Lower Austria Housing Subsidy for Residential Construction

Funding Program "Lower Austria Housing Subsidy for Residential Construction" is aimed at natural persons with Austrian citizenship or equivalent status, municipalities, non-profit housing associations, as well as legal entities and partnerships based in the European Economic Area. The objective is the construction of apartments in multi-family residential buildings as well as dormitory places in residential homes in Lower Austria. The funding instrument consists of a low-interest loan over 31 years with a declining interest subsidy and a loan quota of up to 90% of the eligible nominal amount. The initial interest coupon is 1% p.a., from the 21st year the maximum permissible interest rate increases to 3% p.a. The subsidy covers the difference between the market interest rate and the subsidized interest rate. A re-entry into a new allocation procedure is possible during the loan term to enable debt restructuring.

The subsidy can be applied for indefinitely; an application must be submitted before the start of construction. Construction projects up to 36 residential units require an assessment by the design advisory board; for 37 or more residential units, an architecture and planning selection procedure is mandatory. Funding requirements include achieving a minimum energy performance index, the installation of innovative climate-relevant systems, and the registration of the loan as a land charge. Eligible expenses include construction costs, ancillary construction costs, architectural and planning services, as well as official fees. Evaluation criteria include, in addition to the energy performance index, the use of highly efficient heating systems, location quality, infrastructure connectivity, as well as target group-specific additional subsidies such as "Supported Living" or "Young Living." To prove eligibility for funding, project description, financing plan, building permit decision, construction and site plans, as well as corresponding data sheets must be submitted.