Right-of-occupancy and Part-ownership Housing Legislation

Right-of-occupancy dwellings

Right-of-occupancy housing is a mix between rental and owner-occupied housing. Residents of right-of-occupancy housing pay a right-of-occupancy fee and a monthly management fee. The apartment cannot be redeemed, but the resident has a permanent right to live in it. The provisions on right-of-occupancy housing are laid down in a separate Act. With a few exceptions, right-of-occupancy dwellings are financed with state support in the form of state-subsidised housing loans or interest subsidy loans. The provisions on joint management by residents and owners are laid down in the same Act as for interest subsidised rental housing.

Part-ownership dwellings

Part-ownership housing is a form of housing in which the tenant first pays rent for the apartment and, after the rental period, has the right to buy the apartment outright. Part-ownership housing can be built with state subsidies or private financing. Provisions on state-subsidised part-ownership housing are laid down in a separate Act, which entered into force on 1 March 2002. The terms and conditions relating to part-ownership apartments financed before this date are based only on the agreements between residents and producers of housing. Resident selection for part-ownership housing produced with interest subsidy schemes is based on the same criteria as with state-subsided rental apartments.