Social Rental Housing Promotion – New Construction of Rental Apartments for Low-Income Households
Low-interest construction loan and additional financial grant for the new construction of rental apartments in Hesse for low-income households. Registration for 2025 possible until 23.05.2025 or 19.09.2025.
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Grant criteria
Funding objective
Support for the construction of new rental housing for permanent external rental to households with low incomes who cannot find adequate housing on the open rental market.
Eligible expenses
- New construction of rental apartments
- Construction measures to eliminate building damages
- Modification, change of use or expansion of buildings
- Construction of wheelchair-accessible apartments
- Construction of common rooms
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Non-eligible expenses
- Construction measures before inclusion in a construction program
- Construction measures without secured building rights
- Acquisition of residential space for own use
- Measures in case of lack of performance capability of the client
Eligible to apply
- Companies
- Individuals
- Public Institutions
- Interest Groups and Other Associations
Funding requirements
- Proof of a sustainable demand for affordable housing in the municipality
- Funding only for complete apartments
- Compliance with income limits for eligible households
- At least 4 residential units per project
- Municipal financial participation of at least €10,000 per residential unit
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Documents required for application
- Application form for rental housing promotion
- Registration decree
- Guideline for rental housing construction
- Proof of municipal financial participation
- Proof of own contribution
- Deed of mortgage registration
- Proof of use for rental housing construction
Description
In the state of Hesse, a low-interest loan with an additional financing grant is available for the new construction of rental apartments, specifically supporting households with low incomes. The funding combines a basic loan amount of EUR 1,700 to 2,500 per m² of living space, a surcharge for wheelchair-accessible apartments, as well as for common rooms and elevators. Depending on the commitment period of 15, 20, or 25 years, the grant amounts to between 20% and 40% of the approved loan. Projects can be registered for inclusion during two application periods: May 23, 2025 and September 19, 2025. Subsequently, the formal application is submitted to the responsible housing promotion authority.
Eligible for funding are companies, private individuals, public institutions, as well as interest groups and associations that implement construction projects in their own name. Requirements include a demonstrated need for affordable housing, a minimum project size of four residential units, municipal financial participation of at least EUR 10,000 per unit, and own contributions of at least 15% of the total costs. Required documents include, among others, the application form, registration decree, guidelines for rental housing construction, proof of municipal financial participation and own contributions, mortgage deed, and proof of use. Excluded are construction measures that began before program inclusion, were carried out without secured building rights, or are primarily intended for owner occupation. Eligible measures include, in addition to new construction, the remediation of building damages, changes of use, and barrier-free adaptations. Income limits, standard living space restrictions, as well as rent and occupancy commitments ensure the long-term achievement of objectives. The program thus sustainably promotes social housing and contributes to easing the strained housing market in Hesse.