General information
To secure the implementation of the redevelopment measure, the land registry adds a >> redevelopment note to the land register for each property located in the redevelopment area. Once informed, the notary applies to the city for redevelopment authorisation for all changes to the land register. In addition, >> construction projects involving the erection, alteration, change of use or removal of structures and significant or value-enhancing changes are subject to authorisation in the redevelopment area. The redevelopment authority in the city administration accepts applications and issues authorisations. The decision is based closely on the reorganisation concept for the redevelopment area.
In the redevelopment area, it is possible to obtain 2 forms of concessions. On the one hand, >> urban development subsidies can be applied for. These grants help the building owner with the often quite costly regeneration of old buildings. Secondly, owners of buildings can claim increased >> tax depreciation. The basis for this is provided by Sections 7h, 10f and 11a of the Income Tax Act (EStG). This indirect subsidy also incentivises investment in the redevelopment area.
After the cancellation of the redevelopment statutes, property owners in the redevelopment area are obliged to pay >> equalisation contributions (in accordance with § 154 BauGB) to the city. The owners also share in the costs of upgrading the area.