Controversy Surrounding Immodeals

How Housing Allocation Works at Nonprofit Housing Organizations

Income limits and rules are intended to ensure fairness in nonprofit housing.(Bild: Markus Wenzel)

The purchase of two apartments—which a nonprofit housing association reportedly built back in 2012 on Harrachstraße in Linz and, according to a report in *Der Standard*, allegedly allocated at comparatively low prices to two associates of Deputy Governor Manfred Haimbuchner— is currently sparking debate in several media outlets. 

While some suspect a scandal and are demanding an investigation, the FPÖ politician vehemently rejects these allegations. “One of the apartments in question was sold with a state loan, the other without—that is, privately financed and thus completely outside the state’s jurisdiction,” Haimbuchner writes in a statement on Facebook. He adds that the prices were also in line with market rates at the time. Furthermore, these were by no means “public housing units” that were “handed out to anyone.” The state loan is being repaid—as intended. The income threshold for such a loan—85,000 euros in annual net income—is comparatively high.

(Bild: Screenshot Facebook)

How do you get an apartment?
But how—regardless of the current case—does one secure an apartment through a nonprofit housing association? “First of all, you have to apply; then there are various eligibility criteria. These include divorce or, of course, income. The decision is made by a committee,” explains Robert Oberleitner, head of the non-profit housing association in Upper Austria.

This is how high the income limit is
Even for a two-person household, the income limit is 85,000 euros net per year. “This is deliberately set relatively high to give as many people as possible the chance at an affordable apartment. It’s also meant to prevent ghettoization,” says Oberleitner. Just because a nonprofit housing association is building a housing project doesn’t mean that all units are “public housing.” “A small percentage are privately financed; these are usually projects in particularly prime locations,” says Oberleitner.