Total of 174 localities ask for subsidies for rental flats

The interest shown by towns and villages in subsidies for purchasing or constructing rental flats is much higher than the state can cover, according to a report from the TASR press agency. A total of 174 municipalities have asked for state subsidies this year for acquiring rental flats, worth €48.4 million in total. The Construction and Regional Development Ministry has allocated €40 million for the construction and reconstruction of apartment buildings. This amount, however, also includes allowances for repairing defects in residential buildings and house insulation. The ministry is currently examining the applications. Almost one-fifth of the applications were submitted by towns and villages with high unemployment rates. This was due to the fact that less-developed areas have enjoyed more favourable conditions since the beginning of this year. While the state subsidy for 'ordinary' towns represents between 30-75 percent of all costs, the figure for towns with high unemployment rates is between 40-85 percent. The rest of the money needed for the construction of rental flats can be granted from the State Housing Development Fund (SFRB). Ordinary towns and villages can take out a loan from this fund with a 1-percent interest rate, while less-developed areas can obtain a loan with zero interest. The fund has allocated €91.5 million for this purpose this year.