Two housing cooperatives in Virrat face bankruptcy over unpaid fees

Two housing cooperatives in the Killinkoski area of Virrat, Finland, have filed for bankruptcy due to unpaid maintenance fees and bills, with power cut to shared spaces and no hot water reaching apartments, Yle reports.

Asunto Oy Killinkivi and Asunto Oy Ollinkivi, located in the same courtyard, filed bankruptcy petitions in Pirkanmaa District Court on July 10. The larger building has 18 units, the smaller 10.

Chair of Killinkivi’s board Tuula Peltonen said the issue stems from unpaid fees, primarily by investor-owners who rent out their units but have not settled their share of costs for years. Resident-owners, she noted, have paid their fees.

Efforts to collect through debt enforcement have yielded little, with tens of thousands of euros in arrears. The cooperatives have taken control of some units but lack funds for repairs needed before re-renting.

Rising oil prices—part of the buildings’ heating system relies on oil—have compounded financial strain, Peltonen added.

Residents currently remain in their homes despite the lack of hot water. Former board chair Pertti Hanhikangas, a resident, described the situation as devastating, with uncertainty over whether people will lose their homes.

Bankruptcies among housing cooperatives remain rare but are increasing, particularly in sparsely populated areas or small cooperatives with fewer members to absorb unexpected costs, according to Jenni Valkama, a legal expert at the Finnish Real Estate Management Association.