Saxony Housing Funds Dispute Intensifies After Ministry Rebuts Greens’ €200 Million Claim

Overview

• The Greens in Saxony’s parliament allege that €200 million in federal money for social housing went unused over five years, costing hundreds of apartments in cities such as Dresden and Leipzig.
• The state infrastructure ministry says the €200 million figure conflates budget accounting with actual cash flows and reports that roughly €95 million was returned to the federal government.
• The ministry attributes the returned funds to projects that were not fully planned in time rather than to a lack of demand for social housing support.
• For the 2024 programme year, the ministry expects more than 99 percent of federal funds to be contractually bound to projects.
• The dispute highlights a political fight over accountability for stalled social housing, with Greens criticizing slow subsidy-rate adjustments that discouraged developers from drawing funds.