Act No. 41 / 1947 Coll.

State aid law on residential buildings

Valid Effective from 03.04.1947
41.
Law
of 7 March 1947
on State aid for residential buildings.
The Constitutional National Assembly of the Czechoslovak Republic decided on this law:

Hlava I.

Purpose of the aid.
§ 1.
(1) The purpose of the aid under this Act is to enable the construction of flats pursuant to § 4 (a) of the Act of 25 October 1946, No 192 Coll., on a two-year economic plan, unless they are provided under the Act of 12 April 1946, No 86 Coll., on construction renewal.
(2) The aid can only be granted for residential buildings covered by the two-year economic plan.
(3) In cases of special consideration, aid may also be granted to residential buildings carried out outside the construction programme referred to in paragraph 2, but only under the conditions laid down in § 6, paragraph 3 of Act No. 192 / 1946 Coll.
Objective of aid.
§ 2.
(1) Aid may be granted:
1. to new buildings or complete reconstructions of houses with small flats and small establishments pursuant to Section 136 of the Act on Direct Taxation and Implementing Regulation issued to them,
(a) family houses referred to in Article 3;
(b) rental houses pursuant to Section 4;
(c) free houses and dormitories referred to in Article 6;
2. to superstructures and superstructures or partial reconstructions, if they form small flats in accordance with the terms of Section 136 (3) of the Direct Tax Act;
3. to the modification of whole buildings of still non-residential or non-residential parts of buildings for residential purposes, where small flats are established in accordance with the terms of § 136 (3) of the Direct Taxation Act;
4. housing buildings destroyed or damaged by natural disaster;
5. for building buildings containing the necessary group building accessories, if they are new housing sites.
(2) The buildings referred to in paragraphs 1, 1 and 5 may also be supported if they are established under the right of construction.
§ 3.
The family house is a house of one or two apartments, one of which is occupied by the owner or, if the owner is a public-service housing association, a tenant with whom the association has negotiated a house of conditional market contract (the candidate).
§ 4.
A rental house means a house of one or more apartments where the condition of § 3 is not met.
§ 5.
With aid for the construction (modification) of a family house, aid may also be granted for the construction (modification) of necessary buildings (rooms) of the farm, if the house is intended for a small farmer, or for the construction (modification) of a small establishment, if the house is intended for a small trader.
§ 6.
(1) Liberties and dormitories are houses complying with the conditions of paragraphs 2 and 3 of the Implementing Regulation of § 136 (2) of the Direct Taxation Act.
(2) In open rooms and dormitories, persons of different sexes must be accommodated in building departments completely separated from each other.

Hlava II.

