Decree No. 272 / 2024 Coll.
Order setting out the procedure for the calculation of the cost rent for available rental housing
Valid
Order
Effective from 01.10.2024
Text versions:
01.10.2024
24.09.2024
272
DECLARATION
of 16 September 2024
laying down the procedure for calculating the cost rent for available rental housing
According to § 11b (4) of Act No. 211 / 2000 Coll., on the State Fund for Investment Support, as amended by Act No. 126 / 2024 Coll.:
Subject matter
This decree establishes a procedure for calculating the rent of the costs associated with the construction or acquisition and operation of the available rental apartment in the first year of its operation.
For the purposes of this decree:
(a) the cost rent calculated from the costs associated with the construction or acquisition and operation of the available rental apartment in the first year of its operation;
(b) available rental apartment
1. individual available rental apartment,
2. an apartment house with individual available rental apartments,
3. a set of individual available rental apartments,
4. a set of housing houses with individual available rental apartments,
(c) a set of individual available rental apartments which
1. have the same lessor,
2. were created to provide affordable rental housing;
3. are provided at the same date for affordable rental housing; and
4. located in one building,
(d) a set of housing houses with individual available rental apartments of multiple housing houses with individual available rental apartments which:
1. have the same lessor,
2. were created to provide affordable rental housing;
3. are provided at the same date for affordable rental housing; and
4. Standing on the same land or land which has common borders or for which one application has been submitted for authorisation of a project.
Types of costs
(1) The costs relevant for the calculation of the cost rent in the available rental apartment consist of:
(a) the construction or acquisition of an affordable rental apartment, including its accessories and areas usually associated with its use, which are the costs of:
1. preparation of construction or acquisition pursuant to § 4;
2. construction or acquisition pursuant to § 5 to 7;
(b) the operation of an affordable rental apartment, including its accessories and areas usually associated with its use, which are:
1. operating costs pursuant to § 8;
2. Other life cycle costs pursuant to § 9.
(2) The costs referred to in paragraph 1 include value added tax.
(3) Areas normally associated with the use of an affordable rental apartment are also parking spaces, their accessories and their usually related areas. Parking spaces, their accessories and their usually related areas include in particular:
(a) ground parking spaces and service roads and their accessories;
(b) underground and above-ground parking spaces, including construction structures and technical building systems for the operation of parking spaces;
(c) rechargeable point equipment.
Cost of preparation of construction or acquisition
(1) The costs of preparing the construction or acquisition consist of costs incurred for the project preparation, economic studies or financial studies.
(2) The costs referred to in paragraph 1 shall be determined on the basis of the price contained in the contract or order. Where the activities resulting from the costs referred to in paragraph 1 have been carried out by the lessor on its own initiative, those costs shall be calculated as the sum of the respective wage costs of the lessor.
(3) Where other areas are included in the design or object of the acquisition, in addition to the individual available rental apartments and their accessories or areas usually associated with their use, and where the costs referred to in paragraph 1 cannot be extended only to the areas of each available rental apartments and their accessories or areas normally associated with their use, the costs referred to in paragraph 1 shall be multiplied by the share of the floor areas of all the individual available rental apartments, including their accessories or areas normally associated with their use, with the exception of common areas, to the total floor area of the building without common spaces.
Construction costs
(1) The construction costs consist of:
(a) the cost of building an affordable rental apartment, including its accessories and areas usually associated with its use;
(b) the cost of infrastructure necessary to connect the construction of an apartment building to individual available rental apartments or a set of flats with each available rental apartments to the backbone infrastructure;
(c) the budget reserve;
(d) other costs associated with construction, which are project management costs, project preparation costs not included in § 4 (1) and engineering costs;
(e) the cost of acquiring land, building rights or buildings intended for the construction of an affordable rental apartment;
(f) other financial costs not forming part of foreign resources pursuant to Article 10 (3);
(g) the cost of acquiring the movable property of the lessor used to construct the available rental apartment.
(2) The costs referred to in paragraph 1 (a) and (b) shall be determined on the basis of the prices of the budget item contained in the contract concluded with the contractor of the available rental apartment. The costs referred to in paragraph 1 (d) and (g) shall be determined according to the price contained in the contract or order. Where the activities resulting from the costs referred to in paragraph 1 (a), (b) and (d) have been carried out by the lessor on their own account, those costs shall be calculated as the sum of the respective wage costs of the lessor.
