Income-oriented promotion

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In social housing construction, an income-oriented subsidy (EOF) is a model in which tenants in need receive an income-related subsidy for rent .

Income-oriented funding was introduced at the federal level with the second Housing Promotion Act in 1994 during the term of office of Irmgard Schwaetzer as Federal Minister for Transport, Building and Housing .

The model provides for basic funding and additional funding or funding for occupancy. The client receives the basic grant in return for the obligation to take on social tenants for at least 15 years and not to exceed a location-dependent maximum rent. The basic subsidy is intended to encourage investors to create social housing and is often given out in the form of a particularly cheap loan with interest rates well below the market rate.

The additional subsidy or occupancy subsidy is the subsidy that the eligible tenant receives. The amount of this subsidy depends on the income of the tenant and is usually staggered in several stages. For example, the City of Munich staggered the occupancy-dependent funding in 3 stages with grants of between 2.65 and 3.65 euros per square meter. In contrast to the social housing of the so-called first funding path , the eligibility and the funding amount are checked every two years.

With the income-oriented funding, the mis-subsidization of classic social housing should be eliminated, social housing should become more attractive for investors and the increase in the income limits for the first funding path, which was decided in the same law, had to be compensated.

literature

  • Joachim Kirchner: Housing supply for households in need of support: German housing policy in European comparison , Wiesbaden 2006
  • Burkhard Pahnke, Alexander Spermann (1994), Income-Oriented Funding - A Model for Social Housing? , Wirtschaftsdienst 74, 561–568.
  • Annette Mayer: Theory and Politics of the Housing Market: An Analysis of Housing Policy in Germany with Special Consideration of the Economic Theory of Politics , Berlin 1998