The SPD believes that social and non-profit housing companies must be better off than players who aim for maximum returns.
(Photo: dpa)
Berlin If housing companies commit themselves to permanently low rents and forego returns, they receive tax incentives and investment subsidies. This is the idea behind the new non-profit housing scheme that the SPD, Greens and FDP agreed to in the coalition agreement.
Actually, the federal building and federal finance ministries should present key points and a funding program for this by the end of March. But the deadline has passed – without a submission.
This is shown in a letter from the state secretaries of both houses, which is available to the Handelsblatt. Accordingly, the plans should not come until mid-June, write the parliamentary state secretaries Sören Bartol (SPD) and Florian Toncar (FDP).
The votes within the government are “complex and time-consuming,” the statement said. The same applies to the determination of an “effective economic and at the same time legally secure framework” for a new non-profit housing scheme.
In the coalition agreement, the traffic light had promised to create a “new dynamic” in the construction and permanent social commitment of affordable housing. The non-profit housing scheme should “supplement the structure of the established housing industry without putting it at a disadvantage,” it said.
Difference to social housing
Critics such as the President of the Central Association of the Housing Industry (GdW), Axel Gedaschko, warn against a “rigid state system with price fixing” that has nothing to do with the “actual price structure”.
The planned non-profit housing differs from social housing. In the case of the latter, the rent and occupancy commitment expires after a certain period of time, usually after twelve to 20 years. If housing companies became non-profit, they would have to offer apartments at low prices on a permanent basis and cap the distributable returns.
In social housing, apartments are no longer subject to price and occupancy restrictions after a few years.
(Photo: dpa)
A non-profit housing industry is considered a “niche product” because such an orientation would primarily be of interest to social institutions, foundations, church organizations or cooperatives. Most recently, the Protestant welfare organization Diakonie presented a position paper. If there were object funding, however, the circle of interested parties could increase. Partial portfolios could also be transferred to non-profit housing.
Hanna Steinmüller, rapporteur on housing and rent policy for the Greens in the Bundestag, sees it as a “worrying sign” for tenants “that the housing and finance ministries are now continuing to postpone this important project”.
Families, young people and pensioners in particular are desperately looking for affordable housing. “The new non-profit housing scheme is central to more affordable housing,” Steinmüller told the Handelsblatt. All three traffic light partners have committed themselves to a timely implementation. “I appeal to all departments involved to present the key points as soon as possible.” The goal is clear for Steinmüller: Apartments are needed that “are rented below the level of the rent index”.
Existing law was repealed in 1990
The SPD parliamentary group has also long been demanding permanent rent and occupancy restrictions. However, one cannot say exactly why this delay is occurring within the federal government, it said on request. The processes would now have to be completed by June in order to “finally fill the non-profit housing with life”.
“Social and non-profit housing companies must be better off than players who aim for maximum returns,” SPD housing expert Bernhard Daldrup told the Handelsblatt.
A non-profit housing industry has already existed in Germany. From 1940 onwards, the Non-Profit Housing Act (WGG) came into force, with tax breaks and tax exemptions, for example from corporation tax, trade tax and wealth tax. The law was repealed in 1990, also in order to eliminate the competitive advantages over non-tax-exempt housing companies.
In the last legislative period, the Greens from the opposition introduced a bill for the reintroduction of non-profit housing in the Bundestag, the Left Party a motion. Neither initiative found a majority.
Most recently, the “Alliance for Affordable Housing” committed itself to providing “constructive and critical” support for the implementation of a new non-profit housing scheme. The alliance, which Federal Building Minister Klara Geywitz (SPD) initiated last year, includes representatives from the federal states and municipalities, the housing and construction industry, as well as trade unions and associations.
More: Why building in Germany is becoming increasingly difficult