Construction cost subsidy (living space)

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A building cost subsidy for living space is a non-refundable grant or service by the tenant to cover the total building costs.

history

In February 1918 the Prussian government found a shortage of 700,000 apartments in the German Reich . As a result, in September 1918, regulations were made for nationwide housing management. On October 31, 1918, the Reich government put 500 million marks in the state budget for the coming year for direct construction subsidies for housing construction. After the November Revolution, the ruling Social Democrats were forced to adopt a policy of reform for the benefit of the wage-earning population and to implement regulations to stabilize ailing capitalism. With this in mind, state measures have been taken to eliminate the housing shortage . The price gouging for living space was tackled in 1919 with a maximum rent regulation. The Reich Rent and Rent Tax Act, however, still enabled the landlords to pass the operating and tax costs of the apartments on to the tenants. From 1920, state building cost subsidies were only granted as loans for the construction of living space , since the originally direct subsidy from 1919 could no longer be realized for tax purposes. When inflation reached its peak in 1923 , this housing policy control instrument had also become unusable.

Historically, the development after the Second World War is to be considered, where housing was urgently needed, but cash was scarce. The legislature had to ensure that expenses incurred by a tenant on the rental property, be it payments, personal contributions or structural changes, are not lost at the expense of the tenant. So what happens to the housing rent with building cost subsidies, which the tenant has made in trust in the tenancy of an apartment based on contractual obligations, is regulated in the Building Costs Subsidies Refunding Act. Claims for reimbursement expire within a period of one year after the end of the tenancy.

“Grant that someone gives to a building owner for the purpose of partially covering the construction costs; System that was widespread after the Second World War, but has since been overcome, according to which tenants make such grants - as "lost construction cost subsidies" or as advance rent payments - in order to secure a rental right for a certain period of time. "(BGH in ZMR 1959, 259)

Until the 1970s, the building cost subsidy was an instrument for raising money for landlords and housing associations .

“Nowhere in Germany are apartments as scarce as on the Elbe. Finding a suitable place to stay here usually takes months, often years. Nowhere in Germany are apartments so expensive. The rent that Hamburg residents have to pay on average cuts their income by more than a third. Nowhere else are such high - and practically "lost" - building cost subsidies required. If you want to move into three rooms, you can barely get under 8,000  marks . After all, nowhere else do so many brokers reside . And the way to your own four walls almost inevitably leads through this industry, which makes millions. "

- Der Spiegel , July 20, 1970 "I can get as much out as I want"

literature

  • Peter-Christian Witt: inflation, forced housing economy and house interest tax. To regulate housing construction and the housing market in the Weimar Republic. In: L. Niethammer (Hrsg.): Wohnen im Wandel. Peter Hammer Verlag, Wuppertal 1979, pp. 385-407.
  • Hans-Joachim Pflug: The repayment of lost construction cost subsidies in the event of premature termination of the tenancy. In: Archiv für die civilistische Praxis , 169th Volume, H. 1, 1969, pp. 34-66.

Web links

Individual evidence

  1. ^ Werner Cranz: Building cost subsidies. on: degruyter.com
  2. ↑ Susanne Wied-Nebbeling, Helmut Schott: Fundamentals of microeconomics. Springer-Verlag, 2006, ISBN 3-540-26689-5 , p. 195.