Modernization of Affordable Rental Housing (FRL Affordable Rental Housing – FRL pMW)

The funding program „Modernization of Affordable Rental Housing“ is aimed at owners and holders of heritable building rights for rental housing in the Free State of Saxony who wish to implement measures to improve living quality, energy efficiency, and accessibility for low-income tenants. The goal is to create equivalent living conditions and secure affordable housing in the long term.

The program promotes a variety of construction measures for the modernization of rental housing, particularly to improve energy efficiency, accessibility, utility value enhancement, and general living conditions. Measures for climate adaptation and sustainable building certifications are also eligible.

Funding is provided as a combination of a grant and an interest-subsidized loan. The amount of funding depends on the eligible expenses and the energy quality standard of the modernization, with specific maximum limits and minimum amounts.

Various conditions apply to the funding, including requirements for building age and minimum investment amount, obligations regarding rent control, and living space limits. In addition, state aid regulations and municipal housing policy objectives must be observed.

The application for funding must be submitted to Sächsische Aufbaubank (SAB) before the start of the project. The application is checked for completeness, and the approval authority decides within the framework of available budget funds.

The funding guideline is based on the Housing Promotion Act and the Saxon Budget Code. In addition, specific EU state aid regulations are decisive, which regulate the granting of grants as state aid.