Government Decree No. 2 / 2021 Coll.
Government regulation on the conditions for the use of funds by the State Fund for Investment Support in the form of a loan to support the construction of rental apartments in the Czech Republic
Valid
Effective from 15.01.2021
2
GOVERNMENT REGULATION
of 21 December 2020
on the terms and conditions for the use of funds by the State Fund for Investment Support in the form of a loan to support the construction of rental apartments in the Czech Republic
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 granting and use of funds by the State Fund for Investment Support ("the Fund ') in the form of a loan to support the construction of rental apartments in the Czech Republic (" the loan').
Definition of terms
For the purposes of this Regulation:
(a) a rental apartment built using a loan to secure the dwelling needs of the tenant of such an apartment and members of its household;
(b) construction
1. new construction of apartments, which will be created by a residential house with rental apartments,
2. Construction Adjustment1), which creates a rental apartment from premises intended for purposes other than housing, excluding construction work in a family house,
3. superstructure or ports1), which creates a rental apartment, excluding superstructures or harbours in a family house,
4. the construction arrangements to be followed by rental apartments eligible for housing in an apartment house in which no apartment is yet eligible for housing; and
5. the construction of an existing rental apartment with a division of at least 1 additional rental apartment eligible for housing;
(c) an adjustable apartment which meets the requirements for wheelchair-free housing under another legislation governing technical requirements for wheelchair-free use of building 2),
(d) the floor area of the rental apartment the sum of the floor areas of all the rooms of the apartment, including the rooms constituting the accessories of the apartment,
(e) net monthly income income determined in the same way and to the same extent as income collected for the purposes of life minima under the Lifelong and Existing Minimum Act;
(f) the average wage of the average gross monthly wage for the national economy collected and published by the Czech Statistical Office.
Credit applicant
The applicant for a loan (hereinafter referred to as the applicant) may be a municipality or other legal or natural person having its registered office or permanent residence 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.
Conditions for granting credit
(1) A loan may be granted if the following conditions are met:
(a) the land on which the construction will be carried out is exclusively owned by the applicant;
(b) on the land on which construction is to be carried out, the lien for the benefit of a third party, with the exception of the lien for the benefit of the Fund, may not be bound;
(c) the building in which the construction pursuant to § 2 (b) (2) to (4) will be carried out is exclusively owned by the applicant;
d) on the building in which the construction will be carried out according to § 2 (b) (b) points 2 to 4 shall not bind a lien for the benefit of a third party, except for the lien for the benefit of the Fund;
(e) the apartment in which the construction works referred to in Article 2 (b) (5) will be carried out is exclusively owned by the applicant;
(f) to the apartment in which the construction works referred to in § 2 (b) will be carried out. (b) point 5 shall not bind a lien for the benefit of a third party, except for the lien for the benefit of the Fund;
(g) construction is authorised or approved under the building law;
(h) the loan must be used in accordance with the financial project;
(i) the applicant does not have, on the date on which the application for credit is submitted, a outstanding balance in relation to the State budget, to the State funds or to the budget of the local authority and does not have a outstanding balance in respect of insurance premiums and periodic penalty payments in respect of public health insurance;
(j) the loan is adequately secured by the lien or further collateral;
(k) the applicant is not or has not been in bankruptcy or liquidation in the last 3 years prior to the application for credit, the bankruptcy of his property has not been cancelled at that time because the property is wholly inadequate and there is no risk of bankruptcy;
(l) the applicant is not the person against whom, or in the last 3 years before the application for credit, enforcement has been conducted;
(m) the applicant has not been convicted of a criminal offence, the nature of which relates to the subject matter of the applicant's activity, the economic offence, the offence against property, the offence of accepting bribery, the offence of bribery or the offence of indirect bribery, unless it is regarded as not being convicted;
(n) the floor area of the rental apartment shall be at least 25 m2 but shall not exceed 90 m2,
o) of each starting 5 rental apartments must be 1 apartment adjustable,
(p) the construction must be completed and capable of being used within 5 years of the date of conclusion of the credit agreement;
(q) construction must take place outside the flood grounds (3).
