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Cooperative Building and Housing Associations (Boligbyggelag)
A cooperative building and housing association (boligbyggelag)
is an organization which builds and allocates housing to its members
at cost price. A cooperative building and housing association also
acts as general manager of cooperative housing societies (borettslag).
There are cooperative building and housing associations in most of
the larger municipalities in Norway. Cooperative building and
housing associations build housing in close collaboration with the
local municipal authorities. In a cooperative housing development,
the planning and administration are the responsibility of a
cooperative building and housing association whereas the actual
construction work is carried out by various building contractors as
sub-contractors.
Membership (Medlemskap)
Anyone can become a member of a cooperative building
and housing association, and you must become a member in order to be
allowed to purchase one of their housing units. Membership can be
passed to one's children, parents or sister/brother (direct
descendents or parents).
The
Cooperative Housing Society (Borettslaget)
The housing units built by a cooperative building and
housing association are usually organized into cooperative housing
societies (borettslag). When the construction work has been
completed and the accounts have been settled, the ongoing management
of the cooperative housing society becomes the responsibility of the
residents who each own a "share" in it. The buildings, joint
property / facilities and outdoor areas are thus owned jointly by
the residents of the cooperative housing society.
The
Board and the Annual General Meeting (Styre og generalforsamling)
Each year, the cooperative housing society holds an
annual general meeting (AGM) or shareholders meeting. All residents
are entitled to attend the meeting, but only those who own a house
or a flat (and therefore have "shares" in the cooperative housing
society) are entitled to vote. At the AGM, the annual report and the
annual accounts have to be approved. The members of the cooperative
housing society board are elected by the "shareholders". The AGM is
the highest organ of authority and can give instructions to the
board. The board is responsible for the day-to day running of the
cooperative housing society and for financial matters and
maintenance. The AGM or the board may also elect other committees
with responsibility for such things as traffic issues, the welfare
of the residents, or environmental concerns.
State Housing Bank Mortgages and Premiums (Husbank og
innskudd)
The building of the housing units in a cooperative
housing society is usually financed by a mortgage from the Norwegian
State Housing Bank. The bank sets restrictions on the size and
standard of the housing, and each "shareholders" share of the joint
mortgage is included in the monthly rent. The remainder of your
share of the building costs is called a premium which you must
finance yourself. The most usual way to do this is to borrow the
moneyfrom a bank, from your employer, or from an insurance company.
In some cases, the cooperative building and housing association may
be able to help you obtain a loan for this purpose. Alternatively,
the local municipal authorities may be of assistance. The total cost
for the house/flat = joint mortgage + premium.
Rent (Fellesutgifter)
Most of your monthly rent is actually interest and
mortgage instalments to the Norwegian State Housing Bank. The
interest payments are tax-deductible, the details of which must be
entered on your tax-return form. The cooperative building and
housing association will send you information showing how much you
are allowed to deduct in good time before you must fill in your
tax-return form. The rest of your rent goes towards running costs;
property tax, other public-service fees, maintenance and repairs,
insuring the buildings, caretaker fees, fees to the board members,
and fees to the cooperative building and housing association for
their management services.
Insurance (Forsikring)
You are responsible for insuring the contents of your
house or flat (furniture etc). Generally speaking, permanent
fixtures and fittings and the building itself are covered by the
cooperative's joint insurance. In the case of fire or a break-in,
you must contact the cooperative building and housing association
who will contact the insurance company and deal with your case.
Maintenance (vedlikehold)
You are responsible for the internal upkeep of your
home, and external maintenance is the responsibility of the
cooperative housing society. You should check exactly what the
resident's responsibilities are where you live.
Neighbourhood Projects (Dugnad)
The cooperative housing society often arranges work
to be carried out jointly by the residents on a voluntary basis.
This might typically be maintenance or repair work of the outdoors
areas, or on buildings or common rooms. This is a normal way of
saving the cooperative housing society money; it is also an
excellent way of getting to know your neighbours.
House Rules (Husordensregler)
Most cooperative housing societies have their own
house rules. Such rules may be regarded as "traffic regulations" for
your local milieu, and are intended to safeguard general well-being
and to encourage consideration between neighbours. House rules are
drawn up by the residents themselves at the annual general meetings.
In cases of repeated violation of these rules, a resident may be
required by the board of the cooperative housing society to move out
of his home.
Sub-letting (Fremleie)
If you are going away temporarily, you may sublet
your home to others. You must however apply in writing to the board
of your cooperative housing society which will consider your
application and approve your proposed tenant.
Sale (Salg)
If you intend to sell your house or flat, you should
contact a real estate company for dealing with all paperwork and to
set a price for your house or flat. If it is a special type of house
you own, for example a house for elderly or for young people, (under
the age of 34), you must contact the cooperative building and
housing association, since there may be a system of price control on
these special types of housing.
Pre-emption (Forkjøpsrett)
Most cooperative housing societies have rules
regarding the right of pre-emption. The cooperative building and
housing association will ensure that the sale follows these rules,
provided that the buyer concerned is willing to pay the sellers
asking price. Those with the first right of pre-emption are usually
other members of the same cooperative building and housing
association. If you transfer ownership of your home to your spouse,
co-habitant, parent (grandparent), sibling or child (grandchild),
pre-emption does not apply.
Business Management (Forretningsfører)
The cooperative building and housing association
manages the business for the cooperative housing society, where it
takes care of all correspondence, collects the rent and keeps the
accounts, and advises the board of the cooperative housing society
in matters concerning management and maintenance, building of
extensions, modernization etc. Many cooperative building and housing
associations offer courses and training for board members, such as
courses in law, economics and administration, environmental issues,
and so on.
The cooperative Building and Housing Association -
your Consumer Organization. (Boligbyggelaget - din
forbrukerorganisasjon).
Many people consider their membership in a
cooperative building and housing association to be an excellent
safeguard for their future housing needs. Membership gives you
certain rights when housing is available, whether new or old.
Cooperative building and housing associations collaborate with the
authorities both building new houses and improving older housing.
Most cooperative building and housing associations in Norway are
members of Norske Boligbyggelags Landsforbund (NBBL) which acts as
their spokesperson to the Government.
Housing Benefit(Bostøtte)
If you belong to a cooperative housing society and
are resident there, you may be entitled to housing benefit, which is
assistance in paying your monthly housing costs. Details and
application forms are available from your cooperative building and
housing association, or from your local municipal authorities.
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