Income limits introduced for selection of residents to state-subsidised rental housing

The Government has decided to introduce maximum income limits to the selection of residents to state-subsidised rental housing (rental housing of the Housing Finance and Development Centre of Finland Ara). The income limits will be applied both to the selection of new residents and to moving to another apartment. No income limits will be applied to rental housing intended for special groups. The maximum income limits will become applicable as from 1 January 2025.

According to the Programme of Prime Minister Petteri Orpo's Government, income limits will be reintroduced to publicly subsidised rental housing. The Government's aim is to target housing subsidised by society more efficiently to people with low incomes or of limited means and to special groups that have difficulties in renting a home through the private market. Residents to state-subsidised rental housing are selected on the basis of statutory criteria concerning the need for housing and income and wealth of households. In future, a maximum income limit will also be applied to selecting residents.

A condition for being selected is that the incomes of a single-person household do not exceed EUR 3,540. The income level is raised by EUR 2,480 per each adult member of the household (over the age of 18). If there are children under the age of 18 in the household, the income level is raised by EUR 650 for the first child and by EUR 600 for each additional child. Payments such as housing allowance, child benefit, child support, child maintenance allowance, maternity grant, student financial aid and fees payable to informal caregivers are not counted as income.

"The aim is to ensure that people with higher incomes will not be selected as residents to state-subsidised rental housing. Public support should be more specifically targeted to low-income individuals and households. The income limits have been set at a level that will not lead to any dramatic changes in the selection of residents. Besides the income limits, the Ministry is exploring a model where the rent would be raised if the resident's income increased," says Minister of Climate and the Environment Kai Mykkänen.

The change concerns rental dwellings which the state has supported with subsidised rental housing loans applied until 2007 and the present long-term interest subsidies. The same income limits are already being applied to rental housing supported with short-term interest subsidies.

Derogations from the resident selection criteria, including income limits, may be allowed in urgent situations or when there are no other applicants who would fulfil the criteria. In areas suffering from net migration loss the utilisation rate of dwellings has decreased and derogations are needed, for example, to offer housing to those coming to work in the area.

Inquiries

Matleena Haapala
Senior Ministerial Adviser
tel. 0295 250 332
[email protected]

Emma-Stina Vehmanen
Special Adviser to the Minister
tel. 040 847 1992
[email protected]

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