Right-of-occupancy housing

[kharn]

Hey guys.

Would you be so kind as to explain how 'Right-of-occupancy housing ' works and what it is?

Thanks

[Jukka Aho]

Would you be so kind as to explain how 'Right-of-occupancy housing ' works and what it is?

In short, you pay a one-time “deposit fee” for the right-of-occupancy (something like 15% of the apartment’s original construction expenses) and then continue paying monthly maintenance fees pretty much the same way as if you owned the apartment/unit in a regular co-op. The monthly payment will be more than in a unit you own but less than in a rented flat.

The actual owner of the building and the unit you live in can’t evict you except in exceptional circumstances, and you’re pretty free to make modifications to your unit within reasonable limits. You can also bequeath the right-of-occupancy to someone else. If you decide to move out, the deposit you originally paid for the right-of-occupancy will be returned to you (the deposit is linked to an index called rakentamiskustannusindeksi and the actual amount you get back will be corrected accordingly.)

What you can’t do: 1) You can’t sell the right-of-occupancy on the free market. 2) You’re also not allowed to pledge the right-of-occupancy as a security for a mortgage loan. 3) There are certain maximum income and wealth limits as to who can get a right-of-occupancy (at the time when you’re applying for it.) 4) As you don’t actually own a share in the company (like in co-ops), you don’t have a say on how the day-to-day maintenance of the building or possible development/renovation/remodeling plans, etc. will actually be carried out. (Right-of-occupancy housing usually has some limited form of “resident democracy” but the breadth of that depends on the company.)

The Finnish Wikipedia has an article on right-of-occupancy housing.