Housing Promotion – Social Rental Housing Promotion
Low-interest loans and repayment subsidies for climate-friendly rental apartments for low-income households, elderly, and disabled persons in Rhineland-Palatinate.
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Grant criteria
Funding objective
The state of Rhineland-Palatinate supports builders in providing climate-friendly housing at socially acceptable rental prices, especially for low-income households as well as elderly and disabled persons, through low-interest basic loans, supplementary loans, and repayment grants.
Eligible expenses
- New construction of rental apartments and first-time purchase of newly created residential space
- Expansion, conversion, and transformation measures
- Construction and ancillary construction costs (architectural and engineering services)
- Investments in climate-appropriate standards (timber construction, energy-efficient house, renewable energies, ecological insulation materials)
- Barrier-free and age-appropriate construction measures
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Non-eligible expenses
- Wooden floors, doors, and furniture
- Surveillance systems, electric shutters, sockets, and weather-dependent heating and ventilation controls
- Sale of residential space during the construction phase or within two years after readiness for occupancy
Eligible to apply
- Companies
- Individuals
Funding requirements
- Commitment to allocate subsidized apartments only to tenants eligible for housing and compliance with the specified rent ceilings during the binding period
- Proof of a verifiable housing need by the municipality where the construction is located
- Household income of tenants may exceed the income limits according to § 13 Abs. 2 LWoFG by no more than 60%
- Compliance with maximum living space limits per housing unit
- At least €1,000 construction costs including incidental construction costs per square meter of living space for conversion, change of use, expansion, or extension
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Documents required for application
- ISB application form
- Project description with construction planning and cost estimate
- Financing plan
- Statement from the responsible local building authority
- Proof of tenant eligibility certificate
- Proof of own contribution (15% of total costs)
- Confirmation of involvement of an energy efficiency expert (for supplementary loans)
- Sustainability certificate QNG-Plus (for corresponding funding)
Evaluation criteria
- Compliance with GEG energy efficiency house standards (EH 55, EH 40, etc.)
- Socially acceptable rental prices and occupancy commitment
- Proof of housing entitlement and income limits
- Scope and quality of climate protection and accessibility measures
Description
As a central measure of social rental housing promotion in Rhineland-Palatinate, this program offers natural and legal persons as well as investors the opportunity to create climate-friendly and age-appropriate housing. Funding is provided for new construction, first acquisition, conversion, expansion, and transformation of rental apartments that meet the efficiency house standards of the Building Energy Act (GEG) or use ecological building materials such as certified wood, insulation materials, and renewable energies. The funding includes low-interest basic and supplementary loans with loan rates between 1,800 and 3,150 euros per square meter of living space, as well as a repayment grant of up to 50% of the loan amount.
Eligible participants are builders and investors who commit to renting the apartments only to tenants entitled to housing and to complying with the rent and living space limits. Essential requirements include proven housing demand by the municipality of construction, provision of 15% own contribution, proof of a housing entitlement certificate, and, if applicable, the involvement of energy efficiency experts and sustainability consultants (e.g., for QNG-Plus certification). Supplementary loans enable investments in barrier-free fittings, elevators, assistance systems, and sustainable heat supply. Applications can be submitted continuously to the Investment and Structural Bank Rhineland-Palatinate as long as budget funds are available.
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