Housing Subsidies in Tyrol, New Buildings

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New guidelines for housing subsidies in Tyrol came into force on October 1, 2013. Particularly attractive subsidies are provided for residential buildings. The state of Tyrol subsidizes: -The erection of houses, apartments and homes (new buildings, rearrangement of buildings, annexes to buildings, etc.) -the first purchase of dwellings -the purchase of at least 10-year-old building -further measures acc. to Section 3. of the Tyrolean Housing Subsidies Act from 1991 This does not include: Houses (private houses), apartments and homes that do not serve as a main residence for the applicants and are not serve as a direct housing need (e.g. holiday apartments, retirement homes, nursing homes without residence character).

Requirements in connection to the building

1. The total cost (total cost of construction and land costs) must be appropriate, incl. risk compensation, etc.

2. The execution of the eligible for subsidy houses, apartments and residences must be standard. The thermal protection requirements must be met.

3. The buildings shall be adequately insured against fire.

4.The used building materials must not release during the life-cycle of the building any climate-damaging halogenated gases in the atmosphere (Haloalkane, Chlorofluorocarbon, Chlorodifluoromethane or Sulfur hexafluoride). During the tender the use of such materials must be set as a requirement.

5. Any advertising or information activities of property developers are not paid from building subsidy funds or its residents as part of the final settlement. For necessary advertising and information activities may only be provided a maximum of 3% of the total construction costs, but not exceeding € 11,000.

6. A residence home will only be subsidized, provided proper and economically secure operation can be expected.

7. Residences with more than 75 dwellings (apartments) will only be subsidized in special cases.

8. The applicant must not have taken the responsibility (in connection with the acquisition of the land) to use the services of a particular person for the planning, execution of the project to be delivered or for the legal transactions. This does not apply for the planning of a complex of several apartment buildings in high-density building constructions.

9. The state can perform a check on the purchase agreement, residential home ownership contract, etc. The developer must have the necessary business licenses and must be able to submit them, upon request of the country.

10. For construction of the project the applicant should have a bank account and handle all payments through this account.

11. The design of the project must meet the contemporary living needs of the occupants and speak of quality architecture. Thus it is possible that in some cases architectural competition may be conducted.

12. During the execution of projects that are built by non-profit housing associations, local authorities, municipal associations or other authorized developers, is should be stated with information on board the plot that a subsidy from the State of Tyrol is granted for the project.

For the subsidized building is required a heating demand calculation. A subsidy may only be granted if the following maximum annual energy heating demand per m2 of conditioned gross floor area (HDGFA) are met. These depend on the geometry (the value of lc=1/(A/V), where A is the area of the thermal envelope and V is the conditioned volume – and based on the Reference climate according to OIB-Guideline (heating degree day : 3,400 Kd/a).The Reference climate is used in order to assess the building regardless of the climate in the actual location. The heating demand depends on lc should be interpolated linearly between the given values.

HDGFA in kWh/m2a HDGFA in kWh/m2a
Year A/V ≥ 0.8 A/V ≤ 0.2
From 01.01.2012 36 20

Table 1

The calculation of the heating requirement has to be done under the provisions of the Tyrolean Building Regulations 2011. In buildings with ventilation system with heat recovery the maximum allowed HDGFA the reduction by 8 kWh/m2a is not necessary. For the granting of subsidy for the purchase of a (according to building permission) at least 10-year-old building, not (anymore) subsidized residential property at a reasonable price the existence of a heat demand calculation is no funding requirement. In justified cases (historical or listed buildings) it is possible to be avoided the compliance with the minimum requirements for thermal protection (heating demand). Building Services 1. When establishing (setting up) a heating system or hot-water-supply system it is a subsidy requirement to install an innovative climate-relevant systems (listed in the corresponding documents).

