The “dream in the country” would perhaps be advertised on the free market by some realtors, come up with all sorts of embellishments for the property, elegantly circumvent any disadvantages. The real estate managers of the Free State, however, are ruthless with the property – built in 1950, a good 270 square meters of living space – in the Cham district not far from the Czech border. “The property is not connected to the public sewer system”, the buyer has to build a “small sewage treatment plant with mechanical-biological wastewater treatment”. “The entire property is completely overgrown with plants and is difficult to access. An all-terrain vehicle is an advantage.” A few more quirks: a half-finished conversion with plasterboard, strong mold mainly on the ground floor, suspected dry rot infestation. “Sale against the highest bid” – who wants?
The exact history of this property, which has been vacant for ten years, is state-owned and is now to be sold, is unclear. It was probably inherited, so most of the advertisements on the net include objects that were left to the state. If there is no inheritance for a house or property or the heirs reject it, it goes to the respective federal states. These must take on the “fiscal inheritance”, including basically anything, including houses. If the attempt to sell these fails, it is not uncommon for them to deteriorate even more and are considered an eyesore in places. At the same time, inheritances are not just problematic cases, collapsing old buildings or areas with contaminated sites. Incidentally, it is not just about properties in Bavaria, the last place of residence of the deceased is decisive. The state has already inherited houses from Lübeck to Tyrol.
Bavaria currently owns almost 3800 estate properties – 750 more than four years ago. In the past year, the Free State acquired a total of 617 properties. The SPD member Klaus Adelt (SPD) learned the new numbers through an inquiry, he speaks of “junk real estate”. Adelt calls for changes, the Free State should leave the buildings to the municipalities or renovate them. It is also “unfair” that the state pays the municipalities neither property tax nor running costs for the buildings.
Above all, however, the SPD municipal expert, former mayor of a small town in the Franconian Forest, criticizes the Free State’s “inaction and lack of cooperation”. He demands room for maneuver for the municipalities as well as a special funding program. “On the one hand, cities and municipalities must be put in a position to acquire, demolish or renovate junk houses. On the other hand, structural reforms are needed.” As a development agency, a newly founded state-owned company should take care of the marketing, renovation and increase in value of estate properties. Surrendering the buildings to municipalities could make villages more attractive – for example through a local pub or living space. Clever strategies are required, instead “the state government is decaying buildings.” The Supreme Audit Office (ORH) has already criticized this, loudly Annual report 2019 see “clear need for optimization” and uneconomical structures at the state level. “Nothing is done to preserve the substance and the value of the inherited real estate. That reduces possible revenues if they are to be sold,” criticized the ORH.
Adelt also sees the increased number of estate properties as a “reliable indicator” of how things are going with the equivalent living conditions in Bavaria. This goal is anchored in the constitution and Prime Minister Markus Söder (CSU) is happy to promote it with publicity, even earlier as home minister. Adelt interprets the data: “The fact is: the majority of the unwanted hereditary properties are in northern Bavaria”, 57 percent in Upper and Lower Franconia; not infrequently also in structurally weaker areas.
There are certainly inheritances of value that bring the state income: In the past few years, 610 objects have been successfully sold, in 75 cases to municipalities, by the way. However, more than a third of the 3800 properties in the portfolio have been there for more than five years. This can, but does not have to be, because they are junk stalls. Often, explains the building ministry, rapid realization fails due to a large number of mortgage creditors who do not want to waive their claims; or the fact that the Free State, as heir, only became a co-owner of the property.
However, there is no need to reform the structures. How about Adelt’s idea of a development agency, the special program or the regular transfer to the municipalities? The building ministry, which is responsible for the issue with the finance ministry, informed the SZ on request: State Office for Finance and Real Estate Free State of Bavaria is already “in intensive and regular contact with the municipalities”, there is a system of fixed contact persons. Before an invitation to tender for sale, there is always an offer to the municipalities, which may have a right of first refusal. Obstacles to investments are often burdens such as mortgages. Value-adding measures would primarily benefit creditors and banks, at the expense of the taxpayer. Adelt’s advances ignored a central problem.