Ministry of Development: More cheap rental apartments

The government has adopted the social part of the housing package, which is expected to result in, among other things, greater availability of rental housing for people with medium and low incomes, the Ministry of Development said on Thursday.
The housing package prepared by the Ministry of Development is intended to increase the availability of rental housing for people with medium and low incomes, improve housing conditions in existing properties, subsidize rents, and provide rent-free periods in social housing associations.
The planned solutions are also intended to make it possible to acquire ownership of newly built social housing, as well as to “support social housing in the broadest sense and provide greater and easier access to land for development”.
As the Ministry of Development pointed out, “the package is intended to provide a development boost for the economy, which has been hit by the COVID-19 pandemic”.
The key solutions of the housing package, as indicated by the ministry, include changes in social rental and municipal housing. These include “higher grants from the Subsidy Fund at BGK for municipalities for the construction of rental apartments (from 20% of investment costs to up to 35%) and for the construction of municipal apartments (to cover 50% of investment costs)”, as well as the introduction of the principle of financing rather than refinancing.

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