Reykjavík City terminates agreement with Samtök hjólabúa (Association of RV Dwellers) over use of municipal land in Gufunes
At its Thursday, June 11, meeting, the City Executive Council voted to terminate the agreement with the Association of RV Dwellers for the use of an approximately 3,900-square-meter plot of municipal land in Gufunes. Approved in April of this year, the agreement includes a provision allowing either party to terminate it with three months' written notice. Reykjavík City has notified the Association of RV Dwellers of the termination.
At its April 16, 2026, meeting, the City Executive Council approved a proposal to enter into an agreement with a not-yet-established organization—the Association of RV Dwellers—for the use of approximately 3,900 square meters of municipal land in Gufunes. Representatives of the newly established Association of RV Dwellers and then-Mayor Heiða Björg Hilmisdóttir subsequently signed the agreement on May 15th
The agreement required Reykjavík City to connect the site to water and electrical utilities and install restroom and shower facilities in container units. An official statement from the Department of Environment & Planning presented at yesterday's City Executive Council meeting estimates the initial cost of these works at 50 to 100 million króna. The statement also notes that the department has not issued use permits for RVs at either Sævarhöfði or Gufunes. Furthermore, the official statement notes that the Reykjavík Public Health's involvement with the site has centered on contaminated soil and the remediation of a former landfill.
The Department of Environment & Planning official statement also informs the City Executive Council of a key finding from a September 2025 working group report on RV dwellers: that permanent residency in RVs is largely incompatible with the current legal framework.
Mayor Hildur Björnsdóttir's proposal to terminate the use agreement with the Association of RV Dwellers passed five to two, supported by City Executive Council members representing the Independence Party, the Center Party, Liberal Reform Party, and the Progressive Party, and opposed by members representing the Social Democratic Alliance. The issue now goes to the City Council for final approval and is on the agenda for its June 16 meeting.