Housing for the elderly: Funding for age-appropriate renovations is set to increase

Older people today live significantly longer independently and healthily, but age brings with it specific housing needs. The "Age-Appropriate Conversion" program of the state-owned development bank KfW aims to specifically promote construction measures that reduce barriers.

Older homeowners tend to sell their properties early rather than undertake accessibility modifications, as these are too expensive and time-consuming for them. However, accessibility modifications can enable them to continue living in their own homes for many years to come.

The KfW program “Age-appropriate conversion”

In 2023, the Federal Ministry for Housing, Urban Development and Construction (BMWSB) will again provide funding for age-appropriate housing. The "Age-Appropriate Conversion" funding program is aimed at owners and tenants of owner-occupied residential property, as well as landlords. In addition to older people, the program also supports people with disabilities and young families. It provides €75 million for private builders, and the budget is expected to double next year. Applications for funding for the current year have been available online since July 13. The funding is provided in the form of low-interest loans, which can also be combined with repayment subsidies or grants.

Which renovation measures are eligible for funding?

Modernization measures such as installing walk-in showers, removing door thresholds, or installing elevators are part of barrier-free construction. Subsidies are available for individual measures as well as for a complete "Senior-Friendly Home" standard. Individual measures are subsidized at a rate of approximately ten percent of the eligible costs, up to a maximum of €2,500. Those who modernize an entire house to be age-appropriate can currently receive a reimbursement of 12.5 percent (up to a maximum of €6,250) of the costs.

Amount of funding from 2024 onwards

In recent years, the funds were exhausted after only a short time. Therefore, the German government plans to double the funds through the KfW development bank to 150 million euros in order to partially offset the high demand and the increased construction costs.

Is the renovation worthwhile from 2024 onwards?

Those interested should carefully consider in advance which measures are advisable. To accurately estimate costs and KfW bank funding, professional advice is recommended. A regional real estate agent can provide valuable assistance with an initial assessment of the building's condition.

Do you want to make your property accessible and apply for funding for it?

Contact us! We'd be happy to advise you.

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

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