The government has an idea for a housing book

Ten post dostępny jest także w języku: polski

Work has begun on the draft law, which provides for the possibility of registering a housing book in the bank, the Ministry of Investment and Development (MIiR) informed. The Ministry hopes to obtain information on the number of such books.

The relic of a bygone era

Housing books are a relic of the Polish People’s Republic (PRL), launched in 1950 and serviced by the state bank PKO. Poles participating in the program paid a fixed amount of money to the book every month in order to obtain their own contribution to the apartment. In order to be able to live in a new housing cooperative flat, it was necessary to collect about PLN 30,000-50,000 of that time.

Despite the fact that many years have passed, books owners are still unable to recover their savings in real value, even though the system assumed that they would be covered by such a guarantee.

Refund of guarantee premiums

Through the introduction of new regulations, MIiR wants to obtain data on the actual number of housing books, which, in turn, is to allow the estimation of the time frame for incurring expenses that will constitute the reimbursement of guarantee premiums. This premium is to compensate for the loss of value of the contribution and interest on the books as a result of inflation.

The Ministry added that the money for the premium would come from the State budget and that the books established after 23 October 1990 were no longer covered by the guarantee that the real value of the own contribution would be maintained in the form of a guarantee premium.

The bill provides for the payment of a premium by transforming the perpetual usufruct right into the ownership right, renovation of the apartment and by concluding an institutional lease agreement with access to the ownership. In the last case, the Ministry of Infrastructure indicated that the bonus will be paid before obtaining ownership of the apartment, through repayment of the capital part.

Owners of residential books are also to be given priority in the government’s ‘Start Housing’ rent rebate scheme for applications.