Biznes Fakty
Poland 2050 voted with PiS and Konfederacja. What is the Social Housing Act about?
An additional PLN 10 billion allocated for social housing and the rejuvenation of up to 75,000 unoccupied municipal properties – these are the modifications instituted by the amendment approved by the Sejm. Nonetheless, certain provisions are contentious, and an unexpected political coalition emerged during the voting process. We clarify what will be altered.
On Wednesday, the Sejm revised a law that, among other things, increases the ceiling on state budget expenditures for social housing. This could potentially lead to the Subsidy Fund receiving an extra PLN 10 billion by 2030, which is anticipated to facilitate the rejuvenation of as many as 75,000 vacant municipal properties.
Poland 2050 amendments backed by PiS and Konfederacja
Prior to the final vote, lawmakers endorsed several minority proposals and amendments put forth by Polska 2050-TD. The shifts were realized through the combined votes of PiS, Konfederacja, and Polska 2050. This unusual coalition triggered political debate.
1. What modifications does the amendment approved by the votes of PiS, Confederation, Poland 2050 introduce?
- the option to acquire ownership in cities with populations below 100,000,
- residential units cannot be divided into ownership until 15 years have elapsed,
- following the complete repayment of the loan provided by BGK (Bank Gospodarstwa Krajowego),
- the tenant will have the ability to request a transition from the current lease agreement to an institutional lease agreement via SIM (Social Housing Initiative) with an option for ownership acquisition,
- the rented units will be accessible for purchase at market rates.
2. What other enhancements have been implemented?
- the removal of restrictions on parking space requirements in developer projects. This is currently governed by the so-called Special Housing Act.
What is the bill about? Here are the modifications
1. Raising the maximum thresholds of state budget spending to support the Subsidy Fund for:
- social and municipal housing program (BSK);
- social housing program (SBC).
2. Extension of the SBC program for an additional year:
- the existing deadline for submission of applications has been extended from 2024 to 2025;
- simultaneously increasing the SBC budget from PLN 4.5 billion to PLN 7 billion.
3. The schedule for annual limits of state budget expenditures to support the Subsidy Fund is as follows:
- 2026 – approximately PLN 6 billion,
- 2027 – PLN 6.86 billion,
- 2028 – PLN 8 billion,
- 2029 – PLN 9 billion,
- 2030 – PLN 10 billion.
4. Expanding the scope of investments under the BSK program:
- renovation and revitalization of municipal vacant buildings (as per the National Census in 2021, there were over 113,000 of them).
Objective: to restore around 75,000 units for use by 2030.
5. Alteration of the procedure for queuing applications for support from the Subsidy Fund:
- priority for applications seeking repayable funding from the SBC program;
- priority for applications co-financed by the KPO to ensure milestone achievements;
- broadening the support scope in the BSK program to cover investments related to the construction and renovation of student dormitories.
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