(2) During construction, the land, building or apartment referred to in paragraph 1 (a) to (f) may not be transferred, without the consent of the Fund, to another or to a lien. A loan may be granted only on condition that the applicant undertakes to comply with these conditions.
(3) A loan may be granted only on condition that the applicant undertakes to comply with the conditions for the conclusion of lease contracts under Section 5 and the conditions for the treatment of rental apartments under Section 6, throughout the agreed period of repayment of the loan. In order to grant the credit, the applicant shall undertake to comply with the conditions set out in points (h) and (p) of paragraph 1.
Conditions for the conclusion of lease contracts
(1) The beneficiary of the loan may conclude a lease contract for the rental apartment only with a natural person who proves that:
(a) the average net monthly income of persons using an apartment in the 12 calendar months preceding the conclusion of the lease contract does not exceed the limit laid down in paragraph 6;
(b) is a person dependent on the assistance of another natural person4) or an invalidity pension for a third-degree invalidity 5),
(c) be deprived of the possibility of living as a result of a natural disaster;
(d) is a person under the age of 30;
(e) is over 65 years of age; or
(f) is a person who has been granted temporary protection in the Czech Republic under the Act on certain measures relating to armed conflict in the territory of Ukraine caused by the invasion of Russian federation9 (hereinafter referred to as "a person with temporary protection").
(2) The beneficiary of the loan shall conclude a lease agreement with the person referred to in paragraph 1 only if, at the date of conclusion of the lease, that person does not have the right of ownership to an apartment, a family home or an apartment, is not a member of a housing cooperative with the right to rent a cooperative flat, nor does he use another apartment or family house by the right to rent or carry on his own account; This condition must be fulfilled by other members of the household who are to live in the apartment. The Fund shall grant an exemption from the restrictions provided for in the first sentence in cases of special consideration, in particular where the lessee or a member of his household owns only an apartment or a family home not suitable for long-term housing, on the basis of a written request from the beneficiary, in which he shall provide evidence of reasons of particular consideration. The exemption shall be granted for a maximum period of 1 year and the lease relationship to which that exemption has been granted shall be concluded for the duration of that exemption.
(3) The beneficiary of the loan shall not make the lease contract for the flat subject to the deposit of funds to cover construction costs or other cash transactions, with the exception of funds to cover the rent and payment for the use of the apartment and to cover other obligations in connection with the rent not exceeding three times the monthly rent and the advance payment for the use of the apartment.
(4) The beneficiary of the loan may conclude a rental contract with only the person referred to in paragraph 1 for a fixed period of no more than 2 years. This person may apply for an extension of the lease not earlier than 3 months and not later than 1 month before the end of that period, but shall continue to fulfil the conditions referred to in paragraph 1 at the date of the application and to fulfil the obligations arising from the lease. With the person referred to in paragraph 1 (e), the borrower shall automatically extend the lease contract if the lessee fulfils the conditions referred to in paragraph 1 and fulfils the obligations arising from the lease of the flat and if the lessee does not notify the borrower of the lease at the latest 1 month before the end of the lease that he does not intend to continue the lease. The beneficiary of the loan shall extend the lease contract but shall not exceed 2 years.
(5) If the municipality in which the rental apartments are located does not propose that the recipient of the loan, within a reasonable period of time following its notification of the vacant rental apartments to that municipality, enter into a lease contract with a natural person meeting the conditions set out in paragraph 1, or the natural person referred to in paragraph 1 refuses to conclude the lease agreement within a reasonable period of time or does not provide synergies for the conclusion of the lease agreement, the beneficiary of the loan may conclude a lease contract with any natural person for a specified period, but not more than one year. This person cannot be renewed or re-concluded with the lease.