2. The installation of a biomass heating system (wood chips, pallets) is also eligible for subsidy. For small heating boiler (with heating capacity ≤ 400 kW) the following parameter criteria (by nominal load) must be met: Energy conversion efficiency: minimum 85% Emissions limit values in mg/MJ:

Boiler, Space heating CO NOx OGC Dust
with automatic loading
Boiler, Pellets 60 100 3 15
Boiler, Wood chips 150 120 5 30
Space heating 120 100 6 20
with manual loading
Boiler 250 120 30 30
Space heating 700 120 50 30

Table 2

Note: Dust and NOx should be measured according to ÖNORM EN 303-5.

For fixed masonry-heaters or storage heaters in form of single stoves or central heating the abovementioned emission limit values are not decisive (essential). Energy conversion efficiency of 85% has to be provided.

3. An electrical heat pump for heating purposes with ground or groundwater as a heat source (main heating distribution with low temperature under 35°C) is considered innovative climate-relevant system if the Seasonal Performance Factor (SPF) is ≥ 4. The proof of the Heating Seasonal Performance Factor is to be delivered via the programme “JAZcalc”. The programme is available on http://www.tirol.gv.at/wohnbau. The heat pump has to be equipped with heat and electricity meters, whose proper performance has to be confirmed with acceptance form (F 87).

4. A heat pump for heating with air as a heat source (main heating distribution with low temperature under 35°C) is considered innovative climate-relevant system if the building it is used in has an area of max. 300 m2 and the heating demand is max. 25 kWh/m2a. The heat pump has to be equipped with heat and electricity meters, whose proper performance has to be confirmed with acceptance form (F 87).

5. The use of heating systems based on oil condensing technology (oil-fired boilers) is allowed for submission until 01.04.2014. A combination with a solar thermal system is required. In case there is not enough solar radiation and the installation of solar panels is not possible or economically-disadvantageous, it is not necessary for this condition to be fulfilled.

6. Comfort ventilation with heat recovery is eligible for funding (as a part of additional subsidy) if there is a present supply and exhaust air system with centralized ventilation, decentralized ventilation or there is an individual ventilation unit in each dwelling (and not a single fan), there is a heat recovery and the following requirements are fulfilled:

  • Airtight building envelope:
    • Blower Door Test; n50 acc. to ÖNORM 13829 (Thermal performance of buildings - Determination of air permeability of buildings - Fan pressurization method)
    • Air change in buildings HDGFA> 10 kWh/m²a ≤ 1.0 h-1
    • Air change in buildings HDGFA< 10 kWh/m²a (Passive House) ≤ 0.6 h-1
  • Efficiency criteria:
    • air electrical power consumption ≤ 0,45 W/m3h
    • heat recovery rate > 75% according to PHI measuring methods (PHI=Passive House Institute) or > 70% according to EN 13141-7, or > 84% according to DIBt method (DIBt=The Center of Competence in Civil Engineering)
  • Comfort criteria:
    • air volume adapted to the requirements according to ÖNORM H 6038 (Ventilation Systems – Controlled Mechanical Ventilation with Heat Recovery for Apartments – Design, Installation, Testing, Operation and Maintenance)
    • Sound level < 25dB (A)
    • Outside air filter minimum F7, exhaust air filter minimum G4 acc. DIN EN 779
    • Inlet air temperature > 17°C

The professional implementation and performance of the system has to be confirmed by Acceptance form (F88). A list of the eligible for subsidy comfort ventilation systems is available at http://www.komfortlüftung.at.

7. Solar systems for hot water (and heating) are only eligible for subsidy if the collectors have a product certification with a seal of approval from a recognized testing laboratory acc. to “Solar-Keymark” guidelines or acc. to “Austria-Solar”. A list of approved collector types is available at http://www.solarkeymark.org. For one square meter of collector aperture area shall be provided 50 l capacity. The solar panels must be equipped with a heat meter, whose proper execution have to be confirmed by acceptance form (F 89).

