Kfw funding freeze: applications are now being processed after all

So now after all. Who until 24. January has applied for K assistance for energy-efficient buildings, may now build again on state support. Applications received before the funding freeze was declared will be approved, the federal government said. Subject to one condition.

The past week could hardly have started worse for thousands of builders and homebuyers. On Monday 24. January 2022, reported the still quite young Federal Ministry of Economics and Climate Protection under Vice Chancellor Robert Habeck (Greens): Stop! Immediately! And that is for all subsidies from the state-owned K for energy-efficient buildings. That means: no more low-interest loans, no more redemption subsidies.

Affected were all three K program areas Efficiency House /Efficiency Building 55 in new construction (EH/EG55), Efficiency House /Efficiency Building 40 in new construction (EH/EG40) and the Energetic Redevelopment. While the funding for K House 55 for the end of January had already been sealed before, the abrupt stop for the other two programs came as more than a surprise. Suddenly, many thousands of people had their real estate financing on the line. The reactions were scathing.

Now the role backwards – at least partially. The three federal ministries involved – Economy and Climate Protection, Housing, Urban Development and Construction, and Finance – have agreed on a joint approach to federal funding for efficient buildings (BEG) through K, they announced in a joint statement this Tuesday.

Accordingly, all eligible 24.000 old applications that have been submitted up to the application stop 24.01.2022 will be approved. "These applications received will now be reviewed by K according to the previous program criteria," it said. And above all: "The eligible are approved."

K-40 buildings: What’s next for the future??

On the other hand, it is still unclear how the subsidy for energy-efficient construction and renovation is to be continued overall. In this regard, the ministries simply stated: "For the future, the building subsidy is to be realigned." This is about setting up a climate policy ambitious, holistically oriented funding for new buildings, as also agreed in the coalition agreement. Federal Minister of Economics Habeck described the decision as a "generous regulation to the rear". At the same time, there is a "stricter regulation forward".

Meanwhile, the Habeck Ministry tweeted. "We are building a new funding framework u. continue the promotion d. EH40 standard with a reduced subsidy amount by the end of the year u. 1 billion in funding. € away. To this end, we are in close exchange with K u. Want to make it possible to apply as quickly as possible."

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We are building a new funding envelope u. put the promotion d. EH40 standard with a reduced subsidy amount until the end of the year u. Capped at 1 billion. € continued. To this end, we are in close exchange with K u. Want to make it possible to apply as soon as possible. 1/3

— German Federal Ministry for Economic Affairs and Climate Protection (@BMWK) February 1, 2022

Associations appeal to German government

"We welcome the decision of the German government to lift the commitment freeze on K programs, including the extremely popular K 55 program in new construction, and to at least increase the funding available until 24. We are working closely with K to approve the applications submitted on January 1," said Felix Pakleppa, Managing Director of the German Construction Industry Association (Zentralverband Deutsches Baugewerbe). The protest has paid off at this point.

"However, we appeal to the federal government not to shock home builders and investors again in such a way. This is poison for the construction industry. Because investors and builders need stable and reliable framework conditions."

Representation of the object'Seniorenpark Bad Gogging' der ERL Immobiliengruppe

Bad Gogging senior citizens’ park

Housing for old age

The president of the Central Real Estate Committee ZIA, Andreas Mattner, also welcomed the decision of the German government to continue processing applications for energy-saving houses that had already been submitted. "For the cases thereafter, all parties must now look promptly that a conversion to a viable funding works."This is the only way to achieve the target of 400.Reach 000 new homes per year.

Mattner went on to say that reliable framework conditions for housing construction are essential. "This is the only way to prevent damage to the confidence of the housing industry, which has invested high development costs with a lead time of often up to two years per project and prior to a funding application." However, new standards should also not lead to excessive use of materials and higher costs. Insulating buildings more and more increases costs and is of little benefit to the climate. He demanded: "Innovative and technology-open concepts must be considered and not only a single technology promoted."

Christian Bohm

considers maintenance to be one of the most important topics of all, because it can affect anyone in any form at any time. For him, real estate is not just a building, but a place of encounter. And as far as the future is concerned, Christian is a hopeless optimist. What he likes most about ERL is that the company is full of great stories. The native of Lower Bavaria learned his trade at the German School of Journalism (DJS) in Munich.

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