The purpose of urban renewal is to preserve, renew and further develop the function, structure and design of urban areas and districts. The Free State of Bavaria, the federal government and the European Union provide financial assistance for urban renewal in various urban development programs.
The main focuses of urban development funding are
- the sustainable strengthening of inner cities and town centers in their urban development function with special consideration of climate and monument protection concerns, the provision of green and blue infrastructure, as well as the design of a barrier-free community.
- the reuse of areas, in particular industrial, 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 sensible allocation (mixed use) and the elimination of vacancies in favor of the creation of permanent living space.
- Urban development measures to remedy social deficiencies.
- Use of supra-local cooperation and networks to strengthen the centers of all levels in rural areas.
The object of the funding is urban renewal measures such as redevelopment, development, urban restructuring or social city measures within the meaning of the BauGB in a renewal area defined by the municipality as a unit (overall measure).
Recipient of the grant
The recipient of the grant is generally the municipality. It can grant the urban development funds together with its own contribution to third parties.
The determination of total eligible expenditure is based on the funding requirements and provisions contained in the urban development guidelines, such as
- Redevelopment preparation
- Regulatory measures (land clearing, construction / modification of development facilities, etc.)
- Construction measures (modernization and repair)
- Public facilities (insofar as these serve urban renewal)
- Municipal development programs and funds (neighbourhood funds)
Type and amount
The urban development funds are provided as part of project funding in the form of earmarked grants
- preferably as fixed-amount financing,
- otherwise as proportional financing
The municipality is generally reimbursed 60 percent of the expenditure defined as eligible for funding 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 for measures on the basis of separate regulations.