Government Decree No. 244 / 1995 Coll.
Government regulation laying down conditions for State financial support for mortgage lending for housing
Valid
Regulation
Effective from 26.10.1995
Contents
244
GOVERNMENT REGULATION
of 11 October 1995
laying down conditions for State financial support for mortgage lending for housing
The Government orders the implementation of the Act on Rules of Management of the Budget Funds of the Czech Republic and the Municipality of the Czech Republic (Budget Rules of the Republic): 1)
Contributions to natural persons
(1) In order to promote the construction and acquisition of residential houses, (2) family homes (3) or (4) funded by mortgage loans (5), contributions from the State budget are made to natural persons who do not carry out residential construction in the framework of their business activities, are citizens of the Czech Republic and have permanent residence on their territory (hereinafter referred to as "natural person").
(2) The contribution shall be granted on the basis of a request for a contribution submitted by the mortgage bank client, 6) with which the mortgage bank client has a mortgage loan contract. The application shall be submitted to the mortgage bank no later than four years after the end of the mortgage loan.
(3) The contribution for the preceding month shall be transferred to the client of the mortgage bank by the end of the following month.
Conditions for granting a contribution to natural persons
(1) The contribution shall be granted from the start of repayment of the mortgage credit, provided that the natural person applies it:
(a) to the construction of an apartment building, a family house, an apartment or a change in a building which will result in a new apartment from the premises ineligible for housing, where such premises have never been an apartment, or from premises serving purposes other than housing, including a superstructure, a loft or an extension where construction is carried out in the territory of the Czech Republic and the approval decision will become legal within four years from the date of the acquisition of the legal power of the building permit or the completion of a built-up apartment, a family house or an apartment, the construction of which began before 26 October 1995, provided that the approval decision becomes legal power by the end of 2000 at the latest;
(b) purchase of a house, family house or apartment newly built, if the purchase contract is concluded no later than two years after the legal power of the approval decision, provided that no contribution or subsidies under this Regulation have been granted for their construction;
(c) purchase and completion of a built-in apartment, 6a) family house or apartment, 6b) if the construction is carried out on the territory of the Czech Republic and the approval decision becomes legal within two years of the conclusion of the purchase contract between the builder and the buyer, provided that no contribution or subsidies have already been granted for their construction under this Regulation;
(d) to repay the loan agreed after 1 January 1995 for the purposes set out in point (a) for financing the initial construction period, provided that no contribution or subsidy has already been granted under this Regulation.
(2) Where the conditions referred to in paragraph 1 (a), (b) and (c) are met, the contribution may also be granted to a mortgage loan agreed after 1 January 1995 even if it has paid off the loan secured by the mortgage on the property agreed after 1 January 1995.
(3) The contribution may be granted for the construction of one or more flats; However, only one allowance may be granted for the same flat.
(4) The collateral for the loan must be mainly the house or apartment purchased; other property may be stopped.
(5) No change in the use of an apartment for purposes other than housing shall be made during the duration of the allowance. 7)
(6) If the transfer or transfer of ownership of the house, family house or apartment, including the built-up buildings, is made to another natural person, the grant shall be granted to the acquirer if the acquirer also takes over the obligation to repay the mortgage. If the acquirer has repaid the original mortgage loan with a new mortgage loan, the contribution shall be granted to the new mortgage loan. However, the cumulative duration of the contribution may not exceed 20 years.
(7) The contribution can only be granted for mortgage loans in Czech currency. If the bank uses foreign sources to finance the loan, the contribution may be granted only if the bank does not transfer the exchange rate risk to the borrower.
(8) The contribution shall not apply to loans granted by the building savings scheme under the building savings regulations. 8)
SUBSIDY TO CITIZENS AND BEAIRS
(1) In order to promote the construction and acquisition of residential houses, family houses or flats financed in whole or in part from mortgage loans (5), grants to municipalities in the Czech Republic and housing cooperatives located in the Czech Republic which do not carry out residential construction in the framework of their business activities are granted from the state budget.
(2) The subsidy shall be granted on the basis of an application submitted by the municipality or housing cooperative to the mortgage bank, (6) with which the municipality or housing cooperative has a credit agreement. The application shall be submitted to the mortgage bank no later than four years after the end of the mortgage loan.
