Mecklenburg-Western Pomerania: State promotes social housing with interest-free loans

Schwerin (dpa/mv) - Housing companies in Mecklenburg-Western Pomerania will in future receive interest-free loans for the construction of social housing instead of state subsidies, which they only have to repay in part.

Mecklenburg-Western Pomerania: State promotes social housing with interest-free loans

Schwerin (dpa/mv) - Housing companies in Mecklenburg-Western Pomerania will in future receive interest-free loans for the construction of social housing instead of state subsidies, which they only have to repay in part. With the new funding guideline passed on Tuesday, the state government is reacting to the price increases in construction and at the same time creating more leeway for companies, said Building Minister Christian Gauge (SPD) after the cabinet meeting in Schwerin. So far, the state has granted grants of a maximum of 850 euros per square meter. Depending on the subsidy level and the region, the housing companies now received loans of between EUR 2,730 and EUR 3,075 per square meter. The loan term is 40 years.

Depending on the type of funding chosen, companies will be waived 25 or 35 percent of the repayment amount. That can be up to 86,000 euros for an 80-square-meter social apartment, which is more than the grants previously granted. The rent and occupancy commitment for these subsidized apartments will be doubled from 20 to 40 years.

Due to the high construction costs and the long-term rent control, housing companies had recently significantly restricted the construction of new social housing. The state is now hoping for a change in trend from the new funding - especially in Rostock and Greifwald. The highest subsidy rates apply to the two university towns, where the lack of affordable housing is particularly great.