Rental housing; application for subsidies for new construction and conversion measures

The Free State subsidizes new construction, building alterations and extensions of rental apartments in multi-family buildings.

Description

Subject

In the Bavarian Housing Program, the Free State of Bavaria promotes the construction and conversion of needs-based rental housing in multi-family buildings. The aim is to create affordable housing for households with low and medium incomes. The subsidized apartments are to be planned and designed in such a way that they can be used in the long term by as large a group of people as possible, including older people in particular.

Beneficiaries

Eligible applicants are natural persons, legal entities under public or private law as owners, holders of heritable building rights or the usufructuary of a suitable plot of land.

Eligible costs

Eligible costs are the total costs in the sense of §§ 5 to 8 of the Second Calculation Ordinance (II.BV).

Type and amount

Funding is provided for a period of 25 or 40 years in the form of low-interest construction loans and a supplementary grant (up to €500/m2 of living space). For particularly sustainable projects, the "sustainability subsidy" module provides funding of up to €200/m2 of living space. With the "energy efficiency subsidy" funding module, up to €100/m2 of living space can be granted for additional costs due to increased energy requirements. In addition, the "drauf und dran - nachhaltig erneuern und erweitern" ("on top of it - sustainable renovation and expansion") subsidy module enables an increase in the supplementary subsidy to up to 125% for building expansion and an increase in the supplementary subsidy to up to 75% for modernization of the existing building stock.

Under the income-oriented subsidy, the tenant receives a subsidy that reduces the agreed market rent to a rent that is reasonable for him according to his income. Under the expenditure-oriented subsidy, the rent is set at a reasonable level in line with the local rent level.

Prerequisites

Rental housing in multi-family buildings may only be subsidized if there is a demonstrable significant, not just short-term, need for such housing on site. Multi-family housing is defined as buildings with at least three rental apartments. Design must comply with the technical requirements set forth in the Housing Development Regulations 2022 (WFB 2022).

The apartments may only be rented to households (tenants) whose income does not exceed the income limits specified in Art. 11 BayWoFG. The aim is that with the highest possible income limits, around 60 percent of Bavarian households will have access to housing subsidies

The technical requirements set out in the Housing Subsidy Regulations (Wohnraumförderbestimmungen - WFB) must be complied with. Technical coordination is carried out with the granting agency.

An appropriate equity share of at least 15% of the total costs is required.

If necessary, the Landesbodenkreditanstalt carries out a credit check.

The construction project may not be started before the subsidies have been approved.

There is no legal entitlement to a subsidy.

Procedure

The procedure is two-stage:

  1. The project must be coordinated with the approval office (see "Responsible for you") as early as possible. The application can then be submitted using the forms and documents provided. Approval is granted by the approval office.
  2. The Bayerische Landesbodenkreditanstalt approves the loan and sends the notice of approval.

Payment is made according to the progress of construction work and must be applied for at the approval office.

Deadlines

none

Required documents

  • Evidence of the property or heritable building right
  • Evidence of external and own resources
  • Other evidence (e.g. in the case of construction supervision)
  • Technical documentation for the building project

Forms

Fees

  • The application and approval process is free of charge.

Remedy

Administrative court proceedings; information

administrative claim

Links to more information

Status: 19.05.2022

Responsible for editing: Bayerisches Staatsministerium für Wohnen, Bau und Verkehr

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  • Online transactions, Bavaria-wide
  • Online transactions, locally limited
  • Prefillable Form, Bavaria-wide
  • Legal bases, Bavaria-wide
  • Legal bases, locally limited
  • Fees, Bavaria-wide
  • Fees, locally limited
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Responsible for you

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