European Investment Bank (EIB) has promised to Erste Bank 150 million euros in funding to support affordable housing in Austria.
Erste Bank will add a further 150 million Euros to this, which will consequently see it contribute a total of 300 million Euros to social housing over the next three years.
The agreement, which has so far signed off on 100 million Euros and approved a further 50 million, essentially involves granting financing, with interest fixed for up to 28 years, for new subsidised or non-profit rental units, thereby securing rents for nearly three decades.
The money is primarily to be used in cities where the demand for affordable housing is particularly high.
Based on this model, framework financing for investments of 200 million Euros was agreed on between the EIB and Erste Bank back in May 2019.
After 14 months, almost all this funding has now been allocated.
It has been/is being used to build around 2,200 affordable housing units for approx. 3,900 residents, such the ”Vielschichtig Wohnen” project conducted by the Österreichisches Volkswohnungswerk housing construction company in Vienna’s 21st municipal district.