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E15 (April 22, 2020)

By 23. 6. 2021October 18th, 2021No Comments

Prague Established its Own Development Company to Ensure Municipal Rental Housing

On Monday, the city councillors approved the establishment of Pražská developerská společnost (PDS). From June of this year the organization will be in charge of the preparation and coordination of house building, or other public buildings. The decision must be formally approved by the councillors.

“Development of house building on Prague brownfield is a key issue in solving the affordable housing crises. The city management must communicate with the private sector and it should initiate construction of cooperative housing as soon as possible and properly take care of municipal housing stock as well as reconstruct it,” Zdeněk Hřib (Piráti) outlined the mission of the organization.

PDS should prepare projects of rental housing, within which requirements of the city could be met. In terms of larger projects, various models of construction or cooperation with the private sector, as in the case of other European cities, could be involved.

“Building of municipal flats in Prague was constantly decreasing from 1991 and it definitely stopped in 2008. When establishing a development company we draw inspiration from the successful activity of similarly working municipal organizations in Munich or Hamburg,” added Petr Hlaváček (TOP 09), deputy mayor.

The current political representation of the city has also agreed that property and land owned by the City of Prague suitable for house building would not be sold. PDS is expected to collaborate intensively with the Institute for Planning and Development and with administrative authorities responsible for decision-making about territory, property administration or technical infrastructure.