Social Rental Housing Promotion – New Construction of Rental Apartments for Low-Income Households
The State of Hesse promotes the new construction and modernization of rental apartments for low and middle-income households, as well as for students and apprentices. Through low-interest construction loans and financing grants, affordable housing is to be created and housing supply improved. The funding is tied to rent and occupancy restrictions and often requires municipal participation.
Who is funded: Target Groups and Geographical Focus of Housing Promotion
The funding program is aimed at natural and legal persons who wish to create new or modernized rental housing for low or middle-income households, as well as for students and apprentices. The funding is limited to the state of Hesse and aims to ensure the supply of affordable housing.
What is funded: Project Types, Topics, and Costs
The program promotes the new construction and initial acquisition of apartments intended for rental, as well as the modernization of rental apartments, provided that at least four residential units are created or modernized. The focus is on creating affordable housing for specific income groups, as well as for students and apprentices. Model projects that test innovative concepts in housing construction are also eligible for funding.
Type and Scope of Funding: Financial Support and Conditions
The program offers low-interest construction loans combined with financing grants. The amount of funding varies depending on the income group of the tenants and local land prices. In addition, there are surcharges for special features such as wheelchair-accessible apartments, common rooms, or elevators. The duration of rent and occupancy restrictions influences the amount of the financing grant.
Conditions and Requirements: Funding Guidelines and Obligations
Funding is tied to various conditions, including income limits for tenants, minimum number of residential units, and municipal financial participation. The funded apartments are subject to rent and occupancy restrictions. There are specific requirements for the creditworthiness of the builder and the technical execution of the projects. The funding measure is not considered state aid under EU state aid law.
Application Procedure: Step-by-Step to Funding
The application procedure is two-stage and begins with the registration of the construction project with the responsible housing promotion office. After confirmation of inclusion in the funding program, the formal funding application is submitted to the Wirtschafts- und Infrastrukturbank Hessen (WIBank), which is responsible for approval.
Legal Basis: Statutory Anchoring and Regulations
Social rental housing promotion in Hesse is based on the Guidelines of the State of Hesse for Social Rental Housing Promotion of May 10, 2023. It is legitimized by several Hessian laws and ordinances and is subject to the provisions of the Hessian State Budget Ordinance. The guidelines define the funding objectives, measures, and prerequisites in detail.
Similar Programs
Funding Overview
Funding Status:
Open
Maximum Amount:
The loan amount (basic amount) ranges, depending on local land prices, between €1,700 and €2,500 per square meter of living space for low-income households, €1,200 and €2,000 for middle-income households, and €1,800 and €2,600 for student households/apprentices. In addition, surcharges apply: €150 per square meter of eligible living space for wheelchair-accessible apartments, €500 per square meter for common rooms, and an additional loan of €3,500 per funded apartment (max. €45,000 per elevator) for elevators. Furthermore, a financing grant of 20%, 30%, or 40% of the approved funding loan is provided, depending on the binding period. For Efficiency House Standard 40, the financing grant increases by €150 per square meter of eligible living space.
Open Until:
Ongoing
Award Channel:
Demand Driven Scheme
Region:
Hesse
Sectors:
Construction and Building Materials
Beneficiaries:
Low-income households, middle-income households, student households, apprentice households
Application Type:
Single Applicant
Funding Stages:
Product Development, Implementation, Infrastructure, Process Optimization
Funding Provider
Program Level:
Regional
Funding Body:
Hessian Ministry of Economy, Energy, Transport, Housing and Rural Development
Managed By:
Wirtschafts- und Infrastrukturbank Hessen (WIBank)
Additional Partners:
Responsible Housing Promotion Office Hesse, Municipalities, Local Student Services