(3) The budget reserve referred to in paragraph 1 (c) shall not exceed 10% of the total costs referred to in paragraph 1 (a) and (b). The budget reserve shall be included in construction costs only if it was not part of the budget item referred to in paragraph 2.
(4) The costs referred to in paragraph 1 (e) shall be determined on the basis of the price contained in the contract or the normal price determined on any date in the four years preceding the first provision of the available rental apartment for affordable rental housing, as the lower of these prices. If the price contained in the contract is not known, if the contract is more than 8 years of age or if the acquisition title was not the contract, the price normally used under the asset valuation law shall be used. In cases where the normal price cannot be determined, the market value of the immovable property shall be determined in accordance with the Asset Valuation Act. If the price of the real estate in the contract is denominated in a foreign currency, the rate declared by the Czech National Bank for the valuation date will be used to convert it into Czech currency. For the conversion of the currency to which the Czech National Bank does not declare the exchange rate, the market rate of that currency can be used for the US dollar for the valuation date and the rate of the Czech currency for the US dollar declared by the Czech National Bank for the valuation date. The normal or market value may be determined only by an expert, an expert's office or an expert's institute under the law governing the activities of experts, expert's offices and expert's institutes or by a person entitled to value assets under the Commercial Law.
(5) If other areas are included in the project in addition to the individual available rental apartments and their accessories or areas usually associated with their use, only the costs associated with the construction of each available rental apartments, their accessories and the areas normally associated with their use may be included in the costs referred to in paragraph 1 (a) and (b).
(6) The costs referred to in paragraph 5 shall be calculated:
(a) by subtracting the total value of the items which do not relate to individual available rental apartments, their accessories and areas normally associated with their use from the total value of the item budget referred to in paragraph 2;
(b) a multiple of the total value of the item budget referred to in paragraph 2 and the proportion of the floor areas of each available rental apartment, including its accessories or areas normally associated with their use, with the exception of common areas, to the total floor area of the building without common spaces, unless it is possible to follow point (a).
(7) Where other areas are included in the project, in addition to the various available rental apartments and their accessories or areas usually associated with their use, the costs referred to in paragraph 1 (c) may be included in the budget, provided that the budget reserve was not part of the item budget, and the costs referred to in paragraph 1 (d) to (g) only include the costs associated with the construction of each available rental apartments, their accessories and the areas normally associated with their use. In this case, before adding them to the construction costs, the amount of these costs shall be multiplied by the share of the floor areas of all the individual rental apartments available, including their accessories or areas normally associated with their use, with the exception of common spaces, to the total floor area of the building without common spaces.
Cost of acquisition
(1) The cost of acquisition consists of:
(a) the cost of acquiring an affordable rental apartment, including land, its accessories and areas normally associated with its use;
(b) other costs associated with the acquisition, in particular administrative costs.
(2) The costs referred to in paragraph 1 (a) shall be determined at the level of the price contained in the contract or the price normally established under the Law on the valuation of assets at any date in the four years preceding the first provision of the available rental apartment for affordable rental housing, as the lower of these prices. If the price contained in the contract is not known, if the contract is more than 8 years of age or if the acquisition title was not the contract, the price normally used under the asset valuation law shall be used. In cases where the normal price cannot be determined, the market value of the immovable property shall be determined in accordance with the Asset Valuation Act. If the price of the real estate in the contract is denominated in a foreign currency, the rate declared by the Czech National Bank for the valuation date will be used to convert it into Czech currency. For the conversion of the currency to which the Czech National Bank does not declare the exchange rate, the market rate of that currency can be used for the US dollar for the valuation date and the rate of the Czech currency for the US dollar declared by the Czech National Bank for the valuation date. The normal or market value may be determined only by an expert, an expert's office or an expert's institute under the law governing the activities of experts, expert's offices and expert's institutes or by a person entitled to value assets under the Commercial Law. The costs referred to in paragraph 1 (b) shall be determined according to the price included in the contract or order.
(3) Where other areas are included in the subject matter of the acquisition, in addition to the various available rental apartments and their accessories or areas usually associated with their use, the costs referred to in paragraph 1 (a) shall consist only of the value of each available rental apartments and their accessories or areas usually associated with their use, which shall be the subject of the valuation referred to in paragraph 2. The costs referred to in paragraph 1 (b) shall be determined by the total value of such costs multiplied by the share of the floor area of each available rental apartment, including its accessories or areas normally associated with their use, with the exception of common spaces, to the total floor area of the building without common spaces.
