Czech state launches fund for affordable housing

The Ministry for Regional Development is preparing a holding fund investing into affordable housing projects. The state plans to invest CZK 1 billion (€40 million) from the National Recovery Plan and is now looking for a strategic partner from the private sector to invest another billion. After the launch of the project, representatives of the department expect that other investors could be involved.

According to Jan Schneider, Director at the Department of Strategies and Analyzes of Housing Policy, the ministry negotiates with domestic banks. In recent years, for example, Česká spořitelna has made a strong entry into the housing market, which, through its subsidiary company Dostupné bydlení (Affordable housing) Česká spořitelna, has invested in the construction of almost a thousand apartments in various development projects, which are intended to serve, among other things, the necessary professions.

In the Czech Republic, it will be an experiment. For example in Slovakia, according to the ministry, a similar fund already exists, though the neighbours focus more on social housing. It will more or less be a real estate fund in which the state and private investors will have a share and which will buy housing projects.

"It will not be the case that the state will decide on individual investments. There is a strict condition of the European Union that no one in the investment committee must be dependent on the state, it must not be politicised," pointed out Vít Lesák from the housing policy department, adding that the fund will nevertheless have to follow the basic strategy set by the state. The fund is covered by the Národní rozvojová investiční company, which falls under the Národní rozvojová banka. The company will operate in the supervisory board and other bodies and with a professional fund manager who will deal with individual purchases and operations.