Public municipal housing companies
1 § With non-profit municipal housing corporations referred to in
This law a corporation as a municipality or several municipalities
jointly have control over and that in
1. in its activities mainly manages real estate in
the residential apartments are licensed with tenancy,
2. promote housing supply in the municipalities
the owner of the company, and
3. offer tenants the option of accommodation and
influence in the company.
With control means that a municipality or more
municipalities jointly owns shares in a company with more than
half of all the votes in the company and also has at its disposal
so many voices.
The influence exerted by a company over which a municipality
or more municipalities have a dominant influence shall be regarded as
exercised by the municipality or more municipalities jointly.
section 2 of A non-profit municipal housing companies should conduct
activities in accordance with commercial principles in spite of Chapter 2. 7 §
and Chapter 8. 3 c § local Government Act (1991:900).
The first subparagraph shall not prevent the provided such support to
a non-profit municipal housing companies as
1. has been approved by the European Commission, or
2. submitted under such regulations as the European
the Commission decided pursuant to article 108 (4) of the Treaty on
The functioning of the European Union, or
3. has been provided according to the conditions for aid laid down by the
The European Commission and considered to be compatible with the
common market and exempted from the requirement of
notification in article 108 (3) of the Treaty on European Union
3 § A non-profit municipal housing company
distributions in a fiscal year may not exceed
an amount equal to the interest on the capital municipality
or the municipalities at the end of the previous financial year has
shot to the company in payment for the shares. The interest rate
will thus consist of the average prime loan rate
during the preceding fiscal year with the addition of one percentage point.
Value transfers during a fiscal year must not, however,
exceed an amount equal to half of the company's
results for the previous fiscal year.
4 § Restriction of value transfers in section 3 does not apply to
transfer of such net surplus resulting from the
disposal of real estate in the preceding financial year. With
net surplus "means the difference between a real estate
sales price and its book value plus
Value transfers as referred to in the first subparagraph may not, however,
exceed half of the net surplus and should have been preceded by
City Council's decision.
5 § Restriction of value transfers in section 3 does not apply to
transfer of surplus generated during the previous
1. If the surplus is used for such measures in the context of
the municipality's housing supply responsibility that promotes integration
and social cohesion or to meet
the housing needs of persons for which the municipality has a
particular responsibility, or
2. If the transfer is made between public municipal
housing companies of the same group.
section 6, A non-profit municipal housing companies should
in writing annually to the Government or authority
the Government determines provide details of decided
value transfers and how they are calculated.
1. This law shall enter into force on 1 January 2011.
2. By the Act repeals Act (2002:102) if public
3. The repealed law, however, is still too limited
distribution of profits and reporting of such dividend referred to
in Chapter 1. 1 and 4 of the Act during the fiscal year that have
initiated prior to the entry into force.