Czechia's new subsidy program helps homeowners secure funds for fixer uppers

The funds go towards renovating aging family homes, promoting energy efficiency, and revitalizing housing stock. Staff

Written by Staff Published on 18.07.2023 14:00:00 (updated on 18.07.2023) Reading time: 2 minutes

In a bid to rejuvenate aging family homes and promote energy efficiency, the Czech Environment Ministry and State Environmental Fund are set to launch a subsidy program this September. The initiative is an incentive for Czech households to renovate older family houses and contribute to the renewal of the country's existing housing stock.

Under the program, participants will receive an advance subsidy of over CZK 1 million, coupled with the opportunity to secure a favorable loan for their renovation projects.

Making use of existing housing

The goal of the "Repair Grandma's House" subsidy program is to accelerate the pace of house renovations and contribute to the renewal of the country's existing housing stock. The initiative also aims to provide young families with a chance to obtain affordable housing.

"We want to make use of the existing development and prevent municipalities from expanding into open countryside and from occupying more and more agricultural land due to housing needs," Environment Minister Petr Hladík said. According to the Czech Statistical Office, approximately 17 percent of family homes in the country remain uninhabited.

The program will be open to all applicants who own a family or holiday home and meet the requirements for optimal insulation of the existing building. Alternatively, applicants may choose to construct a new house on the site of a demolished original structure that meets the necessary parameters.

The program also offers initial investment funds to make economical living more accessible for young households. The subsidy is made possible through funding from the European Union's Modernization Fund, with CZK 55 billion for subsidies under the New Green Savings program.

Help for young families

Labor and Social Affairs Minister Marian Jurečka underscored the program's focus on supporting young families. "We will favor each dependent child of the applicant with a family bonus of CZK 50,000. In addition, families will be able to apply for a bonus for additional children born after the application for support was submitted," he said. The last year to which the bonus applies is 2030.

One advantage of the program is the option for applicants to receive funds in advance. Starting next year, successful recipients can also apply for a preferential loan at branches of building societies, covering the difference between eligible expenses and the subsidy received, without requiring real estate as collateral.

"The most common obstacle to the renovation of older houses is the lack of resources to cover the difference between the subsidy and the total costs, including pre-financing. At the same time, the subsidy provided in advance will reduce the need for the loan amount, making the preferential loan more accessible to more households," said Petr Valdman, director of the State Environmental Fund.

"Comprehensive insulation will significantly reduce heating costs, and the saved funds will then help applicants in the following years repay the loan without much difficulty," he added.

Individuals interested in applying for the program can contact the regional offices of the State Environmental Fund of the Czech Republic for inquiries or utilize the contact form available on the website.

Would you like us to write about your business? Find out more