Housing Initiative 2011 Not Classified as ‘Public Funds’

Jun 18, 2026 Benn-Ibler Rechtsanwälte

The Austrian Supreme Court (Oberster Gerichtshof, hereinafter OGH) was tasked with determining whether financing through the Vienna Housing Initiative 2011 constitutes ‘use of public funds’ within the meaning of Section 1, paragraph 4, item 1 of the Austrian Tenancy Act (Mietrechtsgesetzes, hereinafter MRG). The resolution of this issue decided whether the tenancy fell under the total or partial scope of the MRG.

The applicant in the case at hand had rented an apartment in a residential building completed in Vienna in 2015. The property was financed by a loan granted by the City of Vienna under the 2011 Housing Initiative. The tenant subsequently requested an audit of service charge statements.

The landlord contended that the construction had not involved public funds and, therefore, only the partial scope of the MRG applied.

No housing subsidy within the meaning of the MRG

The OGH affirmed its established jurisprudence: Only subsidies founded on statutory authority and explicitly designated for housing promotion are considered public funds.

Although the 2011 Vienna Housing Initiative aimed to provide affordable housing, financing relied on private law agreements between the City of Vienna and developers, rather than a statutory housing subsidy scheme.

The OGH underscored that a statutory foundation is required for funding to be deemed public funds within the context of the MRG.

Partial ccope applies

The tenant’s appeal was unsuccessful, as the OGH confirmed that loans issued through the 2011 Housing Initiative do not qualify as public funds under Section 1, paragraph 4, item 1 of the MRG.

Accordingly, the building remains subject only to the partial scope of the MRG, and the tenant is not entitled to initiate proceedings for review of service charges under Section 37 MRG.

OGH 5 Ob 183/25k (12 March 2026)