Requirements in connection to the residents

The applicant must be owner of the building plot or have the legal rights over the plot for at least 50 years. An individual (natural person) should be granted a subsidy if: 1. They have Austrian citizenship or acc. to § 17a Tyrolean Housing Subsidies Act from 1991 are equally treated.

2. Their rights of ownership or right to use the previous dwelling that satisfied their need for accommodation expires within six months of moving into the subsidized dwelling.

3. Their rights of ownership or right to use other dwellings – on request of the State – expires too within a reasonable period.

4. At the time of the submission of the application for subsidy (or the granting of assurance) is a beneficiary.

A subsidy will only be granted if the State (with the approval of the applicant) can receive information from the authorities for the applicant (e.g. in connection with the income, taxes, etc.).

Income limits

A subsidy is granted if the family’s monthly income (1/12 from the annual income) does not exceed the below stated values.

Number of people Monthly Income Upper Limit (€)
1 2,400
2 4,000
3 4,300
4 4,600
for each additional person + 300

Table 3

If the income limits are exceeded, the subsidy for subject-funded (see below) construction projects and purchase of dwellings and homes, as well as for the completion of dwellings, for each € 100 (started) the subsidy will be shortened by 25 %. Any subsidies for energy-saving and environmentally-friendly measures are not reduced and may be granted (as additional subsidy) in their full amount.

Types of subsidies

1. Promotion credit,

2. Subsidies,

3. Aid.

The amount of funding is determined by the dwellings area and household size, depending to the number of people living there afterwards. As basis for the subsidy no more than the eligible for funding floor area will be taken into account. Furthermore, the amount of funding depends on the land use, the plot ratio [1], building services and energy-saving and environmentally-friendly measures taken. Promotion credits are granted depending on the nature of the project and on the basis of a lump sum or a fixed amount per m² of eligible for subsidy floor area.

Promotion Credits

Residential buildings with apartments (object-funded)

The state of Tyrol grants to:

-non-profit housing associations,

-municipalities (associations of municipalities),

-authorized developers,

-corporations, associations, etc

for the construction of residential buildings with apartments the following promotion credits:

Plot ratio Promotion credit per m2 eligible for funding area
> 0.55 € 980 (with annuity subsidy)
> 0.44 and < 0.55 € 880 (with annuity subsidy) [2]
< 0.44 € 880 (without annuity subsidy) [2]

Table 4

Construction of complex facilities (condominiums) (object-funded)

The state of Tyrol grants to:

-non-profit housing associations,

-municipalities (associations of municipalities),

-authorized developers,

-corporations, associations, etc.

for the construction of complex facilities (condominiums) the following promotion credits:

The credit is acc. to the average land use per apartment:

Land use Fixed amount per m² of eligible for subsidy floor area (with annuity subsidy [3])
> 350 m² and ≤ 400 m² € 580
> 300 m² and ≤ 350 m² € 680
> 250 m² and ≤ 300 m² € 780
> 200 m² and ≤ 250 m² € 880
≤ 200 m² € 980

Table 5

In condominiums the promotion credit is set on the basis of the eligible for funding floor space of each individual apartment (individual support).

Construction of retirement / nursing homes (object-funded)

The state of Tyrol grants to:

-non-profit housing associations,

-municipalities (associations of municipalities; companies in which municipalities or associations of municipalities have more than 50 % of the share capital),

-authorized developers,

-corporations, associations, etc.

for the construction of homes the following promotion credits: The promotion credit for the establishment of a retirement or nursing homes consists of €1,500 per m² of eligible for funding area (with annuity subsidy [4]). The maximum eligible area per retirement or nursing home is 55 m². The promotion may not exceed the documented (proven) costs. The promotion credit is for the establishment of other home € 900 per m² of eligible for funding area (without annuity subsidy).

