Building - NRW government increases construction funding by 1.5 billion euros
The promotion of social housing construction is to be increased by 1.5 billion Euro. In addition to the previously announced billion Euro for this year, an additional half a billion Euro for 2023 will be invested, announced Landesbau- und Wohnungsbau-Ministerin Ina Scharrenbach (CDU). Last year, more funds were allocated than were available in the plan.
This means that a total of 10.5 billion Euro will be available until 2027. For the years 2025 to 2027, it will be 1.9 billion Euro each. The public housing promotion is the stabilizing factor that the construction and housing industry currently needs, Scharrenbach said. "North Rhine-Westphalia remains on the right course," she added.
Opposition: Insufficient state share
The opposition in the state parliament welcomed the increase in the funding volume but criticized that the state government had only acted now. It was clear in the spring that there was a large demand, but at that time the state government was still "celebrating itself," said the deputy and SPD-state chairwoman Sarah Philipp in an actual hour.
Moreover, the state's share in the billion-dollar funding was with less than ten percent "shamefully low" and "paltry." The program will be financed mostly with foreign capital. For the FDP, Angela Freimuth said, "The NRW.Bank must once again serve as a piggy bank for the state budget."
The total amount of public housing promotion consists of financial means from the state and the federal government as well as loans from the state-owned development bank. The increase in the funding program is achieved by the NRW.BANK increasing its share of loan funds.
From 2025, the initial interest rate in all funding areas is 1.0 percent and the maximum interest rate reduction period is 30 years. For the new construction of housing for trainees and students, the maximum duration can still be 40 years.
Green praise planning security
The Green politician Arndt Klocke called the billion-dollar increase a "great reinforcement" for affordable housing and municipal housing companies. On an uncertain housing market, there is now more planning security for housing construction projects. Since the expiration of the federal funding activities of the KfW Bank, a gap has emerged, so that many private investors are now going into the funding of the state.
Minister Ina Scharrenbach referred to the fact that the state is launching a multi-year housing construction funding program for the second time. The public housing promotion builds for single parents, families, retirees, trainees, and students. The state government will fulfill its responsibility for people with low income "more than fairly."
- The additional funding for social housing construction in North Rhine-Westphalia will primarily come from the state-owned development bank, NRW.BANK, as revealed by Landesbau- und Wohnungsbau-Ministerin Ina Scharrenbach from the CDU.
- Ina Scharrenbach, from the CDU, announced that the promotion of residential construction in North Rhine-Westphalia will see an increase of 1.5 billion Euro, with 500 million Euro allocated for 2023.
- The opposition in the North Rhine-Westphalia parliament welcomed the increase in funding but criticized the state government for not acting sooner, with SPD-state chairwoman Sarah Philipp stating that there was a clear demand in the spring.
- The Green politician Arndt Klocke praised the billion-dollar increase as a "great reinforcement" for affordable housing, highlighting that it provides more planning security for housing construction projects in Düsseldorf and other parts of North Rhine-Westphalia.
- The construction of affordable housing in North Rhine-Westphalia, including for single parents, families, retirees, trainees, and students, will be significantly boosted with the increased funding, as stated by Ina Scharrenbach, the Minister of Social Affairs and Construction in the government of North Rhine-Westphalia.
