Economic stimulus package “Housing and construction offensive”: VWBF sees positive things, but calls for further measures
Vienna (OTS) – The Association for Housing Promotion (VWBF) welcomes the “Housing and Building Offensive” announced by the federal government as the right step in terms of economic policy, but sees the need for further measures to secure the long-term goals of non-profit housing in Austria.
VWBF chairman Michael Gehbauer is pleased with the stage win
“The provision of 220 million euros to compensate for lost income through the rent cap for the EVB (maintenance and improvement contribution) as well as the special-purpose grants of 780 million euros for subsidized housing are an important sign from the government that the importance of the non-profit sector is recognized
,” says Michael Gehbauer. This means that the billion in housing construction long demanded by the VWBF is basically available.
Critical consideration of the distribution of funds
Despite the positive aspects of the package, the VWBF expresses concerns about the distribution of funds between rent and home ownership, which does not correspond to the actual needs in Austria. “An equal distribution of funds ignores the reality of the housing market, where there is significantly more need for affordable rent
,” criticizes Gehbauer.
The question of how the funds will be distributed to the federal states remains open. It is crucial to ensure that states that have historically experienced high levels of construction activity are not disadvantaged to the disadvantage of those states that have experienced lower levels of construction activity. An orientation based on actual housing needs rather than population size would enable a much fairer and needs-based allocation of resources.
The role of the states and building associations
The federal government’s commitment of financial resources is one thing, the implementation of the economic stimulus package and its effect on the economy and the housing market is another. However, they depend largely on the states and the non-profit building associations, which have to put together housing construction programs under the new framework conditions. Especially from the perspective of planning, it is a huge challenge to collect the funds promised for the second half of 2024. It is therefore important to ensure that any unused funds can be reallocated to the years 2025 and 2026. Drops of up to 25% were expected so far this year.
Increase in funding for the “living umbrella”
The VWBF considers the increase in funding for the “housing umbrella” to a total of 60 million euros to be socially justified and urgently necessary. The housing umbrella offers important support for tenants who are at risk of losing their home.
Criticism regarding promotional loans for natural persons
The criticism expressed by the VWBF is also directed at the promise to provide low-interest loans with a maximum interest rate of 1.5% and a loan amount of up to 200,000 euros for housing support to natural persons. From the association’s point of view, promotional loans for natural persons must always be linked to social and ecological criteria.
Lack of structural measures
While the economic stimulus package only promises short-term improvements, there are no long-term, structural measures that would increase the share of housing subsidies to the level of 1% of GDP required by the VWBF.
Outlook and hope for sustainable changes
The VWBF sees the “Housing and Building Offensive” as a positive signal and an important step in the right direction. However, it remains to be seen how the measures will be implemented and what long-term effects they will have.
Questions & Contact:
VWBF – Association for Housing Promotion
Christian Swoboda
+43 664 51 40 260
c.freedom@vwbf.at
www.vwbf.at