(6) The limit for determining revenue referred to in paragraph 1 (a) shall be:
(a) 0,75 times the average wage for a single household;
(b) the average wage in the case of a household with two members;
(c) 1.2 times the average wage for a household with 3 members;
(d) 1,5 times the average wage for a household of 4 members;
(e) 1,8 times the average wage for a household of 5 or more members.
(7) Where the household is not composed only of the persons referred to in paragraph 1 (b) to (e), the household's income shall be collected in accordance with paragraph 6.
(8) Where revenue is collected pursuant to paragraph 6 and the lease was concluded between 1 July and 31 December, the household's net monthly income shall be compared with the average wage for the immediately preceding calendar year; if the lease contract to the flat is concluded between 1 January and 30 June, the net monthly income shall be compared with the average salary for the preceding calendar year.
(9) The beneficiary of the loan shall not conclude a lease contract for the rental apartment if:
(a) by a natural person, with a person approaching (6);
(b) a legal person;
1. with its statutory authority or its member;
2. with a member of its supervisory or management body; or
3. with its founder or associate.
(10) For the period of validity of the Law on certain measures relating to armed conflict in the territory of Ukraine caused by the invasion of Russian federation9), paragraph 2 shall not apply to persons with temporary protection to the first sentence, if applicable, of property rights in the territory of Ukraine, and to the exception allowing the conclusion of a lease contract to be made to an apartment by the deposit of funds for rent and payment of payments in connection with the use of the apartment and other obligations relating to the lease referred to in paragraph 3.
Conditions for the handling of rental apartments
(1) The conditions for the treatment of a rental apartment built using a loan apply throughout the period of repayment of the loan.
(2) The beneficiary of the loan is not entitled for the entire period of repayment of the loan
(a) transfer ownership of the apartment to another person without the consent of the Fund;
(b) burden the rent of the apartment by lien without the consent of the Fund; the exception is the lien in favour of the Fund;
(c) make a change to the use of the rental apartment for purposes other than housing;
(d) to give consent to the leaving of the rental apartment or part thereof in sublease (7); or
(e) allow the use of a rental apartment other than for rental housing.
(3) The Fund shall consent to the transfer of ownership of the apartment referred to in paragraph 2 (a) only if:
(a) the acquirer agrees to take over all the rights and obligations resulting from the credit agreement or from this Regulation;
(b) the transferee fulfils the conditions for granting the credit; and
(c) the transfer of ownership does not impair the collateral provided.
(4) In the event of a transfer of ownership to a rental apartment at the time when it serves the purpose of this Regulation, the person to whom the ownership right has been transferred shall notify the Fund of that fact.
Interest rate amount
(1) The amount of the interest rate is determined as the sum of the basic rate of the European Union applicable to the Czech Republic on the date of conclusion of the credit agreement and the corresponding premium determined according to the current creditworthiness of the borrower and the collateral of the loan.
(2) The amount of the interest rate referred to in paragraph 1 may be reduced to a maximum value where the difference between the contractual interest at the interest rate referred to in paragraph 1 and the contractual interest at the reduced interest rate referred to in this paragraph is not higher than the limit for the granting of small-scale aid under the directly applicable European Union8) for the recipient of the credit over the relevant period.
(3) The interest rate may not be less than 0,5% per year.
(4) If the interest rate is lower than the basic rate of the European Union plus an appropriate premium depending on the creditworthiness of the borrower and on the collateral of the loan, it shall be fixed throughout the repayment period. Where the interest rate is equal to or higher than the basic rate of the European Union plus an appropriate premium depending on the creditworthiness of the borrower and on the collateral of the loan, it shall be fixed for a maximum period of 5 years. For the conversion of the interest rate after the end of the fixation period, but not earlier than 1 January 2021, the European Union standard rate applicable on the date of conversion of the interest rate shall be used, plus an appropriate premium according to the current creditworthiness of the credit beneficiary and the collateral of the credit verified on the date of granting of the credit.
