Government Regulation No. 136 / 2018 Coll.
Government regulation on the conditions for the use of funds by the State Housing Development Fund in the form of a loan granted to modernise or acquire housing
Valid
Effective from 15.08.2018
136
GOVERNMENT REGULATION
of 19 June 2018
on the conditions for the use of the funds of the State Housing Development Fund in the form of a loan granted for the modernisation or acquisition of dwellings
The Government orders pursuant to § 9 of Act No. 211 / 2000 Coll., on the State Housing Development Fund and on the amendment of Act No. 171 / 1991 Coll., on the Jurisdiction of the Bodies of the Czech Republic on Transfers of State Property to Other Persons and on the National Property Fund of the Czech Republic, as amended, as amended by Act No. 61 / 2005 Coll.:
Subject matter
This Regulation lays down the conditions for the use of funds from the State Housing Development Fund (hereinafter referred to as "the Fund ') in the form of a loan granted for the modernisation or acquisition of dwellings (hereinafter referred to as" the loan').
Definition of terms
For the purposes of this Regulation:
(a) housing
1. an apartment, the dwelling being a set of rooms or 1 living room, where appropriate, which, by its constructively technical arrangement and equipment, meet the requirements for permanent housing and are intended for use; or
2. a family house in which more than half of the floor area complies with the requirements of permanent family housing and is intended for that purpose; the family house may have a maximum of 3 separate apartments, a maximum of 2 above-ground and 1 underground floor and attic,
(b) modernising residential buildings by building modifications of dwellings or connecting a family house to public networks of technical equipment;
(c) the acquisition of dwellings
1. the construction of a family house, the change of a building or part thereof to a dwelling (hereinafter referred to as "construction"),
2. purchase of dwellings,
3. purchase of a real estate item, including a dwelling.
Conditions for granting credit
(1) Credit for modernisation or acquisition of dwellings may be granted to an applicant who:
(a) live in a marriage or registered partnership in which at least one of the spouses or registered partners has not reached the age of 36 at the date of the application for credit; or
(b) does not live in a marriage or registered partnership, has not reached the age of 36 at the date of the application for a loan and is permanently looking after a child who has not reached the date of the application for a loan of 15 years.
(2) Loan may be granted
(a) if the applicant demonstrates the ability to repay the loan,
(b) if it is adequately secured, at least up to its outstanding amount; and
(c) if, on the date on which the application for credit is submitted, the applicant has not registered a arrears payment
1. with the authorities of the Financial Administration of the Czech Republic and the authorities of the Customs Administration of the Czech Republic, with the exception of the arrears for which it is permitted to wait his payment or to distribute his payment on instalments,
2. insurance premiums and periodic penalty payments for public health insurance; or
3. on social security premiums and periodic penalty payments and contributions to national employment policy, with the exception of arrears for which repayment has been granted in instalments and is not late in repayment of payments.
(3) The loan cannot be granted
(a) repeatedly to the same applicant or to another applicant who lives in the household with the recipient of the credit, except for the adult child of the applicant, or the sibling of the applicant;
(b) an applicant to whom funds have been provided under:
1. Government Decree No. 97 / 2002 Coll., on the use of the resources of the State Housing Development Fund in the form of a loan to cover part of the costs associated with the construction of an apartment by persons under 36 years of age, as amended,
2. Government Decree No. 616 / 2004 Coll., on the use of the resources of the State Housing Development Fund in the form of a loan to cover part of the costs associated with the construction or acquisition of an apartment by certain persons under 36 years of age, as amended,
3. Government Decree No. 28 / 2006 Coll., on the conditions for the use of the funds of the State Housing Development Fund in the form of credit to cover part of the costs associated with the modernisation of the apartment by certain persons under 36 years of age, as amended; or
4. Government Decree No. 100 / 2016 Coll., on the use of the resources of the State Housing Development Fund in the form of loans for the acquisition of homes by persons under 36 years of age caring for a child under the age of 6,
(c) an applicant whose spouse or registered partner has been provided with funds under the Government Regulation referred to in (b);
(d) where the funds of the loan should be used for repayments of another loan.
(4) The modernisation loan may be granted to the applicant who is the owner or co-owner of the dwelling at the time of the application for credit. A loan for the acquisition of a residence may not be granted to an applicant who, at the time of the application for credit, is the owner or co-owner of the residence or a member of the housing cooperative and is also the tenant of the cooperative flat, or whose spouse or registered partner is the owner or co-owner of the residence or member of the housing cooperative at the time of the application for credit, and is also the tenant of the cooperative apartment.
