The staff apartments are a relic of the PRP times, where the residential buildings for the state companies’ staff have been built. After privatisation, vast majority of them changed the owner – usually a commune or a private investor.

Today we present the proposals to solve over a 30-year problem of tenants of the former staff apartments. We respond to the postulates reported by such people, mostly older and less wealthy. The tenancy costs impose a significant burden to their home budget. They cannot afford buyout of their apartments. It is time to solve this issue once and for all and help such people. This is the gesture of the state’s responsibility

– said Waldemar Buda, Minister of Economic Development and Technology during the press conference in Zgierz, the city with 40 former staff apartments. There are several thousand such apartments throughout Poland.

The existing tenants will have the option to buy out the apartments even for 5% of their market value. In the case of further tenancy from the commune, they will pay noticeably lower rent than today

– added the Head of MEDT.

Almost twofold increase of co-financing is definitely a great support for the local governments.  Owing to this support, buyout of staff apartments will speed up and the solutions proposed in the special act will allow extending the housing resources of the city. The point is however that the new laws are the crowning touch of the efforts of the inhabitants and city authorities to regulate the status of these resources, which will enable their takeover. In addition, if we reach the consensus with the existing owners, we will be able to verify the rents for apartments occupied for many years to make them more family friendly

– summed up the Mayor of Zgierz, Przemysław Staniszewski.

The story of housing estate at Kolejowa Street

The press conference was held in Zgierz in the area of the housing estate at Kolejowa Street. The apartments have been owned by the “Boruta” colorant production plant.  In later years, they had been bought out by the private investors, since the commune could have not afforded it. Pursuant to the 1993 Act, the buildings with more than two hundred staff apartments were handed over to a private company from hand to mouth, including the residents.

The tenants were forced to pay giant rents. This has not changed – today they pay rents oscillating around 1.2 thousand zlotys for a 40 m2 apartment. Vast majority of the inhabitants are the pensioners or descendants of the former “Boruta” employees with limited budgets. Some of them face the risk of eviction.

What it is like now?

Non-refundable co-financing from the Subsidy Fund for the communes for up to 50% of the costs of purchase/purchase or renovation of a staff apartment is available. The tenants must be the persons employed by a company or descendants or ascendants, a spouse of a tenant, etc., before 7 February 2001.

What will change?

Non-refundable co-financing for the communes will be increased - from 50% to 95% of the cost of purchase or purchase and renovation. This means that the commune will have to cover only 5% of the market value of a real estate. This translates into the decision on a potential sales and price.

The commune will be allowed to sell such apartments to the existing tenants for even 5% of the market value (regardless of the years worked in the liquidated plant and tenancy) or rent at much lower rates compared to the market ones (such as in the housing resources of the commune). According to Zgierz estimations, the rents in such apartments will be lower by approx. 30% a month. The final decision on the future of these apartments rests upon the commune.

The applicable draft amendments will be drawn up by Seym already in the second half of September this year. After the new regulations enter into force (most probably in 4Q 2022), the communes can submit the applications. At least 50 million zlotys will be allocated for this purpose each year.