The method of support.
§ 7.
Support depends
1. in the State guarantee for a hypothetical (municipal) loan granted to cover construction costs;
2. in the state contribution to the reimbursement of expenditure on the house linked.
Scope of the aid.
§ 8.
Aid may be granted
1. to the municipalities and districts for the construction (adaptation) referred to in Section 2, paragraph 1, with the exception of houses intended for the transfer to the ownership of physical persons (§ 3);
2. a general housing association for the construction (modification) referred to in § 2 (1);
3. employers for the construction (modification) referred to in Section 2, paragraph 1, if they are set up for their own employees and are not intended to transfer to the ownership of physical persons (§ 3);
4. physical persons for the construction (modification) referred to in § 2, § 1, No 1, point (a) and No 4.
§ 9.
The State guarantee may be taken over as a hypothetical (municipal) loan of such an amount that this loan together with the unguaranteed mortgage loan to the library of the previous one
1. 100% of construction cargo in the cases referred to in § 8, No 1;
2.95% of construction cargo in the cases referred to in Section 8, No 2;
3.80% of construction cargo in the cases referred to in Sections 8, 3 and 4.
§ 10.
(1) A guaranteed loan may be counted against the construction cargo from which the guaranteed loan is calculated pursuant to Section 9
1. the cost of the building plot, but only if it is for the new buildings referred to in § 2, par. 1, No 1 and 5;
2. construction cost (modification);
3. Expenditure related to the credit measure.
(2) The rest of the construction cargo, which will not be paid in accordance with § 9 of the guaranteed and library order prior to the unguaranteed loan, is obliged to be paid by its own means.
A. State guarantee.
Content of the State guarantee.
§ 11.
(1) The State guarantee is that the State, represented by the Ministry of Social Welfare, guarantees the creditor for the loan, for the remuneration, the remuneration and the ancillary salaries and for the repayment of the loan with the facilities, as provided for in the debenture, a commitment that:
1. the amount not received shall be paid even with interest on late payment until the actual payment and recovery costs have been met if the debtor, although he has been reminded by the registered letter, fails to fulfil the obligations imposed on him by the debt note;
2. pay the deficit even with interest on late payments up to actual payment and recovery costs if the house is subject to forced administration and if its proceeds are not sufficient to cover liabilities assumed under the debenture;
3. They shall pay the guaranteed loan even with interest on late payment until the actual payment and with other secondary salaries, or part thereof, with the facilities which will come to an end on the schedule of the highest filing, provided that the house is sold by forced auction and is not auctioned by the creditor of the guaranteed loan, except that the previous unguaranteed loan would have been granted.
(2) The commitment of the State referred to in paragraph 1, No 1, shall be made on the 30th day following the date on which the creditor notified the debtor's delay to the Ministry of Social Welfare.
(3) Guaranteed loans have an orphan's guarantee.
The terms of the State guarantee.
§ 12.
(1) The State guarantee can only be accepted in a small way,
1. if the loan is amortised by regular annual instalments (annuities) up to a maximum of 1% above interest on the initial principal; and
2. if the creditor undertakes that:
(a) inform the Ministry of Social Welfare thereof,
(aa) that the debtor has not complied with the obligations imposed upon him by a bond, although he has been reminded;
(bb) that it intends to transfer the guaranteed loan or part thereof;
(cc) that the debtor has terminated or repaid the guaranteed loan or part thereof;
(b) does not grant new loans within the limits of the outstanding lien for the part of the guaranteed loan paid;
(c) not to terminate the loan without the permission of the Ministry of Social Welfare, or to terminate it at the request of the Ministry, or to apply for its repayment without notice, or to enforce it in accordance with the debtor's subscription;
(d) ask the Ministry of Social Welfare to pay the guaranteed loan in full if the compulsory auction is made.
(2) The guaranteed loan must be secured on the house by a lien, as a rule in the second library order, and the State guarantee must be noted. If the construction company is a municipality or district, this provision may be waived.
§ 13.
The guaranteed loan is paid according to the construction process (modification) as a building loan. The guaranteed loan can thus be paid up to 90%; the remainder may be paid by the creditor only after the final amount of the loan has been determined (Section 21 (2)) to the Ministry of Social Welfare voucher.
§ 14.
If the State pays the guaranteed loan due to the guarantee, the satisfied creditor shall be obliged to issue to the Ministry of Social Welfare all the legal aid and means of security which he has and the claim for payment of the guaranteed loan, accompanied by his certified signature, according to which a transfer of the lien with the creditor to the State is entered in the land register.
§ 15.
The State guarantee can be taken over for loans up to a total of CZK 5 billion.
B. State contribution.
State contribution content.
§ 19.
(1) The State contribution is granted until the attainable annual income of the house (Paragraph 18) is sufficient to cover the annual expenses of the house associated with the house (Paragraph 17).
(2) The State contribution will be reduced or stopped if, by appropriate measures, the annual expenditure on the house is reduced (§ 18).

Hlava III.

