About thousands of former employee flats in Poland are the subject of a new non-returnable subsidy granted by the state. Thanks to the increase to 95% of co-financing from the Subsidy Fund for municipalities for the purchase or purchase and renovation of PRL (Polish People’s Republic) employee flats, they will get into the hands of tenants more quickly. Tenants will have priority in buying such properties for little money or renting them on preferential terms.
gov.pl/ An example of PRL employee blocks of flat
Employee flats are a relic of the communist era in Poland. At that time, apartment blocks were built for employees of state-owned enterprises. After privatization, most of them changed hands – usually a commune or a private investor became the new owner.
The non-returnable co-financing for municipalities will be increased – from 50% to 95% of the costs of purchase or purchase and renovation. This means that the commune will have to cover only 5% of the market value of the property. The commune will be able to sell such flats to the existing tenant for up to 5% of the market value (regardless of the length of service in the liquidated plant and the lease) or rent them at much lower than market rates (such as in the commune housing stock). The proposed changes in this respect will be the subject of works by the Sejm in the second half of September this year. After the regulations come into force (probably in the fourth quarter of 2022), communes will be able to submit applications. Every year, we will allocate at least PLN 50 million for this purpose.