Caritas Munich has once again defended its planned property sales in the city. The social welfare organization stated in a press release on Friday that, in light of rising investment costs, Caritas is obliged to regularly review its real estate portfolio and, if necessary, free up resources for its core business. “This is not about short-term financial considerations, but about safeguarding our social work in the long term,” the statement read.
Mayor and Tenants’ Association Warn of Rent Increases
Previously, the DMB Tenants’ Association Munich and Munich’s Mayor Dieter Reiter (SPD) had issued an open letter warning of the potential consequences of the property sales. Specifically, the sales concern two residential buildings in Schrenkstraße in the Schwanthalerhöhe district and a dormitory for young students and apprentices in Zieblandstraße in the Schwabing district. Caritas has reportedly been planning to sell these properties for some time.
The Tenants’ Association and the Mayor urged that it must be prevented that rents are raised due to a change of ownership, making them unaffordable for residents. Especially given the housing shortage and the sometimes enormously high rental costs in Munich, it is crucial that affordable options such as youth housing are preserved. “Caritas stands for charity and social responsibility. We expect this claim to be visible in real estate decisions as well,” the letter stated.
Caritas Seeks Socially Responsible Investor
Should the properties be sold, it must also be ensured that they go to investors “who prioritize the well-being of the tenants and the urban community – and not profit maximization.” Caritas could, in the contract, advocate for socially acceptable solutions such as rent caps, long-term tenancy rights, or the exclusion of owner-occupancy terminations. “The insecurity of tenants must not be the result of strategic reorientations,” warned the association and the mayor.
According to Caritas, the two residential buildings in Schrenkstraße are currently “in an open and transparent sales process, which is accompanied by an independent broker.” The affected tenants were informed early about the sales intentions. The association is seeking a buyer who is aware of their social responsibility. “For the residents, it is clear: a change of ownership does not change existing rental agreements. Rights and obligations remain fully intact and transfer to the new owner.”
Securing Long-Term Operational Capacity
Regarding the youth housing facility, Caritas stated that it is striving to secure the continued existence of the offer and find a solution “that does justice to the social character of the house.” It added: “Our goal remains to exercise social responsibility and at the same time secure Caritas’ long-term operational capacity.”
The planned property sales had already caused a stir in November. Caritas had already issued a similar statement at that time. Both Caritas, the Tenants’ Association, and the City of Munich have signaled their willingness to engage in discussions.
Background: Archdiocese of Munich and Freising and Caritas
The Archdiocese of Munich and Freising, whose spiritual father is Saint Corbinian, has a long history dating back to 739. The German Caritas Association is the largest social welfare organization in Germany and Europe, committed to human dignity, the common good, and solidarity, all rooted in the social doctrine of the Catholic Church.
The issue of affordable housing in Munich is a perennial concern. In a related development, the Caritas had previously given the all-clear regarding the sale of a student dormitory, which had caused outrage due to fears of its conversion into luxury apartments. The Diakonie association has also expressed interest in acquiring church properties, viewing such takeovers as potentially good solutions for parishes struggling to finance their buildings. The Archdiocese of Paderborn, despite being financially strong, also plans to reduce its church properties by 20 to 30 percent.
Source: https://www.domradio.de/artikel/caritas-muenchen-verteidigt-verkaeufe-von-immobilien
