Lifestyles and lifestyles are changing, and with them housing requirements and needs. The times when people had a large family in the background or a close-knit group in the neighborhood and helped each other without complications are largely over.

More and more people are therefore looking for new ways of living in which a deeper connection with people from the immediate living environment results in a higher quality of life for everyone. In an urban environment, housing projects are a way of combining community and independence.
A group comes together
In shared housing projects, people with similar ideas for living together in a shared house come together. The group then decides how the desired goal can be achieved.

There are the options of owning one or more houses themselves in order to be able to implement all the ideas, renting an existing property or cooperating with a housing association as a partner that builds the house and rents it out to the group. When participating in the Wiesbaden concept process, municipal properties are allocated on a leasehold basis. Combination models between ownership and rental, privately financed and partly subsidized, can also be realized.

If you are considering whether shared housing is right for you, the Frankfurt Network for Shared Housing has designed a self-assessment questionnaire to give you some food for thought.

Self-organization
Equal and democratic communication and decision-making structures are regulated within the group. The interests and abilities of the residents complement each other in the distribution of tasks.
Participation
Residents are involved in project development and participate in planning, construction and/or administration.
Commitment
The participants regulate their community on the basis of a legal framework. This framework defines social aspects as well as economic rules in order to enable initial and future coexistence in the long term, for example in the event of changes such as a change of group members.
Social networks
Residents make a conscious decision to participate in the house community and in the lives of other residents. There is often more intensive interaction here than in a good neighborhood, for example. Each group decides for itself how this togetherness should be organized.
Civic engagement
Many housing projects seek contact with the neighborhood or are active in networks and thus have a positive impact on the neighborhood.

The nationwide network FORUM Gemeinschaftliches Wohnen e. V. provides further interesting information on communal living.

Every project starts with an idea of communal living. The following schedule shows the steps to be taken in the realization of a housing project and the individual questions to be asked.

• Contact advice and information centers (e.g. the Coordination Office for Shared Living in Wiesbaden) and collect information material on shared forms of living.
• Further interested parties can be sought through newspaper advertisements, radio, notices in district centers and church communities or by building up networks.

• Getting to know each other through regular group meetings
• Joint visits to other housing projects that have already been realized

• Find common ideas for living together
• Determine the social structure of the residents (age of residents [only senior citizens, families...])
• Clarify the size of the project (number of apartments, people, etc.)
• Clarify the spatial location of the project (rural/urban...)
• Cultivate the community and enable mutual help
• Determine the internal organization of the project
• Determine the use and management of any common areas
• Organize the maintenance of the common areas and green or outdoor facilities
• Plan joint cooperation
• Create a written concept and clarify its binding nature

Depending on whether the apartments are

• privately financed rental apartments,
• partly subsidized rental apartments,
• cooperative rental apartments
• or as owner-occupied apartments

are to be planned and built, there are significant differences in terms of financing. The following questions should be clarified:

• What is the financial situation of the individual residents (available equity/available monthly budget for ongoing housing costs)?
• Is there sufficient equity to realize the housing project?
• Is public funding possible? Are households eligible for subsidized rental housing, with low or medium income?
• income or with a medium income?
• Is there a maximum limit for housing costs?
• How can the communal areas be financed?
• What is the realistic total cost of the project likely to be?

With a view to securing the overall financing, it is highly advisable to seek expert advice. Further information is available here.

The search for a suitable plot of land or building can be difficult depending on the local situation and market situation. However, if a suitable property is found, the following questions should be clarified:

• Who is the owner?
• Does the property have to be bought, rented or leased?
• What is the purchase price?
• What building and planning law exists? Is there a development plan in place or does the property have to fit in with its surroundings (§34 BauGB)?
• Is residential development possible? In any case, a documented building consultation with the responsible building inspectorate or town planning office is required.
• Are there any requirements for a conversion (e.g. listed building)?
  
  

You can find an overview of the most common legal forms and guidance on which legal form would be most suitable for your project here:

When it comes to choosing an architectural firm and a developer, it is not only professional expertise that is important. It is also important that the project group receives qualified support. In order to save costs, future residents may be able to contribute to the construction work themselves to a limited extent. Overall, the following should be clarified in advance

• the possibilities/limitations of influence
• the organization of planning participation within the time frame
• the types of personal contribution
• the total cost savings that can realistically be expected

Below you will find an overview of some legal forms. The aim is to present the key points of the individual legal forms in an overview, but there are many possible arrangements. This cannot and should not replace legal advice.

