are available under open, transparent and non-discriminatory conditions.
(4) The beneficiary of the aid may conclude a lease contract only with a natural person who, at the date of the beginning of the lease, does not have the right of ownership of a real estate property, which includes an apartment, a family house or an apartment, or is not a member of a housing cooperative with the right to rent a cooperative flat, which he may use to secure his own housing needs; This condition must also be fulfilled by other members of the household in this rental apartment.
Application for aid
(1) Applications for aid are submitted by the applicant within the time limits and in the manner laid down by the Fund.
(2) The applicant shall accompany the application for aid:
(a) an expert opinion demonstrating the ineligibility of an apartment, a family house or an apartment for housing, which is not more than 1 year old at the date of application, provided that the construction referred to in Article 2 (b) (4), (5) or (6) is the subject of aid;
(b) an affidavit from the applicant stating that it did not draw or draw any other support from public budgets on the same eligible costs within the scope of Article 9;
(c) an affidavit of the applicant containing information on the beneficial owner under the law governing the registration of beneficial owners, where the applicant is a legal person other than the legal person whose data are entered in the register of beneficial owners under the same law, or not a territorial body;
(d) an affidavit by the applicant demonstrating compliance with the conditions laid down in Article 5 (1) (c);
(e) confirmation of the body of the Financial Administration of the Czech Republic, the Customs Administration of the Czech Republic and the Czech Social Security Administration, as well as an affidavit of the applicant for compliance under § 5 (1) (a);
(f) an extract from the record of the Register of Penalties proving compliance with the conditions laid down in Article 5 (1) (f) if the applicant is a legal person other than the territorial authority,
(g) consent or consent of the water authority pursuant to Article 6 (b);
(h) construction project documentation;
(i) the construction budget;
(j) justification for the need to build rental apartments to improve the business and consumer environment; and
(k) other documents required by the Fund in the invitation to submit an application for aid.
(3) The Fund may request, as appropriate, additional documents necessary to assess the purpose of the aid and the applicant's ability to repay the credit granted.
Eligible costs
(1) The eligible costs are expenditure incurred on the construction of a rental apartment or apartment building with rental apartments, including accessories, without which this rental apartment or apartment cannot be used. The eligible costs are also the costs of demolition if necessary for construction.
(2) Eligible costs shall be determined either by budget heading or by proportion of the floor area of rental apartments, including accessories built with support under this Regulation, to the floor area of all flats, including accessories and spaces used in the house for purposes other than that of this Regulation.
Aid contract
(1) For the grant of aid, the applicant must submit to the Fund at the latest before the conclusion of the grant contract
(a) a final building permit or public contract for the execution of the construction, a notified certificate of an authorised inspector to the competent building office, a consent to the implementation of the notified construction or a declaration by the applicant that the construction modifications do not require a building permit or a declaration;
(b) a construction contract concluded with the contractor;
(c) supporting documents for the selection of the contractor;
(d) proof of the right of construction or the right of ownership of the applicant pursuant to Article 5 (1) (g) or (h), where this information cannot be verified by remote access to the register; and
(e) proof of compliance with the conditions laid down in Article 6 (a), where this information cannot be verified by remote access to the register.
(2) The grant agreement always contains the conditions under which the aid is granted, the conditions to be followed subsequently, the penalty arrangements and the reduced levy arrangements. The credit agreement shall also include arrangements for borrowing, repayment and collateral.
Amount of subsidy, amount of credit and interest rates
(1) The subsidy may be granted up to 25% of the total eligible costs.
(2) A loan may be granted up to 90% of the total eligible costs.
(3) The total aid may be granted up to 90% of the total eligible costs.
(4) The interest rate is fixed at the basic rate of the European Union6) applicable to the Czech Republic on the date of entry into force of the aid contract, reduced by up to 3 percentage points, but not less than 1% and not more than 3% per year. The interest rate is fixed throughout the repayment period. The interest on the spent part of the loan shall begin on the date on which the loan is drawn.
(5) Total aid amount by
(a) Paragraph 5 (3) (a) shall not exceed the difference between the eligible costs and the operating profit from the investment and shall not exceed the threshold set in the directly applicable European Union7); or
(b) Paragraph 5 (3) (b) shall not exceed the unexhausted small-scale support limit under the directly applicable European Union8).
Conditions for drawing up and using aid and repayment of credit
(1) It is only possible to start drawing on the aid within the period laid down in the contract.
(2) The aid may be used only for eligible costs and drawn only on the basis of the documents submitted, either in one or in turn, in accordance with the procedure laid down in the grant contract.
(3) The applicant must:
(a) provide evidence of a declaration of honour demonstrating compliance under Article 5 (1) (b), (d) and (e) where the applicant is a legal person other than a territorial body and where this information cannot be verified by remote access to the public register;
(b) to insure the built-up structure, subject to the condition that the insurance benefits to the Fund are incurred up to the amount of the loan granted.
(4) Since the date of entry into force of the grant contract and throughout the construction of a rental apartment or apartment with rental apartments, the land, construction or apartment may not be transferred to a third party without the consent of the Fund or subject to a lien or other hedging instrument for the benefit of a third party.
(5) The repayment period may be set at a maximum of 30 years.
(6) The loan is repaid by regular monthly instalments involving the repayment of principal and interest.
Information obligation of the Fund
The Fund shall publish on its website:
(a) a call for aid; and
(b) the level of the basic rate of the European Union for the Czech Republic pursuant to Article 11 (4).
Efficacy
This Regulation shall take effect on 20 April 2023.
Prime Minister:
Prof. PhDr. Fiala, Ph.D., LL.M., v. r.
Deputy Prime Minister for Digitisation and Minister for Local Development:
PhDr. Bartoš, Ph.D., v. r.
(1) Article 2 (18) of Commission Regulation (EU) No 651 / 2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in accordance with Articles 107 and 108 of the Treaty, as amended.
2) Article 1 (4) of Commission Regulation (EU) No 651 / 2014, as amended.
3) Article 56 of Commission Regulation (EU) No 651 / 2014, as amended.
4) Commission Regulation (EU) No 1407 / 2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid, as amended.
5) Article 6 of Commission Regulation (EU) No 651 / 2014, as amended.
6) Communication from the Commission on the revision of the method for setting the reference and discount rates (2008 / C 14 / 02).
7) Article 4 of Commission Regulation (EU) No 651 / 2014, as amended.
8) Article 3 (2) of Commission Regulation (EU) No 1407 / 2013, as amended.
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Regulation Information
| Citation | Government Decree No. 107 / 2023 Coll., on the Terms and Conditions of Use of Funds of the State Fund for Investment Support by Credit or Subsidy for Financing the Construction of Hire Housing |
|---|---|
| Regulation Type | Regulation |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 19.04.2023 |
|---|---|
| Effective from | 20.04.2023 |
| Effective until | - |
| Status | Valid |
Legal Areas:
Civil law
Civil law substantive
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