There is about 3 million apartments in Finland and about every third of them has been constructed using state subsidies (ARA construction). ARA's stock of buildings consists of rental, right-of-occupancy and part-ownership housing funded using Arava or interest-subsidy loans.
Because a social element is involved in the building stock subsidised by the state, the use and handover of these homes has been limited. ARA buildings have been constructed since 1949. The basic premise of state-subsidised housing has been the provision of safe housing conditions for residents, at a reasonable cost.
ARA's task is to steer and monitor the use of its stock of buildings and the activities of the owners of residential buildings funded with state subsidies, and to manage the risks related to the building and loan stock together with the State Treasury.
Through steering and monitoring, ARA ensures that
- state subsidies are allocated to residents,
- residential building corporations operate according to the regulations, rules and guidelines that apply to state-subsidised housing production
- corporations do not enter more income for their owners than permitted by law.
It is the task of municipalities to monitor rents and the resident selection, whereas ARA is responsible for the general steering of municipalities and debtors.
Non-profit corporations must operate in the manner required by the regulations governing them. ARA monitors the fulfilment of these prerequisites. The scope of a corporation's operations, application procedure for the homes, entering the corporation's profits as income, handover of vacant homes, corporate structure and home-ownership arrangements, risk-taking and granting of loans and guarantees are governed by the non-profit regulations.
It is also ARA's task to monitor the entering as income of profits made by rental building corporations owned by municipalities. Together with municipalities, ARA steers and monitors the use of rental ARA homes. It is the task of municipalities to monitor rents and the resident selection, whereas ARA is responsible for the general steering of municipalities and debtors.
Limitations regarding ARA's stock of buildings
The limitations regarding the use and handover of rental and right-of-occupancy buildings funded with Arava or interest-subsidy loans are provided for by law. Limitations regarding rental homes are temporary, whereas those regarding right-of-occupancy properties are permanent.
The related regulations apply to the resident selection process, determination of rents or maintenance charges, handover procedures for rental and right-of-occupancy homes and residential democracy.