City Council approves proposal for increased funding to Félagsbústaðir Social Housing and more social housing

513 million ISK in annual equity contributions for the next three years

The proposal includes four components. The first component involves Reykjavík City providing a five-year equity contribution to increase residential units. The proposal commits Reykjavík City to providing 513 million ISK in annual equity contributions for the next three years and 263 million ISK per year for the two years following. The proposal also includes providing an additional 300 million ISK in 2025 through an amendment. The proposal tasks the mayor with determining how the equity contributions will be used with Félagsbústaðir Social Housing.

Finding ways to speed up social housing development in the city

The second component addresses a new development model to ensure a supply of affordable residential units. This component directs the mayor to work with the board of Félagsbústaðir Social Housing to find new ways to speed up social housing development in the city. As part of this work, the mayor would specifically examine whether it's feasible for Reykjavík City, Félagsbústaðir Social Housing or a new company they establish to directly participate in development projects that increase social housing units. The proposal also calls for a legal review of such development models and other approaches the mayor recommends.

Assessing need for more diverse housing options and meeting demand for assisted living apartments

The third component focuses on developing more diverse housing options. This component directs the mayor to work with the welfare department to assess the need for more diverse housing options for specific groups, including community housing.

The fourth component addresses assisted living apartments through Félagsbústaðir Social Housing. This component tasks the mayor with working alongside Félagsbústaðir Social Housing and the welfare department to develop an action plan to meet the demand for assisted living apartments and to review existing housing to assess whether it meets modern standards.

Says proposal addresses urgent need for social housing

"This proposal stems from an urgent need for social housing in Reykjavík and represents a core policy priority for our coalition parties. We firmly believe the city must ensure that people with low incomes, disabled people, seniors and others facing disadvantages don't experience housing insecurity or constant relocations. A secure home provides the foundation for everything else. When people know where they'll sleep for the next months or years, everything becomes easier — keeping a job, pursuing education, raising children and taking care of their health," says Mayor Heiða Björg Hilmisdóttir.

You can read the proposal and its supporting documentation here.