Merger of Helsingin Korkotukiasunnot with Auroranlinna
KKOY Helsingin Korkotukiasunnot, which is owned by the City of Helsinki, shall be merged with the non-subsidised city-owned housing company Kiinteistö Oy Auroranlinna from 1st January 2020. The change aims to facilitate and make the administration of the city’s real estate property more uniform.
The tenants of Korkotukiasunnot will become tenants of Kiinteistö Oy Auroranlinna, and the rental agreements will be transferred as such to Auroranlinna.
Kiinteistö Oy Auroranlinna shall deliver new rental receipts to the tenants at the end of November – beginning of December. Rent for January 2020 shall no longer be paid to the City of Helsinki’s bank account.
In addition to the payment of rent and any relevant changes to e-invoices and direct debits, the matter does not require any further action from the tenant.
Merger of KKOy Helsingin Korkotukiasunnot with Auroranlinna 1/1/2020
The state subsidy limits of KKOy Helsinki Korkotukiasunnot have ended during 2019, after which the company will merge with the 100 % city-owned Kiinteistö Oy Auroranlinna in accordance with the objectives set out by the City of Helsinki. Kiinteistö Oy Auroranlinna also owns the City of Helsinki’s other state-subsidised housing buildings. Kiinteistö Oy Auroranlinna does not aim to make a profit and it does not distribute dividends to its owners, but instead any profits are used to support and develop the company’s own operations. The merger shall take place from 1/1/2020.
Why a merger:
The City of Helsinki has set the preparation for a merger as the companies’ 2019 objective to be reported to the City Council. The purpose of the merger is to make the management of properties more centralised and more uniform, which in turn makes operations more efficient and ensures the same operating methods at different properties. In addition, the financial risks of the properties can be better managed with a large mass of properties. The merger does not involve any intended sales of properties.
When has the decision been made:
The City of Helsinki has developed the administration and ownership of the housing it owns in the 2000s to create equal rental terms for residents and to make the processes of apartment ownership, property management and maintenance more efficient. In practice, this has meant that the ownership of the city’s so-called ARA rental properties has been centralised to Heka Oy and the ownership or owner functions of non-subsidised properties to Kiinteistö Oy Auroranlinna. The city has set out the preparation for a merger as the company’s 2019 objective, in such a way that the merger would take place in 2020. Actual decisions on the merger have been made at the end of August 2019.
Changes to rental agreements:
The current rental agreements of Korkotukiasunnot’s residents shall remain valid after the change of ownership. Individual apartment renovations shall continue to only be carried out when the tenant changes. Only some of the contact details, as well as the account and reference numbers related to rent payment, shall change in connection with the merger. New rental receipts and necessary instructions shall be sent out separately at the end of November 2019.
Effect on rents:
At the beginning of next year, the rents shall only be increased by the normal annual increase referred to in the agreement. The company’s rent prices, and the amount of repair debt accumulated by the properties shall be clarified after the merger, and any increases that are higher than the contractual increase shall be decided after separately made determinations. Kiinteistö Oy Auroranlinna observes Fair Rental Practices 2018 guidelines in its operations.
The opportunity for mutual exchanges of apartments related to state-subsidised housing shall end in connection with the merger on 31/12/2019. Thereafter, a different apartment can be applied for via Stadin Asunnot at stadinasunnot.fi or through the vuokraovi.com service in the same way as the City of Helsinki’s other non-subsidised apartments.
Changes apply to the following contact details
www.korkotuki.fi > from 1/1/2020 www.auroranlinna.fi
asuntopalvelu(at)korkotuki.fi > from 1/1/2020 asuntopalvelu(at)auroranlinna.fi
Reporting problems tel. 010 636 5000 > from 1/1/2020 tel. 010 286 6245