The “Climate-Friendly New Building” (KFN) program has been stopped. The Federal Ministry of Construction reports that the funding pot is empty. New applications can probably be submitted from the beginning of 2024. The construction industry speaks of a “disaster”.
Funding stop for the climate-friendly new building: As of today (December 14th), no new applications for the KFN program can be submitted to the Credit Union for Reconstruction (KfW) are placed, reports this Federal Ministry of Construction. From March to December 2023 are over 18,000 funding commitments for around 46,000 residential units in the program “Climate-friendly new building” been granted. There was a promotional loan of up to 150,000 euros.
With the KFN funding, KfW has received development loans and grants of around 7.5 billion euros pledged. This triggered total investments of around 17 billion euros.
Anyone who already has a commitment from KfW will still receive the development loan
Federal Construction Minister Klara Geywitz emphasized that demand had exceeded expectations. “After just three months, the funding pot for the climate-friendly new building was almost empty, so we had to increase it to almost two billion euros.” New applications for new construction funding could be provided again as soon as Federal budget 2024 come into force. Anyone who has already submitted the application, meets all funding requirements and a Commitment from KfW KfW emphasizes that the development loan is reserved for them.
The construction policy spokesman for the CDU/CSU parliamentary group, Jan-Marco Luczak, said that the funding had flowed out so quickly in the last few weeks and days was not evidence of the success of the program. On the contrary, says Luczak. “It shows the massive uncertainty in the market about how future demands will be shaped.” This is a “slap in the face to companies and private developers”.
The funding stop came as a complete surprise to the construction industry. “Nothing is more damaging to an investment industry like the construction industry than unclear or constantly changing framework conditions. We experienced the funding chaos in 2022 and we are still feeling the consequences today,” explained Felix Pakleppa, General Manager of the Central Association of the German Construction Industry (ZDB).
“The federal government has lost its compass for more affordable housing”
Peter Hübner, President of the Main Association of the German Construction Industry, speaks of a “funding disaster” in view of the program stop. “The federal government has lost its compass for more affordable housing,” said Hübner. By suspending new construction funding, the federal government is proving that it has learned nothing from the mistakes of last year’s funding freeze.
What happened? In 2022, the ministry canceled the funding programs overnight. “Those wanting to build had not only lost their financial basis, but also their trust in reliable politics. Attentism spread – so there was no more construction,” said Felix Pakleppa from ZDB. This situation should not be repeated. “That would be fatal for housing construction, where we urgently need investments in order to be able to keep employees.”
Information on home ownership support for families (WEF): The website is still open for applications Home ownership promotion for families (WEF), said the ministry. This KfW program is aimed at families and single parents with at least one minor child. For example, a family with two children who has a taxable household income of a maximum of 100,000 euros and builds according to the particularly climate-friendly QNG standard can take out a loan (term 26 to 35 years, fixed interest rate for ten years) for up to 220,000 euros receive an effective annual interest rate of currently 0.53 percent. Source: BMWSB
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Text: Kirsten Freund / handwerksblatt.de
2023-12-14 15:00:32
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