KfW loan + repayment grant for granny flat

Ok, thanks. We were led to believe that the construction of the [Einliegerwohnung] (compared to a normal (residential cellar room, which is planned for that place anyway)) can practically pay for itself through the 2nd repayment bonus from the KfW with simple equipment. Because of this statement, we only considered building an [Einliegerwohnung]. It sounded like a good idea. With proportionate funding, of course, it looks different again, especially since the topic of an [Einliegerwohnung] was not really an issue at the beginning of our planning...

Do you have your knowledge from practice or from theory and do you interpret what you read?

Extreme example:

I am building a multi-family house, student dormitory, consisting of a 300 sqm penthouse apartment and 20 student apartments of 25 sqm each (which meet the requirements of the KFW).

Building construction costs 2.0 million euros. (2500 euros/sqm)

Of which 2.0 million KFW funding 153?

Well, arguments again all gone?

I gave you sources. Take a look at them.
No, I haven't built anything like that myself. As little as you have built the multi-family house with penthouse apartment and 20 student apartments.
In fact, there are no indications on the KFW website that your construct would not be possible. I also wouldn't know what would be wrong about it. The funding goal of program 153 would be fulfilled with it.
That more credit cannot be drawn than the costs for the building arise from results from the bank's pass-through. And it is surely stated somewhere in the fine print. I do not want to deny that. Nevertheless, we are talking here about a loan volume, not a reimbursement of investment costs possibly above 100% of the investment.
However, there is no indication anywhere in the entire procedure that the costs per residential unit play a role (counter-question: does the fictitious 20,000 euro expensive underground parking space then also count towards the value of the fictitious 80,000 euro expensive granny flat?)

Residential buildings within the meaning of this funding program are buildings according to § 2 of the Energy Saving Ordinance (Energy Saving Ordinance), which are predominantly used for residential purposes according to their intended use, including residential, elderly, and nursing homes as well as similar facilities. Residential buildings within the meaning of this funding program do not include boarding houses (as accommodation businesses with hotel-like services), holiday homes and apartments, as well as weekend houses. Residential units are rooms located in a closed context and intended for permanent residential purposes in residential buildings, which allow the running of a household (own lockable access, room, kitchen/kitchenette and bathroom/toilet).

These lists are exhaustive. I would not know what could be subject to interpretation here.

In the form to confirm after completion, invoices proving the eligible investment costs related to the investment object, which can have x residential units, are to be attached.

The maximum loan amount is 100,000 EUR per housing unit.

You can read it the way you want or the way I described it. We probably agree on that much.

However, I can tell you from practical experience (yes, I have been involved in something like this) that a project as described by me above would not have been approved in a slightly different setup 8 years ago if you wanted to claim the full amount. Proportionally, however, it was not a problem.

But to address the OP: As long as 100 TEUR of construction costs can somehow be allocated to the granny flat, it is not a problem to apply for 100 TEUR for it. If it is only 80 TEUR, then also this amount. If an actual rental is planned, splitting the loan funds makes sense for tax reasons anyway or, if different repayments are planned, can make life easier. For this, refer to advice from a tax consultant.

Hi,

I cannot confirm what Toxicmolotow writes, on the contrary.

We are building a single-family house with a granny flat and have been approved for double the KFW loan.
The granny flat is only 40 sqm and certainly does not cost a total of 100,000 €, the only requirement was that it is a "real" apartment: meaning over 30 sqm, own bathroom, possible kitchen including connections and separate meters.

It was approved and the funds have now almost all been drawn, so apparently the regular invoices were also sufficient.

Best regards, Tina

I couldn’t let it go, so I simply called KFW and asked. The costs per housing unit do not have to be proven. The costs of the entire building must exceed the loan amount. Keywords were flat-rate funding and simplification reasons.

Does anyone want to build a student dormitory with me according to [KfW40+] standard? Just kidding, I think it's not worth it, I haven't seen any multi-family house built to [KfW40+] standard yet.