Government Decree No. 148 / 1997 Coll.
Government regulation on the granting of interest-free housing loan
Valid
Regulation
Effective from 01.07.1997
148
GOVERNMENT REGULATION
of 12 June 1997
on the granting of an interest-free loan for residential construction
The Government mandates the implementation of the Act of the Czech National Council No. 576 / 1990 Coll., on the Rules of Management of the Budget Funds of the Czech Republic and of the Municipality of the Czech Republic (Budget Rules of the Republic), as amended by the Act of the Czech National Council No. 579 / 1991 Coll., Act of the Czech National Council No. 166 / 1992 Coll., Act of the Czech National Council No. 321 / 1992 Coll., Act No. 160 / 1995 Coll.:
(1) This Regulation provides for the granting of financial assistance for the acquisition of an apartment in the form of an interest-free loan from the State budget (hereinafter referred to as "the loan ').
(2) The loan is granted to natural persons who are citizens of the Czech Republic who are resident in its territory and do not carry out residential construction in the framework of their business activities (hereinafter referred to as "the citizen").
(1) A loan may be granted to a civil who is a builder for the acquisition of an apartment into its possession. The purchase of an apartment means:
(a) construction of a family home (1) or an apartment owned by a special rule, 2)
(b) a change in the construction of a family house which, without the use of existing living rooms, will be given a new separate apartment;
(c) a change to another building which, without the use of any existing residential rooms, will be acquired by a new separate apartment;
(d) construction work on non-residential spaces or superstructures, extension or construction of soil spaces, where appropriate, to obtain a new separate apartment owned under the special regulation.2)
(2) The loan may also be granted to a citizen who has acquired ownership of the new structure referred to in paragraph 1 from the builder no later than one year after the legal power of the approval decision.
Conditions for granting the loan
A loan under this Regulation may be granted at the request of a citizen (the applicant) under the following conditions:
a) the construction is located in the Czech Republic,
(b) the construction was started on the basis of a building permit (3) issued from 1 July 1997;
(c) an apartment of at least 34 m2 of floor space will be obtained,
(d) neither the applicant nor his husband has yet received an individual housing or modernisation allowance under the special regulations (5) or a loan for the acquisition of an apartment under this Regulation; where that contribution or loan has been received, a loan under this Regulation may be granted if it has repaid the previous contribution or loan;
(e) the applicant shall, at the latest with the acquisition of ownership of the building, become the owner or co-owner of the land built;
(f) the applicant is less than 52 years of age or that age in the year of the conclusion of the loan agreement reached;
(g) the average monetary income of the applicant and the persons jointly assessed with him shall not exceed the product of the amounts of the minimum life and coefficient of 4,00;
1. the amounts of the life minima shall be determined in accordance with the Specific Life Minimum Code, 6)
2. For the purposes of this Regulation, the applicant and the persons concerned shall be considered as family; if there is no such person, the applicant himself shall be considered a family;
3. spouses, dependent children and parents of unmarried children, including persons to whom undependent children have been entrusted in the care of parents, on the basis of a decision of the court, the spouse of the parent or the said person, the widower or the widow of the parent or the said person, shall be considered to be the persons to whom they have been entrusted, provided that such persons live together permanently in a common household;
4. the average monetary income shall be determined as the monthly average of the family's income over the relevant period;
5. The operative period for which income is collected shall be the calendar year preceding the calendar year in which the applications lodged during the period 1 July of the calendar year concerned, up to 30 June of the following calendar year,
6. For the purposes of this Regulation, the income referred to in Articles 5 (2) (a) to (f) and 5 (6) of the Act on State Social Support shall be regarded as income, 7) of the child allowance, the parental allowance and the provision allowance provided for in the Act on State Social Support. 7)
Conditions for the use of the loan
(1) The applicant referred to in Paragraph 2 (1) may use the loan funds only under the following conditions:
(a) carry out construction in accordance with the building permit in such a way as to satisfy the condition set out in Section 3 (c);
(b) the construction shall be completed in such a way that the approval decision becomes final within five years of the date of the legal authorisation;
(c) the construction will be financed through a mortgage bank8) or a building safety9) (hereinafter the "financing bank");
(d) use the mortgage loan granted by the mortgage bank or the loan granted by the building savings facility of at least CZK 100,000 to cover the costs of the construction or its purchase price (hereinafter referred to as the "building price");
(e) the loan is used only to cover the cost of the construction;
(f) a family house or an apartment owned pursuant to a special regulation, (2) or a co-ownership interest in the construction referred to in Article 2 (1) (b) and (c) (hereinafter referred to as the "family house or apartment") shall be owned or co-owned by it until the repayment of the loan and shall be used for permanent residence until that date.
