Vienna. Developing an aid model similar to the “energy bonus” model against increasing rents, the City of Vienna announced a new “housing bonus” of 200 Euros. In addition to the housing bonus, it was announced that additional support packages were prepared for tenants in municipal buildings.
Housing Council Member Kathrin Gaal (SPÖ) announced that from the summer, millions of subsidies will be distributed for housing costs. Defining rent increases as “clearly a matter for the federal government”, Gaal accused the federal government of “completely excluding housing policy”.
“Housing bonus” to be paid in summer
According to the statement from the City of Vienna, following the “energy bonus” model in Vienna, a “housing bonus” will be paid during the summer months and tenants of city halls will benefit from many other measures. The “Vienna Housing Bonus” will be distributed to all those who qualify for the “Vienna Energy Bonus” between June and July, whether you are a tenant or a landlord. As with the Energy Bonus, there will be a one-time payment of 200 Euros. The procedure will be the same with the energy bonus, a personal letter will be sent to the households. The Vienna Administration estimates that the aid will cost 130 million euros.
Who can get the Vienna Housing Bonus?
Similar to the “Energy Bonus”, the criteria for the “Vienna Housing Bonus”, which will come into effect soon, are as follows:
- Have a gross income of up to €40,000 as a single-person household in 2022, or
- a multi-person household has a gross income of up to 100,000 euros in 2022
Extra help for town hall tenants
In his presentation of the measures, Gaal stressed that Vienna does not want “individual solutions that put certain groups of people in the country at a disadvantage”. However, he noted that in addition to the „housing bonus“, numerous other assistance measures are being considered for tenants of the town halls. The extra benefits determined for the tenants of the town hall are explained as follows; An extra bonus of half a month’s rent, assistance with paying the necessary installments, additional budgetary funds for low-income tenants – but above all compensation for rent increases.
The SPÖ has announced that three extra benefits are planned, in addition to the distribution of the „housing bonus“, which only tenants of the town halls can register for. According to this,
- In the summer of 2023, all 220,000 tenants in municipal buildings will receive a special loan of half the monthly net rent (excluding operating costs and VAT). The municipality expects a loan of around 120 euros on average, with a total of more than 26m euros.
- A rank bonus is planned to be distributed at the end of the year: this means that all town hall tenants whose rent has been increased in 2022/23 will receive an additional loan ‘in proportion to the rent increase’.
- Easier installment agreements will help anyone who is at risk of losing their home due to rent debts.
Reaction from rival parties to SPÖ
Mayor Michael Ludwig stressed that “no one is left alone in Vienna” despite the “an already extensive network of support measures”.
Viennese opposition parties, on the other hand, do not take kindly to SPÖ’s housing package. The ÖVP stated that he did not see “real relief” but “one-time payments for advertising only”, while the Greens described the plans as just a “one-time fight against symptoms”. While the Greens did not see the SPÖ’s move as a solution to the problem of “galloping rents”, the FPÖ demanded reimbursement of all rent increases on city halls over the past two years. (yenivatan.at)