Brno has raised the age from 36 to 45 for the possibility of applying for a cooperative apartment, which the city plans to build in several places. The mayor’s deputy Jiří Oliva (ČSSD) told the press yesterday. In the first round, the city collected 700 applications, of which about 500 met the conditions. Another will be accepted in the first half of next year. In the next round, Brno will select a lottery ticket. Preference will be given to families with children and people with permanent residence in Brno. The condition is that they may not own the property. The city wants to build over 1,400 apartments.
Cooperative housing consists in the fact that the city will establish a cooperative with the interested party, which will take out a mortgage for the construction of an apartment. The city wants to support people who cannot get a mortgage, but have an income and can repay. The mortgage will be repaid from the rent, after its payment the flats can be transferred to people. The city is looking for a bank that will allow a 90 percent mortgage, while 10 percent would have to be deposited. For an apartment of three million, people would have to have CZK 300,000, plus money for the necessary related fees.
Oliva said that the city has raised the age due to the fact that the current prices of flats on the market have risen to such a dizzying level that not only young families but also the middle generation will no longer afford flats. “Cooperatives will build at cost prices, without profit. In addition, the loan will be taken by the cooperative, not the cooperatives, so the conditions should be significantly more favorable,” said Oliva.
In addition to age, people must also meet certain income conditions. For apartments of different sizes, there is a minimum and maximum limit that an individual or two partners must receive together as income. The minimum for the smallest apartment is CZK 35,000, the maximum for the largest apartment is CZK 100,000. According to Oliva, the limit is set in order for people to be able to repay and, on the other hand, for a person with a higher income who cannot get another apartment not to apply for an apartment.
The cooperative flats that Brno is planning are to be located on Kamenný vrch, in Přízřenice or on Kaménky in Černovice.
Source: CTK
