The purpose of urban renewal is to maintain, renew and further develop urban and local districts in terms of their function, structure and design. The Free State of Bavaria, the Federal Government and the European Union provide financial aid for urban renewal in various urban development programs.
The focal points of urban development funding are:
- the sustainable strengthening of city centers and local centers in their urban development function with special consideration of the concerns of climate protection and the protection of historical monuments, the provision of green and blue infrastructure, and the design of a barrier-free community.
- The reuse of areas, in particular of commercial, military or railroad areas lying fallow in central areas, for the establishment of residential and workplaces, community and follow-up facilities, taking into account their functionally appropriate allocation (mix of uses) and the elimination of vacancies in favor of the creation of permanent housing.
- Urban development measures to remedy social grievances.
- Use of supra-local cooperation and networks to strengthen centers of all levels in rural areas.
The object of funding is urban renewal measures such as redevelopment, development, urban renewal or Socially Integrative City measures within the meaning of the BauGB in a renewal area defined by the municipality as a unit (overall measure).
Recipient of funds
As a rule, the recipient of the funding is the municipality. It can on-lend the urban development funds together with its own share to third parties.
The determination of total eligible expenditures is based on the funding requirements and provisions contained in the urban development funding guidelines, e.g.
- Preparation for redevelopment
- Land readjustment measures (land clearance, construction/modification of development facilities, etc.)
- Construction measures (modernization and repair)
- Community facilities (as far as they serve the urban renewal)
- Municipal support programs and funds (neighborhood funds)
Type and Amount
The urban development funds are provided as project funding in the form of earmarked grants
- preferably as fixed-amount financing,
- otherwise as share financing
The municipality is generally reimbursed 60 percent of the expenses determined as eligible for the individual measure. In total, the funding should not exceed 50 percent of the costs of the overall measure. The latter does not apply if a funding rate of 80 percent to 90 percent is permitted on the basis of separate regulations for measures.