Driving.
§ 20.
(1) The application for aid is submitted to the district national committee on an official form. The application must be accompanied by the documents on the form. The District National Committee shall examine the application and submit it with a reasoned proposal to the Ministry of Social Welfare.
(2) The application shall be decided by the Ministry of Social Welfare in agreement with the Ministry of Finance and Technology, and shall include the construction (modification) for farmers or agricultural workers, also in cooperation with the Ministry of Agriculture.
§ 21.
(1) The aid shall be determined first on the basis of the information contained in the application for the grant of the aid and the documents attached thereto.
(2) The final amount of the aid is determined after completion of the construction (modification), according to the actual, duly accounted for and proven construction cargo (§ 10) and to the duly established data on the annual expenditure on the house linked (§ 17) and its yield (§ 18).
(3) The prices charged (unit, general and flat-rate) are recognised only at a level which complies with price regulations.
§ 22.
Rules on proceedings in matters falling within the competence of the political authorities (administrative proceedings) apply, unless otherwise provided by the law.

Hlava IV.

Obligations and restrictions on the owner of the house.
§ 23.
(1) The builder is obliged to carry out the construction (modification) according to the approved plans in a professional, proper and impeccable manner and to complete it within a period determined by the aid intensity.
(2) After completion of the construction (modification), the owner of the house is obliged to prove within 30 days by confirmation of the construction office that the construction (modification) has been carried out according to approved plans and within 6 months that the actual construction cost, the amount of the annual expenses associated with the house and its yield and, at the discretion of the Ministry of Social Welfare in agreement with the Ministry of Technology, is to be demonstrated in good faith to the official examination of such information on the spot.
§ 24.
(1) The owner of the house is obliged to insure the house against damage caused by fire, explosion or lightning at least to the amount fixed by the measure of the grant (final measurement) of the aid, and to provide the vinculation of the policy to the creditor of the guaranteed loan.
(2) The owner of the house is obliged to pay the insurance premiums, taxes on surpluses and other public salaries, affecting the house or its yield, to fulfil all the obligations due in due time from the loans to the house provided and to prove at any time to the Ministry of Social Welfare at his request that he has fulfilled those obligations in good time and properly.
§ 25.
The owner of the house is obliged to report to the Ministry of Social Welfare any change in the house yield (§ 18) and the annual expenses associated with the house (§ 17) within 30 days of its creation.
§ 26.
(1) The owner of the house is obliged to give preference to families in order of number of unfurnished children when renting apartments.
(2) In rental houses, one quarter of the apartments shall be reserved for young spouses whose marriage has not yet passed for two years; where there are no such tenderers, the provisions of paragraph 1 shall also apply to such apartments.
§ 27.
(1) The owner of the house is obliged to keep the house in good condition. Without the permission of the Ministry of Social Welfare in agreement with the Ministry of Technology, they may not make significant changes in the house or inside the house or changes in the use of rooms.
(2) The Ministry of Social Welfare and Technology shall have the right to have the house inspected at any time by official authorities or experts to determine whether the provisions of paragraph 1 are complied with. Printed defects must be removed by the owner of the house within a specified time limit.
§ 28.
(1) Until the guaranteed loan has been repaid, the owner of the house shall not transfer the undeleted lien for the loan to a new loan and shall be obliged to give the lien for the previous unguaranteed loans, if the claims secured by it have ceased to exist, at the request of the Ministry of Social Welfare in whole or in part; This restriction shall be noted in the land book on guaranteed loan.
(2) The owner of the house may give notice of the guaranteed loan only with the permission of the Ministry of Social Welfare and must give notice if the Ministry so requests.
§ 29.
(1) The owner of the house is obliged to replace the State with all the salaries which the State has made for it by reason of the guarantee. If the compensation is wholly or partly impracticable, the Ministry of Social Welfare may write it off in agreement with the Ministry of Finance.
(2) The owner of the house may not, for the duration of the aid, transfer or suspend entitlement to the payment of the granted State contribution or the rent of the house; acts contrary to that are null and void.
§ 30.
If the owner of the house fails to fulfil any of the obligations imposed on him under § § 23 to 29, he will be obliged to pay a fine of up to 10% of the construction cost to the State under the decision of the Ministry of Social Welfare.

Hlava V.