Construction of single apartments / reconstruction to apartments (object-funded)

The state of Tyrol grants to:

-non-profit housing associations,

-municipalities (associations of municipalities),

-authorized developers,

-corporations, associations, etc.

for the construction of single apartments or reconstructions to apartments (for natural person of full legal age and capacity as a tenant) in existing buildings that are owned by a non-profit housing associations or municipalities, promotion credit in the amount of € 880 per m2 of eligible for funding area (without annuity subsidy). Projects in low density construction - natural person (subject-funded) The state of Tyrol grants to: -natural person of full legal age and capacity for construction or first purchase of a private house or apartment a promotion credit in the following amount:

Household size Min. floor area Credit amount
1 or 2 people 30 m2 € 22,000
3 people 85 m2 € 29,000
4 people 95 m2 € 33,000
3 or more people 110 m2 € 35,000

Table 6

Projects in high density constrictions – natural person (subject-funded)

The state of Tyrol grants to:

-natural person of full legal age and capacity

for construction or first purchase of a private house (semi-detached house, terrace house or group of houses) or a condominium, for the construction of rental housing for non-related persons (e.g. loft conversion) promotion credit. It is determined by the average land use per apartment. And is granted per apartment. The apartments have to cover a regular need for accommodation, e.g. different homeowners (with housing needs) in new buildings.

Land use Fixed amount per m2 of eligible for subsidy floor area (with annuity subsidy)
> 350 m² and ≤ 400 m² € 580
> 300 m² and ≤ 350 m² € 680
> 250 m² and ≤ 300 m² € 780
> 200 m² and ≤ 250 m² € 880
≤ 200 m² and ≤ 250 m² € 980

Table 7

Dwellings without additional land use – natural person (subject-funded)

The state of Tyrol grants to:

-natural person of full legal age and capacity

for the construction a dwelling without additional land use (e.g. in the attic), in case a subsidy for high density constructions does not apply, a promotion credit of € 580 per m² of eligible for funding floor space. The first level of subsidizing is a credit low rate (from 1 to 4%) for up to 39 years.

Subsidies

Check (alternative to promotion credit)

-35% of the possible promotion credit

- no payback

- no need of securing of the real estate in the Land Register

-free availability (use) of the dwelling after 10 years

The State grants to a natural person of full age and capacity as owner (on request) for not funded as complex facilities or employee housing project instead of promotion credit, a funding in the form of non-repayable grant (residential building check). One check will be issued to an applicant for the construction or purchase of a dwelling that will serve their primary housing need and will be used for at least 10 years. Within this period, a possible sale of the supported building is allowed only with the consent and under the conditions of the State. Failure to comply with the conditions or due to false information, the check has to be repaid under application of § 24 Tyrolean Housing Subsidies Act from 1991.

Residential Home “Start Help”

The State grants in connection with the subsidy for the construction or for the first purchase a dwelling Residential Home “Start Help” under the terms of a residential building checks. The funded in this sense dwelling has to be built in high dense construction, where there are at least three dwellings, which are used by the residents to satisfy their primary housing needs. The amount depends on the household size and family monthly income.

Energy-saving and environmentally-friendly measures

The subsidy amount is calculated as the total number of points multiplied by the eligible area and multiplied by the point value of € 8. Some of the more important measures and corresponding points are the following:

  • Improving heating >= 33% 3 points

Improving heating >= 60% 6 points

to passive house standards <= 10 kWh/m².a 11 points

  • Biomass heating as the sole heating system

Building up to 300 m² of floor area 2 points

Buildings over 300 m² of floor area 1 point

Connection to an existing biomass heating system 0,5 points

  • Installing a heat pump for heating purposes (space heating)

Building up to 300 m² of floor area 2 points Building over 300 m² of floor area 1 point

  • Installation of a comfort ventilation with heat recovery

Building up to 300 m² of floor area 3 points

Building over 300 m² of floor area 2 points

  • Execution of the project with high quality planning, execution, as well as high energy and environmental quality, provided that they meet the requirements of the "klima: aktiv house" or similar building certification system (e.g. Passive house from PHI, Total Quality Building - ÖGNB)

Building up to 300 m² of floor area 2 points

Building over 300 m² of floor area 1 point

A certificate from an independent, authorized institution must be provided as a proof.

