DLA Piper is a leading expert on the legal aspects of social housing in Denmark. We advise housing organisations, municipalities and private parties on all aspects of social housing.
Real Estate
At DLA Piper, you will meet a team of experienced lawyers specialising in the A-Z of social housing. As a result, we can provide you with expert legal advice tailored to your needs, whatever your circumstances.
Our in-depth knowledge of public law regulation of social housing organisations gives us a unique basis for creating sustainable and long-term solutions for the social housing sector.
We aim to deliver value-adding 360-degree solutions for the long term. In that context, we are also experienced in helping social housing organisations prepare internal routines and processes, e.g. in connection with the implementation of new legislation or changes in case law or regulatory practice.
We also have vast experience in handling disputes and issues concerning non-compliance with the rules on residents' democracy, and we have in-depth knowledge of how to exercise the decision-making power and discharge duties at both divisional level and organisational level.
Construction and renovation of social housing
Construction and renovation of social housing often require major investments involving both the housing organisation, the municipality and the state.
With regard to construction of social housing, we advise on the entire process from idea to Form C and hand-over of the finished project. As a long-standing trusted advisor to a number of large housing organisations, we have deep insight into the social housing sector and the terms and processes which are peculiar to the sector, including residents' democracy, as well as how the regulatory authorities and the National Housing Fund handle social housing.
Furthermore, we have solid experience in drafting construction and consultancy contracts, and we can help you adapt social housing to PPP projects or as "local plan housing" according to the 25% rule.
The legal services that we typically provide in connection with the construction and renovation of social housing include:
- Advice on tender and procurement processes
- Purchase of building site
- Sparring on rules concerning notice periods and residents' democracy
- Advice on side activity companies
- Division into resident-owned units and drawing up of articles of association for owners' associations
- Property development
- Legal due diligence
- Negotiation of transfer terms and drafting of transfer documents
- Advice on interfaces as regards multi-purpose housing projects
- Title registration
- Cadastral changes/completion
Conversion of existing properties into social housing
For clients looking to convert an existing property into social housing, we can advise on all legal aspects involved such as:
- Acquisition of site and building
- Property development
- Value-adding development
- Subsidy rules
- Rules governing side activities and side activity companies, including divisional structures and joint management, etc.
In close cooperation with our clients, we engage in dialogue with the various stakeholders involved, from surveyors, neighbours and utility companies to public authorities, private developers and mortgagees.
In our experience, an open and constructive dialogue contributes to the best possible overall solution for all parties involved.
Landlord and tenant law in a social housing context
Landlord and tenant law in a social housing context is mainly rooted in private landlord and tenant law, but nevertheless there are significant differences which make landlord and tenant law in a social housing context a legal discipline of its own, e.g. the leasing and allocation rules, municipal supervision of housing organisations and management of divisions.
Another significant difference is the concept of residents' democracy, which ensures that residents have extensive influence on matters in their own division.
We advise social housing organisations on all aspects of landlord and tenant law, such as:
- Conclusion of leases, including advice on the right of allocation and leases under the provisions of the Business Leases Act (including Part 12 institutions)
- Rent determination and notification of rent changes under the balance rent principle
- Termination with and without notice and eviction
- Non-compliance with house rules
- Failure to keep the premises in good repair, including mould
- Improvement work carried out by residents (collective or individual)
- General organisational and administrative issues
Disputes
In case of a dispute arising out of an individual lease, our specialist lawyers are ready to help you.
We have specialist expertise in conflict management and dispute resolution in the social housing sector, and we are used to representing social housing organisations before all administrative bodies and courts, including the residents' complaints board, the Housing Tribunal, the High Court and the Supreme Court as well as arbitration tribunals.
Over the years, we have conducted a number of significant cases for housing organisations, municipalities and private parties, and we have represented clients before residents' complaints boards on numerous occasions. The cases conducted by us relate to non-compliance with house rules, unlawful sub-letting as well as liability in damages and proportionate reductions in connection with major renovation projects.
Residents are entitled to participate in the decisions of the housing organisation and the management of the individual divisions, and the residents virtually always constitute a majority on the ultimate governing body (the board of representatives/the general assembly) and have the right to elect a majority of the board members.
Furthermore, the residents are always entitled to elect the entire local board for each individual division/estate, the so-called divisional board.
However, social housing organisations which exclusively consist of senior housing whose residents are frail and in need of care are subject to an exception. In those organisations, the municipal or regional council may decide that the residents' representatives on the board of the housing organisation are to be appointed by the municipal or regional council from among relatives or other persons having the residents' interests at heart.
The residents' powers to make decisions to a specified extent on the management, etc. of the division are exercised through the divisional board and the divisional meeting. Moreover, the divisional meeting may decide to delegate authority from the divisional board and the divisional meeting to smaller groups of residents in the division (committees).
Social housing is subject to the Social Housing Rent Act.
As a result, the total rent payable for the housing units must be set at a level which ensures that the service charges payable for the units are always covered. This is known as the balance rent principle.
According to the principle, the rent must not be set at a level aiming to achieve profitable operations. However, housing organisations are allowed to allocate a small amount in the budget for this purpose in order to avoid frequent rent increases.
For more information on the rules on the renting of social housing, please visit the website of the Danish Transport, Construction and Housing Authority right here.
The main purpose of social housing organisations is to build, lease, manage, maintain and modernise publicly subsidised housing.
In addition, the housing organisations may also engage in certain side activities. An exhaustive list of such activities can be seen in the Executive Order on Side Activities.