For building cooperatives and housing initiatives, the cooperative is one of the most suitable and tried-and-tested legal forms. The members of the cooperative acquire compulsory shares, which form the cooperative's assets. Once a property has been built, the apartments are rented out by the cooperative to the individual members. Members pay a "usage fee" for this, which is cheaper than a normal rent. This means that all members are tenants and owners at the same time. Members are not personally liable.

The members of the cooperative have a high level of security thanks to the so-called permanent right of use, as this gives them a lifelong right of residence. There is democratic co-determination in a cooperative. All decisions are made by majority vote. Each member has one vote, regardless of how much equity they have contributed. The contribution remains tied up for up to 2 years after leaving the cooperative.

Practical tips
Audit of the cooperative by an auditing association. Therefore, "proper accounting" is mandatory.
The auditing association and annual financial statements are annual cost factors. However, they also provide a high degree of legal certainty.
The cooperative is a special form of rental housing construction.
Cooperative construction projects can represent moderate rents and rent increases over a longer refinancing period.
Cooperative shares can be co-financed by KfW, for example.
Objectives and regulations are laid down in the articles of association.
Cooperative members are particularly interested in stability and a sense of community.
The amount of the required cooperative contributions ranges from several hundred to several tens of thousands of euros - depending on the capitalization of established or young cooperatives - and remains tied up for up to two years when leaving the cooperative.

If the planned project pursues clear idealistic goals, a registered association is a suitable legal form. The purpose of the project must not be commercially oriented so that it can be entered in the register of associations.

As the founding and administrative costs are very low, this legal form is also generally suitable for the concept phase of housing projects. For example, no minimum capital is required. The association is liable with its assets, there is no personal liability of the members.

Decisions are made by majority vote at general meetings, which are the supreme body of an association. The association is represented externally by a board of directors.

Practical tips

• For tax purposes, "housing" is not charitable.
• The charitable purpose can not only be defined in the articles of association, but must also be demonstrable through activities (neighborhood assistance, free cultural or social offers, etc.).
• Project participants are tenants.
• Equity capital can be made available to the association as a private loan.
• The legal form is suitable, for example, for the planning phase of a property before a condominium association is established (see below).

The common purpose of the members is a central feature of the GbR. In contrast to an association, this can also be structured on a purely commercial basis. The articles of association, in which the common purpose is defined, can be agreed verbally or in writing. No minimum capital is required.

The written form is required in order to counteract the potential for conflict at a later date. All decisions are usually made unanimously by the partners, making the GbR rather unsuitable for larger groups. For a GbR that is commercially active, the agreement of the majority principle (simple or qualified majority) in the articles of association may be appropriate.

Each individual GbR member is fully liable for the liabilities of the GbR with their private assets. The civil law partnership can also be used as a temporary legal form for larger groups.

This legal form is well suited for the planning or construction phase of a property, for example, before a condominium association (WEG) has been established. Once the project has been completed, the GbR can be discarded and a WEG can be established, for example.

Practical tips

• Joint undivided ownership of the property.
• Unanimity is a time-consuming voting procedure, but also offers a more "direct" involvement of the individual persons.
• For longer-term commitments, it makes sense to include a "neutral third party as guardian of the project idea".
• The inclusion of an arbitration clause to settle disputes while avoiding the (exhausting and more expensive) legal process is recommended.

The legal form of a WEG makes sense for groups that want to plan and build together, but then want to be the individual owners of the apartments/houses. It only comes into effect and regulates the communal life of the individual members once the construction project has been completed. Everyone is the owner of their residential unit and can freely dispose of their property (inheritance, sale, rental). In addition, each co-owner has a share in the common areas - such as common rooms, stairwells or gardens. Votes concerning the common property are taken by majority vote at owners' meetings. In order to shape the group and its property in the interests of the project, it is advisable to have well-designed community rules and to grant pre-emptive rights.

Practical tips

• In order for the project character to be visible, joint decision-making for the common areas (according to co-ownership shares or "by head") is required.
• It is possible to set up a non-profit association or GbR in which every condominium owner must be a member.
• Before completion of the residential units, i.e. before a WEG can be founded, it is possible to be organized in a GbR.

Many people cannot or do not want to buy their own home. In order to realize their idea of communal living, they need an investor who will build the project and rent out the property to them.

Cooperation agreement
A cooperation agreement should be concluded with the respective investor at an early stage in order to clarify the cooperation and thus enable a partnership-based process.
Questions to be clarified:

• Possibility and limits of co-determination of the residential group in the planning
• Dealing with communal areas and open spaces (who bears the rental and maintenance costs here?)
• Occupancy and proposal rights for new tenancies

General or individual tenancy?
Normally, the letting process is as follows: The landlord/landlady concludes individual rental agreements with the individual project members. Communal areas are rented to the entire group and the costs incurred are allocated to the individual members.
The group can also act as general tenant for all premises. In this case, it concludes individual rental agreements with the individual members. This gives the group more independence.

