During the November session of the Bolesławiec City Council, councillors resolved that the base rent rate for municipal housing in 2014 would remain unchanged compared with the rate in force in 2013.

Rent charges for residential premises belonging to the municipal housing stock of the Municipality of Bolesławiec are regulated by a number of legal acts. The resolution concerning the long-term programme for managing the municipal housing stock of the Municipality of Bolesławiec for 2010–2014 states that “in order to improve the efficiency of managing the housing stock and to halt its degradation, the city will strive to set rent rates in such a way as ultimately to ensure the financial self-sufficiency of housing management, at least with regard to the current maintenance of buildings. Changes to the base rent rate will be made annually from January, starting in 2011, once a year, by up to 10%”.

In 2011, the base rent rate for renting residential premises remained unchanged compared with the rate in force in 2010 and amounted to PLN 4.67/m² of the premises’ usable floor area. After applying factors increasing and decreasing the usable value of the premises, the highest rate was PLN 6.30/m² and the lowest was PLN 1.40/m².

In 2012, the base rent rate for renting residential premises amounted to PLN 5.14/m² of the premises’ usable floor area. After applying factors increasing and decreasing the usable value of the premises, the highest rate was PLN 6.68/m² and the lowest was PLN 1.54/m².

In 2013, the base rent rate for renting residential premises amounted to PLN 5.65/m² of the premises’ usable floor area. After applying factors increasing and decreasing the usable value of the premises, the highest rate was PLN 6.78/m² and the lowest was PLN 1.70/m².

The base rent rate in force in 2014 remained unchanged compared with the rate in force in the current year because the purchasing power of money is growing too slowly in relation to rent increases. The average increases in the lowest pension in 2011–2013 were 3.1%, 9.7% and 4.0%, respectively. During this period, rent arrears also increased, despite intensified efforts to collect them. In the respective years, the arrears amounted to: PLN 2,720,904 in 2011, PLN 2,942,313 in 2012, and PLN 3,025,914 in the first half of 2013.

The resolution also included proposals to reduce rent rates for people with low incomes. The calculations used the conversion rate for the replacement cost of 1 m² of the usable floor area of residential buildings, as determined by the Lower Silesian Voivode. From April to September 2013, it was PLN 3,668, with 3% of the replacement value amounting to PLN 9.17/m² of usable floor area. In the next calculation period, October 2013–March 2014, this rate would be PLN 3,360, while 3% of the replacement value would be PLN 8.40/m².

Rent rates below 2.0% of the rate indicator:

  1. base rent rate – PLN 5.65, i.e. 1.85% of the indicator; in the period October 2013–March 2014 – 2.02%
  2. base rent rate reduced by 5% (premises located on the ground floor or top floor) – PLN 5.37, i.e. 1.76% of the indicator; in the period October 2013–March 2014 – 1.92%
  3. base rent rate reduced by 10% (premises with a kitchen without natural lighting) – PLN 5.08, i.e. 1.66% of the indicator; in the period October 2013–March 2014 – 1.81%
  4. base rent rate reduced by 20% (premises without a bathroom; without a toilet; without a piped gas supply; with shared use of rooms – kitchen or bathroom; basement premises) – PLN 4.52, i.e. 1.48% of the indicator; in the period October 2013–March 2014 – 1.62%
  5. base rent rate reduced by 40% (when the rent is reduced for two of the reasons listed in point 4) – PLN 3.39, i.e. 1.11% of the indicator; in the period October 2013–March 2014 – 1.21%.

Rent rates above 2.0% of the rate indicator:

  1. base rent rate increased by 5% (premises located on the first or second floor, equipped with a central heating system supplied by a local boiler room, or equipped with a hot-water system supplied by the municipal network or a local boiler room) – PLN 5.93, i.e. 1.94% of the indicator; in the period October 2013–March 2014 – 1.21%
  2. base rent rate increased by 10% (two of the three factors listed in point 2 and premises equipped with a central heating system supplied by the municipal network) – PLN 6.21, i.e. 2.03% of the indicator; in the period October 2013–March 2014 – 2.12%
  3. base rent rate increased by 15% (the three factors listed in point 1, or premises equipped with a central heating system supplied by the municipal network and located on the first or second floor, or premises equipped with a hot-water system supplied by the municipal network or a local boiler room) – PLN 6.50, i.e. 2.13% of the indicator; in the period October 2013–March 2014 – 2.32%
  4. base rent rate increased by 20% (premises located on the first or second floor, equipped with a hot-water system supplied by the municipal network or a local boiler room, and equipped with a central heating system supplied by the municipal network) – PLN 6.78, i.e. 2.22% of the indicator; in the period October 2013–March 2014 – 2.42%.

The resolution has financial consequences for the Municipality of Bolesławiec in the form of reduced income from renting residential premises. The monthly rent assessment currently amounts to PLN 259,252, while annually it amounts to PLN 3,111,024. As of 30 September 2013, 1,119 residential premises were rented (excluding social housing units and premises where tenants had lost their legal title). Data from the Municipal Social Welfare Centre indicate that approximately 500 tenants of premises included in the municipal housing stock receive housing allowances.

(information: Bolesławiec City Hall/ii)