2021-07-01

Investment support for rental housing – that's how much you can get in grants

If you plan to build or renovate apartment buildings, you have the opportunity to apply for investment support from the County Administrative Board. But what is it that applies to applying for the aid? What criteria do you need to meet to apply?

Government grant for low-energy rental apartments

The purpose of the investment support is to build more rental apartments and housing for students. The homes should have low housing costs and low energy consumption. The support is for rental apartments in areas with a housing shortage or for student apartments in university campuses and in some cases for municipalities with a lack of certain types of housing.

 

Is the investment aid for new production or ROT?

As long as it is a tenancy, it does not matter if you are building new, doing extensive renovations or rebuilding completely. However, redevelopment requires that the building has not been condominiums for the last eight years.

Invest in small apartments to get the highest possible contribution

To get the highest possible amount of support, you should build small apartments. More precisely, apartments with up to 70 square meters of boarea (BOA). Up to 35 m² BOA is given the full maximum amount, then 50% of the maximum amount is given up to 70 m² and after 70 m² no further support is given.

  • 0-35 m² BOA = 100% of the amount of aid
  • 36-70 m² BOA = +50 % of the amount of aid
  • BOA in excess of 70 m² = no amount

Amount of rent:

  • 7 100 SEK/m² BOA in Stockholm
  • SEK 5,800/m² BOA in Gothenburg/Malmö or regions near Stockholm
  • 4,800 SEK/m² BOA rest of the country

Amount of student support:

  • 7 100 SEK/m² BOA in Stockholm
  • 5,800 SEK/m² BOA outside Stockholm

Example, apartment building with apartments of 77 m² in Stockholm:

35 × 7,100 kr = 248,500 kr

35 × 3,550 kr = 124,250 kr

7 × 0 KR = 0 KR

Total amount:

248 500 + 124 250 + 0

= SEK 372,750 per apartment

Apartments must comply with standard rent according to BBR

Support may only be provided if the project ensures low housing costs (norm rent according to the Swedish National Board of Housing and Urban Development's building regulations – BBR).

The standard rent for tenancy according to BBR:

  • 1,550 SEK/m² in Sthlm
  • SEK 1,450/m² in Gbg/Malmö, in regions near Sthlm
  • SEK 1,350/m² other country

Norm rent for student apartments:

  • 1,550 SEK/m² in Sthlm
  • SEK 1,450/m² other country

Energy use – tougher requirements than BBR

In order to receive the investment aid, the energy consumption of the property must be kept below a certain level. According to the basic condition, the property may reach a maximum of 88 % of the energy consumption requirements set out in bbr. The requirements in BBR as of 1 July 2020 are 75 kWh/m²/year*. Thus, your property may not use more than 66 kWh/m²/year (88% of 75) to receive the investment aid.

Lower energy consumption ensures 75% higher contribution

In order to receive additional support, an energy bonus, the house's energy use may reach a maximum of 56% of the BBR rules. 56% of 75 kWh* = 42 kWh/m²/year. If the house only "spends" up to about 42 kWh/m²/year, the amount of aid may be increased by 75 %.

*The figure is the EP_PET requirement in BBR. EP_PET = Energy performance expressed as primary energy ratio [kWh/m² Atemp/year].

You can receive SEK 100 million in investment support

The maximum possible amount is SEK 100 million per construction project. The total costs of a construction project may not exceed SEK 200 million. However, if a construction project is for several stages and the applicant requests that separate decisions on aid be taken, the County Administrative Board may deal with each stage as a project. Support can then be provided for each stage.

Projects must start within one year of the County Administrative Board's decision on support.

Guaranteed energy savings to achieve the highest possible contribution

With a solution for recycling heat in wastewater, the energy key ratios can be significantly reduced in your property. By reusing at least 90% of the heat energy contained in the property's waste water – instead of flushing it away – the need for added energy is significantly reduced.

Want help figuring out how to achieve the energy savings required? Try counting on our calculator yourself or contact us at Evertherm directly.