Government Regulation No 396 / 2002 Coll.
Government regulation on the use of State Housing Development Funds in the form of a loan to cover part of the costs of building an apartment by natural persons affected by floods in 2002
Valid
Regulation
Effective from 28.08.2002
396
GOVERNMENT REGULATION
of 21 August 2002
on the use of the State Housing Development Fund in the form of a loan to cover part of the costs of building an apartment by natural persons affected by floods in 2002
The Government orders pursuant to § 9 of Act No. 211 / 2000 Coll., on the State Housing Development Fund and amending Act No. 171 / 1991 Coll., on the Jurisdiction of the Bodies of the Czech Republic on Transfers of State Property to Other Persons and on the National Property Fund of the Czech Republic, as amended, to implement § 3 (1) (a) of this Act:
(1) This Regulation regulates the scope and conditions of the granting of loans from the State Housing Development Fund (hereinafter referred to as the Fund) to natural persons resident in the Czech Republic (hereinafter referred to as "the person ') who have been affected by floods and landslides due to excessive precipitation (hereinafter referred to as" flood') and fulfil the other conditions laid down in this Regulation.
(2) The loan is intended to cover part of the costs associated with the construction or acquisition of an apartment.
Scope and conditions for granting credit
(1) A person who, at the date of the declaration of crisis status (1), was the owner of a house with at least one apartment (m2) or the owner of an apartment owned by a special legislation (3) (hereinafter referred to as the "owned apartment") in a house for which a final decision on the removal of the building (4) was issued as a result of the flood, or which was destroyed or in the context of rescue work (5) (hereinafter referred to as "the object"), shall grant a loan of up to CZK 850 000 for each apartment in the object removed, unless otherwise specified. The interest rate on the loan is 2% per year; the interest on the spent part of the loan shall begin on the date on which the loan is drawn.
(2) The Fund grants a loan of up to CZK 850 000 for each apartment in the removed building on the relevant day by dividing it by the size of the joint ownership shares. If one of the co-owners does not meet the conditions for granting the loan, the total amount of the loan shall be distributed among the co-owners meeting the conditions for granting it. If the object removed was in the joint estate of the spouses, it shall be treated mutatis mutandis.
(3) If the object removed is co-owned, the total amount of the loans granted shall be distributed to the co-owners according to the size of the co-ownership shares.
(4) No more than three loans may be granted for flats in one removed object. Where the person referred to in paragraphs 1 and 2 requests credit for multiple flats in the removed building and cannot demonstrate the relevant building documentation or otherwise that there were multiple flats in the removed building, only one apartment shall be deemed to have been in the removed building.
Credit procedure
(1) Written loan applications are submitted to the Fund and are dealt with in the order in which they were received.
(2) The application for credit always includes the name and surname, permanent residence and date of birth of the applicant and the amount of the credit requested. The application shall be accompanied by:
(a) a final decision to remove the construction with the confirmation of the construction office that the decision was given as a result of damage to the construction of the flood or, where appropriate, the confirmation of the construction office that the construction was destroyed in connection with the floods or in the context of rescue work;
(b) by a final approval decision in the event that there were several flats in the removed building,
(c) an extract from the property register confirming the ownership or co-ownership of the object or apartment being removed in such an object or, where applicable, the content of the burden in kind;
(d) confirmation by the competent authority that the person referred to in Article 2 (1) and (2) has been registered for permanent residence on the relevant day in the removal facility and has been permanently resident in the removal facility.
(3) The loan is granted on the basis of a credit agreement concluded between a person and the Fund.
(4) The loan is granted in Czech currency.
(1) A loan shall be granted if:
(a) the person referred to in § 2 was registered for permanent residence on the relevant day of the removal and was permanently resident in the removal;
b) an apartment built with the help of credit will be located in the Czech Republic.
(2) Apartment construction means:
(a) construction of a family home (6) or an apartment owned under a special legislation, 3)
(b) a change in the construction of a family house which, without the use of existing living rooms, will be given a new separate apartment;
(c) a change to another building which, without the use of any existing residential rooms, will be acquired by a new separate apartment;
(d) building modifications of non-residential spaces or superstructures, extension or construction into soil spaces to obtain a new separate apartment owned.
