SURVEY OF GOVERNMENT
HOUSING SUPPORT
MEASURES
IN 2003
MINISTRY FOR REGIONAL DEVELOPMENT
OF THE CZECH REPUBLIC
Housing Policy Department
May 2003
**

2

3
SUPPORT FOR CONSTRUCTION SAVINGS SYSTEM
AIM OF MEASURE Government subsidy to the special financial system "Construction
Savings System" (German model ­ Bausparkassen system).
FORM OF SUPPORT Non-returnable contribution to the Construction Savings System.
APPLIES TO Contract with a Construction Saving Bank.
APPLICANT Participants in the Construction Savings System.
TERMS Based on Act 96/1993, the government contributes 25% of the
amount saved annually up to a maximum of CZK 4,500 per person
per year.
WHERE TO APPLY The subsidy is distributed through specialized financial institutions -
Construction Savings Banks.
NOTE Paid interest on the loan is deductable from income tax base.
The construction savings system combines client's savings with government subsidy which
totals 25% of the annually saved amount, based on a five year contract with a special financial
institution - Construction Saving Bank. The goal is to motivate the population to participate in
savings plans which are used for financing the housing needs. Recipients of the subsidy are individuals
who participate in a construction savings plan. The subsidy does not have to be used for housing
purposes. The contract specifies a target amount which will be reached at the end of the five year
period. The target amount includes:
· the amount saved ( + interest);
· the government subsidy (maximum CZK 4,500 per person per year);
· a loan of approximately 50% of the target amount.
·
The terms of the construction savings system are specified in Act 96/1993 which entered into effect on
April 1, 1993, as amended by Act 83/1995 from July 1, 1995.

4
MORTGAGE SUBSIDY
AIM OF MEASURE
The objective of the subsidies is to improve the affordability of
mortgage loans through reduction of monthly payments, and to
increase the number of newly constructed dwellings.
FORM OF SUPPORT
Interest subsidy on mortgage loans. The amount of interest subsidies
is derived from the average interest rate for which new mortgage
loans were provided in the preceding year. In 2000 and before, the
subsidy totalled 4%, and in 2001 it declined to 2%, in 2002 to 1%.
In 2003 the subsidy for new contracts falls to 0%.
APPLIES TO Construction of new family houses or apartments.
APPLICANT Residents, municipality, cooperative.
TERMS Specified in Government Order 244/1995, as amended.
WHERE TO APPLY The interest subsidy is distributed through mortgage banks.
NOTE Paid interest is deductable from income tax base.
After adopting the necessary legislative conditions (Act No. 84/1995) in October 1995, the
Government approved the terms of state financial support for mortgage loans in order to stimulate
new housing construction (Government Order No. 244/1995). The purpose of this program is to
increase the availability of long term loans from commercial banks to private builders of family
homes and apartment buildings. Mortgage loans are granted for a maximum of 70% of the value of the
property to be built. Builders who lack initial capital can obtain the necessary funds from swing loans
or loans granted under the Construction Savings Plan.
The subsidy is granted under conditions specified in Government Order 244/1995, as amended.
The subsidy can be used for construction of apartment buildings or family houses, purchase of land for
housing construction, purchase of a new apartment or a house (within one year of certification), for
repayment of a loan received after January 1, 1995. An amendment to Government Order No. 78/1998
specifies that borrowers are entitled to receive government subsidy until full repayment of mortgages,
providing that the repayment period does not exceed twenty years. This measure applies to mortgages
(or parts thereof) which do not exceed:
· CZK 2 million (house with two apartments),
· CZK 1.5 million (single family house),
· CZK 12,000 per square meter of an apartment, but no more than CZK 800 000 per unit in an
apartment building.
In 2001 mortgage banks granted loans, which were eligible for government subsidy, for
construction of 7 161 new flats. The total volume of this type of mortgage loans has reached CZK
23,173 billion, CZK 10,149 billion of which was granted in 2001. The average value of mortgage loan
in 2001 was CZK 1,115 million per dwelling.

