We have tried to collect the most common questions about our project and their answers in English.
Cooperative
How do I get an apartment?
Apartments are only given to members. The duration of membership is an important criterion when lending an appartment.
What is a cooperative?
A cooperative is a commercial enterprise (Corporation). The main difference to all other forms of business is the principle of democracy: each member has one vote regardless of its investment.
Moreover, to our cooperative applies:
- Owners and users of the cooperative are identical (every inhabitant is a member).
- The cooperative works cost-covering. The cooperative does not serve capital growth, but securing affordable housing.
- The cooperative is not only a business but also a social and cultural community. Our goal is a neighborly living environment instead of today often found big city anonymity. Developing our project we do not only follow economic but also social criteria.
- The management of the cooperative is controlled twice: firstly by the Supervisory Board, a body that is elected from the members. Also, each cooperative is a member of an audit association that regularly comprehensively examines the cooperative. Thus, a cooperative is a particularly stable and secure form of enterprise.
Do you offer apartments for rent or for sale?
As a cooperative, we go a way between rental and ownership. All the members are co-owners of the cooperative and the cooperative is the owner of the House, which is used by the members.
What are differences between a cooperative apartment and a rented flat?
| cooperative | rent |
|---|---|
| non-terminable | termination because of own needs, release from leases |
| permantently non-profit | scale rent, rent increase, renovations that upgrade buildings to luxury status with the aim of freeing them from occupancy |
| co-determination | – |
| neighborly environment | ? |
| Facilities with community benefit (guest appartments, common room, workshop space, car sharing, etc.) | ? |
| Equity as compulsory shares (20-30% of the appartments costs) | Desposit (e.g. 3 months rents) |
What are differences between a cooperative apartment and an owner-occupied flat?
| Cooperative | Ownership |
|---|---|
| The cooperative handles the financing. If the equity is available, you have no debt. See FAQ for possible funding of compulsory shares. | Do you qualify for lending? (age, credit, collateral, proof of income) |
| No liability beyond the compulsory shares. | usually liability with the entire personal assets |
| Termination and move-out as in a rented flat. Compulsory shares will be refunded at nominal value. | You need to / want to move out? Effort and additional fees for sale of the apartment and the return of the loan? |
| Discounted price of land by Konzeptioneller Mietwohnungsbau„ | High land costs |
| (in the case of first-time occupancy) Participation in the housing design, considering community interests (e.g. re-assignment of the apartment) | Extensive influence on design Possibility of resale is the responsibility of the owner |
| The cooperative creates sustainable affordable housing and excludes speculation and displacement because under normal circumstances the plot will never be sold. | You have the opportunity to sell the apartment with value enhancement but also a risk of loss. |
Planning
Financial
I can not fully raise the compulsory shares. What options are there?
„Kreditanstalt für Wiederaufbau“ (short: KfW) is a German public promotional bank. It offers a credit especially for financing cooperative shares at beneficial conditions up to 50,000 € with an optional grace period (pay interest only. Special repayment is possible during the first interest period free of charge. The credit will be offered through a principal bank, preferably the bank which will be financing our building project.
Find more information at Website of KfW (German only)
Subsidies (EOF, München Model)
What does EOF, München Modell or KMB mean?
„Einkommensorientierte Förderung“ (EOF), „München Modell“ and „Konzeptioneller Mietwohnungsbau“ (KMB) are housing programs for various income groups, which should provide affordable housing in Munich. In all programs, builders are supported, if they commit in return to certain maximum rents, permanently not to sell the apartments and to award them only to respectively entitled people.
| EOF I/II/III | München Modell | KMB | |
|---|---|---|---|
| maximum monthly compensation fee (rent) per m² | 5,90 €* | 11,09 € | 12,06 -14,72 € (for the Prinz-Eugen-Park project) |
| income limit yearly gross income* Example: 3 person family including 1 child | approx. 33.800 € approx. 45.450 € approx. 57.100 € | approx. 71.300 € | approx. 85.600 € |
| minimum occupancy or working period in | Conditions abolished in 2020 | 2 years Munich or surrounding districts 1 year with child | no requirements |
| verification of application after | 36 months | one-time application without verification | no application necessary |
*nonbinding projection of the gross income
EOF/social housing - application requirements (German) EOF - Information on income limits (German) Website about München-Modell (German) income limits München-Modell (German) Application forms for download (German) Website about KMB (German)