New Construction of Rental Apartments – 2nd Funding Path
Low-interest loan and grants for the new construction of affordable rental housing in Hamburg. Applications must be submitted to IFB Hamburg before the start of construction.
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Grant criteria
Funding objective
Promotion of the construction of affordable rental housing for households with middle incomes in Hamburg, especially for families, people aged 60 and over, and people with disabilities.
Eligible expenses
- Land acquisition
- New construction of rental apartments in multi-family houses
- Modification and expansion of existing buildings
- Barrier-reduced basic equipment
Eligible to apply
- Companies
- Individuals
Funding requirements
- Equity capital amounting to 20 percent
- Proof of performance capability and reliability
- Compliance with occupancy and rent price restrictions
- Compliance with the income limits of the HmbWoFG or housing entitlement certificate
Description
The second funding pathway for the construction of rental apartments in Hamburg supports companies and private individuals with low-interest loans and supplementary grants to create affordable housing in multi-family buildings. The goal is to provide rental apartments for households with middle incomes, particularly for families, people aged 60 and over, and people with disabilities. Funding is provided not only for land acquisition but also for new construction as well as the alteration and extension of existing buildings. Barrier-reduced basic equipment is also financially supported. A prerequisite for approval includes, among other things, an equity share of at least 20%, proof of performance capability and reliability, as well as compliance with occupancy and rent price restrictions according to the Hamburg Housing Promotion Act or housing entitlement certificate.
The funding offer of the Hamburg Investment and Development Bank (IFB Hamburg) is continuously available, with all applications to be submitted before construction begins. The modular design allows the combination of a mandatory basic module with freely selectable supplementary modules, creating individual funding packages. The term of the rent and occupancy restrictions generally extends over 30 years, with the initial net cold rent and annual increases defined. Construction may only commence after written approval from IFB Hamburg. With this loan program, the Free and Hanseatic City of Hamburg makes a decisive contribution to strengthening urban infrastructure and supports sustainable urban development.