The issue of housing availability for people entering adulthood returns like a boomerang in the public debate. The existing programs have not brought a breakthrough, which is why the government's new project completely changes the emphasis, focusing on the development of the segment of social and municipal premises.
New regulations have facilitate and maximally speed up the construction of real estate for people with low and medium incomes.
— The deficit of affordable housing is a problem especially for young people in Poland. We want to finally define the conditions under which they will have a straight path to renting a social apartment – says Tomasz Lewandowski, Deputy Minister of Development and Technology.
The state plans to place main emphasis on supporting housing cooperatives, social housing societies (TBS) and social housing initiatives (SIM). — Thanks to these solutions, the social housing support system will become more coherent, fair and effective – explained the deputy minister. According to forecasts, over the next 10 years, the total value of these investments may exceed the astronomical PLN 200 billion.
Loans for half a century and no more expensive deposits
From the investors' perspective, the revolution will be the simplification of bureaucracy. Grants and preferential loans from Bank Gospodarstwa Krajowego (BGK) will be awarded on the basis of one application. Financing will be available for up to 50 years (20 years longer than before), and constant the interest rate throughout this period will be only 1 to 2 percent. This will allow you to finance twice as many investments from the same budget pool.
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For the tenants themselves, the key change concerns the so-called participation, that is own contribution. Currently, it is up to 30 percent. construction costs, and after the changes it is not to exceed 10%. Moreover, the ministry plans to create a special pool of apartments for people up to 35 years of age, who will be completely exempt from the need to pay any starting fee.
Greater municipal power and flexible rents
The new program will not cut off local governments from funds for municipal housing, but it will change the rules of the game. The amount of subsidies for municipalities will depend on their financial situation and current activity on the local housing market. Local authorities will also gain greater powers to control contracts with investors.
The project also introduces the institution of tenants' councils in rental resources, which will take care of the interests of tenants. The fee system itself is to become flexible and socially fair. “The project provides that people with higher incomes will bear rental costs proportionally higher than people who meet the income criteria,” the ministry says in a statement. However, the system provides a lifeline – in the event of a sudden drop in earnings, for example after retirement, tenants will be able to apply for significant rent reductions.
