Municipal Funding Program for the Creation of Rental Housing (Municipal Housing Promotion Program – KommWFP)
The program supports Bavarian municipalities in creating affordable rental housing for low-income households and recognized refugees through low-interest loans and grants. Applications can be submitted continuously before the project begins.
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Grant criteria
Funding objective
The Free State of Bavaria supports municipalities in the construction, alteration, or expansion of buildings to create rental housing, modernization of existing housing, acquisition of vacant buildings, as well as preparatory planning and expert reports. The goal is to provide affordable and barrier-free housing for low-income households and recognized refugees.
Eligible expenses
- New construction of rental housing
- Alteration or extension of buildings
- Modernization of existing residential space
- Acquisition of vacant buildings
- Preparatory planning and expert reports
Eligible to apply
- Public Institutions
Funding requirements
- Owner of the subsidized rental housing must be a municipal authority
- Proof of a significant, not merely temporary, demand for rental housing
- Compliance with generally accepted housing standards
- Fulfillment of the accessibility requirement DIN 18040-2 for new construction and modernization
- Floor space and rent price restrictions according to BayWoFG
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Documents required for application
- Land ownership documents (land register excerpt, purchase contract or hereditary building right contract)
- Construction technical documents (site plan, construction drawings, living area calculation, cost calculation according to DIN 276)
- Loan approval resolution of the competent body with certification note
Description
The Municipal Housing Promotion Program – KommWFP of the Free State of Bavaria offers Bavarian municipalities, markets, cities, special-purpose associations, as well as districts and counties, low-interest loans and grants for the creation of affordable rental housing. Funding is provided for new construction, modification or expansion of residential buildings, as well as modernizations and the acquisition of vacant properties. Preparatory planning and expert reports are also eligible for grants. The funding covers 30% to 60% of the eligible total costs, with grants for modernizations and existing property measures potentially increased up to 40%. Thanks to the combination of low-interest capital market loans and direct grants, the permanent provision of barrier-free and affordable housing for low-income households and recognized refugees is supported. A 25-year occupancy commitment and a personal contribution of at least 10% of the total costs are prerequisites for approval.
Requirements include proof of a significant, not merely temporary need, compliance with generally accepted housing standards, and the accessibility requirement DIN 18040-2. Rent and living space restrictions are governed by the Bavarian Housing Promotion Act (BayWoFG). The application must be submitted to the responsible district government before the start of the project; required documents include proof of land ownership, construction plans, cost calculations according to DIN 276, and the loan approval resolution of the competent body. Through continuous application submissions, municipal sponsors can invest according to demand and thus make a significant contribution to social urban development and sustainable housing construction in Bavaria.