The City of Munich has assessed the intended revision of regulations concerning maximum rent limits in basic social security by the Federal Ministry of Labour and Social Affairs as necessary and appropriate. This announcement followed the introduction of the so-called absolute maximum rent limit at the end of 2023. This legal provision limits the assumption of accommodation costs to 1.5 times the applicable rent cap. A defined objective of the law is to curb flagrant violations of rent price regulations.
Mayor Verena Dietl commented on the matter, stating that the original, rigid structure of the regulation would have represented an unreasonable burden, especially for elderly or care-dependent individuals with long-term tenancies. An involuntary move would often not have been feasible for this group of people. The City of Munich, together with other municipalities, had previously highlighted such hardship cases and submitted concrete proposals for change. The federal government's willingness to incorporate these practical experiences and make corresponding adjustments is seen as good news.
In the meantime, the federal and state governments have agreed on a new legal version of the regulation on the absolute cap, which came into force on 1 July. Until the implementation of the new regulation, interpretive and enforcement guidelines were published by both the Bavarian State Ministry for Family, Labour and Social Affairs and the Federal Ministry of Labour and Social Affairs. These take into account essential aspects of the issues addressed by the city.
In a letter to Federal Minister of Labour Bärbel Bas, Mayor Dietl outlined the City of Munich's position regarding the upcoming legislative revision. The city primarily demands that the following aspects be taken into account:
- —The legal establishment of an appropriate period for reducing accommodation costs when the maximum rent limit is exceeded. This period should also apply in the absence of a hardship case or demonstrably inappropriate expenses, to grant benefit recipients sufficient time to reduce costs without the threat of eviction.
- —The retention of an individual case-by-case review within the cost reduction process. This is considered essential to adequately account for individual social circumstances, health limitations, and particular life situations. In justified exceptional cases, permanent residence in the previous home should be allowed, even if the accommodation costs exceed one and a half times the appropriate expenses.
- —The particular challenge in accommodating homeless people. Especially for families and in emergency shelters, the real costs can significantly exceed the set upper limit. However, municipalities are obliged to accommodate homeless people. Non-recognition of the full costs would mean a financial burden for the municipalities. Therefore, the maximum rent limit for the accommodation costs of homeless people should not apply.
Mayor Dietl concluded by emphasising that effective homelessness assistance goes beyond mere accommodation and must aim for the joint development of prospects back to an independent life. The current regulation undermines these efforts. The City of Munich would face additional expenses of four to six million EUR should the costs not be fully recognised. A mere shift in costs, Dietl stated, does not solve the problem. The federal government has now recognised this issue, according to the city's assessment. The city declares its constructive cooperation in the upcoming implementation of the legislation.
