Usbl in English

Information about Cooperative Building and Housing Associations and Cooperative Housing Societies

Cooperative Building and Housing Associations (Boligbyggelag)

A cooperative building and housing association is an organization which builds and allocates housing to its members at cost price. A cooperative building and housing assosiation also acts as general manager of cooperative housing societies.

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 responsibilities of a cooperative building and housing association, whereas the actual construction work is carried out by various building contractors.

 

Membership (Medlemskap)

Anyone can become a member of a cooperative building and housing association. You must be a member or become a member in order to be allowed to purchase one of their housing units. Membership can be passed on to one´s children or parents (direct descendants or parents).

The Cooperative Housing Society (Borettslaget)

Housing units built by a cooperative building and housing association are usually organized into cooperative housing societies. 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 own a "share" in it. The buildings, joint property/facilities and outdoor areas are thus owned jointly by the residents who make up the cooperative housing society.

 

The Board and the Annual General Meeting (Styre og generalforsamling)

Each year, the cooperative housing sosiety 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 flat (and therefore have "shares" in the cooperative housing society) are intitled 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 evironmental concerns.

State Housing Bank Mortgages and Premimums (Husbank og innskudd)

The building of the housing units in a cooperative housing society is usually financed by mortgage from the Norwegian State Housing Bank. The bank sets restrictions on the size and standard of the housing. Your share of the joint mortgage is included in your 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 money from 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.
Total cost = joint mortgage + premium

 

Rent (Fellesutgifter)

Most of your monthly rent is actually interest and mortgage installments. The interest payments are tax-deductible; you must enter the details on your tax-return form. The cooperative building and housing association will tell you 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 and other public-service fees, maintenance and repairs, insuring the buildings, caretaker fees, and fees to the board members and 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 should contact the cooperative building and housing association which will contact the insurance company and deal with your case.

Maintenance (Vedlikehold)

You are responsible for the internal upkeep of your home. External maintenance is the responsibility of the cooperative housing society. You should check what is usually the residents´ responsibility where you live.

Neighbourhood Projects (Dugnad)

The cooperative housing society usually arranges some work to be carried out jointly by the residents on a voluntary basis. This might typically be maintenance or repair work of the outdoor areas, or on buildings or common rooms. This is a usual way of saving the cooperative housing society money; it is also a good 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 encourage consideration between neighbours. House rules are drawn up by the residents themselves at the annual general meeting. In cases of repeated violation of these rules, a resident may be required to move by the board of the cooperative housing society.

 

Sub-letting (Framleie)

If you are going away temporarily, you may sublet your home to others. You must apply in writing to the board of your cooperative housing society, which will consider your application and must approve your proposed tenant.

Exchange (Bytte)

You may exchange your house or flat for another, if you wish. You must apply in writing to the board for its approval.

 

Sale (Salg)

If you intend to sell your house or flat, you must contact the cooperative building and housing association. You terminate your tenancy agreement, and it is most practical for you to give the cooperative building and housing association the task of selling for you. Property in ordinary cooperative housing societies may be sold for the amount the buyer is willing to pay. In certain municipalities, there is a system of price control on special types of housing, for example housing for the elderly.

 

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 seller`s asking price. Those with the first right of pre-emption are usually other members of the same cooperative housing society, followed by other members of the cooperative building and housing association. If you transfer ownership of your home to your spouse, co-habitant, parent (grandparent), sibling or child (grandchild), or if you exchange your house or flat for another, pre-emption does not apply.

 

Business Management (Forretningsfører)

The cooperative building and housing association manages the business matters of the cooperative housing society. It takes care of all correspondance, 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 of cooperative housing societies, 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 a reasonable safequard 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 in both building new housing and improving older housing. The majority in Norway are members of Norske Boligbyggelags Landsforbund (NBBL), which acts as their spokesperson to the Government.

Housing Benefit (Bostøtte)

If you are a member of a cooperative housing society and are resident there, you may be entitled to housing benefit, that 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 authorites.

(Text from tobb.no)