Social Rental Housing Promotion – New Construction of Rental Apartments for Middle-Income Households

Last updated: 14.6.2025
Hybrid

The State of Hesse offers a comprehensive funding program for the creation of affordable rental housing for middle-income households. The initiative supports the new construction and first-time acquisition, as well as the modernization of rental apartments in designated areas through low-interest loans and financing grants. The goal is to meet the sustainable demand for affordable housing and to promote specific housing forms.

Who is Funded

This funding program is aimed at natural and legal persons who wish to create or modernize affordable rental housing in Hesse. The support aims to provide affordable housing for low and middle-income households, as well as for students and trainees in specific densely populated areas.

What is Funded

The funding program supports the new construction, first-time acquisition, and modernization of rental apartments. Special surcharges are available for wheelchair-accessible apartments, common rooms, and elevators. Construction projects that achieve high efficiency house standards also receive additional funding. The measures must involve significant construction effort.

Type and Scope of Funding

Funding is provided in the form of low-interest construction loans and financing grants. The amount of the loans is standardized and depends on the living area and local land prices. Additionally, there are surcharges for special features such as wheelchair accessibility, common rooms, and elevators, as well as for projects with high efficiency standards. The duration of the rent price and occupancy commitment influences the amount of the financing grant and the fixed interest rate.

Conditions and Requirements

Funding is tied to strict conditions, including income limits for tenants, rent price commitments, and occupancy rights. The builder must provide an own contribution, and the municipality usually has to participate financially. Certain technical specifications must be observed, and the funding is subject to auditing rights and cumulation prohibitions.

Application Procedure

The application procedure is two-stage. First, the construction project is registered with the responsible housing promotion office, followed by a formal funding application after confirmation of admission to the program. The applications are pre-checked by the housing promotion office and forwarded to the Wirtschafts- und Infrastrukturbank Hessen (WIBank), which decides on the funding commitment.

Social rental housing promotion in Hesse is based on a specific guideline of the State of Hesse and is legitimized and regulated by a series of state laws and ordinances. It forms the legal framework for the provision of funding for the creation of affordable housing.

Similar Programs

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Funding Overview

Funding Status

Funding Status:

Open

Maximum Amount

Maximum Amount:

between 1,200.00 € and 2,600.00 € per square meter of living area as a loan, plus surcharges and a financing grant of up to 40%

Open Until

Open Until:

Ongoing

Award Channel

Award Channel:

Individual Aid

Region

Region:

Hesse

Sectors

Sectors:

Service Sector, Environmental and Climate Protection, Research and Development

Beneficiaries

Beneficiaries:

Housing construction, Modernization

Application Type

Application Type:

Single Applicant

Funding Stages

Funding Stages:

Product Development, Implementation, Infrastructure, Market Introduction, Process Optimization, Experimental Development, Basic Research

Funding Provider

Program Level:

Regional

Funding Body:

Hessian Ministry for Economic Affairs, Energy, Transport, Housing and Rural Areas

Managed By:

Wirtschafts- und Infrastrukturbank Hessen (WIBank)

Additional Partners:

Municipalities, locally responsible student union

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