Contract Objectives

Contractual goals of Reykjavík City in development areas

Reykjavík City has established key objectives to ensure transparency in land allocation and maintain consistency across areas, particularly regarding social integration and other goals. These defined objectives streamline contract negotiations. In Reykjavík's development areas, ownership is often mixed, with the city owning the land while private entities hold plot and building rights through various land lease agreements.

The contract objectives apply to developments where land use changes or additional building volume exceed 800 square meters, or create 15 or more new homes. They may also apply in special cases, such as converting commercial property to residential use or for other significant changes, depending on the circumstances. The City Executive Council can establish specific contract objectives for larger development areas.

The contract objectives do not apply in certain cases, such as adding a floor to an existing multi-unit building within a neighborhood, or in other exceptional circumstances.

Contract objectives for Reykjavík's development areas are:

- To create effective urban planning in line with the Reykjavík Municipal Plan priorities.

• Emphasis on diverse home sizes and types.

• Focus on quality and a positive environment.

• Commitment to preserving local character and neighborhood aesthetics.

- To optimize the use of city land and infrastructure.

Payments for changes in land use and/or increased building rights for residential or commercial properties. These payments may vary based on location and area.

- To allocate specific funds for public art in the planning area.

- To develop in accordance with Reykjavík City's 2020 Housing Policy, promoting rental market growth and social integration.

• Aim for about 20% of neighborhood homes to be rentals, including student housing, Félagsbústaðir hf. rentals, housing for older adults and/or dwellings in building cooperatives.

• Félagsbústaðir hf. to have the right to purchase up to 5% of homes for social housing at a fixed price tied to the building cost index.

• In consultation with the plot holder, register encumbrances on the relevant plot specifying which homes fall under the rental housing provision and Félagsbústaðir hf.'s purchase right.

Local development plans for development areas must include objectives for social integration and rental housing.