LEGAL FRAMEWORK CONDITIONS
The basis of success
Vienna Housing Promotion and Housing Rehabilitation Act
The Vienna Housing Promotion and Housing Rehabilitation Act (WWFSG) of 1989 contains provisions for the subsidisation both of the construction of new housing units and the rehabilitation of existing residential buildings and dwellings. The laws of the provincial government determine the type and extent of earmarked support granted to housing developers (e.g. low-interest loans, investment grants and contributions, etc.). In addition, WWFSG also regulates the benefits disbursed to tenants (e.g. loans, housing allowances, etc.).
Here you can find the 12th edition of the Vienna Housing Promotion and House Rehabilitation Act (WWFSG) in German: http://www.wohnfonds.wien.at/media/Website%20PDF-INFO%20Downloads/Publikationen/Allgemein/A_2021_WWFSG_Buch.pdf
Limited-Profit Housing Act
The Limited-Profit Housing Act (WGG) regulates the activities, rights and duties of Austrian non-profit and limited-profit housing developers irrespective of their organisational structure and stipulates as follows:
- Rents are fixed to ensure that they cover appropriate costs of land, construction, administration and financing.
- Membership fees of non-profit or limited-profit housing developers must be repaid in case of bankruptcy or upon termination of membership agreements.
- Profits are limited.
- Non-profit and limited-profit housing developers have a statutory mandate to build housing estates.
- Non-profit and limited-profit housing developers may be granted access to public funding for specific projects; around one third of their projects receive public funding.
- Future tenants as well as owner-occupiers are subject to specific maximum income thresholds.
- Non-profit and limited-profit housing developers enjoy tax privileges (e.g. exemption from corporate tax).
Austrian tenancy law (Landlord and Tenant Act) is an extremely complex field of legal provisions and certainly offers room for improvement. However, it regulates the rights and duties of landlords and tenants, thus creating a legal framework for reliable and stable rents in the various types of dwellings defined in it.