(3) The acquisition of an apartment shall mean the acquisition of ownership of a family house or an owner's apartment, provided that the previous owner has not been granted a loan under this Regulation.
If several builders are building a house with several apartments together, a loan shall be granted to each of them; the number of loans granted must not exceed the number of flats built. Only one loan can be granted to the spouses.
Terms of use of credit
(1) The person referred to in Article 2 may use the credit facilities for the construction of an apartment referred to in Article 4 (2) if:
(a) implement the construction in accordance with construction regulations;
(b) the construction shall be completed in such a way that the approval decision becomes final within 5 years of the granting of the loan;
(c) the loan is used only to cover the cost of the construction,
(d) a family house or an apartment owned will be owned by it until the repayment of the loan and shall be used for its permanent residence by that end;
(e) the repayment of the loan will be secured upon completion of the construction by lien (7) on purchased real estate;
(f) the construction will meet the specific heat consumption requirements laid down in the specific legislation, 8)
(g) the construction will be carried out on land outside the territory with a high risk of flood damage; on the site of the original removed object on the land within that territory will be carried out only if the municipality is demonstrably unable to offer another land from a designated and protected stopping area for the relocation of the installation.
(2) The person referred to in Article 2 may use the credit facilities for the acquisition of an apartment pursuant to Article 4 (3) if:
(a) the loan will be used only to pay the price of the family home or apartment owned;
(b) a family home or an apartment owned by it shall be owned by it until the repayment of the credit has taken place and shall be used for its permanent residence by that end;
(c) repayment of the loan will be secured by lien 7) on the immovable property purchased.
Credit maturity
(1) The loan, including interest, is due no later than 20 years from the date on which it was started drawing. If, during the repayment of the loan, the person referred to in Article 2 requests in writing that the repayment of the loan be interrupted for serious reasons, in particular the loss of his or her employment or illness, the Fund may authorise the suspension of the loan for up to 2 years. In that case, the maturity of the loan shall be extended by the period by which the suspension of the loan is permitted.
(2) The use of the credit must start no later than 2 years after the effective date of the credit agreement.
(3) The loan can be drawn up within 3 years of the effective date of the credit agreement; by an amount which has not been exhausted after 3 years, the total amount of the loan granted shall be reduced.
(4) The loan is repaid by regular monthly instalments involving the repayment of principal and interest on the account specified in the credit agreement. The loan may be repaid early at any time.
(1) The Fund is entitled to require the immediate repayment of the part of the loan due together with the interest due and not to pay the outstanding part of the loan where:
(a) is late in payment of at least 2 monthly instalments of the loan at the agreed amount and deadline and has not paid such amounts due within 30 days of receipt of the Fund's written call for payment; or
(b) infringes the conditions set out in Article 6.
(2) If, after the termination of the marriage or agreement of the spouses (9), the owner of the family home or apartment owned or possibly built-up home or apartment becomes owned, the spouse of the person to whom the loan was granted shall not be required to repay the loan immediately if the new owner of the family home or apartment owned takes over the original owner's obligations under § 6 (d) or, as the case may be, § 6.
(3) Where a person ceases to own a family house or apartment owned or, where applicable, a built-up house or apartment owned before the payment of the loan as a result of the transfer of ownership through inheritance, and in the absence of the cases referred to in paragraph 2, no immediate repayment of the credit shall be required if the new owner becomes the person who takes over the original owner's liabilities pursuant to § 6 (d) or, as the case may be, § 6.
(4) If, for the reasons set out in paragraphs 2 and 3, the transfer of ownership of the family home or the apartment to which the loan was granted is carried out before the loan is repaid, it shall be treated mutatis mutandis in accordance with paragraphs 2 and 3.
Final provisions
(1) A credit under this Regulation shall also be granted, on written request, to a person who, within a period of up to 3 years from the relevant date, has transferred or transferred ownership of the object removed after the termination of the marriage or inheritance, if, on the date of the removal, he was permanently resident and was registered for permanent residence and if the credit has not already been granted to the person referred to in § 2.
