The fifth iteration of the “Creation of Workers’ Hostels” central labour market programme

The submission of a grant application for aid available for developing 80-200 bed workers’ hostels as part of the “Creation of Workers’ Hostels” central labour market programme.

Kulcsszavak: workers’ hostel, labour market, mobility, construction, renovation, accommodation, municipality, municipality association, company

municipalities, municipality associations, companies

The grant application has to be submitted using the general purpose e-form (e-Papír) service in 1 original copy in accordance with the programme guidelines published on the www.kormany.hu and www.munka.hu websites, with the form that is attached to the programme guidelines as Annex 1.

Municipalities, municipality associations, and companies owned exclusively by the above may submit their grant applications to the Budapest or county government office with jurisdiction at their respective seat.

Companies not owned exclusively by a municipality or municipality association, employing no more than 12 000 people, and having been in operation for at least 3 closed business years may submit their grant applications to the Budapest or county government office with jurisdiction at the planned location of the planned investment.

The procedure takes place according to the rules of electronic administration; contact between the government office and the applicant is electronic.

The annexes to the grant application, the documents necessary for fulfilling additional requests for information, and the annexes to the request for contract conclusion may be submitted on durable media (flash drive, CD-ROM, DVD, memory card).

If any legislative condition pertaining to the aid is not met or if any grounds for exclusion apply, the grant application will be rejected without consideration of the substance of the application.

If the applicant provides the missing information incorrectly or incompletely or fails to rectify the deficiencies by the deadline set in the request, the incorrect or incomplete grant application may be rejected without further examination.

Grant applications can be submitted from 2 November 2020 until 31 March 2021.

The annexes to the grant applications of municipalities and municipality associations:

the planning documentation and budget per activity (new construction/renovation) for the planned workers’ hostel,
a presentation of the necessity of creating the workers’ hostel and its effects on employment in the region,
the decision passed by the municipal council or association council, or a declaration issued by the mayor in exercise of the authority vested by a municipal council budgetary decision in transfer of the right to dispose of reserves, or by the president of the association council, on the availability of own resources,
if an official license is required for the supported activity, the official license necessary for starting the activity or, if such is not available as at the submission of the application, the certificate on having initiated the procedure for the issuance of the official license. The final building permit has to be obtained no later than the conclusion of the official contract, and it has to be sent to the government office.
the pre-contract concluded with the employers operating in the region, pertaining to providing accommodation to employees in line with the conditions specified in Section 2(4) of Government Decree No 23/2017 of 3 February 2017 on the aid that can be provided for the creation of workers’ hostels that promote labour market mobility (hereinafter: Government Decree),
a public document not older than 30 days issued by the National Tax and Customs Administration certifying that no public debt is owed (if the aid applicant is not included in the registry of taxpayers without public debt),
statements,
a statement pertaining to the operation of the workers’ hostel (whether the workers’ hostel will be operated by the applicant or another party, expected operating costs during the maintenance period, and the source for those),
business plan.

The annexes to the grant application for companies owned exclusively by municipalities or municipality associations:

the planning documentation and budget per activity (new construction/renovation) for the planned workers’ hostel,
a presentation of the necessity of creating the workers’ hostel and its effects on employment in the region,
a statement issued by the executive officer regarding the availability of own resources,
if an official license is required for the supported activity, the official license necessary for starting the activity or, if such is not available as at the submission of the application, the certificate on having initiated the procedure for the issuance of the official license. The final building permit has to be obtained no later than the conclusion of the official contract, and it has to be sent to the government office.
the pre-contract concluded with the employers operating in the region, pertaining to providing accommodation to employees in line with the conditions specified in Section 2(4) of the Government Decree,
a public document not older than 30 days issued by the National Tax and Customs Administration certifying that no public debt is owed (if the aid applicant is not included in the registry of taxpayers without public debt),
the statements under the programme guidelines,
a specimen signature of the person(s) authorised to sign for the company, certified by a financial institution, countersigned by a lawyer or chamber legal adviser or certified by a notary public, or a copy of the specimen signature certified by a notary public,
an original copy of the company’s instrument of incorporation or the document certifying registration as specified by law,
business plan.

