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Housing subsidy reform poses major challenges for cities

Rheine. With the “Housing Benefit Plus”, the Federal Ministry of Housing, Urban Development and Construction is launching a new housing benefit reform. The new regulations are intended, for example, to support more people with lower incomes who have to pay rent or repay the loan in the case of a property they own, by changing income limits and increasing allowances.

As much as the housing subsidy reform offers additional financial help to many people, it poses major challenges for the city of Rheine. First, because the law was enacted at very short notice: The Bundestag voted to approve it on Nov. 10, 2022, and the Bundesrat even voted to approve it on Nov. 25, 2022, leaving municipalities (too) little time to prepare for the changes. To make matters worse, changes to the nationwide housing allowance calculation program are still required. According to information from IT.NRW as the responsible authority, the new housing allowance software is not expected before the end of March 2023. However, the new regulations will already come into force on January 1, 2023. In fact, housing benefit applications can therefore only be approved and paid out from April 2023. The city Rheine has no influence on the update of the program.

According to experts, the reform will triple the number of households eligible for housing benefit. However, we expect significantly more applications because experience shows that it is to be expected that people who do not have an entitlement will also submit applications.

The city of Rheine started to recruit the additional staff required for the housing allowance office as soon as the change in the law became known. Unfortunately, due to notice periods, most of the new employees will not be able to start work until 2023. They will then have to be trained, at least in part.

Longer waiting times for housing subsidy approvals are therefore unavoidable.

Important for applicants: Entitlement to housing benefit begins in the month of application. This ensures that even if the housing allowance is granted late, it will be paid retroactively from the date of application. The city therefore advises to submit applications early, but ask for patience during processing.

Since December 15, 2022, citizens can check online at www.wohngeldrechner.nrw.de whether they are entitled to housing allowance under the new law and submit a housing allowance application directly online. The required attachments to the housing allowance application can be sent by mail to the city’s housing allowance office at Rheine or by e-mail to . Application forms can be picked up at the information desk in the New City Hall during general opening hours. Housing allowance applications can thus be submitted conveniently online, by mail and by email. There is no need to come in person.

In the meantime, the city asks Rheine to refrain from telephone and personal inquiries about housing assistance. Concerns should preferably be communicated by email to or in writing. Staff will respond as quickly as possible. However, delays cannot be avoided. The staff thanks you for your understanding!