Housing Construction Funding – Modernization Support

The housing construction subsidy – modernization funding of the Free Hanseatic City of Bremen offers private and commercial owners of more than two rental apartments free from occupancy and rent restrictions in Bremen and Bremerhaven the opportunity to energetically and barrier-free upgrade older residential buildings to current standards. The goal is to sustainably improve living comfort, energy efficiency, and residential value in designated areas with special development needs. Subsidies include low-interest loans of up to €150,000 per housing unit as well as a one-time cost grant of up to €35,000 per housing unit. With a funding rate of up to 80% of the recognized modernization costs, investments in measures such as thermal insulation, ventilation technology, barrier-free conversion, or renewal of building services installations can be supported. The continuation of the funding period is continuously possible; applications can be submitted at any time as long as funds are available.

A prerequisite for approval is, among other things, that the apartments are older than 25 years, achieve at least the level of a KfW Efficiency House 85 after the measure, and that at least 15% of the modernization costs are contributed as personal effort. The initial rent upon new leasing may not exceed €6.80 per square meter (net cold rent), and the binding period extends up to 20 years. At least 20% of the subsidized units must be allocated to households threatened by homelessness, and rental must only be to eligible persons with income limits according to the Housing Promotion Act § 9 para. 2. In this way, not only is the architectural heritage value of older neighborhoods preserved, but socially balanced, affordable housing in Bremen is also strengthened.