Cooperative housing in Brno could extend to dilapidated houses after renovation

by   CIJ News iDesk III
2023-03-23   07:41
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Brno is examining the possibility of including dilapidated houses that are subject to reconstruction in the cooperative housing project. The pilot project will be an empty dilapidated house in Mostecká Street, where the estimated cost of reconstruction is around CZK 43 million. So far, co-operative housing in Brno consists of building new flats in several locations and gradual acquisition by co-operators after paying the costs. Podivinska said the form of reconstruction of houses could be faster than building new flats.

The house in Mostecka is in very poor technical condition. There are now 14 flats and six non-residential premises. At least 20 flats should be created by reconstruction, total rebuilding and extension. The work would be paid for by the cooperatives, who would also have to pay millions more to the city for the house itself. However, the city has not yet given an estimated price for the property. The flats would then eventually be transferred to the cooperative owners after the reconstruction and the price of the building has been paid.

Incorporating dilapidated houses for reconstruction into the cooperative housing project is another option to provide housing for young people, Podivinska said. According to the deputy, several greenfield cooperative housing projects are in the works, but the city is dependent on various official statements. "That's why we want to try a pilot project with apartment buildings in poor condition. We think they should not be sold directly to developers or foreign owners, but should be bought by families who will live here permanently," Podivinská said.

The initial project for the reconstruction of the house on Mostecká Street will thus serve to reveal all possible difficulties that may arise, according to the deputy minister. "There is no experience of this anywhere in the Czech Republic. Yet we have more unoccupied houses in poor condition. Therefore, if we find that this way works, we can do so for other houses," Podivinska said. She would like to know whether the route is feasible in a few months.

The aim of cooperative housing is to make it possible for people who cannot get a conventional mortgage because of high prices but have the income to pay it back to get an apartment. The system consists of the city, or its companies and cooperative members, setting up a cooperative that takes out a mortgage to build a new house or possibly renovate it. Once the money is repaid, the flats then pass to the people. Hundreds of people have already signed up to join the city's co-operative housing scheme to build new homes. They have to meet conditions such as a maximum age or income. New cooperative flats should be built, for example, on Kamenný vrch, in Přízřenice or Rumiště. Construction in the first location, Francouzská, could start this year. If the involvement of dilapidated houses proves to be another option, new applicants as well as those already on the lists for new cooperative flats could apply for the flats.

Source: CTK