About Norway
Auvitoppen Housing Co-operative, Lier (USBL)
History
Like many European countries, Norway faced an acute need for housing and reconstruction work after the destruction wrought by the Second World War. At that time, the housing policy’s intention was to provide good housing by stimulating homeownership in a non-speculating context. The policy developed a high standard of housing for the vast majority of the population. In Norway around 80% of the population are home owners through individual ownership or cooperative housing, leaving a small rental sector. This rental sector is dominated by private households who rent out part of their home, or a second house or a flat they are not using, for a limited period.
From its foundation in the 1930s, and especially after World War II, the coop housing movement was seen as a tool to implement Norway’s social housing policy. In fact, one crucial strategy for implementing the Norwegian housing model was the clear division of responsibilities between key players, namely the “state, the municipalities and the private sector of which the coop housing movement was the largest single stakeholder.” Financing mechanisms – such as low cost building sites, subsidised loans and grants – were put in place to meet the housing needs of all. The coop housing sector built houses on the principle of “selling at cost” and taking no profit.
Over the years, the collaboration between the government and the coop housing movement grew closer. The state and the municipalities opted to support the development of housing cooperatives instead of, like other countries, encouraging a large public housing sector. Such political support contributed to the creation of one of the largest and most successful housing cooperative movements in the world.
In the 1980s, a major political shift led the social democratic ideology and state interventionism to be replaced by a more liberalistic agenda based on free market economy and deregulation. Price regulation was abolished in the mid-1980s. Subsidised loans and grants from the State Housing Bank were reduced to nothing, and municipalities no longer provided building sites due to under-the-table money.
Context
The overall vision of the Government’s housing policy is that everyone should have adequate and secure housing in a good local environment. A key bipartisan aspect of Norwegian housing policies has been that everyone should be able to own their own houses or flats.
However, the average Norwegian faces challenges from steep rises in the price of flats. In addition, public financial support is now mainly directed to people on low-incomes or with special needs. There is no financial support in the housing sector in Norway, including the type of buildings created by cooperative housing associations.
Yet, the coop housing movement in Norway still plays a central role. Although its links with central government and local authorities in the implementation of housing policy are not as strong as they were. Today, housing associations primarily have to succeed in a free market economy with multiple competitors.
Housing cooperatives are present across Norway, representing 32% of the housing market in Oslo. The housing coop market share is considerably higher in cities than in rural areas.
High-rise,low-rise and terraced houses from the Co-operative Housing Association Sorlandet BBL, Kristiansand (Kjell Inge Soreide)
Description
The main characteristics of Norwegian housing cooperatives are:
- Each property is owned by the cooperative.
- Each cooperative manages an average of 60 homes.
- Members buy shares, usually at full market value, which give them the right to occupy a specific home. (In 2023 the average share cost is approximately 380,000 € for 70 square meters).
- Members contribute a proportionate share of operating expenses.
- Shares are normally transferred in the open market at their full market value, but members of cooperative housing associations have the right of pre-emption to a price set in the market.
- Each member has one vote, irrespective of the number or value of shares.
- The board of directors is responsible for the management, often assisted by a coop housing association acting as a business manager.
- Local authorities have the legal right to buy 10% of the flats in housing cooperatives.
Financing
Until the 1990s, most of the coop housing developments were financed through subsidised grants and loans from the State Housing Bank. Loan subsidies were stopped in the mid-1990s and grants only given to certain types of building project such as student flats or specialist housing for elderly people or those with physical disabilities. From 2002, the housing development financing share of the State Housing Bank began to diminish. By 2007, no more than 10% to 15% of new houses were likely to receive a government bank loan. Previously, the majority of the houses built were financed through the State Housing Bank. The current situation shows that the State Housing Bank’s role has shifted from being a general loan provider for the public to becoming a primary financial tool for municipalities. It provides financing specifically for groups that have difficulty obtaining loans in the regular market. In 2023, the bank granted 7,500 loans to such groups.
Most of the financial support to the housing sector in Norway is channeled through a housing allowance system run by the State Housing Bank in partnership with the municipalities.
In Norway, every property buyer has to pay a 2.5% property tax transfer to the state, although the tax does not currently apply to flat transfers within housing coops. The question on whether or not to apply this tax to housing cooperatives is raised occasionally, but has not gained enough political support.
Legal Framework
The Housing Co-operative Laws is a joint name for the Cooperative Housing Association Act and the Housing Co-operatives Act, which received major legislative revisions. The renewed acts came into force in August 2005.
The Co-operative Housing Associations Act
This law sets cooperative housing associations’ organisational rules including their business activities framework. It also regulates their business conduct such as member’s rights concerning participation in the general assembly and board of directors. A cooperative housing association is owned by its members, open to new members and its first mandate is to provide homes for those members. In addition, associations can manage housing cooperatives and other housing companies, for example, condominiums and rental flats etc. A cooperative housing association usually organises new homes for its members in housing cooperatives, but there are no limitations on the association using other organisational models.
