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Urban development; application for funding for renewal measures

The state, federal government and EU can support cities and municipalities in urban renewal measures.

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Procedure details

Purpose

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.

Object

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).

Eligible costs

The determination of total eligible expenditure is based on the eligibility 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 (neighborhood funds).

Type and amount

The funding is granted as a subsidy.
The type of grant is project funding.

As a rule, pro rata or fixed-amount funding

Urban development funding is granted on application if the funding requirements of the urban development guidelines are met. The basic requirement is that the local authority must contribute its own share of the eligible expenditure.

Owners/investors who wish to implement an eligible project in a regeneration area that meets the municipal regeneration objectives can apply to the city or municipality for reimbursement of costs if they are not in a financial position to carry out the measure alone.

No work may commence on a project before the funding has been approved or approval for the early start of the project has been granted.

The granting of urban development funding must be permanently displayed on construction signs and after completion of the projects, e.g. by means of information boards. There is no legal entitlement to funding.

In principle, the municipality is the recipient of the funding. It can grant the urban development funds together with its own contribution to third parties.

Exclusion criteria:

The measure was already started before the application was submitted.

In particular, the personnel and material costs of the municipality and, in principle, of municipal companies, expenses in connection with raising the municipality's own contribution and the administration or pre-financing of the funding are not eligible.

Also ineligible are cost shares in the amount of which the project sponsor can claim tax concessions, costs that can be covered by other bodies or by income, as well as costs for development and communal facilities, insofar as they do not solely or proportionately serve the overall measure or the areas in need of renewal as a whole.

In addition, costs incurred for the removal of soil contamination or groundwater contamination, costs for maintenance and operation, and costs for general equipment are not eligible. Voluntary work and contributions in kind are also not eligible costs if the remuneration is inappropriate or the required quality is not ensured.

Furthermore, costs that are not mandatory (for example, if exemption from charges or expenses is possible), the demolition of listed buildings, cost estimates in the annual programs of less than EUR 50,000 and individual urban development projects with total costs of less than EUR 100,000 are not eligible for funding. However, planning and investigations can be funded in exceptional cases from a sum of 25,000 euros.

  • Required document/s
    • Notification of need: Annual application for inclusion of the municipality in the respective funding program.
    • Grant application: For the approval of individual measures.
    • Application for disbursement: To request cash funds for approved funding measures.
    • Proof of use: For the settlement of completed individual measures.
    • Overall settlement: For the settlement and completion of the overall measure.
    • Cost reimbursement amount: For calculating the eligible expenditure for private measures.

The governments are responsible for consultation and approval.

The municipalities inform the governments of their funding requirements in the form of approval applications or, alternatively, notifications of requirements with prioritization.

The governments decide on the approval of the projects within the framework of the financial assistance provided.

Early start of measures: Possible from receipt of application

Explanation:

If the municipality is not yet included in the program, a VZM can be issued by the Ministry via the government.

The application and approval process is free of charge.

None

You can lodge an appeal against the grant notification within [period]. You will be informed of the competent court at which you can lodge an appeal in the notification.

Status: 10.04.2025
Editorial responsibility Bayerisches Staatsministerium für Wohnen, Bau und Verkehr
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