Federal Funding for Cooperative Housing

The federal funding for cooperative housing is aimed at natural persons who require shares of a registered housing cooperative to acquire a self-occupied cooperative apartment in Germany. The purchase of these business shares is facilitated through a low-interest loan, with a repayment grant of 15% provided. The funding is granted regardless of whether the cooperative is newly built or existing and is based on the principles of self-help, self-determination, and self-administration. Through the combination of a reduced interest rate during the fixed interest period and a partial waiver of the loan debt, the financial barriers to cooperative apartments are significantly lowered, and long-term usage rights are secured.

With the ongoing application possibility, the Federal Ministry for Housing, Urban Development and Building promotes the stability of neighborhoods and the creation of affordable housing. A prerequisite is the self-occupation of the cooperative apartment as well as the acquisition of the shares required for this purpose. The measure contributes to strengthening cooperative housing models throughout the federal territory and supports individual commitment in the sense of civic housing forms. Natural persons benefit from a transparent funding rate and clear requirements that facilitate access to modern and sustainable housing structures.