Costs for the construction or acquisition of parking spaces, their accessories and related areas
The costs of the construction or acquisition of parking spaces, their accessories and their usually related areas shall be included in the costs of the construction or acquisition only up to the costs of the number of parking spaces at least required by other legislation at the place where the available rental apartment is located.
Operating costs
(1) Operating costs are, in particular, those incurred effectively for:
(a) the management of the available rental apartment, including its accessories and areas usually associated with its use;
(b) insurance of the available rental apartment, including its accessories and areas usually associated with its use;
(c) a statutory revision of the establishment;
(d) real estate tax;
(e) repair and maintenance, the need for which arises from the normal use of the available rental apartment, including its accessories and areas normally associated with its use;
(f) energy and water associated with the maintenance and operation of common spaces.
(2) Costs paid by the lessee under the legislation shall not be regarded as costs referred to in paragraph 1.
(3) The costs referred to in paragraph 1 (a) are also those of legal, real estate or expert activities.
Other life-cycle costs
Lifelong-cycle costs means the costs incurred as a result of long-term wear on the building elements of the available rental apartment, including its accessories and areas normally associated with its use and the technologies used, namely costs effectively incurred for:
(a) repair and maintenance of the technologies and building elements of the available rental apartment, including its accessories and areas usually associated with its use, except for the costs referred to in Article 8;
(b) a technical evaluation of the available rental apartment, including its accessories and areas usually associated with its use.
Calculation of the cost rent
(1) The cost rent shall be calculated per square metre of the floor area of the individual available rental apartment for 1 month in accordance with Annex 1 to this Decree.
(2) Cost rent is calculated
(a) operating costs pursuant to § 8 and other life-cycle costs pursuant to § 9;
(b) the eligible costs of the construction or acquisition of the available rental apartment, after deduction of the subsidy from the costs associated with the construction or acquisition referred to in Article 3 (1) (a).
(3) The eligible costs referred to in paragraph 2 (b) shall be calculated from the own and foreign resources used to finance the costs associated with the construction or acquisition referred to in Article 3 (1) (a) and the financial costs, namely:
(a) own financial and non-financial resources; non-financial resources include movable property, land, building rights or buildings intended or used to build an affordable rental apartment;
(b) foreign sources of foreign resources used for the construction or acquisition of an affordable rental apartment, including its accessories and areas usually associated with its use, in particular loans;
(c) the financial costs of the cost interest and other payments resulting from the contract for the provision of foreign resources paid from the first date of repayment of those resources in full.
(4) The eligible costs referred to in paragraph 2 (b) shall be the sum of:
(a) own resources distributed in proportion to the monthly amount during the period of repayment of the longest of foreign resources, but not less than 20 years; and
(b) monthly instalments of foreign resources provided used to finance the construction or acquisition of an affordable rental apartment, including its accessories and areas normally associated with its use, including the financial costs related thereto.
(5) The monthly instalment referred to in paragraph 4 (b) shall be calculated as a monthly annuity of foreign resources during the period of repayment of the longest of them, but not less than 20 years, and with interest rates on those resources at the first date of repayment of those resources. If interest is equal to zero, the monthly annuity payment shall be calculated as the value of the foreign resources distributed in proportion to the monthly amount during the period of repayment of the longest of them but at least 20 years. In the case of deferral of instalments prior to the start of the operation of the available rental apartments, the period shall be reduced by the grace period; the resulting repayment period shall not be less than 20 years. In the case of deferral of instalments after the start of the operation of the available rental apartments, the period shall not be changed.
Calculation of the cost rent for public-private partnerships
(1) In the case of public-private partnerships, the cost rent is calculated in accordance with Annex 2 to this Decree.
(2) The procedure laid down in paragraph 1 shall be followed only if:
(a) the investor and manager of the available rental apartment is a legal person governed by private law, who is also the purchaser of the available rental apartment or supplier of the construction of the available rental apartment; and
(b) the lessor and owner of the available rental apartment shall be the Czech Republic, its contributory organisation, the local self-governing body or the legal entity established or established by them, which, under the contract concluded, pays the legal person referred to in (a) a regular payment for availability.
Efficacy
This Decree shall take effect on 1 October 2024.
Minister for Local Development:
PhDr. Bartoš, Ph.D., v. r.
Příloha č. 1
Annex No 1
Calculation of the cost rent
1. The cost rent in the first year of operation of the individual available rental apartment is calculated as the product of the occupancy coefficient of the apartments, the small apartment coefficient and the sum
a. Charging costs per m2 of floor space available for rent and 1 month; and
a.