The annexes to the grant application for companies not owned exclusively by municipalities or municipality associations:

the planning documentation and budget per activity (new construction/renovation) for the planned workers’ hostel,
a presentation of the necessity of creating the workers’ hostel and its effects on employment in the region,
a statement issued by the executive officer regarding the availability of own resources,
if an official license is required for the supported activity, the official license necessary for starting the activity or, if such is not available as at the submission of the application, the certificate on having initiated the procedure for the issuance of the official license. The final building permit has to be obtained no later than the conclusion of the official contract, and it has to be sent to the government office.
a statement that the applicant will be housing the employees employed by it in line with the provisions of Section 2(4) of the Government Decree at the workers’ hostel to be developed, or the pre-contract concluded with the employers operating in the region, pertaining to providing accommodation to employees in line with the conditions specified in Section 2(4) of the Government Decree,
a public document not older than 30 days issued by the National Tax and Customs Administration certifying that no public debt is owed (if the aid applicant is not included in the registry of taxpayers without public debt),
the statements under the programme guidelines,
a specimen signature of the person(s) authorised to sign for the company, certified by a financial institution, countersigned by a lawyer or chamber legal adviser or certified by a notary public, or a copy of the specimen signature certified by a notary public,
an original copy of the company’s instrument of incorporation or the document certifying registration as specified by law,
business plan.

The applicant shall be required to make the following written statement [Section 75(1) of Government Decree No 368/2011 of 31 December 2011 on the implementation of the Act on the State Budget (hereinafter: Budget Implementing Decree)].

Declares

that the data, information, and documents included in the grant application are complete, true, and authentic,
whether it has submitted a grant application in the same subject before or simultaneously and, if so, when and where,
that it meets the requirements specified in Section 50(1) of Act CXCV of 2011 on the State Budget (hereinafter: State Budget Act),
the availability of own resources,
the contents of Section 48/B(1) of the State Budget Act,
in case of applications by municipalities and municipality associations, that there are no debt consolidation proceedings underway against it as ordered by a final decision; in case of companies, that the company is not subject to voluntary liquidation, winding-up, bankruptcy, or any other proceedings specified by law and aimed at termination, as ordered by a final decision,
whether it has any due and as-yet unpaid public debts; that it is submitting the public document not older than 30 days issued by the National Tax and Customs Administration certifying that no public debt is owed (if the aid applicant is not included in the registry of taxpayers without public debt); and an acknowledgement of the fact that it shall not be due the aid in case of any due and as-yet unpaid public debts until the payment thereof, as the Treasury will, when disbursing payable grants, retain the amount of the public debt borne by the beneficiary, which it will credit to the appropriate state tax authority collection account,
that it owes no amounts to third parties that may frustrate the realisation of the purpose of the budgetary support,
that it meets the conditions pertaining to orderly labour relations as specified by Section 82 of the Budget Implementing Decree and that it is making available the data of the legal entity to be examined under the Decree,
that the conditions under Act CXLIII of 2015 on Public Procurement are met, that it will hold a public procurement procedure when using the grant, and that, in the interest of the correct use of the budgetary support, it is required to hold the public procurement procedure and any other procurement procedures in a manner that ensures the rational and effective use of the budgetary support,
that it contributes to the checking of the correctness of the grant application and the use of the budget support by the bodies specified by law,
the commitment of fulfilling the reporting obligation under Section 97(1) of the Budget Implementing Decree and of having to repay any amounts of aid used in an unauthorised manner, as set out in the Budget Implementing Decree,
the commitment of making available the guarantees required by the donor,
whether it has the right of deduction as regards the budgetary support,
the availability of the official licenses necessary for starting the supported activity,
in the case of municipality and municipality association applicants, a statement whether the workers’ hostel will be operated by the applicant or another party, expected operating costs during the maintenance period, and the source for those, and that it undertakes to meet the conditions for the disbursement of the grant,
that if the amount of the grant received exceeds the difference between the amount of eligible costs and the operating surplus, it will be obligated to repay the difference to the government office within 30 days of the expiry of the maintenance period.

