Urban Development Funding
The federal and state governments provide financial grants for sustainable and future-oriented urban and local development in Germany. Municipalities can submit applications on an ongoing basis.
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Grant criteria
Funding objective
The federal and state governments provide financial assistance within the framework of urban development funding for the renewal and development of cities and municipalities. Funding is provided for comprehensive urban development measures aimed at sustainable and future-oriented urban and local development, strengthening economic and residential locations, as well as promoting social cohesion in neighborhoods.
Eligible to apply
- Public Institutions
Funding requirements
- Eligible applicants are cities and municipalities
- Urban development overall measures must include at least one measure in the area of climate protection
- The funding area must be spatially defined and embedded in an overall urban concept
- Citizens must be involved already in the development of the development concept
- The development concept must derive goals and measures for climate protection and climate change adaptation
Description
The urban development funding from the federal government and states has supported the sustainable and future-proof development of German cities and municipalities for over five decades. This nationwide grant program focuses on infrastructure, urban development & urban renewal, smart cities & regions, as well as digitalization. It funds comprehensive urban development measures that strengthen urban and rural neighborhoods, enhance economic and residential locations, and improve social cohesion. Projects must always contribute to climate protection and fit into an overarching urban development concept. Early involvement of citizens ensures transparency and acceptance, while deriving concrete goals and measures for climate adaptation secures future viability.
Only public institutions, specifically cities and municipalities, are eligible to apply and can submit funding applications continuously. Within a clearly defined funding area, property owners and investors can apply for grants for individual measures from the respective municipality. The funding rate is 33% of the eligible costs; the federal government, states, and municipalities share the financing according to the agreed ratio. Key requirements include the spatial delimitation of the funding area, anchoring in the overall urban development concept, and the integration of at least one climate protection measure. Thanks to the flexible application procedure, there is sufficient scope to implement tailored projects promptly and thus create vibrant, resilient neighborhoods.