(2) The credit shall be granted to the person referred to in Article 2 who was resident in the construction of a house or apartment owned on the basis of an authorisation of the construction office for early use, provided that the other conditions laid down in this Regulation are met, with the exception of the condition of permanent residence.
(3) If the apartment has been destroyed by the removal of part of the building under the final decision to remove part of the building (4) issued as a result of the flood, the destruction of part of the building in connection with the flood or the removal of part of the building under the rescue work (5) (hereinafter referred to as "the deceased apartment"), a loan shall be granted to the person referred to in § 2 for the deceased apartment if, on the relevant day, the person was permanently resident and was registered for permanent residence. Paragraphs 1 and 2 and 3 shall apply mutatis mutandis.
(4) The loan shall also be granted to the person referred to in Article 2 (1), where the built-up apartment is owned or built-up building, provided that the other conditions laid down in this Regulation are fulfilled, with the exception of the conditions for applying for permanent residence and permanent residence.
(5) A loan is also granted to a person who has used the flat under the right arising from the burden in kind if he has lived permanently in the deceased apartment and has been registered for permanent residence and does not fulfil the conditions for granting the loan by the owner. Paragraphs 1 and 2 to 8 shall apply mutatis mutandis.
Control of compliance
Specific legislation shall apply in order to check compliance with the conditions of credit borrowing granted under this Regulation and the application of penalties for the unauthorised use of credit. 10)
In providing financial assistance for residential construction under special legislation11), credit granted under this Regulation shall not be taken into account.
(1) The Minister for Local Development may, in cases of special consideration, grant an exemption to the person referred to in Article 2 if, on the relevant date, the condition
(a) permanent residence (§ 4 (1) (a), § 9 (1), § 9 (3) to (5)), or
(b) permanent residence (§ 4 (1) (a), § 9 (1) and (3)); or
(c) existence of a substantive burden (§ 9 (5));
provided that the loan was not granted to another person.
(2) The Minister for Local Development shall decide on the exemption at the written request of the person submitted to the Fund through the Regional Office. The application shall be accompanied by the observations of the mayor of the municipality concerned.
Efficacy
This Regulation shall enter into force on the day of its publication.
Prime Minister:
PhDr. Špidla v. r.
Minister for Local Development:
Mgr.
1) Act No. 240 / 2000 Coll., on Crisis Management and on the amendment of certain laws (Crisis Act).
2) § 3 (l) of Decree No. 137 / 1998 Coll., on general technical requirements for construction.
3) 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.
4) Sections 88 and 91 of Act No. 50 / 1976 Coll., on Territorial Planning and Construction Regulations (Construction Act), as amended.
5) Article 19 of Act No. 239 / 2000 Coll., on an integrated rescue system and on the amendment of certain laws. § 49 of Decree No. 132 / 1998 Coll., implementing certain provisions of the Building Act.
6) § 3 (c) of Decree No. 137 / 1998 Coll.
7) § 152 et seq. of the Civil Code.
8) Decree No. 291 / 2001 Coll., laying down details of the efficiency of energy use in heat consumption in buildings.
9) § 143a of the Civil Code.
10) Sections 39 and 44 of Act No. 218 / 2000 Coll., on budgetary rules and amending certain related laws (budgetary rules), as amended.
11) For example, Government Decree No. 148 / 1997 Coll., on the granting of an interest-free loan for the housing of citizens, as amended, Government Decree No. 149 / 1997 Coll., laying down the conditions for granting further financial support to mortgage lending for housing, Government Decree No. 244 / 1995 Coll., on the granting of financial support to mortgage lending for housing, as amended, Government Decree No. 97 / 2002 Coll., on the use of State Housing Development Fund funds in the form of a loan to cover part of the costs associated with the construction of housing by persons under 36 years.
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Regulation Information
| Citation | Government Decree No 396 / 2002 Coll., on the use of the resources of the State Housing Development Fund in the form of a loan to cover part of the costs associated with the construction of an apartment by natural persons affected by floods in 2002 |
|---|---|
| Regulation Type | Regulation |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 28.08.2002 |
|---|---|
| Effective from | 28.08.2002 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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