Systemic help for the homeless: the President signed the law on housing support

What’s changing?

Contact centres and assistance care

The Act establishes a network of contact points in municipalities – a total of about 115 centres where most people are at risk of losing their housing. They will serve as counselling centres, providing preventative support to those who might lose their roofs. Clients will also receive ‘bridging assistance’ when they move or end temporary support.

Guarantee for landlords – “housing with a guarantee”

This includes a voluntary scheme where the state guarantees monthly rent and damage cover for private landlords who choose tenants from among those in housing need. In addition, municipalities receive contributions if they provide their own housing in this way. The aim is to reduce the risk for landlords and thus provide more housing for those in need.

Financing and target group

The law targets those with an income up to 1.43 times the minimum subsistence level. The first year of operation will cost an estimated CZK 600 million, but once fully deployed the budget could rise to CZK 1.5 billion per year. The ministry estimates that over 160,000 people are in housing need and another 10 times that number are on the verge of losing their housing.

Advantages vs. reservations

Pros:

• The law finally introduces systemic support – contact points with experts bring targeted help.
• Guarantees give landlords more certainty, which can increase supply in the market.
• Bridging assistance will ease a temporary adverse situation.

Against:

• Critics argue that without enough apartments the measure will fail – the system may “work, but without the materials (apartments) it will come to naught.”
• The limitation – income up to 1.43 times the minimum subsistence level – may not capture all those in need.
• The question remains whether municipalities and private owners will be sufficiently motivated to participate.

The Housing Assistance Act defines a legal framework that is not just intended to smooth over existing housing problems, but develops a strategy that has long been lacking. However, it now depends on good implementation regulations, municipal responsiveness and the willingness of owners. If everything comes together and the system really comes to fruition – it could become one of the key measures in the fight against housing need.