Rental Housing Financing L-Bank – New Construction

The rental housing financing provided by L-Bank supports housing companies, cooperatives, municipalities, and other public-law developers in Baden-Württemberg through long-term, low-interest loans based on the KfW program “Climate-Friendly New Construction (KFN) – Residential Buildings.” Both new constructions as climate-friendly residential buildings and buildings with the Sustainable Building Quality Seal (QNG) are eligible for funding. Loan amounts are up to €100,000 per residential unit for regular buildings and up to €150,000 per unit for buildings with QNG certification. If additional financing is required, a supplementary loan can be applied for. The funding is continuously available and does not impose rental or occupancy restrictions, thereby creating flexible rental housing.

A prerequisite for a grant is the status of the builder as a housing company, housing cooperative, municipality, district, or comparable public-law entity. Construction must not have commenced, and at least 25% of the total investment must be demonstrated as equity capital. A ten-year binding period must be observed, and all environmental and social legal requirements must be met. Awards from €700,000 are made based on competitive principles with three offers. Furthermore, the involvement of an energy efficiency expert from the Federal Funding for Efficient Buildings, as well as a QNG sustainability consultant and a QNG certification body, is required. Required documents include the information sheet, application form, and proof of use; applications can be submitted at any time before construction begins.