(3) The subsidy for the previous month shall be transferred to the municipality or housing cooperative by the end of the following month.
Conditions for granting aid to municipalities and housing cooperatives
(1) The subsidy is granted from the start of the mortgage loan, provided that the municipality or housing cooperative applies it:
(a) to the construction of an apartment building, a family house, an apartment or a change in a building which will result in a new apartment from the premises ineligible for housing, where such premises have never been an apartment, or from premises serving purposes other than housing, including a superstructure, a loft or an extension where construction is carried out in the territory of the Czech Republic and the approval decision will become legal within four years from the date of the acquisition of the legal power of the building permit or the completion of a built-up apartment, a family house or an apartment, the construction of which began before 26 October 1995, provided that the approval decision becomes legal power by the end of 2000 at the latest;
(b) purchase of a house, family house or apartment newly built, if the purchase contract is concluded no later than two years after the legal power of the approval decision, provided that no contribution or subsidies under this Regulation have been granted for their construction;
(c) the purchase and completion of a built-in house, family house or apartment, provided that the construction is carried out in the Czech Republic and the approval decision becomes legal within two years of the conclusion of the purchase contract between the builder and the buyer, provided that no contribution or subsidies have been granted for their construction under this Regulation;
(d) to repay the loan agreed after 1 January 1995 for the purposes set out in point (a) to finance the initial construction period, provided that no contribution or subsidy under this Regulation has already been granted for the repayment of the loan.
(2) If the conditions referred to in paragraph 1 (a), (b) and (c) are met, the grant may also be granted for a mortgage loan agreed after 1 January 1995 even if it has paid up a loan secured by a mortgage on a property agreed after 1 January 1995.
(3) The subsidy may be granted for the construction of one or more flats; However, only one subsidy may be granted for the same flat.
(4) The collateral for the loan must be mainly the house or apartment purchased; other property may be stopped.
(5) During the duration of the grant, there shall be no change in the use of the flat for purposes other than housing.
(6) If the transfer or transfer of ownership of a house, family house or apartment, including buildings built up, is made to another legal person or natural person who does not carry out residential construction in the course of his business, the grant shall be granted to the acquirer if the acquirer also takes over the obligation to repay the mortgage. If the acquirer has repaid the original mortgage loan with a new mortgage loan, the contribution or subsidy shall be granted for the new mortgage loan. However, the cumulative duration of the grant or subsidy may not exceed 20 years.
(7) The subsidy will not be granted if the mortgage loan is granted in a foreign currency or if the bank transfers the mortgage loan to the recipient provided in CZK the exchange rate risk.
(8) The subsidy does not apply to loans granted by the building savings scheme under the construction savings rules. 8)
SUBSIDY BY LEGAL PERSONS NOT INCLUDED IN ARTICLE 2a AND 2b AND BY PHYSICAL PERSONS IMPLEMENTING AN INVESTMENT IN THEIR UNDERTAKING ACTIVITIES
(1) In order to promote the construction and acquisition of residential houses, family houses or flats financed in whole or in part from mortgage loans, legal persons other than those referred to in § 2a and 2b and natural persons carrying out residential construction in the framework of their business activities (hereinafter referred to as "other persons") may be granted subsidies from the State budget if they are resident or registered in the Czech Republic.
(2) The subsidy for the preceding month shall be transferred to other persons by the end of the following month.
(3) The subsidy may be granted at the request of other persons. The application shall be submitted to the mortgage bank no later than four years after the end of the mortgage loan.
Conditions for granting grants to other persons
(1) The subsidy may be granted from the beginning of the repayment of the mortgage credit on condition that the mortgage loan is used for the construction of an apartment house, a family house, an apartment or a change in the construction of a new apartment, if these premises have never been an apartment, or for premises serving purposes other than housing, including a superstructure, an attic or an extension where the construction takes place in the territory of the Czech Republic and the approval decision is issued no later than four years from the date of acquisition of the legal power of the building permit, or the completion of a built-up building house, a family house or apartment which was started before 26 October 1995, if the building decision becomes legal before the end of 1999.
(2) The subsidy may be granted for the construction of one or more flats; However, only one subsidy may be granted for the same flat.
(3) The object of the pledge to the mortgage loan provided must be primarily the building or the apartment; other property may be stopped.
