Opportunity for non-profit housing: social housing construction gets a new boost

After decades of absence, this model is intended to revive social housing. The core idea is that non-profit housing companies receive tax benefits that oblige them to pass these savings on directly to tenants. The aim is to create affordable housing for broad sections of the population and promote a social mix in neighborhoods.

The non-profit status is accompanied by a long-term commitment to rental prices, which guarantees a stability that is rarely achieved on the free market. At the same time, non-profit companies receive support through funding programs to enable energy-efficient renovations and barrier-free construction. Pilot projects in cities such as Hamburg, Leipzig and Munich will provide the first practical tests and show how the model works in different urban contexts. In addition to the aim of reducing costs for tenants, this initiative is also expected to boost confidence in social housing construction.

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Benefits for investors

Residential non-profit status not only offers advantages for tenants and non-profit organizations, but also creates attractive opportunities for investors:

• Long-term income security: Thanks to the fixed rents and the contractually agreed subsidy, non-profit housing offers stable and calculable income.
• Tax advantages: Investors benefit from tax relief associated with the promotion of non-profit housing construction. This increases the attractiveness of projects and reduces overall costs.
• Social responsibility: Investments in non-profit housing construction strengthen the ESG balance sheet (environmental, social, governance) and improve a company's social standing.
• Public funding: By combining private funds and public funding, projects can be realized that generate both financial and social returns.

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Long-term benefits and role of PROBIS

The non-profit housing association offers a double benefit: It creates affordable housing and at the same time opens up new opportunities for investors to create added social value. PROBIS tools enable investors and project developers to efficiently manage the financial and operational aspects of such projects. The precise controlling and reporting tools enable the monitoring of budgets, subsidies and returns in real time. This ensures that projects are not only socially but also economically sustainable. PROBIS thus provides an ideal basis for making investments in non-profit housing a success for everyone involved.

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