Premier: State Resuming Subsidies for Local Authorities to Build Flats

Bratislava, 3 February (TASR) - The state has resumed providing non-refundable grants to towns and municipalities that take out loans from the State Housing Development Fund (SFRB) to build rental flats, Prime Minister Robert Fico (Smer-SD) told a press conference on Tuesday, adding that a reserve of €25 million has been found for the purpose. Local authorities will be able to cover up to 40 percent of construction costs from the grant. According to the premier, of the €37 million needed to support the construction of rental flats in towns and municipalities, €12 million still needs to be found by the end of this year. The aforementioned €25 million will be transferred by the Office of the Vice-Premier for the Recovery Plan and a Knowledge-based Economy from savings. "The construction of rental flats via the State Housing Development Fund [using favourable loans - ed.note] and through a non-refundable contribution from the Transport [and Construction] Ministry can't fall victim to consolidation. I can confirm that when we parted ways in 2025 after approving the 2026 budget, we left with information that the state wouldn't contribute to towns and municipalities," said Fico. According to him, the decision by the government and Parliament led to a complete halt in the construction of flats via SFRB. According to the prime minister, despite the consolidation of public finances, it was necessary to find money to continue the construction of rental flats in 2026 and 2027. Acting Vice-premier for the Recovery Plan and a Knowledge-based Economy Tomas Drucker (Voice-SD) found a reserve of €25 million in the state subsidy scheme, which will be used as a non-refundable contribution for towns and municipalities. They have already announced that they can immediately start building 500 flats. am/df