Social Rental Housing Support – New Construction of Rental Apartments for Low-Income Households
Low-interest construction loan plus financing grant (20%–40%) for the new construction of rental apartments in Hesse for low-income households. Registration process completed, next registration expected from spring 2026.
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Grant criteria
Funding objective
The state of Hesse supports the creation of permanently rented apartments for households with low income who cannot find adequate housing on the open market. Funding is provided for new constructions, the initial purchase of newly built apartments, as well as construction measures to create housing.
Eligible expenses
- New construction of rental apartments
- Construction measures to create living space (damage repair, change of use, expansion)
- Installation of elevators
- Wheelchair-accessible apartments
- Creation of common rooms
Non-eligible expenses
- Construction measures that began before inclusion in a construction program
- Measures starting after 31.12.2030 with a 15-year commitment
- Measures without secured building rights
- Living space exclusively for members of the building owner’s family
- Measures in the absence of economic viability
Eligible to apply
- Companies
- Individuals
- Public Institutions
Funding requirements
- Proof of sustainable demand for affordable housing by the municipality
- Funding only for complete apartments, not for parts of apartments
- Compliance with income limits for eligible households
- At least four residential units per building
- Municipal financial participation of at least €10,000 per residential unit
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Documents required for application
- Project description
- Registration form for a construction project
- Letter of funding commitment from the municipality
- Proof of household income limits
- Land register certificate or plot certificate
- Proof of own contribution (15% of the costs)
Evaluation criteria
- Duration of the rent and occupancy commitment
- Achievement of the energy-efficient house standard
- Amount of municipal financial participation
Description
Social Rental Housing Promotion – New Construction of Rental Apartments for Low-Income Households supports the new construction as well as the initial acquisition of new rental apartments in Hesse through low-interest construction loans and an additional financing grant of 20% to 40%. Projects by companies, private individuals, and public institutions that create permanently externally rented housing, which particularly benefits low-income households, are eligible for funding. Funding amounts range between €1,700 and €2,500 per square meter of living space, plus surcharges for wheelchair-accessible apartments (€150/m²), common rooms (€500/m²), and the installation of elevators (maximum €45,000 per elevator). The interest subsidy provided by the State of Hesse during the commitment period and the possibility to increase the grant by an additional €150/m² through efficiency house standards make the financing especially attractive.
Key requirements include the municipal proof of a sustainable demand for affordable housing, a minimum provision of four residential units per building, a municipal financial contribution of at least €10,000 per residential unit, and a self-contribution of 15% of the total costs. Furthermore, the rental apartments are subject to occupancy and rent restrictions for 15, 20, or 25 years and must comply with income limits suitable for eligible households. Eligible expenses include new constructions, comprehensive construction measures to create housing, barrier-free adaptations, and community facilities. The registration procedure for 2025 is already closed; new funding applications can presumably be submitted from spring 2026 via the responsible municipal housing promotion offices.
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