Nassauische Heimstätte Fears Losing €80 Million in Federal Funding
Frankfurt, July 7 – The Nassauische Heimstätte/Wohnstadt (NHW) housing group is facing a potential loss of approximately 80 million euros in federal funding by 2030. This concern was raised during the company’s annual press conference, following an announcement from federal ministries that could exclude NHW from key funding programs.
The federal ministries for Economic Affairs and Housing have indicated that NHW, along with other companies with state involvement, may no longer be eligible for funding programs aimed at energy modernization and new construction projects. This exclusion, however, does not apply to urban states where housing companies are entirely municipal-owned.
Financial Implications and Political Intervention
The significance of this potential funding cut for NHW is underscored by its financial performance. In 2025, the group’s net profit was 32.8 million euros, a slight decrease from 34.7 million euros in 2024. Kaweh Mansoori (SPD), Hessian Minister for Housing Construction and Chairman of NHW’s Supervisory Board, revealed that the company received this unwelcome news from Berlin late last year.
Mansoori has since appealed to both ministries, emphasizing that NHW is also a municipally-oriented company, with funds from Berlin directly serving their intended purpose without state detours. The state of Hesse holds 61 percent of NHW’s shares, the city of Frankfurt 27 percent, Wiesbaden six percent, and Deutsche Rentenversicherung nearly three percent. The remaining shares are held by other Hessian cities and districts.
Partial Reversal and Ongoing Negotiations
According to Mansoori, Sören Bartol, Parliamentary State Secretary in the Ministry of Housing, has indicated that funding for new construction projects will now continue, acknowledging the arguments from Wiesbaden. Bartol also serves as the state chairman of the Hessian SPD.
However, the Ministry for Economic Affairs continues to withhold support for energy modernization initiatives. Mansoori stated that efforts to persuade the ministry are ongoing. Thomas Hain, NHW’s Managing Director, welcomed the resumption of new construction funding as an important signal but expressed dissatisfaction with the modernization funding situation.
“Anyone who wants to achieve climate protection in existing buildings must ensure reliable and long-term predictable funding conditions for everyone, so that planned investments can actually be made,” Hain stated. The company estimates that every euro of funding typically triggers seven euros in investments. Frankfurt, in particular, benefits from robust financial support.
Affordable Housing and Social Responsibility
NHW maintains an average cold rent of 7.13 euros per square meter, demonstrating that affordable housing is achievable even in Hessian metropolitan areas, Mansoori highlighted. With over 61,500 residential units, NHW is a central player in Hesse’s housing sector, currently building more than it has in the last 50 years.
The company also emphasizes its social responsibility, offering a three-week support program for elementary school children of tenants, in collaboration with the Polytechnic Society. This program combines German lessons, theater education, and recreational activities to enhance language skills, self-confidence, and educational opportunities.
Balancing Climate Protection, Affordability, and Economic Viability
Mansoori expressed skepticism regarding demands for NHW to limit rent increases to a maximum of five percent over five years, a proposal supported by approximately 2,000 signatures in Frankfurt. He stressed the need to balance climate protection through energy-efficient renovations, affordable rents, and economic viability.
He warned that excessively low rents would not only deplete funds for necessary transformations but also create conflicts with European Union state aid regulations. The city of Frankfurt is currently seeking a solution to this complex issue.
