Klagenfurt (OTS) – The board meeting of the Association for Housing Promotion (VWBF) took place in Klagenfurt on April 12th and 13th, 2024. The high-ranking speakers included the deputy governor Dr. Gabriele Schaunig, the member of the National Council and social spokesman for the SPÖ Josef Muchitsch, Prof. (FH) Mag.a Dr. Elisabeth Springler, economist and head of the “European “Economy and Corporate Management” from the BFI Vienna University of Applied Sciences and the chairman of the Association of Non-Profit Building Associations (GBV) Dr. Klaus Baringer.
The main topic of the meeting, to which VWBF chairman KommR Mag. Michael Gehbauer invited, was the federal government’s housing and construction package and the earmarking of housing subsidies.
Demand for earmarking of housing subsidies at the state level
Carinthia’s housing officer LHStv.in Schaunig once again spoke out in favor of earmarking housing subsidies. In Carinthia, the expenditure on housing subsidies would far exceed the contributions of employees. However, there is no uniform nationwide regulation. Schaunig announced that he would have a constitutional review of whether a legal regulation on this would be possible at the state level. The funds raised by the population to promote housing must also be used for this purpose.
Schaunig described the framework conditions specified by the federal government for collecting funds from the housing and construction package as unfavorable. The decision as to how much funding should be used for new construction and renovation should rest with the states. The federal government’s requirements in this regard are rather hindering. As is the requirement that only ecological renovation measures can be funded, but not those to increase accessibility
says Schaunig. Equally impractical is the requirement that funds that are not used in a calendar year may only be carried over in part to the following year. Construction projects have a long lead time, this is especially true for large projects in multi-story residential construction!
Criticism of the current housing package
NR Abg. Muchitsch was also not satisfied with the housing package as it existed. It comes too late and contains far too many restrictive conditions. Furthermore, it takes too long for the funds to take effect and whether they will actually flow remains to be seen. He also lacks the necessary control when using the funds. The construction social partnership would have suggested measures that could have been implemented more quickly.
Analysis of the housing package for its effectiveness in the area of affordable housing
Economist Prof. Springler primarily analyzed whether the housing package supported “affordable housing” and came to the conclusion that only a few measures met these requirements. Most regulations lead to a consolidation of the currently noticeable trend of “financialization” in residential construction. In particular, home ownership is prioritized at 50% for new construction in the area of housing subsidies and the construction of private homes, meaning that no answers are given to the pressing problems on the housing market.
158,000 heating systems cannot be converted due to a lack of funds
According to GBV chairman Baringer, the lack of financial resources from the losses caused by capping the maintenance and improvement contribution (EVB) also has drastic ecological consequences. The downside remains that the EVB cap has not been lifted, which will lead to loss of income of more than 3.1 billion euros for non-profit organizations over the next 20 years. As a result, around 158,000 heating bills in the non-profit housing industry cannot be financed. It is questionable whether the incumbent government took this into account with regard to the climate goals.
Conclusions and outlook of the VWBF
VWBF chairman Gehbauer summed up: It is to be welcomed that the federal government is making additional funds available in the area of housing construction. However, we are far from a long-term solution. Political concepts in this regard can no longer be expected from this government. Rather, one needs to think about how the volume of housing subsidies could increase again towards 1% of GDP (gross domestic product). Above all, there is a need for a massive increase in the construction of affordable, subsidized rental apartments, which are urgently needed by the population, especially in urban areas.
Questions & Contact:
VWBF – Association for Housing Promotion
Christian Swoboda
+43 664 51 40 260
c.freedom@vwbf.at
www.vwbf.at