The Opportunity of Non-Profit Housing: Social Housing Gains New Impetus

After decades of absence, this model aims to revitalize social housing. The core principle is that non-profit housing companies receive tax advantages, which obligate them to pass these savings directly to tenants. The objective is to create affordable housing for broad segments of the population and foster social integration within districts.

Housing non-profit status entails a long-term commitment to rental prices, thereby ensuring a stability rarely achieved in the free market. Concurrently, non-profit organizations 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 initial practical tests, demonstrating the model's functionality across diverse urban contexts. Beyond the objective of reducing tenant costs, this initiative is also expected to bolster confidence in social housing.

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Benefits for Investors

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

• Long-term Revenue Security: Through rent control and contractually agreed subsidies, non-profit housing provides stable and calculable revenues.
• Tax Advantages: Investors benefit from tax incentives 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 strengthen the ESG (Environmental, Social, Governance) balance sheet and enhance a company's social reputation.
• Public Funding: By combining private and public funds, projects can be realized that generate both financial and social returns.

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Long-term Benefits and Role of PROBIS

Non-profit housing status offers a dual benefit: It creates affordable housing while simultaneously opening new avenues for investors to generate social value. With PROBIS tools, investors and project developers can efficiently manage the financial and operational aspects of such ventures. The precise controlling and reporting tools enable real-time monitoring of budgets, subsidies, and returns. This ensures that projects are not only socially but also economically sustainable. PROBIS thus provides an ideal foundation for making investments in non-profit housing a success for all stakeholders.

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