New Construction of Rental Apartments – 1st Funding Path

The Free and Hanseatic City of Hamburg places a focus on affordable housing for households with low and middle incomes through the "New Construction of Rental Apartments – 1st Funding Path." Funding is provided to investors, owners, and leasehold right holders who carry out new construction projects or expansions of existing buildings and install barrier-reduced basic equipment. The program combines a low-interest loan with one-time construction cost subsidies as well as ongoing grants over a commitment period of up to 30 years. The goal is particularly to create housing for families, people aged 60 and over, people with disabilities, and priority housing seekers. Funded projects must comply with specifications regarding apartment sizes, layouts, and construction execution and are subject to occupancy and rent price restrictions.

Approval generally requires around 20 percent equity capital, demonstrated financial capacity, and reliability. Eligible expenses include land acquisition, new construction of rental apartments, building modifications, and barrier-reduced fittings. The modular funding concept consists of a mandatory basic module that can be combined with freely selectable supplementary modules. Applications must be submitted at any time before construction begins to the Hamburg Investment and Development Bank (IFB Hamburg); required documents include, among others, the application form, proof of equity and financial capacity, as well as construction plans in accordance with the funding guidelines. Construction may only commence after written approval from IFB Hamburg. The program offers long-term support for affordable rental housing construction and makes a sustainable contribution to urban development in Hamburg.