Cooperative housing Prague: Up to 266 flats will be built on Radlické
The project to support affordable cooperative housing was approved by the Prague City Council in December 2020. The city was then looking for suitable land and so far selected those in Prague 5. The lack of flats and the high price have plagued the city for a long time.
“Prague thus wants to respond to the dramatic situation with housing. Apartment prices are flying up six times faster than incomes. Cooperative housing is the fastest way to help the people of Prague get more affordable housing,“Marvan said.
Following the conclusion of the memorandum, the following steps will mainly concern the economic and legal aspects associated with the establishment of the cooperative. This means, for example, creating a detailed project plan, providing the necessary documentation and preparing an estimate of construction costs.
The house in Radlická should have a gross floor area of approximately 20,000 square meters in the coming years and will consist of at least two blocks with separate entrances. Inside, there will be 221 to 266 apartments and their average area should range from 54 to 65 square meters.
Conditions of cooperative housing
Land for cooperative housing will provide the city so that it shall establish the right of construction for the cooperatives. The land will remain in his ownership. Through this, the cooperatives will, through the cooperative, pay an annual contribution to the city to the fund for the development of affordable housing. After repaying the construction loan, the cooperative will be able to buy the land from the city under pre-determined conditions. the resulting savings in housing costs for a cooperative member can total 25 to 30 percent compared to market prices.
Support for cooperative and federal housing generally envisages that the city will provide its land for the construction of an apartment building through the so-called right of construction for up to 99 years. This would then be based on either a cooperative founded by the municipality together with a private partner, or special civic associations inspired by the German so-called baugruppe. In both cases, the land will be purchased by the municipalities only after the house itself has been repaid.
Economist Kovanda on inaccessible housing in Prague.
Visualization of the Radlická radial form
Author: Visualization of Pudis and Satra