Cooperative flats in Prague: The city wants to support hundreds of them
The goal is to create several hundred flats in the metropolis every year according to a uniform pattern. At the beginning, Prague grants the right to build its own land. Subsequently, the city requires a partner in a public tender in the form of a “cooperative developer”, who organizes and finances the construction and does not have the right to trade in future flats.
One third of them will be provided by “preferred professions” as a rental municipality, and the remaining two thirds will be available to all Praguers.
However, the interest in a cooperative share must meet specific conditions, which include Czech citizenship, permanent residence in Prague, lack of ownership of other real estate, exclusively an apartment for own living and, last but not least, the use of a deposit worth a quarter of the apartment price. After the completion of the construction, the developer will also have the opportunity to become the administrator of the building, which should motivate him not to focus only on the highest possible implementation margin.
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Individual cooperatives will pay monthly rent plus several hundred crowns to the city’s affordable housing fund. The larger of the two items will benefit from the installment loan repayments.
Smaller than a “subscription” before a possible purchase of land from the city. The cooperative as a whole may or may not decide to do so after the loan has been repaid in about 30 years. At the same time, the shareholder can withdraw from the team at any time and return all invested money.
A project aimed at the middle class
According to councilor Hana Marvanová (United Forces, STAN), the project, which has been under preparation for two years, is clearly targeted at the middle class. It is supposed to be more affordable housing in the metropolis. “Cooperative housing with the participation of the capital city of Prague is one of the important components of the capital’s housing policy, which will help fill the gap in the housing market. At the same time, Prague continues the century-old tradition of cooperative living. The project is ready at this time. As soon as we compete for a partner, we will set up a housing association together. We have already noticed several people interested in this type of housing, “said Marvanová, according to whom the philosophy of cooperative housing goes against” expanding the portfolio of investment apartments in Prague “.
Specifically, the tender for the project in Radlická is to be approved by the May council. A partner should be selected by the end of the year and applicants should start applying next year. Prague has also just launched a website ddb.praha.euwhere you can find all the information about the project and the possibilities of participating in it.
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“The Affordable Cooperative Housing project is an innovative solution with a high degree of legal certainty, which, in addition to increasing the affordability of housing for citizens, also brings large one-off investments by the city,” said Jiří Kučera, chief expert.
Cooperative flats could also be built on city plots in Prague 13, 12 or 10. “After all, Radlická is not the only swallow in our case. We are also preparing other projects that will give young families the prospect of affordable housing. In Nad Koulkou, for example, another 40 cooperative flats are being planned, ”said Renáta Zajíčková (ODS), mayor of Prague 5.