Partnership on the development of housing

The City of Hafnarfjörður and the Icelandic Federation of Labour have signed a letter of intent regarding the development of 150 rental flats in Hafnarfjörður. The project will be carried out under the General Rental Housing Act, which was passed by the Althingi on 2 June.

Haraldur L. Haraldsson, Mayor of Hafnarfjörður, and Gylfi Arnbjörnsson, President of the Icelandic Federation of Labour, today signed a letter of intent for the construction of 150 rental flats in Hafnarfjörður over the next four years to better meet the demand in the rental market. The development will be carried out in accordance with the AK's regulations on housing matters and the housing priorities of the City of Hafnarfjörður.  

Conditions for the allocation of plots

The ASÍ is currently working on the establishment and financing of a national housing charitable foundation. The Municipality of Hafnarfjörður has already given the association, which will operate on behalf of the ASÍ, a commitment for the allocation of plots for the development of 150 social rental flats. The plan is to allocate plots for 32 flats in the current year, 28 flats in 2017, 45 flats in 2018 and 45 flats in 2019. The 2016 allocation is planned to cover Hraunskárð 2-4-6-8 and Hádegisskárð 4-6. It is anticipated that some of the flats will be built as part of urban densification projects in Hafnarfjörður. Hafnarfjörður's Family Services will have disposal rights over 25% of the flats to be built under the letter of intent. A joint project board, composed of representatives from the City of Hafnarfjörður and ASÍ, will work on the project's progress over the coming weeks and months.