Level of housing costs
In principle, communal living is financed in the same way as any individual rental apartment. The rent depends on whether it is privately financed or subsidized housing. In addition, this form of housing includes the pro rata costs for communal areas.

For those who do not want to give up the protection of individual property but still want to live together in solidarity, a housing project in which individual property can be purchased is a good option. Project founders realize their housing project themselves from the outset and make their own financial contributions at an early stage.

Purchase of land
When it comes to pre-financing, the group's joint ability to act vis-à-vis the other players (architects, banks, etc.) is an important prerequisite, as the group itself must find a suitable plot of land. Once this has been found, the group can purchase the property. As often not all group members have been found at this point, the core group must finance the price of the land. Beforehand, it must be carefully checked whether the group's ideas can also be implemented structurally (development plan, building law, utilization).

Planning and construction phase
In the planning and construction phase, contracts are awarded as a group to architects or craftsmen, for example. Each member pays the costs incurred in proportion to the progress of construction. The amount of the costs depends on the size of the respective property share (condominium + share of the common property). Once the plans have been approved and a certificate of completion has been issued, the property can be divided into individual ownership so that each member becomes a condominium owner.

Financing then works in a similar way to individual ownership. Each group member has to raise the funds for their future share of ownership themselves, usually by taking out a loan from a bank. It is possible to obtain favorable conditions if all members finance themselves through the same bank. The borrower is not the group but each individual member for their own share.

Total costs of a building project

• the purchase price for the land and, if applicable, the building
• ancillary costs such as land transfer tax (6% of the purchase price in Hesse), estate agent's commission (approx. 5.95% of the purchase price) and
• notary and court costs (1.5% to 2% of the purchase price),
• Construction or modernization costs
• Ancillary construction costs (financing costs, fees for architects and specialist engineers, approval costs, approx. 20-25% of the gross construction costs)

Right of first refusal and community regulations
In principle, each group member can freely dispose of their property (e.g. when selling, renting, inheriting). In order to strengthen the group against individual interests, specially designed community regulations and the granting of pre-emptive rights can be useful.

The idea of community is particularly important in cooperative housing projects. This is because, by definition, cooperative ownership equals community ownership. Either a new cooperative can be founded or an existing cooperative can be joined.

New cooperative
In order to establish a new cooperative, the individual members must have sufficient funds available for the purchase of land, construction or conversion. Only those who acquire shares can become members. Members who are financially less well off can also become members as long as other members acquire correspondingly more shares. The property in cooperative housing projects is financed jointly via

• Compulsory shares,
• Compulsory housing-related shares.

The amount of the costs is based on the size of the future apartment.
In addition, loans or subsidies can be claimed under certain conditions.

Repayment option
When moving out, the credit balance can be transferred to anyone in the cooperative (to an existing member or future member). Otherwise, the member's credit balance must be paid out after a certain period (approx. 1.5 to 2 years is usual).

Seven storey village
by Nothegger, Barbara (Salzburg, 2017, Residenz Verlag)

Project management toolbox. Successfully planning and implementing non-profit projects
by Pichert, Daniel (Bonn, 2015, Publishing house Stiftung Mitarbeit)

Future neighborhood - living spaces for aging
by Netzwerk: Soziales neu gestalten (ed.) (Gütersloh, 2010, Verlag Bertelsmann Stiftung)

Community living in the cluster - A practical guide to planning, building and living
by STATTBAU Stadtentwicklungsgesellschaft mbH in cooperation with wohnbund e.V. (Berlin, 2019, brochure)

Integrated living - cohesion needs spaces
by Hannemann, Christine; Jauser, Karin (ed.) (Berlin, 2020, Jovis Verlag)

Cities for people
by Gehl, Jan (Berlin, 2015, Jovis Verlag)

Living beyond the standard. On the trail of new housing solutions for a differentiated and needs-based housing supply
by Wüstenrot Foundation (ed.) / Förster, Agnes / Bernögger, Andreas / Brunner, Bernadette (Ludwigsburg, 2020, Wüstenrot Foundation)

Legal forms for housing projects
by trias Foundation (ed.) (Hattingen, 2011 (updated 2019), self-published)

Guide for group housing projects
by Arbeitsgemeinschaft für zeitgemäßes Bauen e.V. (ARGE) / Dietmar Walberg (ed.) (Kiel, 2015, self-published)

A history of communal living. Models of living together
by ETH Wohnforum: Schmid, Susanne / Eberle, Dietmar / Hugentobler, Margrit (Basel, 2019, Birkhäuser Verlag)