The government can also involve pension funds in building affordable housing

The government considers homes with rents that are at least 10 percent below the local average to be affordable. For example, it is intended to serve professions such as youth under the age of 35, firefighters, teachers or health workers, or the elderly or victims of domestic violence.

The state is currently working with four models for how to build this housing. Municipalities can buy already built apartments or negotiate with developers to build new ones. Another option is to make them yourself. Alternatively, they would allow a developer to build apartments, who would rent them out at discounted rents

“We are ready to add to the range of instruments we have,” said Finance Minister Zbyněk Stanjura (ODS).

Money for municipal housing comes from the National Reconstruction Plan, eight billion crowns so far allocated for this purpose. The cabinet discusses other funding sources, for example, the European Investment Bank, insurance companies or pension funds.

Bartos: There has never been a better housing law, and I don’t understand the opposition in the government

economy

The idea of ​​greater involvement in pension funds has been pioneered by, for example, the Ministry of Regional Development. Minister Ivan Bartos (Pirates) already mentioned it in an interview with Nowinki last week. On Monday, he did it twice again. First at the conference of the Czech Chamber of Authorized Engineers and Technicians Active in Construction (ČKAIT) and then at the government press conference.

For retirement funds, rental housing can be attractive despite lower yields. Their clients may often prefer less aggressive strategies, the main advantage of which is a lower level of risk.

Foreign funds generally invest in similar projects. For example, Canadian or British pension funds are involved in real estate. However, in the Czech Republic, regulation prevents this. This forces the money to be invested in assets that can be sold easily and quickly without affecting the cost of pension funds. Efforts to involve these companies in building affordable housing will change this.

“This will be a step in the right direction,” Zuzana Chudoba, founder of BTR Consulting, which advises investors on rental housing projects, recently told Novinga about untying the hands of pension funds.

The specific form of how pension funds should be involved is not yet clear. According to Martin Kuba (ODS), President of the Association of Regions and Governor of South Bohemia, it is necessary to find an adequate incentive model for these companies.

The construction of affordable housing for private individuals is on the rise. Mainly municipalities try

economy

Leave a Reply

Your email address will not be published. Required fields are marked *