(4) During the duration of the grant, there shall be no change in the use of the flat for purposes other than housing. 7)
(5) In the event of a transfer or transfer of ownership of a house, family house or apartment, including built-up buildings, to another person, the grant shall be granted to the acquirer, provided that the acquirer at the same time takes over the obligation to repay the loan by contract. In the event that another person to whom the house, family house or apartment was transferred or transferred, including the built-up buildings, has repaid the original loan with a new mortgage loan, the grant shall be granted for a new mortgage loan. However, the cumulative duration of the grant may not exceed 20 years.
(6) The subsidy can only be granted for loans in Czech currency. If the bank uses foreign sources to finance the mortgage loan, the subsidy may be granted only if the bank does not transfer the exchange rate risk to the borrower.
(7) The subsidy does not apply to loans granted by the building saver under the construction savings regulations. 8)
(1) The subsidy may be used at the end of a calendar year for that part of the total amount of the funds allocated in the State budget to support mortgage lending for residential construction, which will not be used by the end of that year to satisfy the claims of natural persons on the contribution and municipalities and housing cooperatives on the subsidy.
(2) The funds referred to in paragraph 1 shall be allocated by the Ministry of Local Development (hereinafter referred to as "the Ministry") to individual mortgage banks. The basis for the split will be the data transmitted by the mortgage banks to the Ministry concerning the subsidy applications for loans which were simultaneously completed by the date of the submission of the data and the fulfilment of all the conditions for the conclusion of the grant contract. Mortgages banks shall transmit the data by 15 October of the current year.
(3) The Ministry shall determine the order of applications according to:
(a) the dates of conclusion of the mortgage credit agreement;
(b) the date of receipt by the mortgage bank of the application;
(c) the dates of the first instalment of the loan after the end of the credit draw-off
and provide the individual mortgage banks with a summary of the applications that have been satisfied from the available State budget funds.
(4) If, for reasons on the part of the client, the grant contract is not concluded no later than three months after the date of receipt of the mortgage bank's invitation to conclude the contract, the grant shall not be granted; However, the grant may be granted to the client on the subsequent distribution of the State budget funds.
(5) The mortgage bank cannot conclude a grant contract without the prior approval of the Ministry.
(6) If the mortgage bank has concluded a grant agreement without the consent of the Ministry, that agreement is invalid.
(7) The subsidy will be paid to the extent specified in the grant contract since the mortgage bank entered into the grant contract with the client.
(8) The client of the mortgage bank does not qualify for payment of the subsidy for the period during which he paid the loan before the conclusion of the grant contract. The conditions for repayment of the loan are also not changed.
Scope of contributions and subsidies
(1) The contribution or subsidy (hereinafter referred to as "the aid ') shall be guaranteed throughout the period of repayment of the mortgage credit but shall not exceed 20 years, unless otherwise specified.
(2) Aid for the monthly instalment shall be granted at an amount which shall be determined by:
(a) for mortgage credit agreements, where the mortgage credit is drawn between 26 October 1995 and 26 October 1998, as the difference between the amount of the normal interest payment and the amount of the interest payment reduced by four percentage points; This amount of aid is guaranteed until 26 October 2000. The same applies to the loans referred to in § 2 (2),
(b) for mortgage credit agreements, where the mortgage credit is drawn after 26 October 1998, as the difference between the amount of the normal interest payment and the amount of the interest payment reduced by percentage points, the number of which depends on the average interest rate on the amount of mortgage banks' loans granted to natural persons under newly concluded mortgage credit agreements supported under this Regulation in the previous year. The average rate of interest shall be published by the Ministry in public information. The adjustment shall be made on 1 February of the calendar year concerned as follows:
1. at an average interest rate of 10% and more than four percentage points,
2. at an average interest rate of less than 10% and more than or equal to 9%, three percentage points;
3. at an average interest rate of less than 9% and more than or equal to 8%, two percentage points;
4. at an average interest rate of less than 8% and more than or equal to 7%, one percentage point;
5. at an average interest rate of less than 7%, no aid shall be granted.
(3) In determining the amount of the instalment referred to in paragraph 2, it shall be based on the actual maturity of the mortgage credit; if its maturity exceeds 20 years, the amount of the instalment shall be based on the maturity of 20 years.