5
MORTGAGE SUBSIDY FOR YOUNG PEOPLE
AIM OF MEASURE
The objective of the subsidies is to improve the affordability of
mortgage loans through reduction of monthly payments for young
people ­ under 36 years.
FORM OF SUPPORT
Interest subsidy on mortgage loans. The amount of interest subsidies
is derived from the average interest rate for which new mortgage
loans were provided in the preceding year. In 2003 the subsidy
totalled 2%.
APPLIES TO Purchase of older family houses or apartments.
APPLICANT Young residents who in the year of filing the application shall not
have reached 36 years of age.
TERMS Specified in Government Order 249/2002.
WHERE TO APPLY The interest subsidy is distributed through mortgage banks.
NOTE Paid interest is deductable from income tax base.
Support in the form of subsidized installments on a mortgage loan (or its part), not exceeding in
the aggregate:
· CZK 1.5 million for purchase of a family house with a single flat;
· CZK 800 thousand for purchase of a flat in a tenement house.
The amount in excess of the above is not subsidized. The subsidy varies from 1 to 4 percentage points
depending on the mean interest rates at which mortgage banks have provided new credit subject to state
subsidy in the preceding calendar year. In the event the mean interest rate drops below 5 %, the subsidy
will not be granted.
In 2003 the subsidized credit is granted at 2 percentage points.
Subject matter: purchase of older flats or one-family houses with a single flat, potentially land.
Underlying conditions are laid down in Government Order No. 249/202 Coll.
The subsidy is granted while the mortgage loan is being repaid but for no more than ten years. The
amount of the subsidy applies during the validity of the interest rate agreed between the client and the
mortgage bank in the credit contract but for no more than five years; after expiration the amount of the
subsidy will be determined anew.
Additional conditions: neither the applicant for subsidy to a mortgage credit (nor his/her spouse if
married) shall have reached the age of 36 in the year in which the application is filed; at the time of
filing neither the applicant nor his/her spouse (if any) may own or co-own a flat, a tenement house or a
one-family house other that the flat/one-family house for which the aid is requested. The flat/one-
family house involved must be at least two years old (where the relevant date is the date of entry in the
Land Register), must be in the territory of the Czech Republic, must serve exclusively for permanent
habitation of the applicant while the subsidy is being granted, and either the applicant must be its sole
owner or it must be included in the joint property of spouses (if the applicant is married).

6
LOW COST LOW START MORTGAGES
AIM OF MEASURE
The objective of the subsidy is to facilitate access to mortgage loans
for households which due to their initially low income cannot afford
to repay a standard mortgage loan, but expect that their income and
ability to repay debt will improve eventually.
FORM OF SUPPORT Returnable state contribution.
APPLIES TO Purchase of a new apartment or family house.
APPLICANT Builder of new construction or first buyer of a new built dwelling
with a household income under four times the subsistence minimum.
TERMS Specified in Government Order 149/1997, as amended.
WHERE TO APPLY The contribution is distributed through mortgage banks.
STATE BUDGET QUOTA Funds under the item Mortgage Loans Subsidy.
NOTE Paid interest is deductable from income tax base.
Repayable financial aid is provided as an addition to a mortgage loan to citizens who want to purchase
a new apartment or a house. Aid consists of provision of a repayable contribution covering a part of
the principal and interest on a mortgage loan in the first half of the repayment period. The result of this
scheme are low, progressively increasing installments which reflect the recipient's gradually increasing
income. Applicants must meet the following criteria:
· funds (mortgage + own capital + possible government loan);
· building permit issued after July 1, 1997;
· the applicant is a builder or a first buyer of a dwelling under one year old;
· the applicant's household income does not exceed four times the subsistence minimum;
· the maximum amount of the loan is CZK 700 000;
· in the first year of repayment monthly installments may be reduced by a maximum of one third,
in subsequent years they gradually increase;
· the reduced portion of monthly installments is paid from the state budget in the form of
a returnable state contribution;
· the state contribution is repaid within ten years through higher monthly installments.
Combined with other forms of government financial support for new housing construction,
progressively increasing mortgage installments enable families with average and slightly above average
income to acquire a new dwelling.

