Ostrava city councillors yesterday approved a new subsidy programme aimed at supporting the creation of new rental apartments in long-vacant buildings. Private owners can receive a subsidy of up to CZK 350,000 per apartment unit, announced Deputy Mayor Zuzana Bajgarová (ANO).
“In Ostrava, we have been dealing with two issues for a long time, namely empty, abandoned spaces not only in the city centre, but also across the city, and the growing shortage of rental housing in the city. We have tried to bring these together in some way and motivate private owners who have many of these (unused) buildings but either don’t have the finances or the motivation to invest in them. Our goal is to provide them with the financial means to turn the unused spaces into new housing and offer them on the rental market,” Bajgarová explained.
The city is prepared to provide applicants with up to 50 percent of the costs, but no more than CZK 350,000 per apartment, with the rest of the costs covered by the building owner. One applicant can receive a maximum of CZK 3 million. Applicants will receive the funding in two instalments, half after the contract is signed and the other half after the project is completed.
“This is a pilot project for us. We will test the demand to see how the applicants will respond to it. We anticipate that the calls will be issued gradually,” the deputy minister said. She clarified that for 2023 to 2026, the city has earmarked 40 million crowns for the subsidy programme. For the current first call, CZK 20 million is available, so the city expects that about 60 flats could be renovated.
The owner or co-owner of the building can apply for the subsidy. The municipality will accept applications next year in March. The applicant must attach mandatory annexes to the application, such as documents relating to the ownership and condition of the property. A new rental apartment created in a vacant space must be available within two years of the effective date of the grant agreement. For a period of seven years, the dwelling must be offered as rental housing, part of which must be for affordable rental housing.
“Under affordable housing, the housing unit is provided for occupancy in the form of a lease agreement under which the rent per square foot shall not exceed 70 percent of the average rent. It is possible to increase the rent once a year on the basis of an inflation clause,” said Gabriela Pokorná, the city’s spokesperson. Applications can be submitted electronically and then in paper form or via data boxes. The city plans to decide on the provision of subsidies by the end of next year at the latest. Detailed information on the programme can be found in Czech language on the city’s website, see link below.
