The housing market is tight in many regions. People with low incomes can hardly afford adequate housing. To mitigate this social imbalance, the state provides access to particularly affordable housing under certain conditions. A housing entitlement certificate is required for such housing; it is also called a B certificate, WBS, or §5 certificate or §8 certificate. What exactly is a housing entitlement certificate, what does it permit, and what requirements must you meet to obtain one?
Function of the Housing Entitlement Certificate
If you have a low income, you may be able to benefit from a WBS. This allows you to rent so-called “social housing.” This is publicly subsidized housing with particularly low net cold rents. With some exceptions, it is generally available only to people in need.
The housing entitlement certificate is an official document issued by the municipality. As a prospective tenant, you can use it to prove that you are entitled to rent subsidized housing, known as “occupancy-restricted housing.”
Legal Basis of the WBS
There are two key laws relevant to applying for a housing entitlement certificate:
- § 5 WoBindG (Act on Safeguarding the Intended Use of Social Housing – Housing Binding Act)
- § 27 paras. 1 to 5 WoFG (Act on the Promotion of Social Housing – Housing Promotion Act)
All relevant regulations that are important for applying for and using such a document derive from these two legal bases.
The Housing Binding Act concerns social housing. In § 5 WoBindG, the legislator mentions the certificate but refers to the Housing Promotion Act for detailed rules. The requirements for obtaining a housing entitlement certificate are set out there.
Important: The federal states and municipalities decide independently how to structure the statutory framework. Please find out directly at your local authority how and up to what income level you can obtain a WBS. The detailed rules applicable where you live are decisive.
Who Issues the WBS?
The responsible local authority issues the WBS. Usually, this is either the social welfare office or the housing office. More precisely you can find out via the municipality’s website or inquire at the citizens’ office.
A distinction is made between housing entitlement certificates of type A and type B. The authority issues type A certificates for particularly low incomes. They usually apply to particularly low rents. The apartments are generally allocated directly by the competent authority. Type B certificates generally relate to a higher income and apply to correspondingly higher rents. However, the key difference is that the landlords (usually municipal companies or cooperatives) decide on the allocation themselves.
Municipalities also indicate the WBS urgency levels. The more acute the housing shortage, the more important this value becomes. The most affordable apartments are often allocated according to urgency level. This classification is intended to help remedy particular social hardships (for example, impending homelessness) at short notice and ensure socially fair housing allocation.
Who is eligible for a B certificate?
In principle, anyone can obtain a housing entitlement certificate, provided the requirements are met. Therefore, single people, couples, families, or single parents can all benefit from this special entitlement.
If you wish to apply for a WBS, your income must be insufficient to pay a customary local rent. Income from employment, unemployment benefits, “Hartz IV”/social assistance, and other support payments are included in the calculation.
What income limits apply?
The legislator specifies clear income thresholds. However, the federal states may adjust these by regulation to regional requirements. This also means that municipalities may sometimes determine them freely. Depending on the local social structure and housing market, different figures may therefore apply to your place of residence!
However, Section 9 WoFG specifies the following income limits:
- One-person households may have a maximum annual income of 12,000 euros.
- Two-person households may have a maximum annual income of 18,000 euros.
- 4,100 euros may be added for each additional person in the household.
- 500 euros are added for each additional child pursuant to Section 32 (1) to (5) of the Income Tax Act.
Net income applies, taking into account income-related expenses and social security deductions. Child benefit is not taken into account. Further Tax allowances may be possible depending on the individual situation.
Example: If you form a household with a partner (together €18,000), an adult child with their own income (+ €4,100), and two other minor children (+ 2 x €500), your total household income may not exceed €23,1000. Local adjustments to the income limit are excluded.
Attention: Special legal regulations apply to people with a disability. Persons who are not citizens of an EU member state must also have a valid residence permit and—depending on the region, for different lengths of time—have a permanent residence in Germany.
How do you apply for a housing entitlement certificate?
The responsible authorities examine individual cases. This means you must submit an application and provide supporting documents. You can obtain the application itself from the responsible social welfare or housing authority. In some cases, you can download it as a document service from the municipality’s website.
The following documents, among others, are important when submitting the application and may be requested by the authority. The evidence to be provided varies depending on the individual case and may differ from the documents listed here:
- identity card (or passport, if applicable);
- proof of income for the last twelve months for all persons living in the household who have income, investment income, etc., or receive payments such as unemployment benefit, Hartz IV, social assistance, pensions, etc.;
- children’s birth certificates, if applicable;
- marriage certificates or partnership declarations, if applicable;
- certificates of study, if applicable;
- proof of a residence permit, if applicable;
- proof of a disability or need for care, if applicable;
- proof of maintenance payments or extraordinary expenses, if applicable.
If all documents support the application, the responsible authority will issue you a housing entitlement certificate. This is valid for twelve months. During this period, you can use it to prove to landlords that you are permitted to rent particularly affordable social housing. The size of the apartment depends on the number of people. As a rule, a one-person household is granted an apartment of approximately 50 sq m. For each additional person, this guideline increases by approximately 15 sq m.
What happens if the income is too high?
You have the option of renting social housing even with a higher income apply for one. In this case, the landlord submits an exemption application to the municipality. However, if the municipality approves it, the net cold rent increases somewhat as compensation. Such approvals are particularly possible when the city wants to counteract the emergence of socially deprived areas through a mix of residential and income structures.
Tip: If rents locally seem barely affordable, applying for housing benefit may be an alternative to a housing eligibility certificate. Different requirements must be met for this.
How do you find subsidized housing?
Only in acute cases will the municipality assign you an apartment directly upon issuing a housing eligibility certificate. As a rule, you therefore have to look for an apartment yourself. However, you should not choose only the traditional channels, such as real estate portals or newspaper advertisements. Many apartments are allocated directly by municipal housing companies or cooperatives—sometimes with waiting lists. The municipality itself may also have contacts with landlords offering social housing.