Common and criminal provisions.
§ 31.
(1) No one is entitled to the aid.
(2) The granting of aid may be subject to special conditions.
§ 32.
(1) In the case of the promotion of assets confiscated under the Decree of the President of the Republic of 21 June 1945, No 12 Coll., on the confiscation and accelerated distribution of the agricultural assets of Germans, Hungarians, as well as traitors and enemies of the Czech and Slovak peoples (in Slovakia under the Decree of 23 August 1945, No 104 Coll. on the confiscation and the accelerated distribution of the agricultural assets of Germans, Hungarians, as well as the traitors and enemies of the Slovak people, as amended by the Decree of 14 May 1946, No 64 Coll. SNR), or under the decree of the President of the Republic of 25 October 1945, No 108 Coll., on the confiscation of enemy assets and National Recovery Funds, the aid may be granted to the estate or authorised by the competent fund of the national administrator, after the general benefit of the housing association, created of such persons.
(2) Until a person becomes a library owner of confiscated property, they affect the obligations laid down in § 23 to 29 of the aid.
§ 33.
In cases of special consideration, aid may also be granted for the buildings with which it was started before the application of this law.
§ 34.
(1) Houses for which aid has been granted may not be disposed of or further burdened without the permission of the Ministry of Social Welfare for the duration of the aid or in whole or in part. To this end, they shall be prohibited, on a proposal from the Ministry of Social Welfare for the benefit of the State, from disposing of and procuring property benefits in Slovakia.
(2) House rental claims may not be affected by execution or reinsurance operations for the period laid down in paragraph 1 without the permission of the Ministry of Social Welfare.
(3) The State contribution cannot be affected by execution or reinsurance operations.
(4) The restriction of the right of ownership by prohibiting the disposal and the confiscation of property referred to in paragraph 1 shall be deleted from the court's authority at the same time as the removal of the lien for the guaranteed loan.
§ 35.
The legal situation between the State and the homeowners, which is based on the grant of the aid, is not a legal situation under private law and cannot therefore be decided on by the order of law.
§ 36.
The expenses associated with the support under this Act will be remembered in the budget for 1948 and others.
§ 37.
The Minister of Finance is hereby authorised to impose an obligation on the monetary institutions to provide the necessary loans for the construction operations carried out under this Act.
§ 38.
In the application for the grant of aid or at all in the proceedings provided for in Sections 20 and 21 of this Act, those persons who intentionally misstate or confirm the facts which may have an impact on the decision to grant the aid or withhold such facts will be punished - if not by a criminal offence - by the county national penalty committee of up to 100.000 Kčs or by prison (by locking) within 6 months or both. In the event of non-availability of the fine, a replacement prison sentence (lock-down) shall also be determined according to the degree of guilt within the limits of the free penalty rate.
§ 39.
Local national committees shall be obliged to cooperate in the implementation of this law.

Hlava VI.

Charging relief.
§ 40.
The first mortgage transfer of family homes (§ 3), built by general housing associations with support under this law, to the ownership of physical persons (candidates), is exempt from the transfer fee if the transfer contract was negotiated within 5 years of completion of the construction.
§ 41.
The fees shall be exempt from the debits (credit certificates) and library entries relating to the guaranteed and in the library order of the previous unguaranteed loans, the acknowledgement of their full or partial repayment and requests for (increase) aid and their annexes.

Hlava VII.

Special and final provisions.
§ 42.
(1) General housing associations are obliged to give preference to families (members) in order to the number of uninsured children when renting apartments in all their rental houses.
(2) If the association does not comply with the provisions of paragraph 1, the Ministry of Social Welfare may declare that the association has ceased to be of general benefit.
§ 43.
These ministries in Slovakia exercise their competence under this law through their respective mandates.
§ 44.
This Act shall take effect on the day of its publication; It shall be implemented by the Social Welfare, Finance and Technology Ministers in agreement with the Ministers involved.
Dr Beneš v. r.
Gottwald v. r.
Dr. Unedible v. r.
Dr Dolansky v. r.
Ing. Kopecký v. r.

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Regulation Information

CitationAct No. 41 / 1947 Coll., on State aid for residential buildings
Regulation Type-
Author-
CollectionCode of Laws
Date of Promulgation03.04.1947
Effective from03.04.1947
Effective until-
Status Valid
The regulation text is for informational purposes only.
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