Government Decree No. 28 / 2006 Coll.
Government regulation on the conditions for the use of funds of the State Housing Development Fund in the form of credit to cover part of the costs associated with the modernisation of an apartment by certain persons under 36 years of age
Valid
Effective from 01.03.2006
28
GOVERNMENT REGULATION
of 18 January 2006
on the conditions for the use of State Housing Development Fund funds by credit to cover part of the costs associated with the modernisation of an apartment by certain persons under 36 years of age
The Government orders pursuant to Section 9 of Act No. 211 / 2000 Coll., on the State Housing Development Fund and on the amendment of Act No. 171 / 1991 Coll., on the jurisdiction of the authorities of the Czech Republic in the case of transfers of State property to other persons and on the National Property Fund of the Czech Republic, as amended:
This Regulation lays down the conditions for the use of the funds of the State Housing Development Fund (hereinafter referred to as the Fund) in the granting of credit to certain persons under 36 years of age to cover part of the costs associated with the modernisation of the apartment.
(1) For the purposes of this Regulation, "modernisation" means:
(a) building modifications 1) or maintenance work2) to:
1. housing house 3), or family house 4), if owned or co-owned by the applicant,
2. apartment owned or co-owned by the applicant under the Housing Law (5), including building modifications or maintenance work relating to the common parts of the house; or
3. an apartment in an apartment house or a family home, if it is owned by a housing cooperative of which the applicant is a member and also a tenant of such an apartment; or
(b) the connection of a house or family house or a house with apartments owned under a special regulation to public networks of technical equipment, if the applicant is the owner or co-owner of the connected building.
(2) For the purposes of this Regulation, the following definitions shall also apply:
(a) the modernised apartment, apartment house, family house or house with apartments owned under the Housing Law, if it is in the Czech Republic, is modernised in accordance with paragraph 1 and a loan has been granted for its modernisation under this Regulation;
(b) the applicant is a natural person applying for a loan under this Regulation;
(c) the beneficiary of the applicant to whom a loan has been granted under this Regulation;
(d) by the transferee, a natural person to whom the right of ownership or co-ownership of the modernised apartment has been transferred or transferred to, or a natural person to, a modernised apartment as referred to in paragraph 1 (a) (1), (2) or (b), or a natural person who has become a tenant of the modernised apartment as referred to in paragraph 1 (a) (3).
(1) The credit may be granted to the applicant,
(a) who lives in a marriage in which at least one spouse does not complete 36 years in the year of application;
(b) who does not live in marriage, who does not complete 36 years in the year of application and who has at least one minor child in education, alternating education or foster care.
(2) The loan cannot be granted
(a) an applicant who fulfils the conditions laid down in paragraph 1 for an applicant who is not married, but who is the second parent of his child or the person with whom he has custody of that child is the beneficiary or the transferee; This does not apply if this applicant has another minor child in his or her custody, alternator or foster care,
(b) the beneficiaries repeatedly;
(c) to the modernised apartment repeatedly;
(d) an applicant who has received funding under Government Decree No. 97 / 2002 Coll., on the use of State Housing Development Funds in the form of a loan to cover part of the costs associated with the construction of an apartment by persons under 36 years of age;
(e) for the duration of the marriage, neither the spouse of the person who became the recipient of the funds under Government Decree No. 97 / 2002 Coll.
(f) for an apartment for which funds have been provided pursuant to Government Decree No. 97 / 2002 Coll.
(3) Where an applicant fulfils the condition set out in paragraph 1 (c), the restriction referred to in paragraph 2 shall not apply.
(1) During the repayment of the loan, the modernised apartment must be owned or co-owned by the beneficiary or the acquirer if it has been modernised in accordance with Article 2 (1) (a) (1), (2) or (1) (b) or in the lease of the beneficiary or the acquirer if it has been modernised in accordance with Article 2 (1) (a) (3). Where a loan has been granted to one of the spouses, the modernised apartment may, if the marriage persists, also be in the joint equity of the spouses, if it is for the modernisation referred to in Article 2 (1) (a) (1), (2) or (1) (b), or the joint lease of spouses, if it is for the modernisation referred to in Article 2 (1) (a) (3). At the same time, the modernised apartment must serve as a permanent residence for the beneficiary or the acquirer during the repayment of the loan.
(2) The condition of permanent residence need not be fulfilled if the modernised apartment cannot be used during the modernisation due to its technical condition. This derogation shall apply for a maximum period of 1 year from the start of the borrowing under this Regulation.
(1) Written loan applications are submitted to the Fund and are dealt with in the order in which they are received.
(2) The application contains:
(a) the name and, where appropriate, the name, surname and date of birth of the applicant;
(b) the purpose for which the loan is requested under this Regulation;
(c) address of place of residence,
(d) the family status of the applicant;
(e) the name and, where applicable, the name, surname and date of birth of the spouse, if the applicant is married,
(f) the name and, where applicable, the name, surname and date of birth of the minor in the education, alternating education or foster care of an applicant meeting the conditions laid down in Article 3 (1) (b);
(g) the legal relationship between the applicant and the apartment, apartment, family or apartment building under the Housing Act to be modernised.
(3) The application shall be accompanied by certified copies of the documents proving the facts referred to in paragraph 2.
(4) The Fund may request additional documents to verify the facts in the application referred to in paragraph 2 and may also request documents to verify the applicant's ability to repay the credit.