7
SUBSIDIES FOR CONSTRUCTION OF RENTAL HOUSING AND
TECHNICAL INFRASTRUCTURE
AIM OF MEASURE The objective of the program is to stimulate construction of rental
housing and technical infrastructure by municipalities.
FORM OF SUPPORT Non-returnable subsidy for selected projects.
APPLIES TO Construction of low rent municipal housing rented to individuals in
specific income brackets and construction of technical infrastructure.
APPLICANT Municipalities.
TERMS Specified in the program "Support to Construction of New Rental
Housing and Technical Infrastructure". Applicants must have
completed land use and project documentation, and be able to
participate financially, etc.
WHERE TO APPLY The Ministry for Regional Development
Launched in 1995, this program's aim is to help municipalities execute local investment projects
which involve new housing construction. The conditions of the program have been updated for the
year 2003 as to disbursement of funds for construction of rental housing for target groups in specific
income brackets and for construction of technical infrastructure used for subsequent construction of
apartment buildings and family houses.
The maximum financial support is:
a) CZK 550,000 per dwelling,
b) CZK 630,000 for construction of a dwelling in an area where it is also necessary to build local
Class III. and IV. communications, including their parts,1
special-purpose communications,2
and
technical infrastructure networks which cannot be paid for by utility companies, with the exception
of power, telecommunication, and other lines.3
c) CZK 80,000 per dwelling as regards construction of technical infrastructure.
Subsidies for construction of housing and infrastructure can be combined. Maximum subsidy
provided by the government is 50% of the investment costs of a project. As regards new buildings with
ten apartments and more, at least 10% of the units must meet general technical standards allowing use
of the structure by handicapped persons (Section 6 of Directive No, 174/1994 Coll.). The floor area of
at least 80% of all dwellings must not exceed 60 square meters; the floor area of other dwellings must
not exceed 80 square meters; the floor area is the sum of floor areas of all rooms if they are used
exclusively by the tenant. The subsidy cannot be granted if a structure has already been certified.
A dwelling constructed with a subsidy granted under this program can be rented to:
· a person living in a single-member household whose average monthly income during the six
calendar months preceding the entering into a lease agreement did not exceed 0.8 times the average
monthly income in the national economy published by the Czech Statistical Office,
· a person living in a multiple-member household,4
if the household's average monthly income during
the six calendar months preceding the entering into a lease agreement did not exceed 1.5 times the
average monthly income in the national economy published by the Czech Statistical Office.
1
Section 6 paragraph 3, letters c) and d) of Act No. 13/1997 Coll. on Ground Communications
2
Section 7 of Act No. 13/1997 Coll.
3
Section 3, letter k) of Regulation No. 137/1998 Coll.
4
Section 115 of the Civil Code