(4) The amount of aid for contracts referred to in paragraph 2 (b) and after 25 October 2000 also applies to contracts referred to in paragraph 2 (a) for the period of validity of the interest rate agreed by the mortgage bank in the credit agreement, but for a maximum period of five years. On expiry of the interest rate of the mortgage bank, no later than five years, the aid amount shall be determined according to the aid intensity for the relevant period referred to in paragraph 2 (b).
(5) The basis for calculating the amount of aid referred to in paragraph 2 shall be the state of the principal at the date on which the credit is withdrawn.
(6) The aid referred to in paragraph 2 shall cover a mortgage loan or part thereof, the amount of which shall not exceed:
(a) 1.5 million CZK, if the loan is granted for the construction or purchase of a family house with one flat,
b) CZK 2 million, if the loan is granted for the construction or purchase of a family house with two apartments,
c) 12,000 CZK per m2 floor area of the apartment, but not more than 800,000 CZK per apartment in an apartment or family house with more than two apartments,
(d) 12,000 CZK per 1 m2 floor area of the apartment, up to a maximum of 800,000 CZK per apartment, provided that a new apartment with a floor area of at least 40 m2 is created by building, building, soil superstructure or building modifications according to § 2 (1) (a).
(7) The limit laid down in paragraph 6 (a) to (c) is increased by CZK 200 000 if the mortgage loan is also used for the purchase of the land for construction. Limit increases by this amount regardless of the number of apartments in the house.
(8) If the mortgage credit exceeds the limit referred to in paragraph 6 or, where applicable, the limit referred to in paragraph 7, the aid shall not be granted for a part of the loan exceeding the limits.
(9) The volume of loans granted under the construction savings regulations shall not be counted against the limits set out in paragraphs 6 and 7.
(10) If the house, family house or apartment for which the aid has been granted is destroyed, no aid shall be granted.
Suspension of aid at the time of granting of the aid under the contract for the interruption of the repayment of the loan
(1) For the purposes of this Regulation, suspension shall mean the non-payment of a regular monthly instalment by the client at the agreed amount and date, without prior agreement with the mortgage bank.
(2) The State does not bear or participate in the cost of the customer's interruption.
(3) If payment is interrupted, payment of the aid shall be suspended.
(4) If the period of interruption of the mortgage loan by the client does not exceed six months and if all payments are repaid for the period of interruption and the arrangement of the contractual relationship with the mortgage bank resulting in no change in the total maturity of the loan agreed in the original mortgage loan contract, the payment of the aid shall continue to the same extent. The suspended aid will be transferred by the mortgage bank to the client's account for the entire period of interruption of the non-interest payment for the duration of the suspension, together with the payment of the aid to the repayment that the client has renewed.
(5) If the period of interruption of the mortgage loan by the client does not exceed six months and if the contract relationship with the mortgage bank and the client again starts to pay the mortgage loan, but does not complete all the instalments, or if the period of interruption exceeds six months, the mortgage bank shall proceed to calculate the balance of the loan at the date of interruption of the mortgage loan and to determine the remaining number of periods for payment of the aid, but shall not exceed 240 months from the first instalment after the agreed termination of the mortgage loan; for this period, it shall calculate the amount of aid for a regular instalment.
(6) The aid calculated in accordance with paragraph 5 shall be granted for the remaining period of repayment of the credit but shall not exceed the end of the 240th month of grant of the aid.
(7) If the client who has acquired ownership of the immovable property through inheritance begins to fulfil the obligations arising from the mortgage credit agreements in the modified scope and changes the maturity of the loan agreed in the original mortgage credit agreement, paragraphs 3 and 5 shall be followed.
(8) The first interruption of the repayment may occur between the first instalment after the end of the loan and the conclusion of the aid contract. In this case, account shall be taken of the interruption of the repayment in the grant contract and, at the same time, the interruption of the payment shall be reflected in the amount of the aid paid back to the instalments from the end of the loan execution until the conclusion of the grant contract.
(9) In the event that the repayment of the loan is interrupted as a result of an inheritance proceedings, the maturity of the loan may be extended by a period corresponding to the interruption; the number of payments shall not exceed 240.
Relations between the State authorities and the mortgage bank
(1) The mortgage bank shall submit the payment of the aid to the Ministry for the last month of the following month, within the deadline set by the Ministry.
(2) The accounting formalities are laid down by the Ministry.