(2) The applicant referred to in § 2 (2) may use the loan funds only under the conditions referred to in paragraph 1 (c) to (f).
Amount of the loan
(1) The loan can amount to a maximum of CZK 200,000 per apartment and is provided in the amount of CZK 50,000 per apartment without regard to its size and in the amount of CZK 3,000 per m2 of floor area, but not per 50 m2. The floor area of the flat shall be rounded down to the whole square metres for the purpose of calculating the amount of the loan. The area of an apartment exceeding 50 m2 shall not be taken into account.
(2) If several builders are building a house with several apartments together, a loan may be granted to each of them; the number of loans shall not exceed the number of flats built. The above conditions apply mutatis mutandis to the buyer of the family home or apartment.
(3) Only one loan can be granted to the spouses.
Procedure for granting the loan
(1) The loan can be granted on the basis of a written request submitted to the selected bank10 (hereinafter referred to as the "mandated bank"). The mandated bank shall forward the applications together with documents confirming compliance with the conditions for granting the loan to the Ministry of Regional Development, which shall decide on the application.
(2) There is no legal entitlement to the loan. The provisions of the Administrative Management Act (11) shall not apply to decisions on granting the loan.
(3) On the basis of the decision granting the loan, the entrusted bank shall transfer the amount of the loan into an interest-free account with the financing bank.
Loan maturity
(1) The loan is due no later than 20 years after the decision to grant it. The period of repayment of the loan may be up to a maximum of 10 years and may be postponed until a maximum of 10 years after the conclusion of the contract. The loan shall be repaid no later than the end of the year in which the applicant reaches 62 years of age.
(2) The loan is repaid by monthly instalments to the account of the entrusted bank. The amount of monthly instalments shall be at least equal to the average amount of the instalment in regular monthly instalments.
Payment and use of the loan
(1) The amounts used for the granting of loans and the funds repaid or, where appropriate, the amounts of loans repaid shall be settled by the entrusted bank with a State budget.
(2) The funds in the interest-free account of the financing bank may only be used by the citizen to cover the price of the family home or apartment within two years of the decision granting the loan. In the case of the mobilisation of funds, the financing bank shall proceed in a similar manner to the mobilisation of the mortgage loan or loan granted in accordance with the special regulations on building safe9) and with the purpose set out in Section 2.
(3) If the loan is not used up for the purpose referred to in paragraph 2 within two years of the decision to grant it, the financing bank entrusted to the bank shall notify it and repay the outstanding funds.
(4) The applicant shall immediately repay the loan if it fails to comply with one of the conditions set out in Sections 3 and 4 and if, before the expiry of the period laid down in Section 4 (1) (f), it ceases to be the owner of the family home or apartment.
(5) Where the owner of a family home or apartment with an agreement between the spouses (12) or, after the death of the spouse, the spouse of the citizen to whom the loan was granted shall not be required to repay the loan without delay if the new owner of the family home or apartment fulfils the conditions for granting the loan under this Regulation and assumes the obligations of the original applicant within the meaning of § 3 and 4. However, the original repayment period may not be exceeded if the new owner is older than the citizen to whom the loan has been granted, the repayment period or the remainder of the loan must be adjusted so that the loan is repaid no later than the end of the year in which the new owner reaches 62 years of age. The transfer of ownership of a family home or an apartment by inheritance shall be treated in a similar manner to the fact that the conditions for granting a loan under this Regulation are not required for the new owner.
