Government Decree No. 616 / 2004 Coll.
Government regulation on the use of State Housing Development Funds in the form of a loan to cover part of the costs associated with the construction or acquisition of an apartment by certain persons under 36 years of age
Valid
Effective from 08.12.2004
616
GOVERNMENT REGULATION
of 1 December 2004
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 or acquisition of an apartment by certain persons under 36 years of age
The Government mandates 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 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, ("the Act ') for the implementation of § 3 (1) (a) of the Act:
This Regulation lays down the scope and conditions for granting credit from the State Housing Development Fund (hereinafter referred to as the Fund) to certain persons under 36 years of age to cover part of the costs associated with the construction or acquisition of an apartment.
For the purposes of this Regulation:
(a) building an apartment
1. construction of an apartment under the Law governing the ownership of flats 1),
2. the construction of an apartment in a family house (2); or
3. a change in the construction which arises from premises which have been co-ordinated for purposes other than housing;
(b) the acquisition of an apartment
1. purchase of an apartment under the law governing the ownership of flats (1),
2. purchase of a family house with one apartment,
3. the remuneration for the transfer of member rights and obligations in the housing cooperative if the recipient of the credit becomes a tenant of the cooperative flat; or
4. reimbursement of the member contribution to the housing cooperative, if the recipient of the loan becomes the tenant of the cooperative flat,
(c) the applicant is a natural person who applies for credit;
(d) the beneficiary of the applicant to whom the loan was granted;
(e) by the transferee, any natural person to whom the right of ownership has been transferred or has been transferred to an apartment built in accordance with (a) or acquired in accordance with (b) (1) and (2), initially belonging to the recipient, or to whom the membership rights and obligations in the housing cooperative of the original beneficiary have been transferred or transferred in accordance with (b) (3) or (4).
(1) A loan may be granted to an applicant who is living in a marriage in which at least one of the spouses does not complete 36 years in the year of the application or does not live in the marriage, does not complete 36 years in the year of the application, continues to care for at least one minor child and the loan has not been granted to the other parent of that child.
(2) A loan may be granted for an apartment obtained by construction pursuant to § 2 (a) if such construction was initiated on the basis of a building permit issued after 1 January 2000 or after fulfilling other conditions for the implementation of the construction required by the construction law after 1 January 2007, or obtained by acquisition pursuant to § 2 (b) if it is in the territory of the Czech Republic and does not serve for purposes other than permanent residence of the recipient or the acquirer during the repayment period.
(3) The loan cannot be granted
(a) where the applicant, his or her spouse, is the owner of an apartment, an apartment house, a family home or a tenant of a cooperative flat,
(b) the beneficiary or the acquirer repeatedly;
(c) the construction or acquisition of an apartment for which the loan has already been granted.
(4) An apartment obtained by construction under § 2 (a) or by acquisition under § 2 (a). (b) points (1) and (2) must be in the sole possession of the beneficiary or the acquirer during the repayment period. Where a loan has been granted to one of the spouses, the latter must, if the marriage persists, be present during the repayment of the loan in the common equity of the spouses or in the sole ownership of the spouse to whom the loan was granted.
(5) It was obtained in accordance with Paragraph 2 (b) (3) or (4), for the period of repayment of the loan, in the exclusive use of the recipient or the acquirer. If a loan has been granted to one of the spouses, the latter must, if the marriage persists, be present during the repayment of the loan in the joint use of the spouses.
(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 a loan shall always include the name or, where applicable, the name, surname, address of the place of residence, date of birth of the applicant, date of birth of the minor, if the applicant does not live in marriage, the amount of the loan requested, the purpose of the use of the credit and documents proving the level of income of the applicant or his spouse. The Fund may request additional documents to assess the purpose of the loan and the applicant's ability to repay the loan as appropriate.
(3) The loan is granted in Czech currency on the basis of a credit agreement concluded between the applicant and the Fund.
(1) The loan can be granted up to CZK 300,000.
(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 2 years of the date of entry into force of the credit agreement.
(4) The loan may be drawn up within 3 years of the entry into force of the credit agreement. The total amount of the loan shall be reduced by an amount which has not been exhausted until 3 years after the effective date of the credit agreement.
(1) The loan shall be payable up to a maximum of 20 years from the date on which it began drawing, except where the repayment referred to in paragraph 2 has been interrupted. At the request of the loan recipient, the start of repayment of the principal of the loan may be postponed for a maximum period of 10 years from the date on which the loan was started.
(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. However, exceptional instalments which would not lead to an overall repayment of the loan may not be made during the period when the deferral of the loan instalments referred to in paragraph 1 has been authorised.
(4) At the request of the beneficiary or the transferee, the fund shall reduce the principal balance by CZK 30 000 for each live born or adopted child, up to a maximum amount of the principal outstanding on the date of the application, if the loan is granted for construction pursuant to § 2 (a) or (b) (1) or (2). The amount corresponding to the reduction of the outstanding principal balance under the first sentence shall be considered to be a subsidy under Paragraph 3 (1) (c) of the Act. For each child, a reduction in the balance of the principal credit may be applied only once.
