People whose houses were damaged or destroyed during the floods last September can now apply for support to rebuild their homes from the Zivel (‘Element’) 3 programme as of today, Regional Development Minister Petr Kulhanek (STAN) told journalists earlier.
The floods mainly hit municipalities in the Moravia-Silesia and Olomouc regions of northern Moravia.
Within the Regional Development Ministry’s subsidy program, the owners of damaged properties will be able to receive a subsidy of up to CZK 3 million for the reconstruction of their homes, or advantageous loans for 25 years. They can use the money to pay for reconstruction, or the purchase or construction of new housing.
A total of CZK 3.5 billion has been earmarked for the programme, while the flood damage to houses and flats exceeded CZK 9 billion.
According to Kulhanek, the ministry estimates that the programme will receive around 2,000 to 3,000 applicants, but in case of higher interest, the ministry is ready to increase the funds available, as it did with previous programmes.
Local mayors describe the Zivel 3 programme as essential for housing reconstruction.
Ceska Ves Mayor Petr Mudra said there was a huge interest in the programme among residents. He estimated that up to 80 families in his municipality would benefit from it. “The previous aid was immediate help at the first moment; Zivel 3 is systematically planned for the reconstruction of housing,” the mayor told CTK.
The Zivel 3 programme is administered by the State Investment Support Fund, and the Centre for Regional Development will help people with the application process.
Municipalities in the Jesenik area in the Olomouc Region also offer help with filling out and sending in the application free of charge.”We are preparing a package of services; we will help people with the whole process, which is not easy,” Mudra told CTK.
However, the programme includes a number of conditions. For example, access to the money is blocked for people who face distraint or insolvency, or who have arrears of health insurance payments. Speaking to CTK, NGOs and mayors identified this as a major problem. The number of people facing distraint in the Jesenik area is one of the highest in the Czech Republic.
The minister reiterated today that an inter-ministerial working group was looking for a way to help these people with targeted subsidies. According to him, there are about 100 such people in the Jesenik locality, and around 200 in total together with the Moravian-Silesian Region.
The NGOs point out that another condition, the obligation to insure the property for ten years at least, might be a problem as well. “There are even more uncertainties here, and negotiations with the Czech Association of Insurance Companies are yet to be held,” Petra Vrbova, the coordinator of flood aid at People in Need, told CTK. “The flood map decides on the house insurance. We are very worried that some people will not have enough money for the set price of insurance, or that insurance companies will refuse to insure some properties.”
Asked about this issue by CTK earlier today, the minister said that the insurance condition was logical in this case, but people would be able to spread out their insurance payments.
Aid recipients can receive subsidies for 20-70% of their total costs. For the repair of houses and flats, the owner can receive a subsidy of up to CZK 2.5 million, while for new construction or purchases of new housing, the subsidy can reach CZK 3 million. The subsidised loans will have a fixed interest rate of 1-3% and a repayment period of up to 25 years.
Those eligible can apply for support via the client portal, using their citizen identity or bank identity. They can also seek support for reconstruction work already completed. Applications must be submitted by the end of this year at the latest. Under the terms of the programme, repairs or construction must be completed within six years of the floods, or in the case of a new home, within five years.
The Olomouc and Moravia-Silesia regions were the most affected by the autumn floods.
In the Olomouc Region, the floods damaged 417 apartment buildings and 3,267 family houses. Five apartment buildings and 32 family houses had to be demolished. The damage to these buildings was estimated at CZK 1.884 billion, and about one-third of them were not insured, according to documents for the regional assembly members.
In the Moravia-Silesia Region, 38 family houses were or will be pulled down, most of them in the Bruntal area. The villages of Zator and Nove Herminovy have the highest number of houses recommended for demolition, five each.
