Prague City Councilors have approved the Tenant Indebtedness Prevention and Resolution Strategy for housing units owned by the City of Prague. The strategy has three objectives: to prevent rent default in municipal flats, to stop further growth of indebtedness of defaulting tenants, and to help resolve their situation.

Prevention and resolution of default constitute a key aspect of an effective municipal housing policy. There are multiple reasons to address the issue. Default on rent has been one of the main reasons for a loss of home, often resulting in a serious housing crisis with dire consequences for the individuals and families concerned.  A loss of home also affects their physical and psychological well-being.

The strategy leverages selected tools for the prevention of loss of housing that have proved effective both in the Czech Republic and in other countries – such as housing advisory centers, debt advisors, debt monitoring etc.