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Berlin Journalists Ordered to Repay €3M Over Misused Housing Subsidies

A decades-old subsidy fraud unravels as Berlin cracks down. How a journalists' dream property turned into a €3M legal nightmare.

The image shows an old book with a drawing of a building on it, which is the original plan of the...
The image shows an old book with a drawing of a building on it, which is the original plan of the Königliche Hermwerk Berlin-Baklberg. The book contains detailed plans and text, providing a comprehensive overview of the building's layout.

Dispute over Million-Euro Grant in Kreuzberg: Repayment - Berlin Journalists Ordered to Repay €3M Over Misused Housing Subsidies

A group of journalists in Berlin has been ordered to repay over €3 million in public funding. The money was originally granted for renovating a Kreuzberg tenement house in Oranienstraße. The case centres on a violation of subsidy conditions that went unnoticed for years.

The journalists bought the property in the early 1990s for around €600,000. At the time, no major media companies were involved in the purchase. The Senate later provided a substantial subsidy for renovations, but only on the condition that part of the building be used for affordable housing and partial owner occupancy.

The journalists failed to meet these requirements. The misuse of funds came to light much later, following press reports. Only then did the Senate Department for Urban Development step in.

A court settlement confirmed the repayment order. The journalists must now return €3.145 million in total. This includes €1.78 million in misused subsidies and roughly €1.35 million in accumulated interest. The Senate has made it clear that such violations will not be treated lightly.

Over the past 15 years, Berlin property prices have surged, making the building's current value far higher than its original purchase price. This sharp increase adds further weight to the case, as the subsidy was intended to support affordable housing in a now-expensive area.

The Senate's decision enforces strict compliance with subsidy rules. The journalists must repay the full amount, including interest, after failing to meet the agreed conditions. The case highlights how long-standing violations can eventually come under scrutiny, even decades later.

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