(6) If the applicant ceases to own a family house or apartment before the expiry of the period referred to in Article 4 (1) (f), but at the earliest five years after the decision to grant the loan, and at the same time not earlier than five years after the legal power of the approval decision, and not before the expiry of the period referred to in paragraph 5, the repayment of the loan shall not be required if the owner of the family house or apartment becomes a person who fulfils the conditions for granting the loan under this Regulation. The condition is that the new owner takes over the liabilities of the original applicant. However, the repayment period for the loan or the remainder thereof shall be fixed so that the loan is repaid no later than the end of the year in which the new owner of the family home or apartment reaches 62 years of age.
Range of loans
Loans may be granted only up to the amount of the appropriations allocated for this purpose in the State Budget Act for the year in question.
Control of compliance
(1) Territorial Financial Offices 13) carry out checks on compliance with the conditions for granting loans laid down in this Regulation.
(2) In the event that the loan is found to have been drawn, used or repaid in breach of this Regulation, the Financial Office shall order the funds unduly drawn, used or withheld to be transferred to the State budget and shall impose periodic penalty payments in accordance with a special rule. 14)
(3) The administration of funds used to cover loans under this Regulation shall be treated in a similar manner to the administration of subsidies under a specific regulation. 15)
Efficacy
This Regulation shall enter into force on 1 July 1997.
Prime Minister:
Prof. Ing. Klaus CSc.
Minister for Local Development:
Ing. Quapil v. r.
Minister of Finance:
Ing. Pilip v. r.
1) § 44 (1) of Decree No. 83 / 1976 Coll., on General Technical Requirements for Construction, as amended.
2) Act No. 72 / 1994 Coll., which regulates certain joint ownership relations with buildings and certain ownership relationships with apartments and non-residential premises and complements certain laws (the Housing Act), as amended.
3) Section 66 of Act No. 50 / 1976 Coll., on Territorial Planning and Construction Regulations (Construction Act).
5) In particular the Decree of the Federal Ministry of Finance, the Ministry of Finance of the Czech Republic, the Ministry of Finance of the SSR and the President of the State Bank of Czechoslovak No. 136 / 1985 Coll., on financial, credit and other assistance to cooperative and individual housing construction and modernisation of family houses in personal ownership, as amended.
6) Act No. 463 / 1991 Coll., on Life Minimum, as amended.
7) Act No. 117 / 1995 Coll., on State Social Support, as amended.
8) Act No. 21 / 1992 Coll., on Banks, as amended. Act No. 530 / 1990 Coll., on Bonds, as amended.
9) Act No. 96 / 1993 Coll., on Construction Savings and State Support of Construction Savings and Addition of the Act of the Czech National Council No. 586 / 1992 Coll., on Income Tax, as amended by the Act of the Czech National Council No. 35 / 1993 Coll., as amended by Act No. 83 / 1995 Coll.
10) Act No. 199 / 1994 Coll., on Public Procurement, as amended by Act No. 148 / 1996 Coll.
11) Act No. 71 / 1967 Coll., on Administrative Procedure (Administrative Regulations).
12) Article 143a of the Civil Code.
13) Act No. 531 / 1990 Coll., on Territorial Financial Bodies, as amended.
14) § 30 of the ČNR Act No. 576 / 1990 Coll., on the Rules of Management of the Budget Funds of the Czech Republic and the Municipality of the Czech Republic (Budget Rules of the Republic).
15) Act No. 337 / 1992 Coll., on the Administration of Taxes and Fees, as amended.
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Regulation Information
| Citation | Government Decree No. 148 / 1997 Coll., on the granting of interest-free loans for residential construction |
|---|---|
| Regulation Type | Regulation |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 30.06.1997 |
|---|---|
| Effective from | 01.07.1997 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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