{"id":59,"date":"2023-06-01T12:38:09","date_gmt":"2023-06-01T12:38:09","guid":{"rendered":"https:\/\/millercanfield.pl\/?p=59"},"modified":"2025-04-14T18:03:31","modified_gmt":"2025-04-14T18:03:31","slug":"government-programs-for-young-home-buyers-and-renters-part-iv","status":"publish","type":"post","link":"https:\/\/millercanfield.pl\/en\/government-programs-for-young-home-buyers-and-renters-part-iv\/","title":{"rendered":"GOVERNMENT PROGRAMS FOR YOUNG HOME BUYERS AND RENTERS \u2013 PART IV"},"content":{"rendered":"\t\t
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Housing Act 2023 is now set to come into force in July as planned, as the Senate approved it in May with amendments. In this fourth and last part of our series \u2013 which previously discussed the Social Rental Agency (SAN), the housing co-op, Safe Mortgage 2%, and Home Account and Home Deposit[1]\u00a0\u2013 we take a closer look at two remaining topics in Housing Act 2023: Home Bonus, and the agreement between BGK and the operator bank. We begin, however, by discussing the Senate\u2019s amendments to Housing Act 2023 and their fate. It should be noted that the final text of the bill will not be known until it completes the legislative process, i.e. until the Sejm holds its final vote and the legislation is signed into law by the President.<\/p>

Senate amendments to Housing Act 2023<\/p>

The Senate has made a total of 24 amendments to Housing Act 2023. All have now been considered by a Sejm committee[2]. Three are particularly noteworthy.<\/p>

The first stipulates that the state will subsidize mortgages to keep their\u00a0interest rate at 0%, not 2%. As the upper chamber explains, \u201cThe Senate has come to the conclusion that, if the state is to provide genuine support to citizens in satisfying their housing needs, the loan should have a zero interest rate. Such a loan will represent an important encouragement for people seeking to satisfy their housing needs to commit to a financial obligation that will last for several decades.\u201d \u00a0The Sejm committee has recommended that this amendment be rejected.<\/p>

In another important amendment, the Senate has abolished the obligation to report all payments into Home Account that its holder receives in the form of donations from immediate family members (e.g. from parents) to the tax office. Donations of up to a total of PLN 2,000 (\u20ac441) per month, received from one or more persons that are in the account holder\u2019s \u201cfirst tax group\u201d for inheritance and donation tax purposes, do not have to be reported.\u00a0The Sejm committee has recommended that this amendment be approved.<\/p>

Thirdly, the Senate has changed the part that said that the interest rate is fixed \u201cfor the first 120 months of repayment\u201d to \u201cthroughout the subsidy period\u201d. As it explains, the change is necessary because the lending bank may grant the borrower a grace period, allowing them to delay repayment.\u00a0The Sejm committee has recommended that this amendment be approved.<\/p>

I.\u00a0 Home Bonus<\/p>

Eligible to receive Home Bonus from the government are persons who are saving money through Home Account or Home Deposit and are spending the savings strictly for the purposes defined in Housing Act 2023, i.e. 1) to build (and to finish to their desired standard) a single-family house; 2) to purchase a land plot with the aim of building a single-family house on it (provided that such construction is permitted there under the local zoning plan, or under a decision on land development conditions); 3) to purchase (and to finish to their desired standard) an apartment or single-family house; 4) to co-conduct a housing project as member of a housing co-op; 5) to acquire a cooperative member\u2019s right of ownership to an apartment or single-family house (and to finish it to their desired standard), or to make a contribution to a housing cooperative scheme.<\/p>

Home Bonus cannot be inherited.<\/p>

Eligibility for Home Bonus does not arise in the first month of saving. Under Housing Act 2023, Home Bonus is calculated for each calendar year of the account (Home Account or Home Deposit), on 15 March of the following year. To become active, it has to be calculated at least three times, or four times if during the first calendar year the account was opened for less than 9 months.<\/p>

Article 14 of Housing Act 2023 contains a mathematical formula for the calculation of Home Bonus. Its amount is determined by two things: the total amount deposited into Home Account or Home Deposit as of the end of the last month; and a \u201cHome Bonus indicator,\u201d which is calculated in one of two alternative ways: based on the average inflation rate in the year in question, as announced by the Central Statistical Office (GUS); or based on the average price per square metre of a home, as announced by GUS in fulfilment of provisions of the \u201cAct of 30 November 1995 on state assistance in the repayment of certain home loans etc.\u201d \u2013 whichever is higher.<\/p>

Home Bonus is paid out together with funds accumulated on Home Account or Home Deposit within 14 days of the holder\u2019s withdrawal request, or at a later date indicated by the holder.<\/p>

Importantly, Home Bonus is paid out by the operator bank from its own resources. The operator bank is entitled to a 1% commission deducted from the bonus amount. So it can be assumed that the holder receives 99% of the bonus amount.\u00a0<\/p>

II. Agreement between BGK and operator bank<\/p>

To be able to operate Home Accounts and Home Deposits \u2013 and to pay out Home Bonuses \u2013 a bank has to apply to, and sign an agreement with, BGK, the government bank. Draft Housing Act 2023 contains an (open-ended) list of elements that should go into such an agreement. One is the manner and format of recording Home Bonuses accrued on an account for each year. It should ensure uniformity of records across banks and enable the transfer of records between banks in case the holder decides to switch banks. It also has to ensure that BGK has access to data on the number and amount of Home Bonuses that have been calculated. Another important element to be included in the agreement is the manner in which Home Bonuses are paid out.<\/p>

These obligatory elements arising from Housing Act 2023 may be complemented, of course, by applicable Banking Law regulations or industry good practices.<\/p>

For the sake of future savers it is worth noting, finally, that Housing Act 2023\u00a0requires BGK to publish an up-to-date list of banks authorized to operate Home Accounts and Home Deposits on its website.\u00a0<\/p>

[1]\u00a0The previous three articles can be found here:\u00a0Part I<\/a>,\u00a0Part II<\/a>\u00a0and\u00a0Part III<\/a><\/p>

[2]\u00a0For a full text of the Senate\u2019s resolution, and for the Sejm committee\u2019s report of its work on Senate amendments, see:\u00a0Druk nr 3096, 3096-A \u2013 Sejm Rzeczypospolitej Polskiej.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\n\t\t\t\n\t\t\t\t\t\tJan Akimenkow, trainee attorney at law, law office of Miller Canfield<\/span>\n\t\t\t\n\t\t\t\t\t\t