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.
The funding regulations are contained in the funding guidelines of the Saxon State Ministry for Regional Development on the promotion of urban renewal in the Free State of Saxony (FRL StBauE) dated 7 March 2022. It regulates the implementation of urban development funding in accordance with Section 164a of the Building Code.
The same applies to all subsidies:
- Owners have no legal entitlement to subsidies.
- Applications must be submitted before construction begins.
- Applications are accepted by the city.