Details Released of Rent Waiver For Non-Residential Tenants of City-Owned Properties

In April, Brno City Councillors approved the intention to waive at least part of the rent of non-residential premises for people and organizations affected by the anti-coronavirus emergency measures. Now, following the publication of the government’s relief program, COVID – Nájemné [“COVID – Rent”], the council has announced details of the application procedure for city support. Photo credit: MMB.

Brno, Jul 17 (BD) – The City of Brno has released details of a scheme to waive rental payments for tenants of non-residential properties owned by the City of Brno or its subsidiary companies, which was originally approved in April. The scheme is a response to the Czech government’s plan, COVID – Nájemné, announced by the Ministry of Industry and Trade on June 19th, under which the state will pay businesses 50% of the cost of their rent for Q2 2020, provided the owner of the property also reduces the payment due by 30%.

“We announced our willingness to compensate the affected entities for the cost of their rent in April, but in order for the process to be as efficient and simple as possible, we had to wait for the steps taken by the government in this regard, and then follow up on them,” said Brno Mayor Marketa Vankova (ODS).

However, the scheme announced by the City of Brno goes further than the government measures, as it would also waive rents for non-profit organisations, community associations, and other non-business tenants. As a result, tenants applying for support will be separated into Categories A (tenants who meet the criteria set out by the Ministry) and B (who do not meet the government’s criteria, but will receive support from the city).

Tenants of non-residential properties owned by the City of Brno or its subsidiary companies can apply for a rent waiver. Photo credit: MMB.

“Simply put, the applicants are grouped into businesses on one hand, and the non-business sector on the other. Tenants of non-residential premises, including properties used as sports grounds or driving school training areas, can apply for a rent waiver,” said Jiří Oliva (CSSD), Deputy Mayor for Property. The measure does not apply to rented garages or parking spaces. Tenants who were in debt to their landlords on March 31st this year may not apply for the waiver.

Applications from Category A tenants must be considered by Brno City Council at its meeting scheduled for September 8th, as the Ministry must receive a confirmation from the landlords participating in the COVID – Nájemné program by the end of September deadline. The rent discount offered by the city to Category A tenants must be at least 30%, but city managers are willing to provide up to the maximum 50%, though the final decision will be taken by councillors at the meeting. According to Oliva, the rent discount for Category B applicants will be assessed by the council on a case-by-case basis. These applications are expected to be resolved some time in October. The time-frame is less urgent because this support is not tied to a state subsidy. 

The application form, together with detailed rules for submission and administration, is available here. Applications may be submitted until August 14th, 2020.

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