The Council of Ministers has adopted a draft amendment to the Act on Certain Forms of Supporting Housing Construction, which introduces the formula of social rental agencies, the Government Information Center (CIR) reported.
The government wants to introduce into the legal market a model of intermediation between apartment owners and natural persons whose income or living situation does not allow them to rent a flat on a commercial basis. The new model will function in the formula of a social rental agency (SAN), popular in Western Europe.
The rental sector has been – as reported – affected by the effects of the COVID-19 pandemic. Demand for long-term rental has decreased, among others as a result of the closure of universities, and a short-term one – due to the restriction of tourist traffic due to the pandemic.
The aim of the project is to use the oversupply of flats for rent for social purposes. Social rental agencies (SAN) specialize in acquiring housing on the market, mainly from natural persons. They offer a long-term lease with a guarantee of the rent and can negotiate a reduction in the rent rate – as shown by foreign experience – even by approx. 20%.
Then, these apartments can be rented to people whose income or living situation does not allow them to rent the apartment on a commercial basis.
An entity that leases residential premises or single-family residential buildings from their owners may become a social rental agency. It is also about renting these premises or buildings to natural persons indicated by the commune (meeting the criteria specified in the resolution of the commune council).
SAN will be able to establish a company in which the commune has a majority stake. It can also be a non-governmental organization, such as an association or foundation, or a social cooperative, as an entity authorized to conduct public benefit activities. The condition for running a social rental agency will be to allocate all income to the statutory activity of the agency.
The draft defines the rules for concluding and terminating contracts between entities involved in the social lease formula: the commune, SAN, the owner of the leased premises / building and the tenant of the premises. The scope of the commune resolution was also specified, which will include, inter alia, criteria entitling tenants to conclude agreements with SAN.
An additional incentive was also introduced for owners of premises to lease their SAN and to lower the starting rent. The lease of real estate to SAN will be exempt from VAT. SAN tenants, on the other hand, will be able to benefit from rent subsidies under the government’s Mieszkanie na Start program.
The SAN formula will be an alternative to municipal housing and may contribute to reducing the queue of people waiting to rent a municipal apartment.
The new solutions will enter into force 14 days after their publication in the Journal of Laws.
Source: ISBnews