(5) The Fund will publish on its website the level of the basic rate of the European Union for the Czech Republic in accordance with paragraphs 1 and 4 and Article 8 (1) and (2).
(6) The method and method of assessing the creditworthiness of the borrower and the collateral of the loan are determined by the Fund. The method of determining the relevant premium referred to in paragraphs 1 and 4 and in Article 8 (1) and (2) shall be published by the Fund on its website.
Credit amount
(1) If the interest rate is lower than the European Union base rate plus an appropriate premium depending on the creditworthiness of the borrower and on the collateral of the loan, the amount of the loan is limited in accordance with the rules for granting small-scale aid under the directly applicable European Union8).
(2) Where the interest rate is equal to the basic rate of the European Union plus an appropriate premium based on the creditworthiness of the beneficiary of the loan and on the guarantee of the loan, it is not public aid; the limit for the amount of the loan shall be set by the Fund Committee.
(3) The amount of the credit may not exceed 90% of the expenditure relevant for determining the amount of the credit.
(4) The expenditure relevant for determining the amount of the loan shall include investment costs for construction and may include part of the purchase price of the land or existing buildings identified by the expert. Part of the price of the land may not exceed 10% of the expenditure relevant for determining the amount of the loan.
Credit application
(1) Applications for credit are submitted to the Fund.
(2) The application for credit contains:
(a) the name and, where applicable, the name, surname, address of the place of permanent residence and date of birth, if the applicant is a natural person;
(b) the name or, where applicable, the name, surname, business name or place of business, if different from the address of the permanent residence, if the applicant is a natural person,
(c) a business name or registered office, if the applicant is a legal person.
(3) The applicant shall accompany the application for credit:
(a) proof that the applicant does not have a supplement registered
1. the authorities of the Financial Administration of the Czech Republic and the authorities of the Customs Administration of the Czech Republic,
2. insurance premiums and periodic penalty payments for public health insurance; and
3. insurance premiums and social security periodic penalty payments and contributions to national employment policy;
(b) a statement by the applicant that, at the time of the application, the applicant is not in bankruptcy or liquidation or is not in danger of bankruptcy or bankruptcy, the bankruptcy of his property was not cancelled at that time because the property was wholly inadequate and neither was enforcement of the decision against the applicant at that time;
(c) a statement by the applicant that he has not been convicted of an offence the nature of which relates to the subject of the applicant's activity, an economic offence, an offence against property, an offence of acceptance of a bribe, an offence of bribery or an offence of indirect bribery; a person who has not been convicted of a criminal offence shall also be considered to have been treated as having not been convicted under the Criminal Code,
(d) a financial project containing the budgetary costs of building rental apartments, data showing the price of the land and the price of the building in the case of construction modifications, financial coverage of the total budget costs including the envisaged loan, the number and floor area of each rental apartment and the floor area of non-residential premises; and
(e) a summary technical report indicating the number of rental apartments and the ground floor features of each floor with the designation of all rental apartments and the designation of adjustable flats.
(4) The Fund may request additional documents to assess the purpose of the loan and the applicant's ability to repay the loan as appropriate.
(5) If the request for a loan is incomplete, the Fund shall invite the applicant within 30 days of the date of receipt of the request for a loan to complete it within the time limit set by the Fund. If the applicant fails to complete the required information within the prescribed time limit, the credit agreement cannot be concluded.
(6) After prior evaluation of the application, the applicant shall, at the request of the Fund:
(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 of the construction, unless the applicant himself carries out the construction;
(c) for construction pursuant to § 2 (b). (b) point 4 of the opinion of an authorized engineer in the field of ground construction, an expert opinion prepared by an expert in the field of ground construction, or an opinion of an authorized engineer in the field of statics and the dynamics of the buildings evidencing the ineligibility of the housing building; and
(d) a statement by the competent authority of the water authority that the land on which the construction of rental apartments is to be carried out is not located in the flood area.
