Riga City Council proposes retaining ceiling on apartment rental fees, raising them up to LVL 0.50 - LVL 0.60
A proposal from the Riga City Council was submitted to the Saeima Public Administration and Local Government Committee, which stipulates that the ceiling on apartment rental fees should be retained for two more years, raising them up to LVL 0.50 per square meter as of January 1, 2005, but up to LVL 0.60 per square meter as of January 2006.
A proposal from the Riga City Council was submitted to the Saeima Public Administration and Local Government Committee, which stipulates that the ceiling on apartment rental fees should be retained for two more years, raising them up to LVL 0.50 per square meter as of January 1, 2005, but up to LVL 0.60 per square meter as of January 2006.
Riga City Council Public Utilities and Apartment Issues Committee Chairman Janis Karpovics informed deputies that about 1,000 new apartments could be built every year, beginning with 2005. Minimum costs needed for apartments, are LVL 18 million.
The Riga City Council could build 250 apartments for low-income tenants annually with the council's own funding, and this would cost LVL 4.5 million. Costs for 750 apartments could be partially covered by the state, granting 25-percent basic loan for residents and paying credit interest. LVL 5 million would be needed for this purpose. A remaining part of costs would be covered by the tenants of the new apartments.
Karpovics added that the offered solution is a theoretical one because the Riga municipal budget for 2005 has not yet been passed.
Riga City Council Public Utilities and Apartment Issues Committee Chairman Janis Karpovics informed deputies that about 1,000 new apartments could be built every year, beginning with 2005. Minimum costs needed for apartments, are LVL 18 million.
The Riga City Council could build 250 apartments for low-income tenants annually with the council's own funding, and this would cost LVL 4.5 million. Costs for 750 apartments could be partially covered by the state, granting 25-percent basic loan for residents and paying credit interest. LVL 5 million would be needed for this purpose. A remaining part of costs would be covered by the tenants of the new apartments.
Karpovics added that the offered solution is a theoretical one because the Riga municipal budget for 2005 has not yet been passed.
