Acquisition of Shares in Housing Cooperatives

In Berlin, low-income households receive an interest-free loan of up to EUR 50,000 for the initial acquisition of shares in housing cooperatives. This funding program is aimed at private individuals with their main residence in Berlin who hold a valid housing entitlement certificate in the state of Berlin and whose income does not exceed the income limit of the Berlin Housing Promotion Act by more than 120%. The loan term can be up to 30 years, with up to five years of repayment-free period granted. Through a repayment waiver of 15% upon disbursement and an additional 10% after nine-tenths of the loan term, the repayment amount is significantly reduced. The funding supports both the first occupancy of a cooperative new-build apartment and tenant households wishing to participate in existing buildings.

The application can be submitted at any time to the Investitionsbank Berlin (IBB) and can be fully drawn within 24 months after approval. Eligible households must submit, in addition to the completed application form and self-disclosure, documents such as the housing entitlement certificate, declaration of accession to shares, rental agreement, as well as proof of own and external funds. For self-employed persons and business owners, business management evaluations, annual financial statements, and tax assessments are required. After disbursement, proof of use must be submitted within six months, documenting the accession and handover of the cooperative apartment. The IBB reviews creditworthiness and eligibility for funding, while the Senate Department for Urban Development, Building and Housing exercises technical supervision. This loan promotes the strengthening of the cooperative system, contributes to the modernization of housing construction, and supports sustainable urban development in Berlin.