Subsidies

The CoR grants start-up grants for the purchase or construction of rented apartments for families and individuals who are below the income and property threshold. The aim of granting start-up grants is to improve housing security in Reykjavik by increasing access to safe and suitable rented housing and helping to align housing costs with tenants' ability to pay.

Apply for financial aid

About Institutional Contributions

The granting of subsidies is intended to help make rentals available in Reykjavik affordable to those in need, including students, young people, the elderly, people with disabilities and people who are unable to provide housing due to social circumstances or severe financial difficulties. These objectives fit well with the CoR's housing policy and housing programme. In order to achieve these objectives, special attention should be paid to new buildings and to increasing the number of rentals that meet the requirements of the General Condominiums Act and the CoR's rules on subsidies. Who can apply?

Institutional contributions may only be made to the following entities: Housing self-government agencies and legal entities wholly owned by Smoky City. Legal persons who were employed prior to the entry into force of the Act on General Condominiums and who met the conditions for obtaining a loan from the Mortgage Bank pursuant to Article 37 of the current Act No. 44/1998 on Housing. Other legal entities authorized by the Minister to be granted an initial contribution end up being non-profit-making, and this is consistent with the purposes and objectives of the General Condominiums Act. A person who applies for a start-up grant to the City of Reykjavik must have an intention to build or purchase a residential building intended for tenants who are below the income and property thresholds set out in the General Condominiums Act. The plans should be consistent with the objectives of the CoR's housing policy and aligned with the city's housing plan, taking into account the need for rented housing and its structure at all times. How to apply? Applications should be submitted electronically through a dedicated web portal on the city's site. The application must submit information and documents in accordance with the CoR's rules on subsidies and detailed descriptions on the portal. State endowment should also be applied to the Housing and Human Settlements Bureau. The prerequisite for granting the CoR's initial grant is that the Housing and Urban Development Agency also grants the applicant a government grant within six months of the City Council's approval of the application for a grant. The decision granting the CoR's initial contribution will lapse without notification if this condition is not met. A confirmation from the Housing and Urban Development Agency that an application has also been received by the Agency must be submitted no later than 7 days after the expiry of the CoR's announced deadline. If the confirmation is not received within that time, an application may be filed. You can find more information on government subsidies on the website of the Housing and Human Settlements Agency.

Deadline for application

The deadline for granting foundations expired on 29 April 2020. It is permissible to submit an application if the necessary documents have not been received within the announced deadline. The city council will decide to accept or reject applications for funding in accordance with the city's rules on funding no later than 30 days after the application deadline. If the application for an endowment is approved, the endowment is granted to the City of Reykjavik only if the Housing and Urban Development Agency agrees to also grant the state endowment within six months of approval by the City Council.

Evaluation of applications

The Special Evaluation Committee reviews applications for foundation grants and makes a recommendation to the mayor for their disposition. The Evaluation Committee is empowered to seek professional advice within and outside the city system. The City Council confirms that the granting of individual foundation grants, upon proposal of the Evaluation Committee, constitutes a source of funds for them.

In dealing with applications

it shall assess, inter alia, the following aspects:

Whether the application for an endowment complies with the provisions of laws and regulations. Whether the project is accommodated within the budgetary appropriations set by the CoR and whether the impact of the granting of initial grants on the CoR's business, economy and cash flows is in line with the assumptions of this programme. Whether the premises to be built or purchased are considered economically viable and meet the needs of the population so that they are acceptable. Whether or not rented accommodation of the size and type is required in the neighborhood in which the accommodation is located or in the group in which the accommodation is intended to serve, taking into account the city's housing plan. Whether the estimated rental price is in line with the payment capacity of the prospective tenant group. Whether the financing of project expenditure, including implementation, operation, regular maintenance, improvement and repayment of loans and start-up grants, is solid and whether the financing has been secured in a full­sufficient manner. Whether the data available, such as the initial value estimate, the business plan and the estimated rental price, are reliable and realistic and whether these estimates are likely to be such that the project achieves the purposes and objectives of the CoR's legislation and housing programme. Whether an application otherwise corresponds to the purpose and objective of the CoR's legislation and housing programme. It is allowed to take into account the economic conditions of the community and the impact of construction activities on society and the economy.

The CoR reserves the right to reject any application. For further information on the founding of the City of Reykjavik, please contact us at founding@reykjavik.is.