A municipality that considers it needs help to reconstruct or reorganise its housing company can apply for support from BKN. Government support is only available if the municipality itself cannot bear the cost for the reconstruction and if other measures are not sufficient.
The objective of BKN’s programme of support to municipalities is to give municipal housing companies long-term sustainable financial conditions for cost-effective housing management that is adapted to expected population trends.
Government support can be provided as
- grants for the reconstruction of municipal housing companies
- credit guarantees to replace municipal guarantee commitments
- credit guarantees for loans to municipalities
The commitments of the Government and the municipality in connection with the reconstruction are regulated in an agreement between the municipality and BKN.
A total of 102 municipalities have applied for support for the reconstruction of municipal housing companies. Agreements have been signed with around 50 of these municipalities. In all, these agreements cover action costing some SEK 4.8 billion, of which SEK 2.5 billion has been financed through government support.