Fundusz Municypalny – instrument wsparcia rozwoju budownictwa mieszkaniowego w gminach
Municipal Fund – the instrument to support the development of housing in municipalities

Summary/Abstract: The subject of the article is to analyze the possibility and legitimacy of cooperation of municipalitiesand housing associations with the Social Fund Municipal TFI SA BGK. The Municipal Fundcreated by the Society of Investment Funds SA BGK is a completely new instrument registered on30 December 2015. Its legal and financial structure indicates that it could be the long-term financialinvestor (the perspective of financing from several to 25 years) in the area of real estate cubicimplemented by municipalities or their subordinate municipal companies. In particular, it applies tomunicipalities and TBS, as a result of the implementation in 2007–2013 of investments co-financedby the Cohesion Fund and the European Regional Development Fund, which are characterized bya high ratio of debt which prevents investments and plan the impossible investments, in practice, offinancing from the CF and the ERDF to 2020. The main aim of this article is to analyze the advantagesand disadvantages that may result from using the new financial instrument by the municipality.The advantages include mainly the ability to launch investment projects while minimizing so-calledown shares, without significantly charging the current municipal budget, the access to long-termfinancing taking into account the specificity of local government units, the bright and predeterminedfor both the rules of the project, the guaranteed exit mechanism of the Fund from the investmentensuring the transfer of full control over the company to local government. The disadvantages include,among others, the need to ensure a fairly high profitability of the project in order to repay theFund. The article is also accentuated by the special role of the Bank Gospodarstwa Krajowego SAin providing support housing in municipalities.

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