Final proposal of the Act on Amendments to the Act on Housing Care in Assisted Areas

At today’s session, the Government adopted the final proposal of the Act on Amendments to the Act on Housing Care in Assisted Areas, which is a major step forward in further improving the housing care system in these areas. The Act was presented by Deputy Prime Minister and Minister of Physical Planning, Construction and State Assets Branko Bačić.

“At first reading the Act received wide support from both the Croatian Parliament and the general public, so there were not many suggestions or remarks regarding the text,” Minister Bačić pointed out at the beginning of his speech. Let us recall, members of the Croatian Parliament discussed the amendments to the Act on Housing Care in Assisted Areas in September this year.

The final Act proposal introduces new models of housing care - the possibility to purchase a state-owned apartment unfit for habitation and the donation of construction materials to rehabilitate an apartment on the top floor or in the attic of a subdivided family house, which was not possible under the current act. In addition, amounts for the donation of construction materials are increased from 25% to 50% due to growing prices of construction products and services.

The final Act proposal standardises the amounts of rent for all users of housing care in the area of its scope.

“It is particularly important that these amendments contribute to establishing affordable housing. In the entire assisted area, rents in state apartments and state houses will be 36 euro cents per square metre, which is approximately 15-20 times cheaper than the median price in the same local self-government unit,” the Minister clarified.

The Act also defines the procedure in the event of terminating the rental agreement, especially when the beneficiary acquires another housing unit fit for habitation during the rental agreement, as well as in the event of terminating the agreement on the donation of construction materials, for instance if the beneficiary refuses to sign the contract or opts out of the renovation.

Moreover, a three-year transition period is introduced for local self-government units which have lost the assisted area status. During this period, they will be able to generate income from selling real estate on their territory.

The Act further regulates housing care for Croatian emigrants, descendants of emigrants and members of their families who return to the Republic of Croatia, in cooperation with the Ministry of Demography. It also prescribes the procedure for providing assistance with housing care of Croatian citizens in Bosnia and Herzegovina.

It also resolves the matter of citizens who had tenancy rights but were unable to exercise them.

“If the Ministry of Physical Planning, Construction and State Assets does not have replacement real estate, these amendments enable beneficiaries to receive payment according to the reference price, in the same way it is already regulated for protected tenants based on the Act on the Implementation of the European Court’s Judgments of the Statileo Group and the Constitutional Court’s Decision,” Minister Bačić pointed out.

The Amendments to the Act introduce specific improvements in the housing care system in assisted areas, which contributes to better availability of housing to the most vulnerable groups and to long-term preservation of demographic stability of these areas.

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