BL is the the danish federation of non-profit housing providers

We seek to influence the development of the non-profit housing sector and its role in the welfare society – economically, technically, and socially. 

Our political arenas:

¡  Local: In our 11 districts in collaboration with the 98 municipalities in Denmark.

¡  National: In collaboration with the politicians of the Parliament.

¡  International: Through our work in Housing Europe and NBO Housing Nordic.

3 main principles

Non-profit affordable housing in Denmark rests on three main principles:

It is not for profit but for people The purpose of the housing organizations is to provide housing for all in need hereof at a reasonable rent. Non-profit implies that the rent covers operation, maintenance and investment costs; that it is impossible to speculate in the real estate; and that no one makes money from renting out the properties.

It is governed by tenant democracy Non-profit housing providers are self-governing and self-organized organizations all governed by tenant democracy. The organization board is constituted by tenant representatives, and the tenants make all the important decisions in their housing department i.e. regarding the budget, house rules, refurbishments etc.

It rests on a stable financial model The stable financial model implies that non-profit housing is financed primarily by regular mortgage loans but with a share of municipal support and state aid through favorable loan options and state guarantee. This enables longer repayment periods. Furthermore, The National Building Fund enables self-financing of necessary refurbishments in the long run. Evt. This contributes to a diversified housing market with decent housing options for all groups with minimum strain on state budgets.

Key welfare player

The non-profit housing organizations ensures access to reasonable and healthy housing for people in Denmark who are not able to access the private housing market. As such they are an important piece of the Danish welfare society.

Furthermore, the housing organizations are municipal partners that play an active role in improving local welfare. Whether it is urban strategy and development, social initiatives and impact investment projects, community building, health care, and cultural initiatives, or energy efficiency and other green solutions. The housing organizations are engaged for the benefit of their tenants and the local community.

Historical highlights

To understand how the non-profit housing sector has become what it is today, a short glance at history is helpful. 

The beginning:

The first move away from a housing market operating solely on market terms started in 1853. Copenhagen was densely populated with poor conditions for the working class. An outbreak of cholera inspired "The Medical Association against Coleras Spread" to build Brumleby on Øster Fælled, the first philanthropic housing initiative in Copenhagen. The idea was to construct permanent dwellings for the working class outside the city walls with better sanitary systems, clean air and space.

Later, self-organized workers, trade unions and the workers' co-op, initiated housing associations and companies. 

The welfare state

The first law on public support for construction was adopted in 1887; However, several of the earliest associations were quickly dissolved, and speculation in housing and construction resulted in a huge crack in 1908. The political initiatives following this event created the foundation for the social housing model as we know today – with public funding, a strict legislative framework, and revolving funds.  But it wasn’t until 1933 that the idea of non-profit affordable housing for the working-class, became statutory.  Along with significant social reforms, these initiatives are often seen as the beginning of the Danish welfare state. Following this event, only approved housing associations and companies, whose funds were used solely for housing purposes, could benefit from public support.

The industrialization of Danish construction: The implementation of several state regulations, including the so-called Assembly circular that required housing to be built by prefabricated elements to obtain public support, started the industrialization of Danish construction in the 1960s. This paved the way for the largest building boom in Danish history. Over 800,000 homes were built in the period 1960-1979, out of which approx. 200,000 was non-profit housing.  All over Denmark large Le Corbusier inspired housing areas arose.  The intention was to give low- and middle-income citizens decent homes with space, access to green areas and life quality.