(5) The loan may not be granted for the acquisition of dwellings situated in the flood area; This is not the case if the dwelling is insurer to the flood and a consensual opinion of the water authority with any restrictive conditions for the exhibition is given).
(6) A loan for the acquisition of dwellings cannot be granted for an apartment with a floor area exceeding 75 m2 or for a family house with a floor area exceeding 140 m2; the floor area of the apartment or family house does not include the balcony and the loggia.
(7) If the beneficiary of the loan uses or uses part of the dwelling to carry out business, the aid under this Regulation shall be limited in accordance with the rules for granting small-scale aid under the directly applicable European Union2).
Application for credit
(1) A written application for credit is submitted by the applicant to the Fund; credit applications shall be dealt with in the order in which they were received by the Fund.
(2) The application for credit contains:
(a) the name, address and date of birth of the applicant;
(b) the name and date of birth of the spouse or registered partner if the applicant lives in a marriage or registered partnership;
(c) the name and date of birth of the minor child cared for by the applicant in the case of the applicant in accordance with Article 3 (1) (b);
(d) the amount of the loan requested, the collateral proposed and the purpose of the use of the loan;
(e) project documentation processed by an authorised person under another legislation, provided that the project documentation is required by another legislation (m3) to acquire a dwelling by construction or modernisation of the dwelling;
(f) a contract for a future purchase contract, if it is purchased for an application for a loan for the acquisition of dwellings;
(g) the legal relationship of the applicant to the dwelling if the application is for a loan to upgrade the dwelling;
(h) an item budget where an application is made for a loan for modernisation of dwellings or acquisition of dwellings by construction;
(i) documents proving the amount of the applicant's income and living in a marriage or registered partnership, as well as documents proving the amount of his spouse's or registered partner's income;
(j) proof that the applicant has not registered a arrears at the date of application
1. with the authorities of the Financial Administration of the Czech Republic and the authorities of the Customs Administration of the Czech Republic, with the exception of the arrears for which it is permitted to wait his payment or to distribute his payment on instalments,
2. on insurance premiums and periodic penalty payments for public health insurance and on insurance premiums and periodic penalty payments for social security and the contribution to national employment policy, with the exception of arrears for which repayment has been granted in instalments, and is not late for repayment of payments;
(k) the statement by the competent authority of the water authority that the dwelling is not located in the flood area or, where the dwelling is situated in the flood area, the consent of the water authority to any restrictions on the construction conditions;
(l) a statement by the applicant as to whether the dwelling will be used for the performance of business; and
(m) in the case of an application for credit for the acquisition of a residence, a declaration by the applicant that the applicant or his spouse or registered partner is not, at the time of the application for credit, the owner or co-owner of the residence or member of the housing cooperative, who is also the tenant of the cooperative flat.
(3) If the application for credit is incomplete, the Fund shall invite the applicant within 30 days of the date of receipt of the request for credit to complete it within a reasonable period set by the Fund. If the applicant fails to complete the required data within the time limit, the Fund shall not grant the loan.
(4) After prior evaluation of the application for a loan for the acquisition of dwellings by construction at the request of the Fund, the applicant shall demonstrate:
(a) permit of construction under the building law; and
(b) a construction contract concluded with the contractor of the construction, unless the applicant himself carries out the construction.
(5) The Fund may invite the applicant to substantiate the additional supporting documents needed to assess the purpose of the loan and the applicant's ability to repay the loan or to demonstrate compliance with the conditions for granting the loan. If the applicant fails to complete the required data within a reasonable period set by the Fund, the Fund shall not grant the loan.
Credit amount and interest rate
(1) The amount of the loan is:
(a) not less than CZK 30,000 and not more than CZK 300,000 to modernise the accommodation;
b) maximum CZK 2 000 000 000 for the acquisition of a family house
1. construction, but not more than 80% of the actual construction costs;
2. purchase, but not more than 80% of the price negotiated or the price determined in accordance with the law on the valuation of assets, if less than the price agreed, including the price of land,
c) not more than CZK 1 200 000 for the acquisition of the dwelling will buy the apartment, but not more than 80% of the price agreed or the price determined by this unit under the law on the valuation of property, if less than the price agreed.
