The housing gap (in simple terms, the difference between demand and the existing number of dwellings) is between 400,000 and even 3 million dwellings in Poland, according to various estimates. Bank Gospodarstwa Krajowego has supported the housing development since its inception. Residential construction – providing Poles with access to dwellings and driving the economic growth – was the second largest area of BGK’s pre-war activities after lending to enterprises and state institutions. After almost one hundred years, the Bank’s mission has remained the same. We fulfil it through three main programmes.
Social and Municipal Construction Programme
Since 2007, using the Subsidy Fund BGK has operated a government programme of non-repayable financial support for construction of residential property for rent, formerly called “social and municipal construction”. The programme produces residential units for rent, including those which are included in municipal housing resources, as well as social housing and accommodation, such as assisted accommodation, lodging houses, houses for homeless, warming centres and temporary shelters.
Resources created in the programme are intended to meet the needs of people with low and average income and, as a very important and necessary goal – people experiencing homelessness.
premises and premises built related to social assistance
the amount of the financial support provided
the aggregate value of the project
Social Rental Housing Programme
In our country, there is a group of people whose income is too high to be eligible for the allocation of an apartment from municipal resources and, at the same time, it is too low to enable them to rent or purchase an apartment on the commercial market with a mortgage loan in the time of mounting interest rates, or for cash. Bank Gospodarstwa Krajowego facilitates activities for the reduction of the social problem of the accessibility of apartments for this group.
BGK advances long-term preferential loans to investors in the social rental housing (SRH) sector, i.e. social housing associations/initiatives, housing cooperatives and municipal companies. The programme produces turnkey rental housing units with a moderate regulated rental rate or cooperative tenant housing units. As part of the programme, in 2015–2024 the Bank can provide financing of PLN 450 million each year. By the end of 2021, BGK granted 174 loans with a total amount of PLN 1.01 billion for the construction of more than 7.8 thousand apartments, of which 5,100 had already been completed. Since the beginning of the programme, the largest number of rental apartments have been completed in the Mazowieckie, Śląskie and Dolnośląskie provinces.
number of loans advanced
total amount of loans
apartments completed by the end of 2021
apartments to be built under the SRH programme
In addition to the SRH programme, the Bank provides loans to investors in the sector on arm’s length terms. The added value in this case was, among other things, the possibility of financing lease-purchase apartments or apartments, the title to which may ultimately be transferred onto the tenant, permitted also in the SRH programme after the amendment of the act. By the end of 2021, BGK had financed a total of 4,300 housing units with 95 commercial loans amounting to over PLN 406.3 million. This promotes so-called social mix that facilitates sustainable development of towns and cities.
The following are examples of projects promoting both social and environmental objectives:
Investment project in Oława, at ul. 3 Maja. The project, co-financed by BGK with SRH preferential loans of more than PLN 7 million, consisted in comprehensive regeneration and adaptation for residential and commercial purposes of the 19th century historic stable and riding hall. It fulfils the mission of Social Housing Associations and BGK in terms of creating and renewing urban fabric and providing apartments with a regulated rental rate to persons with moderate income. 76 such premises were completed as part of the project. In addition, the project serves a social function – in the renewed buildings there are premises intended for an organisation providing assistance to children with disabilities, as well as a kindergarten. It also has environmentally friendly features – renewable energy sources in the form of heat pumps were installed. In 2019, the project received an award for the best residential project in an international competition organised by a German development bank Kreditanstalt für Wiederaufbau (KfW), and in 2020 it was awarded at the PLGBC Green Building Symposium for the best environmentally friendly multi-family residential building.
The project in Oława, at ul. 1 Maja, that is currently underway involves the alteration and a change in use of an existing old tenement house, entered in the register of monuments. In the fourth quarter of 2021, an SRH preferential loan in the amount of PLN 2 million was granted for this project. The total cost of the project is over PLN 8 million. As part of the project, 14 rental housing units will be created. At the ground level and on the 1st floor, retail premises will be located, housing the Senior Day Club. Rooms will be heated with a renewable heat source in the form of a cascade of air sourced heat pumps to be installed on the roof of the building. The system of heat pumps will be connected to ceiling heating (capillary tube mats). The building will be equipped with ventilation with heat recovery with a recuperator. Also, 40 PV panels will be installed on the roof of the building.
Mieszkanie na Start (Housing for a Start)
“Housing for a Start” is a government system of subsidies to apartment rent implemented by BGK since 2019.
The rent subsidy programme has two main objectives: social and investment. The former consists in the provision of assistance to households with difficulties to meet their own housing needs, while the latter is to offer an incentive to pursue rental housing construction projects.
Bank Gospodarstwa Krajowego is the keeper of funds of the Subsidy Fund earmarked for subsidies to apartment rents.
Data from the launch of the programme until 31 December 2021:
were covered by the programme
were covered by subsidies
of reserved funds for 15 years
Clean Air guarantees
In the second quarter of 2021, BGK’s guarantee offer was extended to include Clean Air guarantees from the Ecological Surety and Guarantee Fund.
These are guarantees for the repayment of loans for financing expenses related to the replacement of air-polluting coal furnaces and for improving the energy efficiency of a single-family house or an apartment in a single-family house with a separate entry in the land and mortgage register. Guarantees will make it easier to take out loans to finance projects related to the replacement of outdated, inefficient heat sources with modern ones that meet the highest standards and to carry out the necessary thermal modernisation works to improve the energy efficiency of the building (Clean Air programme).
Importantly, the beneficiaries of the guarantee are natural persons. The guarantees cover up to 80% of the loan principal, whose maximum amount may be PLN 100 thousand.
Government Housing Development Fund
On 8 March 2021, the Government Housing Development Fund was launched.
The purpose of operation of the Government Housing Development Fund is to improve the availability of apartments by stimulating new housing investment projects on the market of rental housing units built by Social Housing Initiatives. The GHDF is used to finance part or all expenditure of municipalities on acquisition of shares in new or existing Social Housing Initiatives.
BGK acts as the operator of the Fund, which means making payments of financial support to communes and municipalities from the Fund’s resources, maintaining the Fund’s liquidity and investing temporary cash surplus of the Fund. The following transactions were recorded from the Fund’s inception until 31 December 2021:
transferred to the Fund
for making payments to communes and municipalities
transferred to other funds to finance the repayment of their liabilities