Subsidised Housing Law One Step Closer to Adoption

Total Croatia News

ZAGREB, May 25, 2018 – The government on Thursday adopted and forwarded to the parliament a final bill on subsidised housing (POS), which, among other things, adjusts the highest price of construction of POS housing to the real situation in the construction sector as well as facilitates the launching of a new subsidised housing programme.

The government-sponsored POS bill is being aligned with the Construction Law and now defines the reference price of construction as well as all the costs involved in construction – planning, construction, supervision and so on, as well as water utility fees and value added tax. It does not define costs related to the land, utility infrastructure and connections to the utility infrastructure.

Construction and Physical Planning Minister Predrag Štromar (HNS) said that so far the price of POS flats, land, utility infrastructure and connections had significantly differed from the average price in the real sector.

According to the State Bureau of Statistics, the average sales price of new apartments which were sold in the second half of 2016 and were not part of the POS scheme amounted to 11,027 kuna per square metre, which is about 41.3% higher than the average sales price of POS apartments, which amounts to 7,806 kuna per square metre.

Under the bill, the highest price of land and utility infrastructure would be increased from 20% to 25% of the reference price of construction while the highest sales price of an apartment would be increased from 140% to 150% of the reference price of construction.

Štromar said that the bill would enable public service employees, too, to apply for POS housing in addition to state administration employees as part of special POS programmes for housing to be offered for lease. “This bill attempts to resolve the issue of housing for professions in short supply, researches, professors, teachers, doctors and all professions necessary in a town, municipality or county… We know how difficult it is to keep people in small communities. Rent would be paid by local councils, cities, counties and institutions owned by the state,” Štromar added.


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