HOWOGE AFFORDABLE HOUSING BERLIN I

The Investment loan will finance the construction and energy efficiency refurbishment of affordable housing for low and moderate-income households in Berlin.

The aim is to provide low and medium income households with affordable housing in the city of Berlin. The schemes under the project comprise the new construction of social and affordable rental housing, kindergartens, student accommodations and photovoltaic plants as renewable energy sources.

The Project is in line with the objective of Social Investments, as per Annex II of the InvestEU Regulation.  It supports the implementation of the European Pillar of Social Rights.

The Project involves the new construction of energy efficiency affordable housing in Berlin. The Project is expected to increase the supply of new housing units in response to high demand for affordable housing in Berlin for the benefit of low- and moderate-income households. It contributes to improvements in the built environment and to urban regeneration making neighbourhoods more sustainable. The Project is expected to provide high quality and energy efficient buildings, which will lead to lower energy bills for low and moderate-income households. At policy level, the Project supports the EU Treaty, numerous Public Policy Goals and EIB Mandate Objectives.

The loan plays a crucial role in supporting the Borrower's extensive housing investment programme and establishing a stable long-term funding foundation. The Bank will provide an unsecured loan, which will be effectively subordinated to the Borrower's standard mortgage loans and will thus help to optimise its asset encumbrance levels with a view towards mobilizing traditional mortgage funding for its ambitious investment programme. Also, it will enable Howoge to access long-term funds over an extended period matching the project implementation period and the long-term nature of these investments.

The Project would not have been carried out (to the same extent) by the EIB without the InvestEU support.

Compliance with the relevant EU Directives will be required throughout the Project's implementation: EU Environmental Impact Assessment (EIA) Directive 2011/92/EU amended by 2014/52/EU, EU SEA Directive 2001/42/EC, EU Habitats Directive92/43/EEC and EU Birds Directive 2009/147/EC. The status of any environmental studies and public consultations as well as the alignment of energy efficiency requirements with the EU Directive on the Energy Performance of Buildings 2010/31/EU will also be required.

The Bank will require the Promoter to ensure that contracts for the implementation of the project have been/shall be tendered in accordance with the relevant applicable EU procurement legislation (Directives 2004/18/EC and/or 2004/17/EC as well as Directives 89/665/EEC and 92/13/EEC) as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.