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PROPERTY

What to do if you have a disagreement with a Norwegian housing association

Many homeowners in Norway live in a housing association ('borettslag'), which is usually run by a board. But what happens when you have a disagreement with the cooperative's board?

Published: 31 July 2023 16:09 CEST
Trondheim
Living in a housing cooperative in Norway has several benefits - if you're new to the country, you might appreciate the support and guidance of locals in your cooperative. Photo by Maarten Zuidhoorn on Unsplash

When it comes to owning a home in Norway, there are primarily two paths to choose from – self-owned homes and co-owner homes.

The former involves private ownership of the property, while the latter is an arrangement where a housing cooperative (Norwegian: borettslag) – with several co-owners or unit holders – collectively owns the property.

This shared ownership, however, doesn’t negatively affect the exclusive rights of each co-owner to their individual homes.

There’s no need to worry if you’re unfamiliar with the housing cooperative model – it is both common and widely embraced in Norway, with property buyers looking for a new home often showing no preference between these different ownership types.

However, when it comes to the management of the cooperative and its operations, you’ll need to familiarize yourself with its essential governing body – the board (Norwegian: styret).

The cooperative board and its responsibilities

The board has a number of responsibilities in the housing cooperative, ranging from the day-to-day administration to handling financial matters (including things like budgeting and accounting).

Furthermore, the board is also tasked with making important decisions related to the cooperative’s affairs, such as taking on maintenance projects, making changes to common areas, and similar issues.

You can expect the board to uphold the cooperative’s rules, periodically hold regular meetings for co-owners, and handle contract negotiations with providers of services that the cooperative needs (for example, when the cooperative needs a new fence installed).

READ MORE: Your essential guide to housing cooperative general meetings in Norway

Usually, the board also mediates communication between the residents (if necessary) and local authorities or service providers (if you’re unhappy with the new doors installed by a service provider, the board should be your first point of contact).

Finally, the board ensures that the cooperative acts and operates in accordance with Norwegian regulations governing housing cooperatives.

Common disputes

Living in a housing cooperative in Norway has several benefits – if you’re new to the country, you might appreciate the support and guidance of locals in your cooperative. Furthermore, it can also offer a sense of community and shared responsibility. However, it can also give rise to disputes among residents.

One common area of contention revolves around the distribution of shared costs (Norwegian: felleskostnader) within the cooperative. Major works on the property, such as renovations or repairs, often spark disagreements among residents.

Some may feel that they should not have to contribute as much as others if they believe the work doesn’t directly benefit them. Additionally, disputes may arise when the cost distribution deviates from what is specified in the cooperative’s statutes or when the cooperative needs to increase the costs due to new market conditions.

READ MORE: How to analyse a Norwegian housing association’s finances before you buy an apartment

Unequal levels of maintenance carried out by individual residents can also lead to conflicts. Aside from financial and maintenance disputes, keeping pets is another potentially contentious issue. While keeping animals is generally permitted, cooperatives can impose restrictions via their bylaws.

What to do if a dispute arises?

First things first – prevention is always the best course of action. Clear communication, adherence to the cooperative’s rules and relevant legal provisions, as well as fostering a spirit of cooperation among residents and the cooperative’s board can all help reduce the risk of conflicts.

However, even when the residents and the board have the best intentions, disputes still can – and do – arise.

Generally speaking, three types of disputes can arise: internal ones (between residents), between residents and the board, and disputes with external actors.

1. Individual disputes – those which arise between residents within the cooperative – are most common and can occur due to various reasons, such as disagreements over maintenance responsibilities, noise complaints, or issues related to shared facilities.

In such cases, the cooperative usually resorts to internal procedures to facilitate communication and resolve conflicts (such as mediation via a neutral third party). If these fail, a more formal decision-making process can be employed, such as a discussion followed by a vote during the annual general meeting.

2. Disputes between residents and the board: Conflicts between residents and the cooperative board may occur for numerous reasons. For example, if residents feel the board is not fulfilling its duties (being sloppy with maintenance) or poorly managing cooperative funds (taking on unnecessary debt).

Cooperatives usually have clear guidelines for how residents can voice such concerns – from raising the matter during general meetings to requesting an extraordinary meeting or contacting the board directly. If the dispute remains unresolved, residents can escalate the issue and seek legal advice or mediation.

3. Disputes with external actors: Housing cooperatives deal with many external actors, ranging from local authorities to contractors. Here, disputes can often arise regarding contractual obligations or service quality, and cooperative representatives might need to engage in dialogue or seek legal advice to find a solution.

Eventually, a contractor is bound to mess up their job – the new door won’t close right, the window will let air leak, the painting job will look shoddy… The list goes on and on. In such cases, having the board on your side is what you’ll definitely want.

