New special housing aid recalculation issued
The 2025 final settlement for special housing aid is now complete. As part of the settlement, the city recalculates aid payments based on verified income information from the Housing and Construction Authority (HMS). These results may affect eligibility for special housing aid starting Sept. 1, 2026.
Eligibility for special housing aid depends on several factors, including income, assets, household circumstances, and housing costs. The final settlement verifies whether the information used to calculate aid payments accurately reflected each applicant's actual circumstances in 2025.
In some cases, the review reveals that an individual received higher payments than they were entitled to. Recipients must repay any overpayments under Reykjavík City's rules on special housing aid.
If the individual continues receiving special housing aid, the city can deduct the repayment amount from their monthly payments. This deduction cannot exceed 25% of the monthly payment. For example, someone receiving 50,000 króna per month in special housing aid would repay no more than 12,500 króna per month toward any overpayment.
Conversely, the recalculation may show that an applicant was entitled to more special housing aid than they received. In those cases, the Department of Welfare will pay the outstanding amount to the individual.
This final settlement is conducted under Article 9 of Reykjavík City's rules on special housing aid. Articles 11 and 12 of those rules outline the repayment of overpaid aid.