The federal government, cooperatives and SBB are giving impetus to non-profit housing

Zürich/Bern, June 2022

The Federal Housing Office (BWO), Swiss housing cooperatives and the SBB regulate the sale of land under building law with a framework agreement. There is now a basis for non-profit and thus long-term affordable housing on SBB sites.

Apartments are scarce in the larger Swiss cities. This applies in particular to inexpensive apartments. In order to enable more non-profit housing construction, especially in central urban locations, the Federal Housing Office (BWO), Swiss housing cooperatives and the SBB have jointly drawn up framework conditions for a model building rights contract. The BWO also represented the Swiss Housing Association. This protects the interests of both umbrella organizations for non-profit housing construction. The model building rights contract will come into effect in future when SBB hands over land with building rights to non-profit housing developers.

“We welcome the fact that SBB is making areas available for non-profit housing construction with building rights. This contract ensures that the framework conditions are compatible with the funding criteria for non-profit housing construction,” says Martin Tschirren, director of the BWO.

“SBB aims to offer around half of its apartments at low prices – either through their own apartments or by paying the building permit.” According to Alexander Muhm, Head of SBB Real Estate, the new contract is an important step in this direction.

“We are pleased that we have reached an agreement, even if the building lease interest for non-profit housing will be at the upper price limit,” emphasizes Eva Herzog, President of the Swiss housing cooperative. “Now we will take the SBB at its word to give more areas of building rights to cooperatives.”

Compromise lays a uniform basis for future projects
The common regulation has the advantage for all partners that future building rights contracts with non-profit housing developers no longer have to be negotiated from scratch for each project, but can be implemented more easily and quickly on the basis of the framework conditions that have now been agreed. The SBB advertises every sale of SBB land in the building law in a competition. In close cooperation with cities and municipalities, it ensures that the best use is found for the respective location.

In particular, the new agreement regulates the assessment and development of the building lease interest and ensures that the non-profit apartments within the meaning of the Housing Promotion Act (WFG) are also inexpensive in the long term. This is because the building lease interest is based on the so-called cost rent and corresponds to the cost limits of the BWO.

The new model contract also takes account of the fact that the SBB, as the owner of the land, participates moderately in the increase in value of the areas, as required by the strategic goals of the federal government. As a state-owned company, SBB is bound by clearly formulated tasks and goals. The owner expects SBB to develop railway areas in a targeted manner and thus make a long-term contribution to a financially healthy railway system.

The promotion of non-profit housing is a constitutional mandate of Swiss housing policy. The non-profit property developers – housing cooperatives, foundations or associations – orientate themselves towards the cost of rent and operate without the intention of making a profit. Your apartments are inexpensive in the long term. Many non-profit property developers offer their tenants various social services in addition to living space, thereby relieving the public sector. In addition, this type of housing promotes social mixing and generational diversity.
SBB can look back on around 100 years of tradition in working with non-profit housing developers. This is based on the support of the railway workers’ building cooperatives, which were among the pioneers of cooperative housing construction.

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