The National Building Fund
What is The National Building Fund?
The National Building Fund is an important part of the cycle of the social housing sector in Denmark. The Fund provides the sector with financial support, expert knowledge og various statistics and IT-tools. The Fund works with funds that come from the sector itself. It means that the money is not a part of the general tax system.
No one profits from the rent. A home in the social housing sector is free of speculation and the rent is cost-related.
Anders Vestergaard, Director at NordVestBo.
In Denmark, social housing is constructed and in most cases run by social housing organisations. The term “social housing” is a collective designation for three different types of housing; social family dwellings, social dwellings for the elderly and social dwellings for young persons.
The pillars of the social housing sector
The social housing sector in Denmark can be said to stand on three pillars that are all rooted in the Danish welfare society. link her
Tenant Democracy
All social housing organizations are run on the principle of tenant democracy. This is a unique feature of the Danish social housing model The residents have the majority in the housing organization’s board and at other levels of the tenant democracy system.
Non-profit
The rent covers operating and maintenance costs, capital expenditure, as well as taxes and duties. This is also known as the rental balance principle and means that income and expenditure must balance out.
Financing
The National Building Fund provides funding for large-scale renovations, development and social efforts in the existing areas of social housing. The State and municipalities support the construction of new social housing.
Financing
The National Building Fund is used for large renovation projects and social development plans in challenged housing areas. The Fund is solidary and rotating and acts as a savings account for the whole of the social housing sector in Denmark. The National Building Fund provides funding for large-scale renovations, development and social efforts in the existing areas of social housing. The State and municipalities support the construction of new social housing.
Rent from tenants
2/3 of the rent goes to The National Building Fund when the original mortgage loan is paid off.
The National Building Fund
The Fund is solidary and rotating and acts as a savings account for the whole of social housing sector in Denmark.
Renovation projects and social development
Housing organizations can apply for funds from The National Building Fund – ie. for large-scale renovations and social development plans.
The use of the funding
Most of the funding goes straight back to the tenants in social housing. Funding goes to large renovation projects, regulation of the rent, social development plans in challenged housing areas etc. Below you can see how some of the funding is being used:
Large-scale renovation
Social development plans
Infrastructure
Rent regulations
Outdoor
Analysis, Digital tools etc.
The Danish social housing model
Social housing is a part of the Danish welfare society. The aim is to offer people of all kind decent housing at an affordable rent. While at the same time giving tenants a right to influence their own housing conditions. The social housing sector is non-profit and is both environmentally and socially sustainable as well as economically sound.
Housing organisation
The social housing sector is non-profit and democratically governed. Also, social housing is strictly regulated. Social housing organizations fall under municipal supervision. The individual municipality decides whether new social housing should be build.
Tenants
The basic concept of the social housing sector is one of inclusion and is therefore open to all types of people. Social housing dwellings are allocated by waiting lists. The inclusive approach allows housing organizations and municipalities to act flexible to create a more balanced mix of residents in the housing areas.
The National Building Fund
Renovations and developments in the existing building stock can be supported by the National Building Fund, which works as a saving for the entire social housing sector. The Fund is used for large renovation projects and social development plans in challenged housing areas.
Social development plans at work
A social development plan is usually a joint project between tenants in a challenged housing area , the housing organization(s) and the local municipality – and is, where possible, coordinated with other relevant projects and initiatives in the area. The main focus is on strengthening and supporting crime prevention, (a feeling of) security, active citizenship, parenting skills and parental responsibility, education and employment.
89
Social Masterplans in Denmark
75 %
Of the funds come from the National Building Fund (LBF)
25 %
Of the funds come from the Municipality and/or the housing organisations