(2) The interest rate is fixed at the level of the basic European Union reference rate applicable to the Czech Republic on the date of conclusion of the contract, but at least at 1% per year. The interest rate is fixed for 5 years. After 5 years, a new rate of interest shall be fixed at the level of the basic reference rate of the European Union applicable to the Czech Republic on that date but at least 1% per year.
(3) The interest on the spent part of the loan begins on the date on which the loan is drawn.
Conditions for borrowing
(1) If the conditions for granting the credit are met, the Fund shall submit to the applicant an invitation to conclude a credit agreement if it has the funds for granting the credit.
(2) The Fund shall not grant a loan unless, for reasons other than those of the applicant, a credit agreement has been concluded within 2 months of receiving the Fund's invitation to conclude a credit agreement.
(3) A loan to modernise the dwelling may be drawn on the basis of documents submitted in one or more steps. The drawing must be completed within 1 year of the conclusion of the credit agreement.
(4) A loan for the acquisition of housing by construction can be drawn on the basis of documents submitted in one or more steps. The credit shall start within 1 year of the conclusion of the credit agreement and end no later than 3 years after the conclusion of the credit agreement. The construction of a family house must be completed within 3 years of the conclusion of the credit agreement, unless this period is extended during the repayment of the loan at the request of the beneficiary of the Fund.
(5) A purchase loan may be drawn on a one-off basis. The borrowing must start within 1 year of the conclusion of the credit agreement. The beneficiary shall provide proof of the effective use of the credit within 1 year of the conclusion of the credit agreement.
Credit maturity
(1) The loan is repaid monthly by repayment of principal and interest and can be repaid early at any time.
(2) The maturity of the loan must be agreed so that the repayment period does not exceed:
(a) 10 years after the conclusion of the credit agreement for the modernisation of dwellings;
(b) 20 years after the conclusion of the credit agreement for the acquisition of the dwelling.
(3) At the request of the beneficiary, the Fund will allow the start of the repayment of the principal for up to 6 months. This shall be without prejudice to the maximum maturity referred to in paragraph 2.
(4) At the request of the beneficiary, the Fund will allow the payment of the principal to be interrupted for up to 2 years on grounds of birth, adoption, detention, custody or custody of the child. The total maturity of the loan shall subsequently be extended by the period for which the interruption of the principal payment was permitted, while meeting the conditions set out in paragraph 7.
(5) At the request of the beneficiary, the Fund may also allow the payment of principal to be interrupted due to the loss of employment for more than 3 months, illness lasting more than 3 months or the death of a member of the household. For these reasons, the total period of interruption of the principal payment may not exceed 2 years. The total maturity of the loan shall subsequently be extended by the period for which the interruption of the principal payment was permitted, while meeting the conditions set out in paragraph 7.
(6) For the period of interruption of the repayment of the principal, the beneficiary shall pay the agreed interest on the total outstanding principal amount.
(7) The repayment period of the loan is extended by the period for which the interruption of the repayment of the principal was authorised. The total maturity of the loan, including the extension of the principal, may not exceed:
(a) 12 years after the conclusion of the credit agreement for the modernisation of dwellings;
(b) 25 years after the conclusion of the credit agreement for the acquisition of the dwelling.
(8) If a loan is granted for the acquisition of a dwelling, the Fund shall, at the request of the beneficiary, reduce the amount of the principal of the loan by CZK 30 000, up to the amount of the principal outstanding at the date of the application, for each live born or adopted child if the loan is born or acquired. The amount corresponding to the reduction of the outstanding balance of principal is considered to be a subsidy pursuant to § 3 (1) (c) of the Act on the State Housing Development Fund and amending Act No. 171 / 1991 Coll., on the jurisdiction of the authorities of the Czech Republic regarding transfers of State property to other persons and on the National Property Fund of the Czech Republic, as amended, as amended, as amended by Act No. 61 / 2005 Coll.
Other terms and conditions for repayment
(1) During the repayment of the credit, the beneficiary may not transfer the ownership of the dwelling to another person.
(2) The residence for which the credit has been used to acquire or modernise must serve as the residence of the beneficiary or members of his household during the repayment period. The residence condition may not be fulfilled if the modernised dwelling cannot be used during the upgrading due to its technical condition. This derogation shall apply for a maximum of 1 year from the start of the credit.
