Social Rental Housing Support – Modernization
Low-interest loan (up to 75% of eligible costs) plus a 30% financing grant for the modernization of rental apartments for low-income households, students, and trainees in Hesse.
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Grant criteria
Funding objective
The state of Hesse supports owners and leaseholders in modernization measures for rental apartments intended for low-income households, student households, and trainees. Funding is provided for structural measures to improve the apartment layout, living quality (e.g., balcony construction), natural lighting and ventilation, energy efficiency, energy and water supply, sanitary facilities, soundproofing, accessibility, as well as the surrounding open spaces.
Eligible expenses
- Structural modernization measures on rental apartments
- Energy-efficient refurbishment
- Addition of balconies
- Improvement of lighting and ventilation
- Creation or improvement of open spaces (e.g., green areas, playgrounds)
Non-eligible expenses
- Measures that were started before the application was submitted or before inclusion in a construction program
- Projects without secured building rights
- Modernization of owner-occupied residential space
Eligible to apply
- Companies
- Individuals
- Public Institutions
Funding requirements
- Apartments have been ready for occupancy for at least 20 years
- Planned modernization includes at least four apartments
- Modernization costs of at least €5,000 per apartment
- Rent price and occupancy restrictions must be complied with
Documents required for application
- Modernization registration form
- Funding application with project outline
- Income and asset declaration
- Proof of secured financing
- Cost statement and proof of use
Description
The “Social Rental Housing Promotion – Modernization” in Hesse is aimed at owners and leasehold holders of rental apartments that have been ready for occupancy for at least 20 years and who plan modernization measures for low-income households, students, or trainees. Funding is provided for structural measures to improve the apartment layout, natural lighting and ventilation, as well as energy efficiency. Also permitted are the addition of balconies, renewal of sanitary facilities, soundproofing measures, barrier-free conversions, and the enhancement of surrounding open spaces such as green areas or playgrounds. The program grants a low-interest loan of up to 75% of the eligible costs and additionally a financing grant of 30%. A prerequisite is the comprehensive modernization of at least four residential units with modernization costs of at least €5,000 per apartment, as well as compliance with rent and occupancy restrictions for a minimum period of ten years after completion of the measure.
The two-stage registration and approval process is conducted through the responsible municipal or district housing promotion offices: in cities with 50,000 or more inhabitants, the city council; elsewhere, the district committee. The pre-registration for 2025 is closed; a resumption of registrations is expected to be possible from spring 2026. For the subsequent application, among other documents, a project outline, income and asset statements, proof of secured financing, and a detailed cost breakdown must be submitted. In this way, the state of Hesse, together with the Economic and Infrastructure Bank (WIBank), makes an important contribution to the creation and modernization of affordable housing in metropolitan areas and rural regions.
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