The Housing Co-operatives Act
This law sets the cooperatives organisational rules including their business conduct such as the one-member one-vote system, participation in the general assembly, maintenance of their flats, rights of pre-emption, and non-payment of monthly fees. It also contains provisions regulating the shareholder’s responsibilities as a member of the housing cooperative. The last revision clarified shareholders’ rights, including the selling and letting out of their flats, and the security of their investment. The housing cooperative laws in both acts regulate the system for double membership mentioned below.
The Cooperative Housing Movement
The Co-operative Housing Federation of Norway (NBBL) is the nationwide umbrella organisation for housing cooperatives in Norway. NBBL represents, promotes, develops and provides services to housing co-operatives in collaboration with its member housing co-operative associations.
The NBBL is the third-largest membership organisation in Norway. The democratic participation in the cooperative housing movement is impressive with around 25,000 elected representatives. Its membership includes:
- More than 1,250,000 individual tenants and non-tenant members.
- 5,965 housing cooperatives, also called primary housing co-operatives.
- 41 cooperative housing associations (also called secondary housing cooperatives) whose membership varies between 114 and 570,000 individual members.
Norwegian housing cooperative bylaws require individuals to be a member of the housing cooperative and the housing cooperatives association. The system also allows individuals to be a member of the coop housing association without simultaneously being a member of a housing cooperative. By being a member and stakeholder of the association, the individual can in order of seniority buy a new-build home or use the right of pre-emption when buying an existing vacant home in a housing cooperative. Some people keep their membership for the future benefit of their children.
For more information, visit: www.nbbl.no and www.obos.no
Resources Tagged "Norway"
This presentation is from a workshop on accessing capital for building new and renovating existing housing co-operatives at ICA's Annual Congress in Antalya, Turkey in November 2014. It provides an overview of the co-operative housing movement in Norway, the different sources of capital and barriers to overcome.Read More
Financing and Development Europe
L'habitat coopératif offre des logements abordables à long terme, gérés par les résidents, avec des avantages sociaux, économiques et environnementaux avérés. Malgré son impact mondial, ce secteur reste méconnu.Read More
Financing and Development Global Report
Explore public policies supporting cooperative housing worldwide in this comprehensive report. Discover how governments and cooperatives collaborate to create sustainable and affordable housing solutions globally.Read More
Research Global Research Paper
The Commission's final report on Cooperative and Mutual Housing (Bringing Democracy Home) highlighted the need for consideration of the role that cooperative and mutual housing could play in the national housing strategy. The Fina ...Read More
Financing and Development Global Report
Par cette publication, nous souhaitons ouvrir le débat sur le logement en tant que droit fondamental et enjeu métropolitain, en mettant en lumière l’expérience de grandes métropoles et dans l’espoir d’inspirer des idées nouvelles pour aborder cet enjeu absolument fondamental de l’urbanisation moderne.Read More
Advocacy Global
In 2000, United Nations (UN) member states recognised the need to build global partnerships for development and the exchange of expertise as one of the Millennium Development Goals. Across the international development field, part ...Read More
Financing and Development Global
New report: The Capital Conundrum for Co-operatives "The Capital Conundrum for Co-operatives", a new report released by the Alliance’s Blue Ribbon Commission explores ideas and options available to co-operatives that need suitab ...Read More
Financing and Development Global
Financing the development of housing co-operatives is a challenge and more so in time of financial restrictions and uncertainty. CHI members discussed the issue during a seminar held in November 2009 in Geneva. Presentations w ...Read More
Financing and Development Global
The Forest Products Annual Market Review 2013 reports that the development of new refinement processes has led to the production of new and more affordable wood based products such as cross-laminated timber (CLT). The report sta ...Read More
Sustainability Global
Updated Guidance Notes on the Co-operative Principles, edited by David Rodgers, former President of Co-operative Housing InternationalRead More
Governance Global
The ILO views cooperatives as important in improving the living and working conditions of women and men globally as well as making essential infrastructure and services available even in areas neglected by the state and investor-driven enterprises. Cooperatives have a proven record of creating and sustaining employment – they provide over 100 million jobs today; they advance the ILO’s Global Employment Agenda and contribute to promoting decent work.Read More
Legal Global
Cooperative housing offers long-term, affordable homes governed by residents, with proven social, economic, and environmental benefits. Despite its global impact, the sector remains under-recognized.Read More
Financing and Development Europe Report
Student housing cooperatives have become very popular in the USA and many of these housing co-operatives are members of organizations such as NASCO. Unlike a resident who acquires shares at market rates to earn the right to occupy ...Read More
Community Global
The Good Governance Charter for Housing Co-operatives was launched at the ICA Housing Plenary in Manchester in November 2012.It has three parts:A 10-point set of good governance practicesAn interpretive statement for each good p ...Read More
Governance Global
This second volume of Housing Co-operative Profiles focuses on African countries, showcasing the ingenuity and commitment of cooperators working under difficult conditions. It offers insights into the legal, financial, and historical contexts of housing co-ops, aiming to inspire broader adoption of the model as a solution to the global housing crisis.Read More
Community Global Report
The Blueprint for a Co-operative Decade is a worldwide campaign to “take the co-operative way of doing business to a new level”. The five key elements of the Blueprint are participation, sustainability, identity, legal frameworks and capital. The Blueprint is particularly relevant to co-operative housing and the Blueprint interpretation for co-operative housing below explains how.Read More
Governance Global
