Loan

IBB Housing New Construction Fund – Social Housing Promotion for Rental and Cooperative Housing Construction in Berlin

Interest-free construction loans and construction cost subsidies for social rental and cooperative housing construction in Berlin under various funding models. Applications can be submitted year-round.

Housing & Modernization Infrastructure Urban Development & Renewal

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Grant criteria

Application Deadline: Ongoing
Application level: Advanced
Region: Berlin
Company size: Small and medium-sized enterprises (SMEs)
Funding amount: Up to €5,300/m² of subsidized living space as a loan plus up to €1,800/m² construction cost grant
Funding rate: 80%

Funding objective

The State of Berlin promotes the creation of rental and cooperative housing at socially acceptable rents through interest-free loans in various funding models and supplementary construction cost grants. The goal is to provide affordable housing for low- and middle-income households as well as special needs groups, with rental and occupancy commitments binding for 30 years.

Eligible expenses

  • New construction and additional storey costs
  • Construction costs and construction cost subsidies
  • Subsidies for elevator systems
  • Subsidies for barrier-free apartments
  • Subsidies for sustainable building and climate protection

Non-eligible expenses

  • privately financed apartments
  • commercial spaces

Eligible to apply

  • Individuals
  • Public Institutions
  • Companies
  • Cooperatives
  • Interest Groups and Other Associations

Funding requirements

  • Investment location Berlin
  • Equity capital at least 20% of the total costs
  • Commitment to rent and occupancy restrictions for 30 years
  • Submission of a certificate of eligibility for housing upon rental
  • Application for program inclusion before construction begins

Documents required for application

  1. Funding application
  2. Document requirements for landlords and investors
  3. Housing construction funding regulations 2023
  4. Self-disclosure for landlords and investors
  5. ESG self-declaration

Evaluation criteria

  • Proportion of subsidized housing
  • Social rent price and occupancy commitment
  • Adjustment of standard land value
  • Quality and sustainability of the project

Description

With the IBB Housing Construction Fund, the State of Berlin supports municipal and private housing companies, cooperatives, as well as landlords and investors in the construction of new rental and cooperative housing at socially acceptable rents. The offer includes interest-free construction loans of up to €5,300/m² of subsidized living space as well as supplementary construction cost grants of up to €1,800/m². Funding is provided for new buildings, additions, attic conversions, and changes of use – each depending on the standard land value. Additionally, one-time grants can be applied for elevator installations, barrier-free accessible apartments, sustainable construction, additional expenses, and climate-friendly housing construction. With a funding rate of up to 80% of eligible costs, affordable housing is to be created for low- and middle-income households as well as special needs groups, combined with a rent and occupancy commitment of 30 years.

Eligible applicants are natural and legal persons, public institutions, companies, cooperatives, interest groups, or associations with an investment location in Berlin. A minimum equity contribution of 20%, inclusion in the housing promotion program before construction begins, and the presentation of a housing entitlement certificate upon rental are prerequisites. Eligible expenses include new construction and addition costs, construction cost grants, as well as investments in accessibility and climate protection. Evaluation is based, among other criteria, on the proportion of subsidized apartments, social rent levels, standard land value adjustment, and sustainability criteria. Applications can be submitted year-round; the Investitionsbank Berlin reviews eligibility for funding, grants the subsidy, and monitors commitments and proof of use.

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