A new concept for resident-run housing in Hafnarfjörður
At a meeting of the town council this morning, draft founding statutes were presented for a residents' co-operative housing association in the town, which aims to lower rents, reduce overheads and increase the involvement and participation of the residents themselves. According to the Mayor of Hafnarfjörður, this represents a major step forward for the municipality. The project is motivated by the need to provide safe, affordable rental housing. The Town Council has instructed the Mayor to take the matter forward.
In a meeting
At this morning's town council meeting, draft founding statutes for the residents' association were presented.
a housing association in the town which aims to lower rents, reduce
structure and increase the involvement and participation of the residents themselves. In the opinion of the Mayor of the Borough of Hafnarfjörður
This is a major step forward.
within the municipality. The motivation for the project is to respond to the need for a safe
Affordable rental housing. The town council has instructed the mayor to work
Let's get on with it.
In light of the situation and circumstances on the housing market today and
In light of the high demand for housing in Hafnarfjörður, the municipality believes that all
that the conditions are in place for the tenants themselves to be involved in the management and
regulation of the rental of general dwellings. The idea is that the tenants themselves
The parties will become members of a non-profit organisation for the company that owns and operates the flats. The company is expected to receive a start-up grant.
from the local authority and the Housing Finance Authority, amounting to a total of 30% of the construction cost,
the municipality with 12% and the Housing Finance Fund 18%. Rent is then supposed to cover
instalments and interest on a loan amounting to approximately 70% of the construction cost, daily
operation and a charge to a maintenance fund which is intended to cover routine maintenance
and necessary refurbishments to properties owned by the company. The municipality will not
rather than being directly involved in the running of the company, its management will be in
by the tenants who constitute the representative council and board in accordance with the bylaws
of the association. If all goes to plan, the rent can be expected to be quite
lower than is generally the case today. Completion of the works is scheduled for the end of 2018.
A new company is planned to build and let out flats.
By law, the Housing Finance Authority and local authorities
authorised to provide foundation grants for the construction and purchase of social housing in order to
To ensure that affordable rental accommodation is available for those who need it.
to maintain. According to the proposals before us, it is envisaged that the association
two plots of land to be allocated for a total of eight flats, four on each
house. It is planned that the company will erect and
rent out the flats. This is an addition to the joint project of ASÍ and
The City of Hafnarfjörður on the development of 150 rental flats over a four-year period and
Has Bjarg Housing Association Ltd. already been allocated a plot of land for a block of flats in
Hafnarfjörður for that task. „We want
find ways to improve the housing security of families and individuals. By establishing
At Skarðshlíð Housing Association Ltd., we increase access to safe housing and offer
housing costs that are in line with tenants' actual ability to pay. The other
The average tenant simply can't cope with today's rents. We
We want to create a model housing association here in Hafnarfjörður with this and we hope
so that this will be an encouragement for individuals and families to take
Let's join hands and more associations will be established in the future.“ says Haraldur L.
Haraldsson, Mayor of the Borough of Hafnarfjörður. Preliminary calculations suggest
for the rent per square metre to be about Kr. 1,600 and the rent for 90
A square metre flat could therefore be around kr. 144,000 per month. It is assumed that the cost
Construction costs: kr. 360,000 per square metre.
The council handles the allocation of flats.
It is expected that the Municipality of Hafnarfjörður will make a public announcement.
by tenants and will be allocated to tenants who are under
specified income and asset limits as they are defined in the law on general
Apartments. To ensure that the right to rent is not a commodity in the future, it is necessary to
return it to the town at the end of the rental period. Tenants have a right of first refusal to
larger or smaller flats within the association. With the arrangement that the municipality
The body responsible for allocation ensures that flats are allocated on the basis of objective criteria.
points of view and that individual tenants cannot themselves transfer allocated assets
tenancy rights.