(5) If the conditions laid down in this Regulation are met, if the documents submitted give the basis for fulfilling the commitments of the loan granted and if the Fund has the means to grant the loan, it shall submit to the applicant, no later than 60 days after receipt of the complete application and all relevant documents, for signature of the draft loan agreement. If the Fund rejects the application, it shall inform the applicant in writing and without undue delay of the reasons for the refusal.
(1) The loan can be granted up to CZK 150,000.
(2) The loan is remunerated at 2% at the interest rate per year. The interest on the spent part of the loan shall begin on the date on which the loan is drawn.
(3) The beneficiary must start drawing credit within 1 year of the date of conclusion of the credit agreement.
(4) The loan can be drawn up within 2 years of the date of conclusion of the credit agreement. The total amount of the loan shall be reduced by an amount which has not been exhausted until 2 years after the date of conclusion of the credit agreement.
(1) The loan shall be payable no more than 10 years from the date on which it began drawing, except where the repayment referred to in paragraph 2 has been interrupted.
(2) If, during the repayment of the credit, the beneficiary or the acquirer applies in writing for the interruption of the repayment of the principal of the loan for serious reasons, in particular the loss of employment or illness, the Fund may authorise the interruption of the repayment for a maximum period of 2 years. In that case, the maturity of the loan shall be extended by the period for which the interruption of the repayment was granted.
(3) The loan is repaid by regular monthly instalments involving the repayment of principal and interest on the account specified in the credit agreement. The beneficiary or acquirer may at any time pay exceptional instalments that result in early repayment of the loan or part thereof.
(4) The Fund will withdraw from the credit agreement concluded under this Regulation if the beneficiary fails to comply with the condition laid down in Article 6 (3).
(1) If the transfer of ownership or co-ownership rights to the modernised apartment has been modernised pursuant to § 2 (1) (a) (1), (2) or (1) (b) to another natural person at the time when the loan is not repaid, the acquirer may assume the obligation to repay the loan only if it fulfils the conditions set out in § 3. If the conditions for granting the loan pursuant to Article 3 are not met for the acquirer, the beneficiary is obliged to repay the loan before the transfer of the ownership or co-ownership right to the modernised apartment. If the owner of the modernised apartment becomes the spouse to whom the loan was not granted, compliance with the conditions laid down in Paragraph 3 (1) shall not be required.
(2) The obligation of the beneficiary to repay the loan before the transfer of the ownership or co-ownership right to the modernised apartment will occur even if the acquirer does not assume the repayment obligation, even if it fulfils the conditions set out in Section 3.
(3) If the transfer of ownership or co-ownership rights to the modernised apartment has been modernised in accordance with Article 2 (1) (a) (1), (2) or (1) (b) takes place, another natural person shall not be required to fulfil the conditions laid down in Article 3 (1) when the loan is not repaid and the acquirer assumes the obligation to repay the loan.
(4) If the transfer of member rights and obligations, including the lease of a modernised apartment, has been modernised pursuant to Paragraph 2 (1) (a) (3), is made to another natural person at a time when the loan is not repaid, the acquirer may assume the obligation to repay the loan only if it fulfils the conditions set out in Section 3. If the conditions for granting a loan pursuant to Article 3 are not met for the acquirer, the beneficiary is obliged to repay the loan before the transfer of the member rights and obligations. If the acquirer becomes the spouse of the beneficiary or the wife of the beneficiary to whom the loan was not granted, compliance with the conditions laid down in Paragraph 3 (1) shall not be required.
(5) The obligation of the beneficiary to repay the loan before the transfer of the Member States' rights and obligations will also arise where the acquirer does not assume the obligation to repay the loan, even if it fulfils the conditions set out in Section 3.
(6) If the transfer of member rights and obligations, including the lease of a modernised apartment, has been modernised in accordance with Paragraph 2 (1) (a) (3), is made to another natural person at the time when the loan is not repaid, and the acquirer assumes the obligation to repay the loan, compliance with the conditions set out in Article 3 (1) is not required.
This Regulation shall enter into force on 1 March 2006.
Prime Minister:
Ing. Paroubek v. r.
Minister for Local Development:
Mgr. Martínek v. r.
1) § 139b (3) (c) of Act No. 50 / 1976 Coll., on Territorial Planning and Construction Regulations (Construction Act), as amended by Act No. 83 / 1998 Coll.
2) § 54, § 55 (3) of the Building Act. § 14 of Decree No. 132 / 1998 Coll., implementing certain provisions of the Building Act.
3) § 3 (b) of Decree No. 137 / 1998 Coll., on general technical requirements for construction.
4) § 3 (c) of Decree No. 137 / 1998 Coll.
5) Act No. 72 / 1994 Coll., which regulates certain joint ownership relations with buildings and certain ownership relations with apartments and non-residential premises and complements certain laws (the Housing Act), as amended.
6) Council Regulation (EEC) No 1612 / 68 of 15 October 1968 on the free movement of workers within the Community.
Sign in for notes, favorites and notifications
Regulation Information
| Citation | Government Decree No. 28 / 2006 Coll., on the conditions for the use of the funds of the State Housing Development Fund in the form of credit to cover part of the costs associated with the modernisation of the apartment by certain persons under 36 years of age |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 31.01.2006 |
|---|---|
| Effective from | 01.03.2006 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
Comments 0