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Social Rental Housing Promotion – Modernization Measures
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Last updated: 14.6.2025

The state of Hessen supports the modernization and new construction of rental housing for low and middle-income households, as well as for students and trainees. This is achieved through low-interest loans and financing grants to ensure the provision of affordable housing. The program specifically addresses market failure in the social housing sector.

Who is Funded

This funding program supports owners and leaseholders of rental apartments in Hessen for the modernization and new construction of affordable housing. The aim is to adequately provide housing for low or middle-income households, as well as for students and trainees.

What is Funded

The program supports construction measures for the modernization and new construction of rental apartments. It covers a variety of improvements related to living quality, energy efficiency, and accessibility, and establishes clear criteria for the eligibility of costs and project phases.

Type and Scope of Funding

Funding is provided in the form of low-interest loans and financing grants. The amount of support varies depending on the type of measure (new construction or modernization) and the chosen commitment period, with surcharges also granted for special standards such as accessibility or efficiency house standard.

Conditions and Requirements

The program is linked to specific conditions, including requirements for rent levels, apartment occupancy, applicant creditworthiness, and compliance with a cumulation prohibition with other funding programs. Municipal participation is required for certain measures.

Application Procedure

The application procedure is two-tiered and requires prior registration of the construction project with the responsible housing promotion agency, followed by a formal funding application to WIBank. Project selection, if funding exceeds available resources, is based on specific criteria.

Social rental housing promotion in Hessen is based on the Hessian State Guideline for Social Rental Housing Promotion, which is legitimized and detailed by several state laws and regulations. The official texts are publicly accessible.

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Funding Overview

Maximum Amount

Maximum Amount:

Loans up to 75% of modernization costs; for new construction up to 2,600 Euro/sqm living space; up to 45,000 Euro for elevators. Financing grants up to 40% of the funding loan.

Award Channel

Award Channel:

Competitive Tender

Region

Region:

Hessen (Germany)

Sectors

Sectors:

Other

Beneficiaries

Beneficiaries:

Low-income households, middle-income households, student households, trainee households

Funding Stages

Funding Stages:

Implementation, Infrastructure

Funding Provider

Program Level: Regional

Funding Body: Hessian Ministry for Economic Affairs, Energy, Transport, Housing and Rural Development

Managed By: Wirtschafts- und Infrastrukturbank Hessen (WIBank), responsible housing promotion agency

Additional Partners: Municipalities, Student Union

Website: zuständige Wohnungsbauförderstelle Hessen