After the reduction in housing subsidies, a wave of lawsuits from cooperatives and other housing companies could roll towards the federal government. On Tuesday, the Bavarian housing industry association VdW advised its 490 member companies to have claims for damages legally examined, as did the North German sister association VNW the day before. The reason for this is the “sunk costs”: Companies have already spent millions on planning new apartments that probably cannot be built without subsidies. The Federal Association of Free Real Estate and Housing Companies (BFW) is also examining legal action because of the funding freeze, as it announced on Tuesday.
KfW funding freeze – federal government threatens wave of lawsuits – economy
