The non-profit social housing sector is specific to Scandinavia. A little less than 1,000,000 Danes live in non-profit housing. This reflects the underlying ideology that non-profit social housing is intended for everyone regardless of income or social status.
“First in line” principle
Apartments are allocated via waiting lists on a “first in line” principle. However, municipalities can dispose of up to 25 pct. of vacant dwellings for social purposes thereby “jumping” the queue.
Subsidized by the state
The sector is subsidized through tax exemption and a financial acquisition combination of state subsidized loans (84 pct.), interest free loans from local governments (14 pct.) and a tenant contribution (2 pct).
The rent is fixed according to the costs. This means that the rent is kept affordable by balancing it with the costs of the housing estates’ ordinary activities.
Regulated and supervised by the authorities
The social housing sector is regulated by a complicated and complex legislation with the primary objective is to build, lent, manage, sustain and modernize non-profit housing. The Ministry of Social Welfare is responsible for the central administration of the Danish social housing sector and the housing associations are supervised by the local authorities.