The Public Housing Act (Act on Public Municipal Housing Companies) came into force in 2011.
In short, the law means that public housing companies must take social responsibility, primarily in terms of the environment and social work, while at the same time conducting operations according to business principles.
Business principles mean that the companies should not be given any advantages over private competitors that benefit them financially, and that the company should always start from what is best for the company in the long term.
The relationship with the owner must be commercial and the municipality must set market-based return requirements for the company. The municipality may not demand that the company implements measures that are not profitable.
The law also states that responsibility for housing supply can never pass from the municipality to the company.