2. The cost rent per square metre of the floor area of each available rental apartment per month shall be calculated using the following mathematical formula and rounded to integers:
NNy1m2v = KO * KMBv * (ZNy112 * PP + PNy1)
The annual deductible costs referred to in Section 10 shall be calculated according to the following mathematical formula:
ZNy1 = Zavnmax + 12 * Zavnmax = 1m (CZl * rl121- (1 + rl12) -12 * nl * nlnmax)
If rl is equal to zero (i.e. in the case of funding entirely from own resources or from foreign sources at zero interest rate), the following mathematical formula shall be used for the calculation of the annual deductible costs according to Section 10:
ZNy1 = Zavnmax + dost jl = 1mCZlnmax
where
NNy1m2v is the monthly cost rent per m2 of floor area of a single available rental apartment in the first year of its operation,
ZNy1 is the annual deductible costs under Section 10,
PNy1 is the monthly operating costs according to § 8 and other life cycle costs according to § 9 per 1 m2 floor area of the available rental apartment,
KO is the occupancy coefficient of 1,05,
KMBv is the coefficient of a small apartment where v is the floor area of the individual available rental apartment in m2 and where:
KMBv = {1,06 when v ≤ 52m21 when v > 52m2,
nl is the number of years determined by the maturity of the foreign source CZl, possibly humiliated by the postponement of the foreign source CZl,
nmax is the number of years determined by the maturity of the longest of foreign sources, possibly reduced by the grace period of the longest of foreign sources, but not less than 20 years;
CZl is the total amount of the liter from foreign sources used to finance the costs associated with the construction or acquisition of the available rental apartment pursuant to § 3 (1) (a) after deduction of the subsidy from these costs, where l indicates the order of credit from the total number of loans m,
VZ is the own resources used to finance the costs associated with the construction or acquisition of an affordable rental apartment pursuant to § 3 (1) (a) after deduction of the subsidy from these costs, including the resources for the acquisition of land or building necessary for the creation of an affordable rental apartment by construction or acquisition,
rl is the annual interest rate on foreign sources of which the CZK is,
PP is the floor area of the available rental apartment according to the building law.
Příloha č. 2
Annex No 2
Calculation of the cost rent for public-private partnerships
1. In the case of public-private partnerships, the cost rent shall be calculated as the product of the occupancy coefficient of the apartments, the small apartment coefficient and the sum of the availability payment and other costs of the lessor humiliated by the subsidy granted to the lessor calculated per m2 of floor area of the available rental apartment and 1 month.
2. The amount of the availability payment shall be based on the results of the selection procedure per person referred to in Article 11 (2) (a) and shall be established by a contract to secure the available rental apartment between the person referred to in Article 11 (2) (a) and the person referred to in Article 11 (2) (b).
3. The availability payment shall cover all costs relevant for the calculation of the cost rent pursuant to § 10 (2) to (5) and the contracted annual income of the person referred to in § 11 (2) (a).
4. Other costs incurred by the lessor are all costs which the lessor has to bear to ensure the creation and operation of an affordable rental apartment which is not included in the availability payment but which are part of all the costs relevant for the calculation of the cost rent pursuant to § 10 (2) to (5).
5. The value of the subsidy shall be deducted from the availability payment if it has been provided to the person under Article 11 (2) (b) as part of the financing.
6. The cost rent per square metre of the floor area of each available rental apartment per month shall be calculated using the following mathematical formula and rounded to integers:
NNPPPy1m2v = [KO * KMBv * (PZ + JNP-DP)] PP
where
NNPPPy1m2v is a monthly cost rent per m2 of floor area of a single available rental apartment built or acquired in the form of public-private partnerships in the first year of its operation,
PZ is the monthly value of the availability payment,
KO is the occupancy coefficient of 1,05,
KMBv is the coefficient of a small apartment where v is the floor area of the individual available rental apartment in m2 and where:
KMBv = {1,06 when v ≤ 52m21 when v > 52m2,
JNP is the other costs of the lessor of an affordable rental apartment built or acquired in the form of public-private partnerships budgeted for 1 month in the first year of its operation,
PP is the floor area of the available rental apartment under the building law,
DP is the total amount of the subsidy granted to the lessor of the available rental apartment for construction or acquisition, budgeted for 1 month.
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Regulation Information
| Citation | Decree No. 272 / 2024 Coll., laying down a procedure for the calculation of cost rent for affordable rental housing |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 24.09.2024 |
|---|---|
| Effective from | 01.10.2024 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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