Quality of life in danger: urban development funding under pressure in SH!

Quality of life in danger: urban development funding under pressure in SH!

Warnings from social landlords in Schleswig-Holstein are increasing about the possible consequences of cutting urban development funding. Andreas Breitner, director of the Association of North German Housing Companies (VNW), emphasizes the fundamental role of urban development funding for economic and social stability. These funding programs make a decisive contribution to the sustainable strengthening of cities and communities as attractive business and residential locations. Current studies show that every euro in urban development funding leads to seven euros in private investments. For this year, almost 23.6 million euros are available from the federal government for Schleswig-Holstein, which is 1.2 million euros more than last year. The co-financing requirement adds up to a total of around 70.8 million euros, which represents an important basis for numerous projects. The VNW maintains over 466 housing cooperatives and housing associations that provide homes for around two million people in 775,000 apartments.

New urban development initiatives are of great importance, especially given challenges such as the decline in public funding. These funds are essential because they could affect the financial capacity of municipalities to implement energy transition projects. Breitner criticizes the state government and its approach to financing urban development funding through municipal financial equalization. From next year, the funding quotas for roads and paths are to be halved, while cost increases will no longer be offset. These developments lead to an increased urgency to secure urban development funding in the long term and not to cut social housing policy.

Impact on urban development

Urban development funding has far-reaching effects on urban development in Schleswig-Holstein. It not only affects city residents, but also the surrounding area and promotes regional development. In the cities, the changes caused by construction sites and road closures are particularly visible, while historic city centers and inner cities are becoming more attractive. Disadvantaged districts also benefit from this support, as they stabilize and new uses for brownfield land emerge. This leads to an overall improvement in the quality of living and life, which means more people are staying in the city centers.

Particularly noteworthy is the creation of jobs and economic value in the regional construction industry. The funding particularly supports small and medium-sized companies and therefore has a positive effect on the local economy.

A rethink in urban development funding is required. This includes an integrated approach that takes into account both ecological and social needs. Close cooperation between the federal, state and local governments is considered essential in order to create sustainable economic and social conditions.

For the future, it is crucial that urban development funding is not only secured but also designed effectively. The VNW points out the need to focus on strong urban development even in economically strained regions.

Those interested can find further information on the topic on the website Association of North German Housing Companies and the State government of Schleswig-Holstein.