Urban development funding

Urban development funding is intended to promote refurbishment activity. The grants help building owners with the often quite costly restoration of old buildings and thus incentivise investment. Of course, public funds are also linked to public interests; after all, refurbishment should not be carried out at the expense of tenants. Therefore, the owner using public funds must keep rent increases within tolerable limits. This rules out luxury refurbishments from the outset. Of course, every owner is free to decide whether to utilise subsidies.

Funding for repair and modernisation measures

Owners of residential and commercial buildings can claim urban development funding of up to 30% of the eligible costs for the repair and partial modernisation of the roof and façade if the following conditions are met

• the building project is located in the redevelopment area (also applies to reorganisation measures)
• the remaining useful life of the building is longer than 30 years,
• the refurbishment costs are less than 75 % of a comparable new building,
• the measure achieves at least the standard of social housing,
• the building project complies with the urban redevelopment concept and is included in the action plan (also applies to reorganisation measures),
• a contractual agreement has been signed with the city (also applies to reorganisation measures),
• and - very importantly - the measure has not yet been started (also applies to reorganisation measures).

The basis for the funding rate (funding of unprofitable costs) is the cost and income calculation in accordance with Section 177 (4) BauGB.

The following measures are generally eligible for funding:

• Project planning,
• Repair of the roof and façade,
• Drying out the masonry,
• sponge remediation,
• Repair of windows and doors or replacement in the event of irreparable damage or single glazing (exterior),
• Thermal insulation of the façade (exterior),
• Measures to ensure the stability of the building,
• Measures to repair outdoor facilities.

Funding for organisational measures

Funding is also available for organisational measures in accordance with Section 147 BauGB (up to 100% of the eligible costs), such as

• Safety measures to prevent damage that acutely jeopardises the building stock,
• Land readjustment,
• Relocation of residents and businesses,
• (Partial) demolition of outbuildings and subsequent costs,
• Construction and modification of development facilities,
• construction of public car parks,
• creation of public green areas,
• compensatory measures for interventions in nature and the landscape.

In addition to the eligibility requirements already mentioned for repair and modernisation measures, the (replacement) new construction or open space design must also be in line with urban development interests.

Funding principles

The same applies to all subsidies:

• Owners have no legal entitlement to subsidies.
• The application must be submitted before construction begins.
• Applications are accepted by the city (Urban Planning and Building Supervisory Office, Urban Planning Department)