Two Virrat housing cooperatives declared bankrupt over unpaid fees

Two housing cooperatives in Virrat, Finland, have been declared bankrupt after some owners failed to pay maintenance fees, leaving residents like 85-year-old Heikki Puska without their homes, reports Yle.

The cooperatives, Killinkivi and Ollinkivi, filed for bankruptcy on 21 July 2026 after accumulating €165,000 in unpaid fees—€120,000 for Killinkivi and €45,000 for Ollinkivi. Additional financial strain came from oil heating costs and the purchase of a new water-air heat pump.

Conditions in the buildings have deteriorated. Electricity in common areas has been cut off since early July, and only cold water runs from the taps. The heating system no longer functions, forcing residents to wash with cold water or heat it using stovetop methods.

Residents have been told the buildings are uninhabitable and must leave as soon as possible, though no firm deadline has been set. Puska, who moved into his apartment 17 years ago with the intention of staying permanently, has already secured a rental home in neighboring Kihniö. Others, like Pertti Hanhikangas, have no immediate plans and are staying with relatives.

Hanhikangas, who paid €20,000 for his apartment and invested in renovations, said he would not buy another home, fearing a repeat of the financial collapse. He and other residents blame unpaid fees, particularly from investment owners who failed to secure tenants, for the cooperatives’ downfall.

Tuula Peltonen, chair of Killinkivi’s board, confirmed that legal attempts to collect the fees had proven difficult. With the bankruptcy, residents no longer have the right to manage their owned apartments, rendering them worthless.