The GoMokry* housing project group quickly and unanimously decided on the financing concept of the Mietshäuser Syndikat. This concept aims to make a property socially and fairly affordable and, ultimately, unsellable, meaning it is taken off the market. In this model, the house association founded by GoMokry* holds 51%, and the GmbH of the Mietshäuser Syndikat holds a blocking minority of 49% in a newly established house GmbH (e.g., the GoMokry* construction and housing community GmbH).
While the housing project can make decisions independently on most matters, there are a few exceptions specified in the articles of association — for example, the sale of the property — where the Mietshäuser Syndikat has a veto right, ensuring protection against the re-privatization of the property.
The house GmbH mentioned in the graphic above then grants rental contracts to the residents. In the initial phase of the project, the rent paid by the residents is used for repaying the loans received and for the maintenance of the house. As the loans are gradually paid off, the interest burden decreases. The financial resources freed up are then paid as a solidarity contribution to the Mietshäuser Syndikat, which can use them to support new housing projects. This ensures that the rent remains constant.
Source of the illustrations: Die Häuser denen, die drin wohnen (pdf). An informational brochure by the Mietshäuser Syndikat.