Schwerin (dpa/mv) – Mecklenburg-Western Pomerania wants to boost social housing construction in the state again with a change in investment funding. Building Minister Christian level (SPD) will present a new funding guideline to the cabinet at its meeting on Tuesday (11:00 a.m.). According to reports, housing companies are to receive interest-free loans in the future – with the possibility of granting a discount on repayment. In response to the recent price increases in construction, the eligible costs are to be increased. The rent and occupancy commitment for social housing is to be doubled from 20 to 40 years.

Because of the high construction costs and the long-term rent control, housing companies had significantly restricted the construction of new social housing. The Association of North German Housing Companies welcomes the changes in subsidy policy that are now also planned in Mecklenburg-Western Pomerania, but calls for more flexibility. Association director Andreas Breitner advocates partially transferring the occupancy requirement for publicly funded new apartments to renovated existing apartments. Other East German federal states showed how it was done.