8
PROGRAM OF CONSTRUCTION OF SUPPORTED DWELLINGS
AIM OF MEASURE
The objective of the program is to provide support for construction
of rental housing owned by municipalities or voluntary associations
of municipalities for persons who are disadvantaged in access to
housing due to their social situation and due to other reasons on
which are based their special needs in this area.
FORM OF SUPPORT Non-returnable subsidy.
APPLICANTS Municipalities or voluntary associations of municipalities.
TERMS Applicants must be included in the Ministry for Regional
Development "Program of Construction of Supported Dwellings"
WHERE TO APPLY Ministry for Regional Development
This program provides financial aid for construction of homes for persons who are
disadvantaged in access to housing due to their social situation and due to other reasons on which are
based their special needs in this area. Such reasons include an adverse medical condition or old age and
the ensuing medical and social consequences and an unfavorable life situation which prevents
disadvantaged persons from finding adequate housing and poses the risk of social exclusion.
The program was established in 1991 for providing financing for construction of small rental
apartments (maximum floor size of 50 square meters). Since 1998, subsidies under this program have
been disbursed only for construction of rental apartments with community care services.
Subsidized Dwellings for the Year 2003:
· protected dwelling (subsidized dwelling in a special-purpose building,5
which is reserved for
persons having special housing needs due to a medical condition or old age and which meets
the technical requirements for a modifiable dwelling,6
)
· halfway dwelling (subsidized dwelling intended for persons having special housing needs due
to an asocial lifestyle or high-risk living environment who are unable to resolve their
unfavorable social situation without external help,)
· entry-level dwelling (dwelling intended to satisfy housing needs of persons who do not have
access to housing even if all existing social and housing policy measures are used, while such
persons are capable of leading independent lives, especially in respect of fulfilling the duties
under a lease agreement).
The maximum amount of subsidy per individual subsidy titles is as follows:
Subsidy title CZK thousand
1. Protected dwelling 600 to 8007
2. Halfway dwelling 600
3. Entry-level dwelling 250
5
Section 10 of Act No. 102/1992 Coll. which Defines Some Issues relating to Promulgation of the Civil Code
6
See Annex No. 1 to this Program
7
Maximum subsidy of CZK 800,000 per dwelling in a municipality with a population up to 10,000, CZK 700,000 per
dwelling in a municipality with a population between 10-100,000, and CZK 600,000 per dwelling in cities with a
population over 100,000

9
SUBSIDIES FOR HOUSING STOCK REPAIRS
AIM OF MEASURE
The objective of the program is to eliminate defects of prefabricated-
panel buildings causing an emergency situation. In this sense,
subsidies are disbursed for essential repairs ordered by building
inspection authorities.
FORM OF SUPPORT Non-returnable subsidy.
APPLIES TO Repair of prefabricated - panel apartment buildings.
APPLICANTS Building owners (municipalities, housing cooperatives, private
individuals, and legal entities).
TERMS Specified in the "Program - Support to Housing Stock Repairs"
WHERE TO APPLY Ministry for Regional Development
NOTE The subsidy may not exceed 40% of the estimated cost of repair.
In spite of having been built relatively recently, prefabricated panel buildings often suffer from
very serious technical defects (static and safety problems). Under this program the government
provides financial aid intended to cover costs of repairs performed in 2001.
The subsidy will be disbursed up to a maximum of 40% of the budget costs specified on the
Building Registration Card; the maximum amount of the subsidy is CZK 45,000 per dwelling. The
subsidy will be provided for projects where the budget costs of repairs of a structure exceed CZK
160,000 as per the Building Registration Card.
Since the year 2000 the program has been open only to applicants who demonstrate "emergency
need of repair" confirmed by building inspection authorities (based on Act 50/1976, § 87 or § 94).
The program is intended for all owners of apartment buildings and apartments constructed from
prefabricated panels, i.e. municipalities, housing cooperatives, private individuals and corporate
entities. As far as owners of panel buildings or persons who own individual apartments in such
buildings based on Act No. 72/1994 Coll., financial aid is provided on the condition that the applicable
building is maintained by a legal entity founded or contracted for this purpose by the owner(s). Such a
legal entity must be empowered by the owner(s) of the building or individual apartments to conclude a
contract with the government to receive the subsidy.
The subsidy may be used only for repairs of faults and defects of apartment buildings (not
considered repairs is work that results in valorization of a structure in the sense of Section 33 of the
Income Tax Act, No. 586/1992 Coll., as amended). Repairs may concern a defect or a serious static
fault of load-bearing structures, foundations, load-bearing walls, stairwells, balconies, loggias, terraces,
ceilings and roofs, serious construction or function defects of parts of the structure (non-load-bearing
perimeter walls and their sections, railings, attics, architectural elements) that pose imminent danger to
the stability of the structure or its parts or to the safety and health of persons.

