A new city developer organization will start operating in Prague

Prague - A new Prague contribution organization of the city developer will start operating in the capital city this spring. Its task will be the preparation of city land and areas for residential construction under the city's direction. CTK was informed today by the deputy mayor of Prague, Petr Hlaváček (TOP 09). Prague has long been struggling with an insufficient number of apartments and rising prices. It aims to fight this, among other things, by building cooperative housing.

"Our steps are directed towards having the city developer start operating during March and April as an independent contribution organization established by the city. Our goal is that by the end of the year, around eight to ten people will be working in this organization on city land and projects," Hlaváček stated.

In the first phase, the organization will focus on so-called land development, preparing city land and areas for the construction of apartment buildings, up to the stage of zoning proceedings. Simultaneously, the leadership of Prague will decide for each specific project whether the buildings will be constructed by the city itself or in collaboration with a private investor. "No option is excluded and will be addressed independently for each project so that the outcome is optimal," Hlaváček noted.

Tasks that the city developer will focus on must always be approved by the leadership of Prague. "By the end of this year, we expect that around eight to 12 people could work in this organization, with a projection for two to three years having a maximum of around 20 employees," Hlaváček stated. The developer will be a contribution organization, meaning it will receive funding from the city for its operation.

In recent years, the metropolis has been facing a housing crisis and rising housing prices. The city leadership wants to address the continuously increasing housing prices through accelerated construction permits and other measures, including halting the privatization of city apartments and supporting cooperative construction.

The government also promises to significantly accelerate and simplify construction permits through the upcoming building law, which, according to its plans, should take effect from 2021. However, the legislation has a number of critics. Among the most common criticisms is that it favors developers and does not protect public interests. According to some opponents, it is unconstitutional. Many experts also point to "the excessively fast and frantic pace of discussions."