Furthermore, the company not under the exclusive ownership of a municipality or municipality association applying for the grant shall also declare

the governing number of employees in the closed business year prior to the submission of the grant application, as specified in Section 8(3b) of the Government Decree,
the number of the company’s closed business years, also taking into account the provisions of Section 8(3c) of the Government Decree,
that the investment project is being carried out in one of the regions or settlements specified in Section 25(1) of Government Decree No 37/2011 of 22 March 2011 on the State aid procedure under European Union competition law and on the regional aid map (hereinafter: State Aid Decree),
that it will provide the part of the investment cost exceeding the percentage specified in Section 25 of the State Aid Decree, but at least 25%, from own resources as own funds,
whether it qualifies as a small enterprise (less than 50 employees and net sales revenue or balance sheet total not exceeding EUR 10 million) or a medium enterprise (less than 250 employees and net sales revenue of no more than the HUF equivalent of EUR 50 million, or a balance sheet total no more than the HUF equivalent of EUR 43 million),
whether the planned investment project qualifies as a large investment project (an investment project where the present value of eligible costs are equal to at least the HUF equivalent of fifty million euros),
that, on penalty of having to repay the grant amount, in the two years prior to the submission of the grant application it has implemented no relocation to the facility where it wishes to implement the initial investment project subject to the application, and that it undertakes the commitment to refrain, for at least two years from the completion of the investment project subject to the grant application, from any relocations to the facility in which it plans to implement the investment project subject to the grant application.

The issue date of the above document may not be older than thirty days from the submission of the grant application.

No fees or duties are payable for the submission of the grant application.

The programme is implemented by the government offices proceeding as state employment bodies, coordinated by the ministry led by the minister responsible for employment policy (as at the time of this notice, the Ministry for Innovation and Technology).

Companies not owned exclusively by a municipality or municipality association may submit their grant applications to the Budapest or county government office with jurisdiction at the planned location of the planned investment.

Based on the considerations specified in the programme guidelines, the government office decides on whether the grant application should be submitted to the minister with the recommendation of providing part or all of the grant or of refusal.

As part of his/her discretionary powers, the minister responsible for employment policy shall decide on the grant.

Adjudicative body:

Ministry for Innovation and Technology

Appeals:

If the application is rejected, the objection may be submitted under Section 102/D of the Budget Implementing Decree, officially signed, if the applicant feels that the procedure for making the grant decision is in violation of the law or the announcement.

The programme guidelines published on the www.kormany.hu and www.munka.hu websites contain the detailed conditions for submitting applications.

The Budapest or county government office with competence for the submission of applications provide information on questions related to the tender.

Date of the case description: 02/11/2020

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Act CL of 2016 on the Code of General Administrative Procedure

Act CCXXII of 2015 on the General Rules of Electronic Administration and Trust Services

Act CXLIII of 2015 on Public Procurement

Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises

Act V of 2013 on the Civil Code

Act I of 2012 on the Labour Code

Act CXCVI of 2011 on National Wealth

Act CXCV of 2011 on the State Budget

Act CLXXXIX of 2011 on the Municipalities of Hungary

Act C of 2000 on Accounting

Act CXVII of 1995 on Personal Income Tax

Act IV of 1991 on Job Assistance and Unemployment Benefits

Act XXV of 1996 on the Debt Consolidation Procedures of Municipalities

Act CXII of 2011 on the Right of Informational Self-Determination and on Freedom of Information

Act CLXXXI of 2007 on the Transparency of Subsidies Provided from Public Funds

Act I of 2017 on the Code of Administrative Court Procedure

Act XCIII of 1990 on Duties

Act LXXVIII of 1993 on Certain Rules Pertaining to the Lease and Alienation of Apartments and Premises

Government Decree No 86/2019 of 23 April 2019 on Budapest-Capital and County Government Offices and district (capital district) offices

Government Decree No 23/2017 of 3 February 2017 on the aid that can be provided for the creation of workers’ hostels that promote labour market mobility

Government Decree No 320/2014 of 13 December 2014 on the appointment of the state employment body and the occupational safety and labour authorities, and on the performance of their official and other tasks

Government Decree No 368/2011 of 31 December 2011 on the implementation of the act on public finances

Government Decree No 37/2011 of 22 March 2011 on the State aid procedure under European Union competition law and on the regional aid map

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