10
SUBSIDIES FOR REHABILITATION OF PREFAB HOUSING
DEVELOPMENTS
AIM OF MEASURE
Support to alterations focused on rehabilitation of prefab housing
developments, i.e. their transformation into multifunctional
complexes, and general improvement of the residential environment.
FORM OF SUPPORT Non-repayable special-purpose subsidy.
APPLIES TO Prefab housing developments (integral parts of municipal territory
developed with prefab residential buildings, comprising in total at
least 150 flats).
APPLICANT Municipality.
TERMS Stipulated by Government Order No. 494/2000 Sb., on Terms and
Conditions for Provision of Subsidies from State Budget to Support
Rehabilitation of Prefabricated Housing Developments. The terms
and conditions in particular include the following: the municipality
has an approved zoning plan and a project of rehabilitation of a
prefab building development, and the municipality`s participation in
the financing of the alterations pursuant to Section 2(c) equals or
exceeds 30 % of the costs budgeted for such alterations.
WHERE TO APPLY Ministry for Regional Development.
NOTES The subsidy may not exceed 70 % of the budgeted cost of alterations
as specified in the application.
Prefab housing developments built in 1959 ­ 1990 exist in more than 300 municipalities and
represent about 30 % of available housing stock. They have certain drawbacks in common, such as
their monofunctionality, urbanistic and technical flaws and other problems that have, as a rule, shaped
the housing developments into unattractive, problematic areas. An imminent risk is arising that the
hitherto balanced, blended social composition might become disbalanced towards the socially weaker
strata of population. This process should be immediately harnessed by appropriate actions, and such
conditions should be created as to turn housing developments into attractive multifunctional
neighborhoods.
The program of rehabilitation of prefab housing developments is conceived by Government
Order No. 494/2000 Sb., on Terms and Conditions for Provision of Subsidies from State Budget to
Support Rehabilitation of Prefabricated Housing Developments.
Subsidies in the maximum amount of 70 % of the budgeted cost of alterations as specified in
the application will be provided to the municipalities in whose territory the prefab housing
development is located. This non-repayable special-purpose subsidy is designated, without limitation,
for the following: preparation of a regulatory plan for the prefab housing development or its part,
construction of transport and technical infrastructure, pedestrian paths, public areas and biking paths,
erection of anti-noise screens, establishment of parking lots, redevelopment of public areas including
their remediation, delimitation of fire-fighting platforms, public greenery with the planting of grown-up
trees and grassing, remediation of existing and establishment of new playgrounds with sandboxes,
climbing frames and park rest areas and benches, redevelopment and establishment of public
recreational facilities, and related project and design work.

11
Support provided by the State Housing Development Fund
SUPPORT TO REPAIRS OF APARTMENT BUILDINGS BUILT BY
PREFABRICATED SLAB TECHNOLOGY
"Panel" Program
AIM OF MEASURE
Support to elimination of dilapidation of prefab housing facilities,
including support to repairs, rehabilitation and refurbishment of
apartment buildings built by the prefab technology.
FORM OF SUPPORT Subsidized interest on negotiated long-term loans;
bank guaranty for loans up to 70 % of outstanding principal.
APPLIES TO Loans provided for repairs, rehabilitation and refurbishment of
prefab apartment buildings.
APPLICANT Owner or co-owner of a prefab apartment building (natural person or
legal entity).
TERMS AND CONDITIONS Stipulated by Government Order No. 299/2001 Sb.
WHERE TO APPLY State Housing Development Fund ("SHDF").
The Panel Program, conceived by Government Order No. 299/2001 Sb., consists of three
fundamental support tools:
· interest subsidy provided by the state;
· bank guarantees;
· professional technical assistance.
The terms and conditions and the scope of provision of the state subsidy for interest are
provided for in Government Order No. 299/2001 Sb. The subsidy may only be provided to owners or
co-owners of prefab apartment buildings, flats or non-residential premises.
As a minimum requirement, the subject of repairs, refurbishment or rehabilitation of a prefab
apartment building must always include the repair of defects in building statics, refurbishment of
distribution systems, and improvement of thermal-technologic properties. This condition does not apply
in cases where any of such repairs is not necessary. Types of repairs for which subsidy is to be granted
are specified in an exhibit to the Government Order. Applications for subsidy must be submitted within
6 months from execution of the relevant loan agreement and accompanied by a positive opinion of the
advisory information center and a declaration that the applicant has no debt owing to the state. Each
contractor for the work performed must possess the certificate of quality management system. The
construction management must possess a license for performance of specific building activities. A
legally valid building permit must have been issued for the construction.
Subsidy shall be provided in the amount of 3 % points, and 4% points or 5% points in
economically weak and structurally afflicted districts, as set out in the exhibit to the Government
Order. The subsidy only applies to that portion of the loan that is provided in respect of work specified
in Exhibit 2 to the Government Order and that does not exceed CZK 4,800 per square meter. The
support will be provided throughout the term of repayment of the loan in biannual installments not to
exceed a period of 15 years from the date of execution of agreement on provision of support. The bank
guaranty may be provided up to 70% of outstanding principal. The support may be provided on the
basis of written application submitted to Českomoravská záruční a rozvojová banka who will then
forward the application with any mandatory documentation to the State Housing Development Fund for
decision.