Credit agreement
(1) If the conditions laid down in this Regulation are met and the Fund has the funds for granting the credit, it may submit a draft credit agreement to the applicant no later than 60 days after the date of receipt of the complete application.
(2) The credit agreement must contain a contractual fine arrangement in particular in the event that the beneficiary is late in paying the instalments of the loan at the agreed amount or fails to comply with the conditions set out in paragraphs 4 to 6.
(3) If the Fund does not grant a loan, it shall notify the applicant in writing without undue delay.
Drawing and repayment of credit
(1) The beneficiary of the loan must start drawing on the loan within 6 months of the date of entry into force of the credit agreement.
(2) The loan is due at the time agreed in the credit agreement. The repayment period shall be at least 10 years and not more than 30 years from the date of completion of the construction. The loan outstanding at the agreed time shall be remunerated at the interest on late payment and at the interest rate fixed in accordance with Article 7 (1). The amount of interest on late payment may be negotiated in a contract and shall not be contrary to good manners.
(3) The loan is repaid by regular monthly instalments involving the repayment of principal and interest on the account referred to in the credit agreement.
(4) At the request of the beneficiary, the Fund may adjust the repayment period.
(5) The Fund may withdraw from the credit agreement,
(a) if the recipient of the credit 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 Fund's written call for payment;
(b) if the recipient of the credit is late in paying the monthly instalment of the loan at the agreed amount during the 12 consecutive months at least three times; or
(c) if the recipient of the credit fails to comply with the conditions set out in Sections 4 to 6 or if it becomes clear that the applicant has infringed or communicated false or incomplete information pursuant to Section 9.
(6) The Fund shall agree with the applicant on the possibility of withdrawing from the credit agreement for the reasons set out in paragraph 5. If the loan applicant does not agree, the loan cannot be granted.
(7) In the event that the Fund withdraws from the credit agreement, it shall invite the beneficiary of the loan to repay the amount due immediately and shall not pay the outstanding part of the loan.
Transitional provisions
(1) Contracts concluded by the State Housing Development Fund pursuant to Government Regulation No 284 / 2011 Coll., on the terms and conditions for granting and using the funds of the State Housing Development Fund in the form of a loan to support the construction of rental apartments in the Czech Republic, as effective before the date of entry into force of this Regulation, are considered to be contracts concluded by the State Investment Support Fund.
(2) Legal relations arising under Government Decree No. 481 / 2000 Coll., as effective before the date of entry into force of Government Decree No. 78 / 2016 Coll., as well as the rights and obligations arising therefrom, are governed by Government Decree No. 481 / 2000 Coll., as effective before the date of entry into force of Government Decree No. 78 / 2016 Coll. Legal relationships arising under Government Decree No. 146 / 2003 Coll., as effective before the date of the entry into force of Government Decree No. 78 / 2016 Coll., as well as the rights and obligations arising therefrom, shall be governed by Government Decree No. 146 / 2003 Coll., as effective before the date of entry into force of Government Decree No. 78 / 2016 Coll. Legal relations arising under Government Regulation No 333 / 2009 Coll., as effective before the date of entry into force of Government Regulation No 78 / 2016 Coll., as well as the rights and obligations arising therefrom, shall be governed by Government Regulation No 333 / 2009 Coll., as effective before the date of entry into force of Government Regulation No 78 / 2016 Coll.
(3) The legal relationships arising under Government Decree No. 284 / 2011 Coll., as effective before the date of entry into force of Government Decree No. 268 / 2012 Coll., as well as the rights and obligations arising therefrom, are governed by Government Decree No. 284 / 2011 Coll., as effective before the date of entry into force of Government Decree No. 268 / 2012 Coll.
