GER: More Funding for New Climate-Friendly Housing

Mar 8, 2024 Benn-Ibler Rechtsanwälte

The funding programmes of the German Federal Housing Ministry are finally back on track. Starting date is 22 February 2024.

The German federal government’s funding programmes came to an abrupt end in December 2023 when the funding volume was completely exhausted. Programmes for climate-friendly new housing (‘KFN’), senior citizens’ housing, and cooperative housing have now been reinstated.

Building owners can apply via the website of the Kreditanstalt für Wiederaufbau. In addition to individuals, also investors, cooperatives and companies may apply for funding.

The funding volume for the KFN programme stands at EUR 760 million for the current year. This is expected to send an important signal to the German construction industry. According to Klara Geywitz, Federal Minister for Housing, Urban Development and Construction, every euro spent on funding puts new projects in construction firms’ order books, thus stimulating the German economy.

The programme offers low-interest loans for climate-friendly new buildings. Loans of up to EUR 150,000 are available for residential buildings at a retail interest rate of 2.1% – well below current market rates for building loans. The aim is to bring buildings back into line with larger market dimensions. To qualify, building need to meet a high environmental standards. New buildings or first-time housing purchases must meet the EH40 efficiency building standards.

In addition to the KFN programme, in 2014 the housing ministry will once again be providing funding for adapting buildings to the needs of senior citizens, as well as for co-operative housing.

Press release of the Federal Ministry of Housing and Urban Development (19 February 2024)