12
LOW INTEREST LOANS FOR HOUSING MODERNIZATION
AIM OF MEASURE Support intended to improve the condition of neglected housing
stock.
FORM OF SUPPORT Low-interest loans to municipalities.
APLLIES TO Housing stock owned by municipalities and private proprietors.
APPLICANT Municipality (private proprietor through municipality).
CONDITIONS Stipulated by Government Order No. 396/2001 Coll.
WHERE TO APPLY State Housing Development Fund (SHDF).
The support is intended for municipalities and through municipalities also to private
proprietors for maintenance of existing housing stock. Introduced in 1994, the program was
implemented by the Ministry for Regional Development. Since 2001, this measure has been financed
from the State Housing Development Fund. The conditions under which loans are provided to
municipalities are specified in the Government Order on the Use of Finances from the State Housing
Development Fund for Repairs and Modernization of Dwellings.
The Fund provides loans to municipalities with a 3% p.a. interest rate. The repayment period
is ten years, and interest is paid on a quarterly basis. Loans can be provided to municipalities that have
an approved land-use plan, an established monetary fund to which the loan from the Fund is
transferred, their own funds earmarked for repair or modernization of dwellings, and established rules
for using finances from the monetary fund.
Finances from the monetary fund must be used for payment of the cost of repair or
modernization of dwellings. Finances from the monetary fund can be used on the condition that a
municipality has at least 50% of the finances from sources other than a loan provided by the Fund and
the monetary fund contains enough finances for repayment of the loan. The Government Order
provides a possibility to obtain a low-interest loan for repair or modernization of apartment buildings
also for private proprietors, as at least 20% of the finances in the monetary fund must be provided to
private proprietors.
In a number of cities, this system was introduced as early as in 1994 as part of the Program of
Government Loans to Municipalities for Repair, Modernization, and Expansion of Housing Stock.
Considering that municipalities can deposit other finances to this special purpose fund, this form of
"public" financial support is very effective.

13
SUPPORT TO CONSTRUCTION OF RENTAL FLATS AND
COMMUNITY CARE HOMES
AIM OF MEASURE Support to rental flats and technical infrastructure.
FORM OF SUPPORT Non-repayable special-purpose subsidy for selected projects.
APPLIES TO Construction of municipal rental flats with limited rent and
construction of community care homes.
APPLICANT Municipality
TERMS AND CONDITIONS Set out by Government Order No. 481/2000 Coll.
WHERE TO APPLY State Housing Development Fund
Effective from 2000, Government Order No. 481/2000 Coll. enables the financing of
construction of rental flats, flats of special designation, and suites in community care homes from
resources of the State Housing Development Fund.
The limit set for the support is up to
· CZK 320,000 per flat in respect of construction of rental flats;
· CZK 400,000 in case of construction of flats in undeveloped areas where technical infrastructure
needs to be built;
· CZK 370,000 in case of reconstruction of former military buildings;
· CZK 500,000 per flat in case of flats of special designation;
· CZK 700,000 per a flat of special designation.
The subsidy may amount up to 50 % of the investment cost per individual project. In a newly
built apartment house with more than 15 flats, at least 5 % of the flats must meet the general technical
requirements enabling the use of buildings by persons with impeded motion ability.
This program is closed for new applications.