  • Execution of the building with environmentally friendly, sustainable materials (Ecological index 3)

Building up to 300 m² of floor area and OI3TGH-BGF≤140 2 points

Building over 300 m² of floor area and OI3TGH-BGF≤140 1 point

Building up to 300 m² of floor area and OI3TGH-BGF≤70 3 points

Building over 300 m² of floor area and OI3TGH-BGF≤70 2 point

  • Solar Panels for hot water and heating

The grant amounts to € 210 per square meter of solar collectors’ area in a solar system for hot water to a maximum of € 2,100 per apartment. If the solar system is used to support space heating, the maximum funding amount is increased to € 4,200.

Aids

The grant of a housing aid is used to reduce the burden of the annuities or the rent of the subsidized dwelling in high-dense construction (apartment, detached, semi-detached house, etc.). There is no housing aid for the recipients of a check. An aid is only granted if the calculated according to the household size allowable housing costs exceed the reasonable housing costs burden. The housing costs burden consists of: -the repayment and interest on the promotion credit -the repayment and interest on the mortgage taken to cover the construction costs -community contributions -repayment rates of loans for personal means -payment of applicable VATs The housing expense is calculated on the basis of the recognized final bill on the basis of the financial plan of the assurance. In calculating the apartment expenses only mortgage with the conditions specified in the respective loan approval conditions are taken into account. The housing costs reduced by otherwise subsidies granted to reduce housing costs burden. In subject- subsidized apartments , which were promoted before 01.10.1996 by granting a credit promotion, in the calculation of the aid a creditable housing costs of no more than € 4.00 per m2 living space will be used. For housing costs for a home that has not been built in a condensed construction, aid shall be granted only in exceptional cases (e.g. deterioration of the income situation of families with children from involuntary reasons). For housing costs for a dwelling (projects in low-density construction) aid shall be granted only in exceptional cases. An exception exists in particular if the income for a one-person household is less than € 730. For larger households the limit increases with €110 each for each additional person. The housing costs are reduced by other subsidies granted as housing allowance. In object-funded construction projects as well as subject-funded objects for which a promotion credit was granted after 01.10.1996, the eligible housing costs burden is determined from the financing results, according to the financial plan or the assurance of approved final settlement. For dwellings that have been subsidized with promotion credit before 1996, a aid of 4 € per m2 eligible for funding area will be granted .In dwellings that are not situated in high-dense construction aid is granted just in exceptional cases, e.g. when the economical situation of a family with children is very bad). The aid is calculated on the basis of the floor area and for one person it is 50 m2 at most. For every additional family member are added at most 20 m2. The maximum floor space area is 150 m2 total.

See also Renovation Subsidies in Tyrol

(1) The plot ratio is the numerical ratio between the floor area and the area of the site. The floor area is the sum of the floor surfaces of the building, minus the wall thickness. The floor area also does not include: a) open balconies, garages, storage facilities, etc. b) shafts, staircases, etc. c) attics or rooms with ceiling height of less than 1.50 m.

(2) In this case of residential buildings with apartments, when the plot ratio is more than 0.4, the State grants an annuity subsidy € 1.40 per m2 eligible for subsidy floor area for 7 years and € 0.70 per m2 eligible for subsidy floor area for another 8 years. On revocation or termination of the loan, the annuities are revoked too.

(3) The State grants an annuity subsidy (when the costs are proved) € 1.40 per m2 eligible for subsidy floor area for 5 years or € 0.70 per m2 eligible for subsidy floor area for 10 years. On revocation or termination of the loan, the annuities are revoked too.

(4) The State grants an annuity subsidy (when the costs are proved) € 2.00 per m2 eligible for subsidy floor area per month for 8 years. On revocation or termination of the credit, the annuities are revoked too.

Sources:

https://www.tirol.gv.at/bauen-wohnen/wohnbaufoerderung/