FAG 2024 updated: up to €1 billion in federal housing grants to states, plus €166.86 million for investments
The Fiscal Equalization Act 2024 (Finanzausgleichsgesetz 2024) has been amended by the Budget Accompanying Act 2027–2028 (BGBl. I Nr. 62/2026) to add new federal grants to the nine Austrian states: up to €1 billion for housing construction and renovation, and €166.86 million for investment support. States may now apply for these funds, subject to conditions including anti-speculation clauses and photovoltaic installation requirements.
What changed
New §29a introduces federal housing grants totalling up to €1 billion: €780 million for multi-storey new construction by non-profit housing associations, municipalities, or developers, and €220 million for renovation of rental apartments by non-profit associations to reduce greenhouse gas emissions. New §29b adds a targeted investment grant of €166.86 million distributed among all states by fixed shares. A further change (new §32 para. 1a) means that amended rules for calculating net revenues from shared federal taxes (§10 para. 2) will take effect on 1 January 2028.
Who is affected
All nine Austrian states (Bundesländer) are eligible to apply for both grants. Municipalities, tenants, and housing-seekers benefit indirectly from increased housing supply and lower-emission buildings. Conditions for new-construction grants include anti-speculation clauses under the Housing Non-Profit Act (WGG) for at least 25 years and mandatory photovoltaics of at least 10 Wpeak per m² of conditioned floor area.
What to look out for
Housing grants (§29a) are paid in instalments: 25% in 2024, 50% in 2025, and 25% in 2026; up to 50% of any year's unused allocation may be carried forward, at the latest to 2027. States must apply in advance, submit annual usage reports to the Federal Ministry of Finance, and prove that federal funds supplement—not replace—their own housing expenditure. The investment grant (§29b) disburses €50 million by 18 September 2026, with the remainder in three equal tranches in 2029–2031.