14
SUPPORT OF THE YOUNG
AIM OF MEASURE To increase availability of new own housing to young people up to
36 years of age who have no housing in their ownership.
FORM OF SUPPORT Low-interest loan of up to CZK 200,000.
APPLIES TO Construction of a flat or a single-flat house to be owned by the
applicant. Structural modification of a building where premises
originally approved for purposes other than housing will be
transformed into a flat.
APPLICANT Young people who will not achieve 36 years of age in the year the
application was filed.
TERMS AND CONDITIONS Set out by Government Order No. 97/2002 Coll.
WHERE TO APPLY State Housing Development Fund.
Government Order No. 97/2002 Coll. on Utilization of Resources of State Housing
Development Fund in the Form of Loan for Construction of Flat by Persons under 36 Years of Age will
improve availability of new own housing to young people without any ownership housing.
The loan may be extended to young persons who do not achieve 36 years of age in the year of
filing the application, regardless of their marital status. If the applicant for the loan is married, the
spouse must also meet the age limit requirement.
The cap limit for the loan is CZK 200,000, the applicable interest rate is 3% p.a., maturity up
to 10 years without postponement, i.e. repayments of the loan must commence forthwith upon
disbursement of its full amount. The loan may be combined with both a loan on building savings and a
mortgage, or may be used quite independently ­ without any additional loan, just with the use of
applicant's own savings. There does not exist any legal claim that can be asserted in respect of this type
of assistance.
The applicant (and his/her spouse if married) must not achieve 36 years of age in the year of
filing the application, nor may he/she be the owner or co-owner of a flat, apartment building or house at
the time of filing the application. The flat or single-flat house built with the use of this loan must be
used for the housing needs of the applicant to whom the loan was extended for the entire term of
repayment of such loan.
The loan may be used for:
· Construction of a flat pursuant to the Act on Ownership of Flats, or of a house with a single flat
to be owned by the applicant.
· Structural alteration of a building where premises originally approved for purposes other than
housing will be transformed into a flat.
In both foregoing cases, the floorage of the flat built with the assistance of this loan must not
exceed 80 m2
, and 120 m2
in case of the single-flat house. The floorage does not include loggias,
balconies and garages.

15
HOUSING ALLOWANCE
AIM OF MEASURE Housing subsidy
FORM OF SUPPORT Subsidy for low income families.
APPLIES TO All households with income below 1.6 times the subsistence
minimum.
APPLICANTS Households
TERMS Specified by Act 117/1995
WHERE TO APPLY District offices
This type of housing allowance provides assistance to low income households at a time when housing
costs are rising. Under Act 117/1995 the housing allowance is a social benefit paid to all households whose net
monthly income is below 1.6 times the subsistence minimum, regardless of where and in what kind of dwelling
the family lives (including the sharing of an apartment with another family).
In the year 2001, 333,5 thousands households were receiving this type of housing subsidy. The average
amount of the allowance in the year 2001 was CZK 674 per month.

16
TAX RELIEF
Income Tax Relief
AIM OF MEASURE Support to loans under Construction Savings System
and mortgage loans
FORM OF SUPPORT Deduction of paid interest rate on loans under Construction Savings
System and mortgage loans, from income tax base.
APPLIES TO Interest rate on loans under the Construction Savings System or
mortgage loans.
APPLICANTS Individuals participating in the Construction Savings System or
individuals taking mortgage loan.
TERMS Specified in Act 586/1992 Coll., as amended.
AIM OF MEASURE Support to Construction Savings System
FORM OF SUPPORT Income tax relief of yield from Construction Savings System,
including interest from governmental subsidies.
APPLIES TO Interest yield from Construction Savings System.
APPLICANTS Individuals participating in a Construction Savings System.
TERMS Specified in Act 586/1992 Coll., as amended.
AIM OF MEASURE Support to greater use of mortgage loans
FORM OF SUPPORT Income tax exemption on yield from mortgage bonds.
APPLIES TO Holders of mortgage bonds.
APPLICANTS Mortgage bonds holders.
TERMS Specified in Act 586/1992 as amended.

