Saxony - Funding for social housing increased by around 20 percent
Saxony is increasing funding for social housing in Dresden and Leipzig by an average of 20 percent. The cabinet in Dresden approved the improved funding conditions on Tuesday and the existing guidelines were amended in a number of points. According to Regional Development Minister Thomas Schmidt (CDU), this is the Free State's response to the sharp rise in construction and financing costs. Social housing construction should still be possible: "This will certainly help many a new housing project that is already planned but is currently on the back burner due to the cost situation."
Dresden and Leipzig are currently the only cities where social housing construction plays a role due to high rents. For all other cities, a guideline for affordable rental housing applies. This should make it possible to carry out renovations despite low rental income. The new subsidy guideline is also intended to expand the group of people eligible for subsidies.
The amendment to the guidelines is also intended to create an incentive for particularly ecological construction methods, it was said. At the same time, a second funding channel will be introduced for rental housing. It applies to apartments with slightly higher rents, but which are still significantly lower than privately financed housing. Tenants whose income is up to 25 percent above the income threshold for social housing are eligible for this. The cities are to decide on the distribution of funds between the two funding options themselves.
According to Schmidt, more than 130 million euros have been approved for the promotion of social housing construction in Saxony via this directive since 2018. This means that almost 3,000 social housing units have been created or are currently under construction. "We want to continue this success story with the new version of the directive," said Schmidt.
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Source: www.stern.de
