Apply for funding for social rental housing

For the creation of social rental housing through construction, acquisition, modernization or by acquiring occupancy rights, you can receive housing subsidies if the prerequisites are met. The responsibility for social housing promotion lies with the respective federal state.

As part of the social housing subsidy, your federal state can provide you with subsidies for the creation of rental housing. You do not have a legal claim to funding for your project.

Funding is provided:

  • housing construction, including the first acquisition of new housing,
  • the modernisation of living space,
  • the acquisition of occupancy rights,
  • the acquisition of existing living space,

if rent and occupancy commitments are to be established for the rental housing.

Recipients of funding can be natural and legal persons.

Funding is provided in accordance with the provisions of the respective federal state by granting non-repayable grants and/or low-interest loans.

The subsidised rental housing is tied up for a certain period of time in favour of households entitled to live (occupancy commitment).

During the commitment period, maximum permissible rents below the local comparative rent or other other measures can be determined to reduce housing costs for the households entitled to live (rent commitment).

General rental housing subsidy:

  • Funding is provided for the creation of occupancy and rent-linked rental housing, in apartment buildings through new construction as well as the modification and expansion of buildings. This also includes the promotion of rental housing as well as shared flats for older people and people with disabilities.

Modernisation of rental housing:

  • Funding will be provided for the modernisation of rental housing in multi-family buildings, including the energy-efficient modernisation of rental apartments completed before 01.02.2002.

Rental housing subsidies on the East Frisian Islands:

  • The creation of occupancy and rent-linked rental housing in apartment buildings is supported by new construction in the areas of the cities of Borkum and Norderney, the island municipality of Juist, the North Sea resort of Wangerooge and the municipalities of Baltrum, Langeoog and Spiekeroog.

Acquisition of occupancy and rental commitments:

  • Funding is provided for the acquisition of occupancy and rent commitments to rental apartments in local authorities, which are considered areas with tense housing markets according to the Lower Saxony Tenant Protection Ordinance or to supply households with particular difficulties in the supply of housing.

Related Links

  • Downloads of the Licensing Authority of the Land (NBank)

Preconditions

Requirements for the general promotion of rental housing, the modernisation of rental housing and the promotion of rental housing on the East Frisian Islands:

  • contractual obligation of the landlord to allocate the apartments to the tenants for a period of usually 30 years if a repayment discount of 35 years is granted
  • the initial rent set by the state may not be exceeded
  • Housing with occupancy commitments of a certain kind may only be rented to older people (from 60 years), people with disabilities (at least 50% severe disability) or persons in need of help and care (care allowance level 1 and higher)
  • the funding requires an own contribution of at least 25 % of the total costs. In justified cases, the licensing authority may allow a lower own contribution of not less than 15 % of the own contribution
  • the economic risk for the creation and operation of the property lies with the investor
  • the funding is provided with initially interest-free loans
  • at the end of the 20th year, a repayment discount of 30% of the loan origin amount can be granted after being ready to move in, if rental housing is created for people with low incomes.
  • in the case of the new building for the general rental housing, the proof of need is provided by a housing supply concept of the housing promotion office responsible for the construction site

Requirements for the acquisition of occupancy and rental commitments:

  • the rental apartments offered have not been subsidised with housing subsidies or other public funds and are not subject to any other occupancy obligations
  • they must be freely rented and intended for permanent residential use
  • the initial rent set by the state may not be exceeded
  • the landlord can choose between a five-year or ten-year occupancy and rent commitment and receives the corresponding subsidy after the intended initial occupancy in one sum

The funding conditions in detail result from the Internet offer of the Investitions- und Förderbank Niedersachsen (NBank ).

Related Links

  • Lower Saxony Housing Promotion Act (NWoFG)
  • Guideline for the implementation of social housing subsidies in Lower Saxony (housing subsidy provisions)
  • Housing Promotion Programme 2019
  • Ordinance on the Implementation of the Lower Saxony Housing Promotion Act (DVO-NWoFG)
  • You apply for a loan for the creation of rental housing or for modernization measures at the housing promotion office responsible for your construction site (Hanover region, districts, district-free and large independent cities as well as independent municipalities)
  • You submit the application for a subsidy for the granting of occupancy and rent commitments to the housing promotion agency responsible for your construction site (Hanover region, districts, district-free and large independent cities as well as independent municipalities)
  • There you will find all application forms and further information
  • The procedure from the application to the funding decision is based on numbers 45 to 47 housing subsidy determination (WFB)

Responsible for the content
Lower Saxony Ministry for the Environment, Energy, Building and Climate Protection

Last update or date of publication
21.08.2020