Affordable housing providers get tax advantages.
The government is making efforts to make affordable housing available to more people by using a model that has been successful in the past - social housing. The Federal Minister of Construction is excited, referring to it as a "great day for all tenants." Around 100,000 households may initially benefit from this initiative.
This coming tax year, those who provide permanently affordable housing will receive tax subsidies and support from the federal government. The government intends to use social housing for this purpose and bring it back into use. As the "Stuttgarter Zeitung" and "Stuttgarter Nachrichten" relay, Federal Minister of Construction Klara Geywitz is thrilled, calling it "a crucial project from our coalition agreement." She feels it's a "great day for all tenants."
Charities, nonprofits, and social enterprises will soon be able to offer subsidized housing and enjoy generous tax relief as a result. These tax breaks will be part of the annual federal budget, which is expected to be passed by the cabinet today. Around 100 such organizations are projected to use this model. About 105,000 tenants could benefit from this change.
To reap these tax benefits, the rent for the property must remain below market value in perpetuity. The government is planning to establish income thresholds so that roughly 60% of German households can access the new social housing program. "With social housing, we're establishing another solid foundation for more affordable housing in our country," said Minister Geywitz. "It's a great day for all tenants."
Social housing was previously called "social housing," but it was abolished in 1990 due to a scandal involving "Neue Heimat." The coalition agreement signed by the SPD, Greens, and FDP called for its reactivation.
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Klara Geywitz, as the Federal Minister of Construction, expressed her excitement about the process of revitalizing social housing, viewing it as a "crucial project" from the coalition agreement. During this reactivation, social housing providers who maintain rent below market value will receive tax subsidies and support from the Federal Ministry for Building and Housing.
