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The financing

Social Housing in Denmark is a non-profit sector and new dwellings are financed partly by public support and partly on normal market terms.

“A mortgage loan covers 88 pct. of the costs while the municipality participates with a loan equivalent to 10 pct. The tenants pay a deposit that covers the last 2 pct.”

Renovations and developments in the existing stock can be supported by the National Building Fund which – in spite of its name – is a private fund that is financed by the tenants through the rent in dwellings where the mortgage loan has been paid off.

The Fund is revolving and solidary meaning that it generates savings for the entire sector. It is used for major renovations, refurbishments and social development plans.

Read also:

The residents
The social side
Fact and figures
About BL

Oprettet: 10. feb. 2014, Senest opdateret: 09. jan. 2017
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