Financial shock in Olching: Social apartments bring millions of loss!

Financial shock in Olching: Social apartments bring millions of loss!

Olching, Deutschland - In Olching, a current financial report causes excitement: A social housing project that was completed in 2023 with 31 apartments and an associated daycare center proves to be a financial disaster. According to the auditing committee (RPA), the annual loss amounts to 540,000 euros, which means for the city that it loses 47,000 euros annually. The achievement of a black zero could be in sight in 50 years at the earliest. The Merkur Cost 25 million euros.

The topic beats high waves, especially in the city council. CSU parliamentary group leader Tomas Bauer has sharp criticism of the project and describes the construction as overpriced. In his opinion, the city councils were not sufficiently informed about the financial consequences. These allegations throw a shadow on the management and raise concerns about the future orientation of urban development.

economy in focus

In addition to criticism of the residential construction project, the CSU parliamentary group has launched an initiative to improve the management of the urban rental apartments. This comprises around 300 units, of which a loss of 140,000 euros is expected in the city budget in 2024. Bauer argues that the city would have to achieve a surplus of 1.097 million euros in order to close the financial gaps. If this situation does not improve, a private economy apartment could be considered for the administration of urban apartments, as Bauer emphasizes.

A central concern of the CSU is to check whether urban tenants still meet the criteria for social housing. Any misconduct is to be identified, which the city administration under Mayor Andreas Magg can now examine. But Magg rejects the allegations that the city is solely responsible for the repeated losses.

The challenge of the rental price brake

In the background of these two topics, there is a reality on the housing market, which is shaped by the legal framework and the state's financial support instruments. An analysis of the Hans Böckler Foundation shows that the instruments of state funding-including housing benefit and the rental price brake-do not achieve the desired goals. In the ten largest cities in Germany, it would take about 185 years to close the gap in cheap apartments with the current funding scope. This is supported by a study that shows that around 1.9 million cheap apartments are missing.

Another problem is itself in the rents: in Olching, social renting is limited to 11 to 12 euros per square meter. This limits the income and presents the city with the challenge of covering its expenses and at the same time investing in new projects.

The situation requires a rethink: average households that live in cities have been spending at least 30 percent of their income for rent and additional costs for years. A switch to a stress -free living situation seems to be unreachable for many. The city of Olching now has to decide how it deals with these challenges and what solutions it wants to strive for the future. This is the only way to make housing in the city sustainable.