Cheaper rents for tax advantages: Affordable housing should be created through so-called not-for-profit housing. But the Ver.di and IG Bau unions are not moving fast enough.
Those providing permanent affordable housing should receive tax breaks and subsidies – and some unions and jobs councils have urged the federal government to speed up the scheme. An open letter from Ver.di and IG Bauen-Agrar-Umwelt (IG BAU) to Construction Minister Klara Geywitz (SPD) says: “Your government has a historic opportunity to fundamentally and sustainably The direction of the housing market.” . and Finance Minister Christian Lindner (FDP).
In it, the union wrote: “An important project of a new nonprofit housing organization cannot fail because of unfounded reservations by some industry players or because of insufficient financial resources of the new nonprofit housing organization.” The letter can Obtained from the German Press Agency.
cheap rent against tax deduction and subsidies
In the 2021 coalition agreement, the federal government announced the reintroduction of nonprofit housing. Through “tax incentives and investment subsidies,” she hopes to “create a new impetus in the construction of affordable housing and permanent social commitment,” Traffic Light describes her project. That means: Housing companies get tax breaks and subsidies if they promise low rent and forego returns.
In the past, such rules have been used to promote suppliers who have long kept apartment prices low. However, the government has not made much progress in implementing it. Construction Minister Geywitz stressed at the end of 2022 that the new rules should be introduced this year. But so far little has happened.
No funding plan yet
On the contrary: According to Handelsblatt, key points and support plans were supposed to be drawn up by the end of March, but that deadline has already passed. According to this, the template should not arrive until mid-June due to complex and time-consuming coordination.
The union has called for a model that is as specific as possible. “The commitment to nonprofit standards must be permanent,” they wrote to the government. “In return, nonprofit housing corporations receive permanent tax breaks.” Since those alone aren’t enough, grants are needed, such as to build new nonprofit housing “or to provide housing stock to nonprofits.”