(5) The Fund will withdraw from the credit agreement concluded under this Regulation,
(a) if the beneficiary or the acquirer is late in paying at least 2 monthly instalments of the loan at the agreed amount and does not pay such instalments within 30 days of receipt of the Fund's written call for payment, unless it has been authorised to suspend the loan referred to in paragraph 1;
(b) if the recipient or acquirer fails to comply with the conditions set out in § 3 (3) (a), § 3 (4) and (5) or § 5 (3).
(6) In the event of withdrawal from a credit agreement concluded under this Regulation, the Fund shall apply for the immediate repayment of the amount due and shall not pay the outstanding part of the loan. In the event of a breach of the terms of the credit agreement, a specific rule of law 4 shall be followed.
(1) If the transfer of the property right to an apartment obtained pursuant to § 2 (a) or § 2 (b) is carried out, the property right to an apartment obtained under § 2 (a) or § 2 (b) should be transferred. (b) points (1) and (2) on which the loan was granted 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 Paragraph 3 (1). If the acquirer does not meet the conditions set out in Paragraph 3 (1), the beneficiary shall pay up the loan before the transfer of the ownership right to the apartment. If the owner of the apartment is the spouse to whom the loan was not granted, compliance with the conditions laid down in Paragraph 3 (1) is not required.
(2) Where there is a transfer of membership rights and obligations, including the lease of a cooperative flat obtained under § 2 (b). (b) point (3) or (4) on which the loan was granted, 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 laid down in Article 3 (1). If the acquirer does not comply with the conditions set out in Paragraph 3 (1), the beneficiary shall repay the loan before the transfer of the member rights and obligations. Where the acquirer becomes a spouse to whom the loan has not been granted, compliance with the conditions laid down in Paragraph 3 (1) shall not be required.
(3) If there is a transfer of ownership to an apartment obtained under § 2 (a) or § 2 (a). (b) points (1) and (2) on which the loan was granted, at the time the loan is not repaid, and the acquirer shall assume the obligation to repay the loan, the fulfilment of the conditions laid down in Paragraph 3 (1) shall not be required.
(4) Where there is a transition of member rights and obligations, including the lease of a cooperative flat obtained under § 2 (b). (b) point (3) or (4) on which the loan was granted at the time when the loan is not repaid, and the acquirer shall assume the obligation to repay the loan, compliance with the conditions laid down in Paragraph 3 (1) shall not be required.
The monitoring of compliance with the conditions for the use of the Fund's funds shall be carried out in accordance with the specific legislation5).
(1) A loan cannot be granted to 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.
(2) For the duration of the marriage, the loan may not be granted to the spouse of a person who has been the recipient of funds under Government Decree No. 97 / 2002 Coll., on the use of the funds of the State Housing Development Fund in the form of a loan to cover part of the cost of building an apartment by persons under 36 years of age.
(3) The loan cannot be granted for an apartment for which funds have been granted under Government Decree No. 97 / 2002 Coll., on the use of the funds of the State Housing Development Fund in the form of a loan to cover part of the costs of building an apartment by persons under 36 years of age.
This Regulation shall enter into force on the day of its publication.
Prime Minister:
JUDr. Gross v. r.
Minister for Local Development:
Ing. Paroubek v. r.
1) 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 by Act No. 273 / 1994 Coll., the Constitutional Court found under Act No. 280 / 1996 Coll., Act No. 97 / 1999 Coll., Act No. 103 / 2000 Coll., Act No. 229 / 2001 Coll., Act No. 451 / 2001 Coll., Act No. 320 / 2002 Coll. and Act No. 437 / 2003 Coll.
2) § 3 (c) of Decree No. 137 / 1998 Coll., on general technical requirements for construction.
4) Act No. 218 / 2000 Coll., on budgetary rules and amending certain related laws (budgetary rules), as amended by Act No. 493 / 2000 Coll., Act No. 141 / 2001 Coll., Act No. 187 / 2001 Coll., Act No. 320 / 2001 Coll., Act No. 450 / 2001 Coll., Act No. 202 / 2002 Coll., Act No. 320 / 2002 Coll., Act No. 479 / 2003 Coll., Act No. 186 / 2004 Coll., Act No. 257 / 2004 Coll. and Act No. 436 / 2004 Coll.
5) § 44 of Act No. 218 / 2000 Coll., as amended by Act No. 187 / 2001 Coll., Act No. 320 / 2001 Coll. and Act No. 479 / 2003 Coll. Act No. 320 / 2001 Coll., on financial control in public administration and amending certain laws (Act on Financial Control), as amended by Act No. 320 / 2002 Coll., Act No. 123 / 2003 Coll., Act No. 421 / 2004 Coll. and Act No. 426 / 2003 Coll.
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Regulation Information
| Citation | Government Decree No. 616 / 2004 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 or acquisition of an apartment by certain persons under 36 years of age |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 08.12.2004 |
|---|---|
| Effective from | 08.12.2004 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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