Ampel coalition initiates funding program for compact apartments

The traffic light coalition plans to promote the construction of small and affordable apartments through an interest rate reduction program. In the adjustment session on Thursday, the budget committee of the Bundestag decided to make 1 billion euros available for this purpose this year. The funding program aims to support the construction of new buildings that meet at least the EH40 standard. By reducing space and construction costs, these homes should not only create additional added value for climate protection, but also help to create affordable housing in urban areas. A working paper on Section 25, the budget of the Ministry of Construction, also emphasizes that rents in the new units must be in the lower third of the rent index.

The 'Climate-friendly new construction in the low-price segment - residential buildings with small to medium-sized units' program is being introduced as the third pillar of new construction funding in response to the tense situation in the construction industry. In particular, single parents and senior citizens often lack smaller, affordable apartments. The program complements the funding line for climate-friendly new construction (KFN) launched last year, an interest subsidy program for private individuals, companies and investors. Local authorities can also apply for grants. The resumption of KFN is planned as soon as the new budget comes into force. In addition, there is a separate program for families, the WEF.

The agreement in the Budget Committee is seen as a decisive step towards a federal budget for the current year. The final vote on the budget in the Bundestag and Bundesrat is expected to take place at the beginning of February.

The Green parliamentary group sees the agreement as a success, as climate-friendly and affordable housing in particular will be promoted. MP Hanna Steinmüller sees the program as a significant boost for tenants and the construction industry alike and is calling for the funding conditions to be defined quickly.

The housing, real estate and construction industries have also praised the program. The program and in particular the interest rate reduction component are seen as a positive signal at the right time. The construction industry also states that the EH55 standard would be sufficient if climate-friendly energy and heat could be used at the same time.

Source: Immobilien Zeitung