Many disputes are resolved informally. However, if such efforts fail, legal action becomes necessary.

The steps for this route usually involve residents or the cooperative board seeking out legal advice and representation – which tends to be time-consuming, costly, and can negatively affect the price of your home, should you decide to sell it during the dispute (as you’ll be legally obligated to disclose any such proceeding).

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NORWAY EXPLAINED

What parental benefits are you entitled to as a freelancer in Norway

For newcomers to Norway, navigating the world of parental benefits can be complex, especially if you're a freelancer.

Published: 18 June 2024 15:22 CEST
What parental benefits are you entitled to as a freelancer in Norway

Navigating a foreign country’s administrative and social support systems can often feel overwhelming, particularly if you don’t fit the standard of a typical employee with a permanent contract.

This complexity is more pronounced for freelancers, who must contend with specific challenges – such as changing income levels and varying definitions of their work status.

READ MORE: What parents in Norway need to know before going on parental leave

The fact that Norway is a country renowned for its generous social benefits and high standard of living doesn’t make this situation different from other countries.

Understanding – and accessing – parental benefits as a freelancer can be confusing, especially when it comes to parental allowance.

Defining freelancers in Norway

While many freelancers in Norway operate as sole proprietors (ENK), the Norwegian Labour and Welfare Administration (NAV) has a special definition in place for freelancers.

Under Norwegian regulations, freelancers are considered independent contractors who receive a salary fee (also called salaried freelancers).

In contrast, those running an ENK are classified as self-employed.

This distinction can be confusing because most freelancers in Norway are, in fact, self-employed and call themselves freelancers.

That’s why, when consulting NAV’s information on parental allowance or using their online site, those with an ENK should view and declare themselves as “self-employed” rather than “freelancers.”

So, if you contact NAV to inquire about your rights, explain your business arrangement in detail.

Psst! If you are considering setting up as a freelancer in Norway, make sure to read The Local’s in-depth guide on the options at your disposal.

Understanding your social rights as a freelancer

As a freelancer in Norway, your social rights differ from those of traditional employees.

Unlike employees, freelancers are not entitled to sick pay from their clients. However, they are eligible for sick pay from the NAV starting from the 17th day of illness.

READ MORE: What are the rules for foreigners accessing welfare in Norway

To enhance their coverage, they can also opt for voluntary supplementary insurance.

Furthermore, freelancers do not benefit from a pension scheme provided by clients, so they need to look into a personal pension plan to ensure financial security in retirement.

Under certain conditions, freelancers may be eligible for unemployment benefits.

If you need clarification on whether you qualify, contact the NAV and share the specifics of your case with them.

Parental benefits for freelancers

Parents in Norway, including freelancers, are entitled to 12 months’ leave in connection with a birth of their child.

This leave period includes the mother’s right to up to 12 weeks’ leave during pregnancy and six weeks’ leave that can only be taken by the mother after the birth.

Furthermore, all welfare benefits for freelancers and the self-employed in the country are based on the profit of their businesses.

This profit is the amount remaining after deducting business expenses.

For instance, if you invoice 600,000 kroner annually and have 150,000 kroner in expenses (such as office space, travel, and equipment), NAV will use your profit of 450,000 kroner to calculate your benefits, including parental allowance.

The maximum benefit amount is capped at six times the National Insurance basic amount (1G), which, as of May 1st, 2023, is 118,620 kroner.

This cap applies to freelancers, wage earners, and others eligible for benefits.

Calculating parental allowance

For self-employed individuals, parental allowance is typically calculated based on the average income over the last three years, with the NAV obtaining this data from the Tax Agency.

Note: If your profits have fluctuated significantly over the period or if you have been in business for less than three years, you will need to provide the NAV with a detailed description of how your business operates and makes money.

Based on that information, they will conduct an individual assessment and make a discretionary decision regarding the amount you will be paid for parental allowance.

On the other hand, the rules for salaried freelancers and those with a limited company (AS) mirror those for regular employees.

Parental allowance is generally based on the average income from the three months preceding the start of the parental benefit period.

If there is a significant difference (over 25 percent) between your annual income and your recent three-month income, NAV will determine which figure is more representative.

Parental allowance can be taken consecutively or in combination with work or holidays.

For more detailed information, you can check out NAV’s guidelines on parental allowance.

Alternatives for those not entitled to parental allowance

Even if one or both parents are not entitled to parental allowance, they still have the right to parental leave.

In such cases, the mother can apply for a one-off benefit, and in certain circumstances, the father can too.

Additionally, as employee interest organisations often point out, the parent who has not accrued the right to parental allowance can begin to accrue this right while the other parent is on leave.

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