Anyone who provides permanently affordable housing should be given tax benefits and support. The federal government has agreed to introduce the instrument of non-profit housing for this purpose. “Non-profit housing is back! I am very pleased that we have succeeded in implementing this very important project from the coalition agreement,” said Federal Construction Minister Klara Geywitz (SPD) to the “Stuttgarter Zeitung” and the “Stuttgarter Nachrichten”.
Social enterprises, associations and non-profit foundations could thus provide subsidized housing in the future and benefit from comprehensive tax relief. According to the newspapers, the instrument is part of the annual tax law, which is to be passed by the Federal Cabinet on Wednesday. The draft of the law is also available to the German Press Agency.
In order to benefit from these tax breaks, the rent offered must be permanently below the market rent. The income limits are set so that around 60 percent of households in Germany can benefit from the new non-profit housing scheme, said Geywitz. “With non-profit housing, we are creating another strong pillar for more affordable housing in our country alongside social housing. This is a good day for all tenants,” stressed the minister.
The so-called non-profit housing sector was abolished in 1990. In their coalition agreement, the SPD, Greens and FDP agreed to reactivate it.
