In a legal dispute regarding public subsidies for a rental property in Berlin's Kreuzberg district, the homeowners agreed to a settlement to repay the funding they received. This amounts to over 3.1 million euros, including interest, to be returned to the state of Berlin. The settlement was reached last week during a closed court session at the Berlin Administrative Court.

The subsidies were initially granted to the property owners in the 1990s with the intention of promoting social housing. However, concerns were raised in 2023 by the Spiegel magazine that the homeowners had violated the terms of the subsidy agreement. Specifically, it was reported that not all landlords had been living in their respective apartments, a key requirement of the subsidy to ensure the apartments served the intended social purpose.

Following these allegations, the Berlin state government conducted an investigation which determined that some of the housing units were not being utilized in accordance with the regulatory requirements. The case has drawn significant attention in Berlin, reflecting ongoing concerns about housing policy and the effectiveness of public funding in ensuring affordable living spaces for residents.