Flood victims’ mortgage payments. That’s all they can count on
On Tuesday, a draft act amending the act on special solutions related to removing the effects of floods and certain other acts was published on the Government Legislation Centre website. The draft includes provisions concerning Borrower Support Fund. They show that people affected by the flood can count on non-refundable assistance from the fund.
To obtain assistance, it will be necessary to submit an application for support. The application will be available to people who are borrowers and whose house or apartment – to which the loan relates – was damaged or destroyed during the flood in a way that makes it impossible to use the building.
Borrower Support Mechanism
“At the same time (…) the mechanism of this support has been specified. It will consist in the transfer to the lender by the Bank Gospodarstwa Krajowego from the Borrower Support Fund (to the account indicated by the lender) an amount of money intended to repay the borrower’s liabilities under the housing loan, for a period of 12 months, in an amount specified in zlotys as the equivalent of the expected 12 monthly capital and interest installments of the housing loan” – it was written in the justification.
It was added that the support will be non-refundable and exempt from income tax.
The bill includes a provision under which municipalities will be able to exercise the right of first refusal for residential premises or single-family residential buildings that have been affected by the flood. After these premises or buildings are rebuilt or renovated, they can be allocated to people in need of housing assistance, including people affected by the flood. (PAP)
