Offenbach: Federal government reduces housing costs

• fromFabian Scheuermann

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In future, German municipalities will have to pay less for renting and heating Hartz 4 receivers because the federal government will take over more. This relieves above all poor cities such as Offenbach.

This week’s coalition agreement in the federal government on a multi-billion euro stimulus package has had a particularly great impact on the households of poorer municipalities such as Offenbach. Because: Cities and counties should get more money from Berlin for the living and heating costs of Hartz IV recipients. For Offenbach alone, this could mean a financial relief of 11 to 13 million euros a year.

“The fact that we no longer have to raise this amount on our own is the best news for the city’s budget for many years,” said Mayor Felix Schwenke (SPD) of the development. Specifically, the federal government, which according to the law currently bears a maximum of 49 percent of accommodation costs depending on the region and year, plans to reimburse another 25 percent – a total of up to 75 percent of the costs.

Poor cities like Offenbach often have an above-average proportion of Hartz IV recipients. So you have to pay more money for the “costs of accommodation” (KdU) – the official term – although they usually have less money available. Many municipalities have long denounced this. Offenbach’s OB Schwenke, who is also a member of the Finance Committee of the German Association of Cities, says that in November he personally spoke to Federal Finance Minister Olaf Scholz (SPD) about the “financial imbalance” at KdU. Treasurer Peter Freier discussed the issue with the then Hessian Finance Minister Thomas Schäfer (both CDU).

Maximum 495 euros for rent

The federal government is now “finally getting significantly more of the laws that it and the federal states have made,” says Schwenke. That is a “huge step” – but not yet the final breakthrough. The cost of accommodation in Offenbach in 2019 was 46.7 million euros – the city paid 33.3 million, the federal government only paid 13.4 million, according to Freier. “If it took over another 25 percent of the costs, the city would have had to spend 11.7 million euros less last year,” the treasurer is now calculating.

There are enormous differences in the Hartz IV housing costs between the 398 districts and independent cities – the costs per inhabitant are between around 20 and more than 400 euros, depending on the housing market and unemployment rate. Offenbach was in seventh place nationwide in 2017 with € 369 per capita – just behind cities like Gelsenkirchen and Berlin. This is the result of an expert opinion commissioned by the Greens’ parliamentary group.

A major problem is the tight housing market in the metropolitan areas. For example, the rent of a single beneficiary in Offenbach can cost a maximum of 495 euros so that the job center can cover them – including ancillary costs. Those who cannot find housing for this money will be accommodated in emergency accommodation, community accommodation or the simplest hotels. Almost 500 people live like this in Offenbach, and the trend is rising. The left therefore calls for the money saved by the recent decisions to create more social housing and places in emergency shelters. Also, so that hotels will have to be rented less often for expensive money in the future.

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