17
AIM OF MEASURE Support to migration of population
FORM OF SUPPORT Exemption from personal income tax
APPLIES TO a) income from the sale of the family home, flat (apartment)
including areas of common use of the house or jointly owned
property areas, including adjoining land, provided that the
vendor (seller) has had his residential address there for a period
of two years immediately prior to the sale;
b) income from the sale of real estate, flats or non-residential
premises not listed under (a) above, provided that the period
between their acquisition and sale exceeds five years;
c) income from the transfer of a co-operative member's rights, from
the transfer of a property share in a transformed co-operative
(Note 13) or from the transfer of an interest to a business
company, with the exception of the sale of securities, provided
that the period between acquisition and transfer exceeds five
years;
d) income acquired in the form of an ownership title to a flat in
exchange for vacating another flat and income acquired in the
form of monetary payment to the occupier of a flat as
compensation for vacating the flat on condition that the recipient
spends or will spend the monetary compensation payment to
satisfy his residential requirements not later than one year
following the year in which he received this payment. The
income is tax-exempt even in the event that the taxpayer spent an
equivalent amount to obtain housing (Note 4e) within one year
prior to receiving the monetary compensation payment.
APPLICANTS Recipient of the income.
TERMS Specified in Act 586/1992 Coll., as amended

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Property Tax Relief
AIM OF MEASURE Financial support to municipalities
FORM OF SUPPORT Exemption from property tax on buildings, land.
APPLIES TO Buildings owned by municipalities.
APPLICANTS Municipalities
TERMS Specified in Act 338/1992 Coll., as amended.
AIM OF MEASURE Support to new housing construction
FORM OF SUPPORT Property tax exemption which applies to new privately owned
houses and apartment buildings for 15 years from building
certification.
APPLIES TO New apartment buildings.
APPLICANT Building or apartment owners ­ individuals.
TERMS Specified in Act 338/1992 as amended.
WHERE TO APPLY Property tax form.
AIM OF MEASURE Support to creation financial resources for repair of
houses owned by low income or disabled people
FORM OF SUPPORT Property tax exemption.
APPLIES TO Houses or dwellings owned by handicapped low income residents.
APPLICANT Property owners
TERMS Specified in Act 338/1992 as amended.
WHERE TO APPLY Property tax form.
NOTE The tax exemption applies to the proportion of the property which is
used as the applicant's permanent residence.
AIM OF MEASURE Replacement of heating system, thermal insulation.
FORM OF SUPPORT Five year property tax exemption for buildings with a new special
heating system (solar, wind, geothermal etc.) or thermal insulation.
APPLIES TO Buildings with new special heating syst0em or thermal insulation;
the five year tax exemption period starts in the year following
building certification.
APPLICANT Property owners.
TERMS Specified in Act 338/1992 as amended.
WHERE TO APPLY Property tax form.
AIM OF MEASURE Creation of financial resources for repair of privately
owned buildings
FORM OF SUPPORT Property tax exemption up to 2007.
APPLIES TO Buildings privatized by residents, devolved from state, municipal
and cooperative ownership.
APPLICANT Property owner.
TERMS Specified in Act 338/1992 as amended.
WHERE TO APPLY Property tax form.
AIM OF MEASURE Creation of financial resources for repair of privately

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owned apartment buildings built before 1948
FORM OF SUPPORT Property tax exemption up to 2007 for restituted buildings built
before 1948.
APPLIES TO Privately owned apartment buildings.
APPLICANT Property owner.
TERMS Specified in Act 338/1992 as amended.
WHERE TO APPLY Property tax form.