Bank Gospodarstwa Krajowego (BGK) will be able to provide an additional PLN 1.2 billion in subsidies for the construction of apartments this year, the bank said.
The additional funds will allow the bank to resume grants from the non-returnable construction support program. The money in the program is intended primarily for the creation and modernization of housing resources in municipalities, the bank announced.
The basic amount of co-financing is 80% of the investment costs. Thanks to the introduced changes, if the investment costs increase during the implementation, the bank will be able to increase the amount of support by up to 20% of the originally granted amount, it was indicated.
“Until now, it was not possible – the amount of support specified in the agreement was the maximum limit of co-financing. In a situation where the prices of materials and construction works costs are dynamically growing on the housing market, the possibility of increasing the co-financing during the implementation of the project is a significant support for investors,” said Przemysław Osuch, director of the Department of Housing Funds at BGK.
Last year, BGK accepted 288 applications and provided support in the amount of over PLN 1.3 billion. This year, only by the end of August, BGK received over 300 applications for the amount of almost PLN 1 billion, the applications cover the implementation of over 5,000. residential premises.
The money in the non-returnable construction support program comes from the Subsidy Fund. Thanks to this support from the state budget, since 2007, almost 27,500 residential premises, sheltered flats, places in night shelters and houses for the homeless have been built all over Poland, and another 11,800 are under construction. Bank Gospodarstwa Krajowego granted subsidies for this purpose in the total amount of PLN 3.2 billion.
Applications for support from the program can be submitted throughout the year. Applications are eligible for support in the period from February to the end of September, BGK further announced.
BGK is a state development bank that initiates and implements programs aimed at economic growth in Poland, cooperating with all development institutions, such as PFR, KUKE, PAIH, PARP and ARP. By implementing strategic development projects, BGK finances, inter alia, the largest infrastructure investments, increases Poles’ access to housing and stimulates entrepreneurship of Polish companies in the country and abroad. He is an investor in funds whose assets are managed by the Polish Development Fund. In 2018, it began its expansion by opening foreign representative offices.
Source: BGK and ISBnews