(3) The Ministry will report monthly funds to the mortgage bank on the basis of the bill submitted.
(4) The Ministry shall reimburse the mortgage bank for the costs effectively incurred by the intermediary of the aid under this Regulation.
Provision of control
(1) Territorial financial authorities shall carry out checks 9) compliance with the conditions for granting aid laid down in this Regulation.
(2) When it is established that the aid has been drawn or used by the mortgage bank or its client in contravention of this Regulation, the Financial Office shall recover the funds and pay the relevant penalty payments. 10) Thus, the financial office shall proceed to the client where the client uses the aid for a purpose other than that covered by this Regulation or receives the aid on the basis of the incorrect or incomplete information communicated by him in the application for aid.
Efficacy
This Regulation shall enter into force on the day of its publication.
Prime Minister:
Doc. Ing. Klaus CSc. v. r.
Minister for Economy:
Doc. Ing. Dyba CSc.
1) Act 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 Act No. 579 / 1991 Coll., Act No. 166 / 1992 Coll., Act No. 321 / 1992 Coll., Act No. 160 / 1995 Coll., and Act No. 160 / 1997 Coll.
2) Section 43 of the Federal Ministry of Technical and Investment Development Decree No. 83 / 1976 Coll., on General Technical Requirements for Construction. § 42 of the Decree of the National Committee of the City of Prague No. 5 / 1979 Coll. NVP, on general technical requirements for construction in Prague, as amended by Decree No. 1 / 1994 Coll. of Prague and Decree No. 35 / 1995 of Prague.
3) § 44 (1) of Decree No. 83 / 1976 Coll., as amended by Decree No. 45 / 1979 Coll. and Decree No. 376 / 1992 Coll. § 43 (1) of Decree No. 5 / 1979 Coll., as amended by Decree No. 1 / 1994 Coll. of Prague and Decree No. 35 / 1995 of Prague.
4) § 42 of Decree No. 83 / 1976 Coll., as amended by Decree No. 376 / 1992 Coll. § 41 of Decree No. 5 / 1979 Coll., as amended by Decree No. 1 / 1994 Coll. of Prague and Decree No. 35 / 1995 Coll. of Prague.
5) Paragraph 14 (2) of Act No. 530 / 1990 Coll., on Bonds, as amended by Act No. 84 / 1995 Coll.
6) Act No. 21 / 1992 Coll., on Banks, as amended by Act No. 264 / 1992 Coll., Act No. 292 / 1993 Coll., Act No. 156 / 1994 Coll., Act No. 83 / 1995 Coll., Act No. 84 / 1995 Coll. and Act No. 61 / 1996 Coll.
6a) § 27 (j) of Act No. 344 / 1992 Coll., on the cadastral property of the Czech Republic (cadastral law), as amended by Act No. 89 / 1996 Coll.
6b) § 27 (k) of Act No. 344 / 1992 Coll., as amended by Act No. 89 / 1996 Coll.
7) Paragraph 85 of Act No. 50 / 1976 Coll., on Territorial Planning and Construction Regulations (Construction Act), as amended by Act No. 103 / 1990 Coll., Act No. 262 / 1992 Coll. and Act No. 43 / 1994 Coll.
8) Act No. 96 / 1993 Coll., on Construction Savings and State Support of Construction Savings and on Addition of the Czech National Council Act No. 586 / 1992 Coll., on Income Taxes, as amended by the Czech National Council Act No. 35 / 1993 Coll., as amended by Act No. 83 / 1995 Coll.
9) Paragraph 1 (1) (b) of Act No. 531 / 1990 Coll., on Territorial Financial Bodies, as amended by Act No. 325 / 1993 Coll. and Act No. 85 / 1994 Coll.
10) § 30 of Act No. 576 / 1990 Coll. § 1 of Act No. 337 / 1992 Coll., on the Administration of Taxes and Fees, as amended by Act No. 35 / 1993 Coll., Act No. 157 / 1993 Coll. and Act No. 255 / 1994 Coll.
Contents
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Regulation Information
| Citation | Government Decree No. 244 / 1995 Coll., laying down the conditions for State financial support for mortgage lending for housing |
|---|---|
| Regulation Type | Regulation |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 26.10.1995 |
|---|---|
| Effective from | 26.10.1995 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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