(3) If ownership of the residence is transferred at a time when the loan is not repaid, the Fund will agree to take over the loan if:
(a) the residence serves as the residence of a minor child who has been permanently cared for by the deceased and is permanently cared for by the transferee until his maturity;
(b) the transferee is a minor child who has been permanently cared for by the deceased and the undertaking is taken over by the person who is permanently caring for him; or
(c) the transferee is the spouse or registered partner of the deceased.
(4) If the transfer of ownership of the dwelling takes place at a time when the loan is not repaid to an acquirer other than that referred to in paragraph 3, the Fund may agree to take over the loan by the acquirer.
(5) For the period of repayment of the loan, the insurance of dwellings covering the least natural disasters must be agreed.
(6) The condition of sufficient collateral for the credit provided for in Article 3 (2) (b) must be fulfilled throughout the repayment period.
(7) The Fund may require the immediate repayment of the loan and not pay the outstanding part of the loan,
(a) if he has found that the applicant has supplied incorrect information on the basis of which the credit agreement was concluded or has infringed the conditions set out in Article 6 (3), (4) or (5);
(b) if the payee or the acquirer who took over the repayment obligation referred to in paragraph 4 is late in paying at least 2 monthly instalments of the loan at the agreed amount and does not pay the amounts due within 30 days of receipt of the written notice; or
(c) if it has been established that the conditions laid down in paragraphs 1, 2, 5 and 6 have been infringed.
(8) In assessing the possibility of requiring the immediate repayment of a loan for breach of the conditions referred to in paragraph 7, the Fund need not require the immediate repayment of the loan, in particular where the beneficiary has used the funds obtained through the transfer of ownership to the dwelling for the acquisition of another residence and meets the conditions laid down in paragraph 2 in respect of the newly acquired residence.
Transitional provisions
(1) Legal relations arising under Government Regulation No. 28 / 2006 Coll., as effective before the date of entry into force of this Regulation and the rights and obligations arising therefrom, are governed by Government Regulation No. 28 / 2006 Coll., as effective before the date of entry into force of this Regulation.
(2) Legal relationships arising under Government Regulation No. 100 / 2016 Coll., as effective before the date of entry into force of this Regulation and the rights and obligations arising therefrom, are governed by Government Regulation No. 100 / 2016 Coll., as effective before the date of entry into force of this Regulation.
Repeal
They shall be deleted:
1. Government Decree No. 28 / 2006 Coll., on the conditions for the use of the funds of the State Housing Development Fund in the form of a loan to cover part of the costs associated with the modernisation of the apartment by certain persons under 36 years of age.
2. Government Regulation No. 146 / 2006 Coll., amending Government Regulation No. 28 / 2006 Coll., on the terms and conditions for the use of the funds of the State Housing Development Fund in the form of a loan to cover part of the costs associated with the modernisation of the apartment by certain persons under 36 years of age.
3. Part Five of Government Decree No. 98 / 2007 Coll., amending some government regulations on the use of State Housing Development Funds.
4. Government Regulation No. 323 / 2009 Coll., amending Government Regulation No. 28 / 2006 Coll., on the conditions for the use of the funds of the State Housing Development Fund in the form of a loan to cover part of the costs associated with the modernisation of the apartment by certain persons under 36 years of age, as amended.
5. Part Three of Government Decree No. 319 / 2014 Coll., on the use of funds of the State Housing Development Fund in the form of loans for the renewal of dwellings affected by a natural disaster and amending certain government regulations.
6. Government Decree No. 100 / 2016 Coll., on the use of the resources of the State Housing Development Fund in the form of loans for the acquisition of dwellings by persons under 36 years of age caring for a child under 6 years of age.
Efficacy
This Regulation shall enter into force on 15 August 2018.
Prime Minister:
Ing. Babiš v. r.
Minister for Local Development:
Ing. Dostalová v. r.
1) Section 67 of Act No. 254 / 2001 Coll., on Water and on the amendment of certain laws (Water Act), as amended.
2) 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.
3) Act No. 183 / 2006 Coll., on Territorial Planning and Construction Regulations (Construction Act), as amended.
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Regulation Information
| Citation | Government Decree No. 136 / 2018 Coll., on the terms of use of the funds of the State Housing Development Fund in the form of a loan granted for modernisation or acquisition of dwellings |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 09.07.2018 |
|---|---|
| Effective from | 15.08.2018 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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