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Municipal Funding Program for the Creation of Rental Housing (Municipal Housing Promotion Program – KommWFP)
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Last updated: 14.6.2025

The Municipal Housing Promotion Program (KommWFP) of the Free State of Bavaria supports municipalities in creating affordable rental housing for low-income households and recognized refugees. It combines grants and interest-subsidized loans to finance new construction, modernization, acquisition projects, and preparatory measures. The program aims to sustainably meet housing needs in Bavarian municipalities.

Who is funded

The Municipal Housing Promotion Program (KommWFP) of the Free State of Bavaria targets municipalities in Bavaria. Its goal is to support the creation of affordable rental housing for low-income households and recognized refugees, addressing the existing housing demand. Funding is limited to locations with proven housing needs.

What is funded

The funding program supports a variety of measures for the creation and modernization of rental housing. This includes new constructions, alterations, extensions, and modernizations of existing dwellings, as well as the acquisition of vacant or new residential buildings. Preparatory planning measures are also eligible for funding to improve municipal housing provision.

Type and Scope of Funding

The funding program offers a combination of grants and interest-subsidized loans from the Bayerische Landesbodenkreditanstalt. The amount of funding varies depending on the type of project and can be increased by additional conditions, such as the provision of housing for professionals in public services. A recipient's own contribution is mandatory.

Conditions and Requirements

Specific conditions and requirements apply to the utilization of the Municipal Housing Promotion Program, ranging from application to project implementation and long-term commitment. Essential criteria include municipal ownership, proof of significant housing need, adherence to construction standards such as accessibility and living space sizes, as well as rent price and occupancy restrictions for low-income households. A minimum self-contribution is also required.

Application Procedure

The application for the Municipal Housing Promotion Program must be submitted to the responsible Bavarian government authority before the start of the project. This authority is responsible for reviewing the requirements, selecting measures, and granting approval. The Bayerische Landesbodenkreditanstalt handles the banking review, contract processing, and disbursement of loans and grants.

The Municipal Housing Promotion Program is based on specific guidelines of the Bavarian State Ministry for Housing, Building and Transport. These guidelines anchor the program in the Bavarian Constitution and budget law provisions to support municipalities in creating affordable housing. There is no legal entitlement to the grant, as it is provided within the framework of available budgetary funds.

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Funding Overview

Maximum Amount

Maximum Amount:

Grant up to 30%, loan up to 60% of total costs. Grant for modernization up to 40%, for preparatory measures up to 60%. Up to 5% grant increase for public services.

Deadline

Deadline:

always open

Open Until

Open Until:

31.12.2026

Award Channel

Award Channel:

Demand Driven Scheme

Region

Region:

Bavaria (Germany)

Sectors

Sectors:

Construction and Building Materials, Service Sector, Social Enterprises

Beneficiaries

Beneficiaries:

Housing Construction & Modernization

Funding Stages

Funding Stages:

Planning, Implementation, Infrastructure

Funding Provider

Program Level: Regional

Funding Body: Bavarian State Ministry for Housing, Building and Transport

Managed By: responsible District Government of Bavaria, Bayerische Landesbodenkreditanstalt

Additional Partners: Churches (as cooperation partners by providing land on hereditary lease)

Website: BayernPortal