Streamlining Housing with the "Construction Boost" Draft Bill
Government approves draft legislation titled ' accelerated housing construction'. - Government endorsements draft regulation concerning residential property acceleration
Gear up for some major changes in Germany's housing landscape! The much-anticipated "Housing Construction Boost" draft bill is hitting the drawing board, promising to supercharge residential development and tackle our country's housing shortage.
Here's the lowdown: The proposed bill will enable cities and municipalities to shake things up a bit, deviating from current planning regulations. A quick example? Say goodbye to those lengthy development plans. The catch? The departure must align with the public's interest and either involve a residential building project, an existing structure’s expansion, modification, or renovation into new housing, or even the development of social and cultural facilities such as kindergartens or theaters[1].
The legislation has a sunset clause, running until 31 December 2030. Deviations from building plans will only get the green light if, at first glance, they don't add any significant environmental concerns. Don't worry—neighborhood interests will still be top priority[1].
So, what else is going down? The law lays out additional regulations aimed at ramping up housing construction speed and quality. For example, cities will have the green light to deviate from urban planning regulations in densely built-up neighborhoods to add stories or fill gaps. In the future, construction will be permitted "in spatial connection with existing settlements" in outer areas, including locations without a development plan outside a built-up neighborhood[1]. And guess what? Municipalities will soon be able to go beyond existing emission limit values for building apartments closer to industrial areas[1].
Key minster Hubertz assures us that the legislation wouldn't forget about tenant protection. The conversion protection for tenants will be extended by five years in areas with a tight housing market, securing tenants' familiar living environment from the conversion of their apartment into an owner-occupied apartment[1].
The draft bill is expected to make its way to the Bundestag as early as this fall, with the potential for paving the way for massive federal investment in new apartment construction. Federal Finance Minister Lars Klingbeil (SPD) has revealed plans to present a draft budget and establish a 500 billion euro special fund to the cabinet next week, claiming that this will provide substantial "room for maneuver" for "constructing more in our country"[1].
As for the unrealized construction of 400,000 apartments per year previously announced by Klara Geywitz (SPD), Hubertz alluded to external factors like wars, crises, and high-interest rates during a recent presser. But don't let the clouds get you down! "The first rays of sunshine are slowly emerging," Hubertz mentioned, citing many initiatives already set in motion in the Ministry of Housing[1].
Keep your fingers crossed, because Hubertz didn't want to commit to a specific number considering the volatile current climate. Instead, she'll be measuring success by whether affordable housing is created[1]. Fingers crossed, folks—it's time to wave goodbye to long waits for that dream home!
Additional Insights:
- The draft bill aims to shorten the permitting process by relaxing previous regulations while ensuring environmental standards under the Federal Immission Control Act, the Technical Instructions on Air Quality (TA-Luft), and Noise (TA-Lärm)[2].
- The bill's flexibility also allows local authorities to decide the extent to which they will utilize the deviations from planning laws[2].
- Besides housing construction, the bill emphasizes redensification of existing buildings, including the development of supermarket roofs and converting commercial spaces into residential use[2].
The draft bill advocates for community policies that facilitate vocational training programs, particularly in the real estate and construction sectors, to bolster the workforce and accelerate the housing construction process. To finance this endeavor, the Federal Finance Minister, Lars Klingbeil (SPD), plans to establish a 500 billion euro special fund, aiming to create a conducive business environment for constructing more residential properties.
