Act Determining the Intervention Measures to Remedy the Consequences of the Floods and Landslides in August 2023 (ZIUOPZP) – measures to deal with housing crisis

On 2 September 2023, the Act Determining the Intervention Measures to Remedy the Consequences of the Floods and Landslides in August 2023 (Official Gazette of the Republic of Slovenia No 95/2023 and No 89/23; ZIUOPZP, hereinafter: “the Act“), adopted by the National Assembly on 31 August 2023, entered into force. The Act introduces a number of measures to assist households, the economy and municipalities, as well as rehabilitation and preventive measures on public infrastructure, watercourses and flood defences. In our article published on 6 September 2023, we have already presented the main tax measures introduced by the Act, and below we present the measures of the Act that address the housing crisis faced by a vast number of the population as a result of the floods.

 

  1. “Exceptional” allocation of non-profit housing for rent

The Act provides for the exceptional allocation of non-profit housing for rent, which, irrespective of the other conditions for the allocation of non-profit housing, will be granted to persons who meet the following conditions:

– if, as a result of floods and landslides, the residential property in which were actually residing at the time of the natural disaster were permanently or seriously damaged,

– if the reconstruction or reoccupation of the housing unit would require a longer period of time, and

– if the applicant or the person with whom he/she is living in the same household does not own or have joint ownership of another property in which he/she could reside.

Renting of non-profit housing under the above conditions is possible until the consequences of floods and landslides have been remedied, but for no longer than three years from the date of conclusion of the lease agreement. The housings in question will be leased on a non-profit rental basis, with the rent for the first 12 months of the rent being covered by the government.

The Housing Fund of the Republic of Slovenia will lease non-profit housing owned by the government, while housings owned by municipalities and local public housing funds will be leased through municipalities and funds respectively.

The preparation of the public call for applications and the lists of all available and moveable housing is still ongoing, so the number of available housing units will be known in the coming days.

 

  1. Market rent subsidy

For individuals and families who, as a result of floods and landslides, have suffered damage to the residential property in which they actually reside, which endangers their health and causes an unsuitable living environment for their habitation, and who have rented housing on the market to solve their housing problem, the Act provides for the entitlement to a subsidy on the payment of market rent, which is regulated by the Housing Act (hereinafter referred to as “SZ-1“) and the Act on the Exercise of Rights from Public Funds Act (hereinafter referred to as “ZUPJS“). According to the SZ-1, the beneficiary is entitled to a market rent subsidy for the duration of the lease contract, up to a maximum of one year, which is paid in such a way that the calculated amount of the market rent subsidy is reduced by the landlord and reimbursed to the landlord by the competent municipal authority.

In this case, persons entitled to the market rent subsidy under this Act do not have to fulfil certain conditions that otherwise apply to beneficiaries of the market rent subsidy under the ZUPJS and SZ-1, namely that they have a registered permanent or temporary residence at that address, nor will the condition of being on the priority list in the public tender for the allocation of non-profit housing for rent or whether the person fulfils the conditions for the allocation of non-profit housing for rent under the last public tender or the law be taken into account.

If the conditions laid down in the Act are met, the application for a market rent subsidy is to be submitted to the Social Work Centre by 31 December 2023 at the latest. For applications submitted between 4 August 2023 and 31 December 2023 inclusive, damaged property will not be taken into account in the determination of the material situation.

 

  1. Emergency financial aid to cover the costs of rented accommodation

The Act provides for financial aid to individuals or families who have rented a housing unit as a result of floods and landslides to cover the costs of the rented housing unit. The emergency financial aid may not exceed two minimum incomes per month and per calendar year in 2023.

For example, a single person will receive up to a maximum of EUR 1,405.33, a family of four (two adults and two children) up to a maximum of EUR 3,275.99 and a couple without children up to a maximum of EUR 2,177.79.

Applicants shall submit an application for the emergency financial aid to the Social Work Centre by 31 December 2023. In determining eligibility for the aid, the applicant’s financial situation shall be determined and taken into account.

It should be noted that the emergency financial aid to cover rented housing is an additional aid to the solidarity aid provided by the Act.

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