Can Retirees Claim Housing Benefits? – Lastenzuschuss Explained

Many German retirees are unaware they may be eligible for financial assistance with housing costs, even if they own their homes. Beyond rising living expenses, mortgage payments, maintenance, and property tax can become a significant burden. A program known as the ‘Lastenzuschuss’ – a form of housing benefit – is available to help, but often goes unclaimed.

What is the Lastenzuschuss?

The Lastenzuschuss is a form of ‘Wohngeld’ (housing benefit) specifically for homeowners occupying their property. According to § 1 Abs. 2 of the Wohngeldgesetz (WoGG – Housing Benefit Act), while renters receive a rent subsidy (Mietzuschuss), homeowners receive a contribution towards the financial burdens of homeownership. The law states the goal of Wohngeld is to ensure economically secure, adequate, and family-friendly housing. The Lastenzuschuss is designed to help low-income households retain their homes despite ongoing expenses.

Eligibility for the Lastenzuschuss, as outlined in § 3 Abs. 2 WoGG, extends to individuals who own and occupy the property. This includes those with hereditary building rights, or similar long-term rights of occupancy. The benefit is not automatically granted; applicants must apply through the responsible Wohngeldbehörde (housing benefit authority) of their municipality, city, or district administration, as explained by the Federal Ministry for Housing, Urban Development and Building (BMWSB) on its website.

Can Retirees Apply for the Lastenzuschuss?

Generally, retirees who own and occupy their homes are eligible to apply for the Lastenzuschuss. The Wohngeld is provided as a contribution towards the financial burdens associated with owning a home. As with all applicants, eligibility depends on the number of household members, the amount of financial burden, and the total household income, as regulated in § 4 WoGG.

However, individuals already receiving certain other social benefits are ineligible. According to § 7 Abs. 1 Nr. 5 WoGG, those receiving basic security in old age or disability benefits (Grundsicherung im Alter oder bei Erwerbsminderung) under the Twelfth Book of the Social Code are excluded from receiving Wohngeld, making a Lastenzuschuss impossible in those cases.

Which Costs are Considered for Homeowners?

The Lastenzuschuss takes into account the financial burdens stemming from homeownership. According to the BMWSB, these burdens include:

• Expenses for capital servicing, including interest and repayment of loans used for construction, acquisition, or improvement of the property.
• A flat-rate allowance for maintenance and operating costs of €36 per square meter per year.
• Property tax (Grundsteuer).
• Administration costs.

These burdens are determined through a specific Wohngeld-Lastenberechnung (housing benefit burden calculation) conducted by the responsible housing benefit authority.

Income and Wohngeld: When Does it Become Critical for Retirees?

Whether a retiree receives the Lastenzuschuss largely depends on their household’s total income. The key factor is the total amount of money available. Income generally includes positive earnings, such as pensions or other income, as stated in § 14 Abs. 1 WoGG. Certain tax-exempt income is also considered. However, child benefits and child allowances are not included.

Certain amounts are deducted from this income – such as taxes and social security contributions – to arrive at the total income used to calculate the Wohngeld. Retirees face a potential issue when this total income exceeds the statutory income limits. In such cases, they are not eligible for Wohngeld.

Given the complexity of the Wohngeld income calculation, the Federal Ministry provides a Wohngeldrechner (housing benefit calculator) on its website as a preliminary guide.

Conclusion: Can Retirees Receive the Lastenzuschuss?

retirees who own their homes can indeed receive the Lastenzuschuss. Eligibility requires ownership of the property and personal occupancy. As with all Wohngeld applications, the determining factors are the number of household members, the amount of eligible financial burden, and the total household income. However, those already receiving basic security in old age or disability benefits are not eligible.