(4) Legal relations arising under Government Decree No. 284 / 2011 Coll., as effective from the date of entry into force of Government Decree No. 268 / 2012 Coll., as well as the rights and obligations arising therefrom, are governed by Government Decree No. 284 / 2011 Coll., as effective from the date of entry into force of Government Decree No. 268 / 2012 Coll.
(5) Legal relationships arising under Government Regulation No 284 / 2011 Coll., as effective from the date of entry into force of Government Regulation No. 78 / 2016 Coll., as well as the rights and obligations arising therefrom, are governed by Government Regulation No. 284 / 2011 Coll., as effective before the date of entry into force of this Regulation.
(6) Where a credit agreement has been concluded pursuant to Government Regulation No 284 / 2011 Coll., as effective before the date of entry into force of this Regulation, the conditions for the conversion of the interest rate pursuant to § 7 (2) of the last sentence of Government Regulation No 284 / 2011 Coll., as effective before the date of entry into force of this Regulation, and after the expiry of the period of fixation to take place after 1 January 2021, are governed by this Regulation.
(7) Where a credit agreement has been concluded pursuant to Government Regulation No 284 / 2011 Coll., as effective before the date of entry into force of this Regulation, the conditions for the transfer and encumbrance of the property shall be governed by the lien law at the time of construction, if construction takes place after 1 January 2021, pursuant to Article 4 (2) of this Regulation.
(8) Where a credit agreement has been concluded pursuant to Government Regulation No 284 / 2011 Coll., as effective before the date of entry into force of this Regulation, the conditions for the conclusion of rental contracts concluded by the beneficiary after 1 January 2021, pursuant to Article 5 of this Regulation, shall apply.
(9) Applications for credit submitted under Government Regulation No 284 / 2011 Coll., as effective before the date of entry into force of this Regulation, shall be assessed under this Regulation.
Repeal
They shall be deleted:
1. Government Decree No. 284 / 2011 Coll., on the terms and conditions of the provision and use of funds of the State Housing Development Fund in the form of a loan to support the construction of rental apartments in the Czech Republic.
2. Government Decree No. 268 / 2012 Coll., amending Government Decree No. 284 / 2011 Coll., on the conditions for granting and using the funds of the State Housing Development Fund in the form of a loan to support the construction of rental apartments in the Czech Republic.
3. Government Decree No. 78 / 2016 Coll., amending Government Decree No. 284 / 2011 Coll., on the conditions for granting and using the funds of the State Housing Development Fund in the form of a loan to support the construction of rental apartments in the Czech Republic, as amended by Government Decree No. 268 / 2012 Coll., and repealing certain government regulations.
Efficacy
This Regulation shall enter into force on 15 January 2021.
Prime Minister:
Ing. Babiš v. r.
Minister for Local Development:
Ing. Dostalová v. r.
1) Paragraph 2 (5) of Act No. 183 / 2006 Coll., on Territorial Planning and Construction Regulations (Construction Act), as amended.
2) Decree No. 398 / 2009 Coll., on general technical requirements to ensure the barrier-free use of buildings.
3) Paragraph 66 of Act No. 254 / 2001 Coll., on Water and on the amendment of certain laws (Water Act), as amended. Decree No. 79 / 2018 Coll., on the method and extent of processing of design and setting of flood areas and their documentation.
4) Act No. 108 / 2006 Coll., on Social Services, as amended.
5) Act No. 155 / 1995 Coll., on Pension Insurance, as amended.
6) § 22 of the Civil Code.
7) § 2275 of the Civil Code.
8) 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.
9) Act No. 65 / 2022 Coll., on certain measures relating to armed conflict in Ukraine caused by the invasion of Russian troops.
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Regulation Information
| Citation | Government Decree No. 2 / 2021 Coll., on the Terms and Conditions of Use of Funds of the State Fund for Investment Promotion in the form of a loan to support the construction of rental apartments in the Czech Republic |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 07.01.2021 |
|---|---|
| Effective from | 15.01.2021 |
| Effective until | - |
| Status | Valid |
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