Municipal housing construction; application for funding

With the Municipal Housing Promotion Program, the Free State of Bavaria supports municipalities in planning and building their own housing.

Antragsformular - Kommunales Förderungsprogramm zur Schaffung von Mietwohnraum in Bayern (Formblatt KommWFP I)

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Formblatt für Ratenabruf - Kommunales Wohnraumförderungsprogramm zur Schaffung von Mietwohnraum in Bayern (Formblatt RAKommWFP)

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For contact details of the responsible authoritiy and local valid information select under "Select location" a location.

Purpose

Affordable rental housing is to be created for households that are unable to find suitable housing on the market. Recognized refugees are to be given appropriate consideration.

Object

Funding is provided for

the creation of rental housing through the new construction, modification or extension of buildings, including those that were not previously used for residential purposes
the modernization of existing rental housing
the acquisition of vacant buildings for the implementation of measures in accordance with nos. 2.1 and 2.2 or the initial acquisition of residential buildings and
preparatory planning measures (including, in particular, housing concepts, expert opinions and competitions).

Eligible costs

The eligible costs depend on the measure. In the case of measures under nos. 1 to 3, the total costs of the measure in accordance with §§ 5 to 8 of the Second Calculation Ordinance (II. BV) are eligible for funding, including the costs of the building plot, the construction costs and the ancillary construction costs. In the case of measures under no. 2, the costs of necessary repairs can also be funded. The land and residual value of buildings already owned by the municipality are not eligible for funding. In the case of measures under no. 4, the necessary costs and fees are eligible for funding.

Type and amount

The funding is granted as a credit/loan.

The grant for measures under Nos. 1 to 3 is provided as project funding for the overall measure by way of pro rata financing in the form of a grant of up to 30% of the total eligible costs and a low-interest capital market loan from Bayerische Landesbodenkreditanstalt of up to 60% of the total eligible costs.
In the case of building alterations, extensions and modernizations, the grant can be increased by up to 40% of the total eligible costs.
If at least 60% of the subsidized residential units are intended for professionals in the public service sector or to attract such professionals, the subsidy can be increased by up to 5 percentage points.
The grant can also be applied for without the loan.
In the case of funding for the acquisition of land in accordance with No. 3, the amount of the grant is limited to the amount of the eligible costs of the measures in accordance with Nos. 1 and 2.
Funding for measures in accordance with No. 4 is provided in the form of a grant amounting to 60% of the total eligible costs.

Funding can only be provided for measures that have not yet begun. On application, the granting authority may, by way of exception, approve the early start of the project - if necessary for partial measures - if the financing of the project, including the grant to be approved, any pre-financing costs and follow-up costs, appears to be sufficiently secured, the measure has been objectively examined and the conditions for the grant have been met, subject to a final examination.
The rental apartments should meet generally accepted housing standards.
Funding may only be provided in locations with a significant, not merely temporary need for rental housing for the group of people defined in No. 9, sentences 1 and 2 of the guidelines for the municipal funding program for the creation of rental housing in Bavaria.
In the case of measures pursuant to No. 3, the initial purchase of a residential building is only eligible for funding if the building permit for the building was issued after October 9, 2015 and the building has not yet been used for residential purposes. In the case of buildings that were constructed without planning permission, the building permit is replaced by the start of construction according to the notice of commencement of construction.

All Bavarian municipalities are eligible to apply. The municipalities must remain the owners of the subsidized residential buildings, but can commission third parties such as municipal or church housing companies to implement the measures (where necessary in compliance with public procurement law). It is not possible to pass on the funds to third parties, such as municipal housing companies. The municipalities can also implement projects in inter-municipal cooperation.

Required document/s
- Proof of ownership: Copy of the latest version of the land register, purchase contract or leasehold contract
- Construction documents: site plan, construction drawings, calculation of living space, calculation of enclosed space, cost calculation according to DIN 276
- Borrowing decision of the responsible body in copy with notarization in the original

The funding application must be submitted to the responsible district government using the application form with the documents specified therein (e.g. planning basis, explanations, cost and financing plan). The government checks the conditions for funding and selects the measures within the framework of the budget funds made available to it. It carries out the approval procedure and issues the approval notice.

In the case of measures under Nos. 1 to 3, it forwards the approval notice together with the documents to the Bayerische Landesbodenkreditanstalt for immediate dispatch; in the case of measures under No. 4, it sends the notice directly to the municipality. The government arranges for the funds to be paid out and checks the proof of use.

The application must be submitted before the start of the project.

Early start of measures: Possible from approval