CEB and HOWOGE Partner to Boost Affordable Housing in Berlin with €100 Million Loan

CEB and HOWOGE Partner to Boost Affordable Housing in Berlin with €100 Million Loan

(IN BRIEF) The Council of Europe Development Bank (CEB) and HOWOGE, Berlin’s municipal housing company, have finalized a €100 million loan agreement aimed at constructing more than 1,000 new residential units in Berlin. This collaboration, the first of its kind between CEB and HOWOGE, targets increasing affordable housing availability, particularly benefiting low-income households and displaced individuals from Ukraine resettled in Berlin. The project includes rent restrictions and strategic allocation of units to ensure social impact, alongside investments in high-energy efficiency buildings to promote environmental sustainability.

(PRESS RELEASE) BERLIN, 18-Jun-2024 — /EuropaWire/ — In a landmark collaboration aimed at addressing Berlin’s housing challenges, the Council of Europe Development Bank (CEB) has partnered with HOWOGE, the municipal housing company, to provide a €100 million loan. This financial support marks the beginning of a new era of cooperation between the two entities, focusing on the construction of over 1,000 new residential units in Berlin.

The primary objective of this initiative is to bolster the city’s affordable housing stock, with a special emphasis on benefiting vulnerable groups such as low-income households and displaced individuals from Ukraine who have resettled in Berlin. The project’s design includes strategically allocating residential units and implementing rent restrictions as part of a cooperation agreement with the City of Berlin, ensuring a significant social impact.

Moreover, HOWOGE plans to enhance neighborhood inclusivity through mixed-use buildings that cater to diverse tenant demographics. Beyond its social goals, the investment facilitated by this loan facility will prioritize environmental sustainability by delivering high-energy efficiency buildings.

Katharina Greis, Managing Director of HOWOGE, expressed enthusiasm about the collaboration, stating, “The creation of affordable housing is one of the biggest challenges facing society. We are therefore delighted about the cooperation with CEB. By financing numerous new construction projects at attractive conditions, we can make a significant contribution.”

CEB Governor Carlo Monticelli highlighted the bank’s commitment to expanding access to modern social and affordable housing in Berlin, particularly for economically vulnerable groups. “In addition to providing much-needed housing for the people of Berlin, these buildings’ high-energy efficiency standards will make an important contribution to protecting the environment,” Monticelli emphasized.

This partnership underscores a shared commitment to addressing societal needs through sustainable and inclusive urban development, setting a positive precedent for future collaborative efforts in housing and community development initiatives across Europe.

About HOWOGE
HOWOGE Wohnungsbaugesellschaft mbH is one of the six municipal housing companies of the State of Berlin. With its housing stock of around 76,400 apartments (as at 31 December 2023), the company is one of the largest landlords in Germany. HOWOGE intends to expand its residential portfolio to around 100,000 flats in the medium to long term, particularly through new construction. As part of Berlin’s school construction campaign, HOWOGE also undertakes new builds and major refurbishments of schools for the State of Berlin.

About the CEB
The Council of Europe Development Bank (CEB) is a multilateral development bank, whose unique mission is to promote social cohesion in its 43 member states across Europe. The CEB finances investment in social sectors, including education, health and affordable housing, with a focus on the needs of vulnerable people. Borrowers include governments, local and regional authorities, public and private banks, non-profit organisations and others. As a multilateral bank with an excellent credit rating, the CEB funds itself on the international capital markets. It approves projects according to strict social, environmental and governance criteria, and provides technical assistance. In addition, the CEB receives funds from donors to complement its activities.

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SOURCE: Council of Europe Development Bank (CEB)