Funding shortfalls block elderly community housing plans

At least 10,000 new community housing places for older people are needed in Finland in the coming years, but many construction and renovation projects are being held back by a lack of funding, Yle reports.

The target is based on objectives set by Finland’s wellbeing services counties. By 2030, community housing should cover 2.3 per cent of people aged 75 and over, although the targets vary between counties. A shortage of suitable premises is one of the main obstacles.

Demand lies between home care and round-the-clock services

Social councillor Satu Karppanen of the Ministry of Social Affairs and Health confirmed that community housing has not increased as planned.

Finland needs a form of service between home care and round-the-clock supported housing, Karppanen said. Providing frequent home-care visits can be difficult in sparsely populated areas. She also warned that staff shortages could return in a few years, making service models that allow employees to support several customers in the same place increasingly important.

Community housing provides an accessible private apartment in a housing unit for a person whose functional capacity has declined. Services are arranged individually according to the resident’s needs, and residents are offered activities that promote social interaction. It is a lighter and less expensive option than round-the-clock supported housing.

Central Finland needs about 800 places

Central Finland’s wellbeing services county aims to add 500 community housing places by 2030. The target corresponds to two per cent of the region’s residents aged 75 and over. There are currently 278 places.

The greatest need is in Jyväskylä and the neighbouring municipalities of Laukaa and Muurame. New places are also needed in smaller municipalities.

Uurainen, a municipality of about 3,600 residents, is planning a 10-place housing unit. However, the plans have not progressed beyond preliminary sketches because of a lack of money.

The local Uurainen association for elderly housing would commission the building. It has been unable to obtain a bank loan, even though it could offer property as security. The association owns, among other properties, a terraced housing building with 21 rental apartments for older people.

State investment grants have been cut

The government has sharply reduced state investment grants for housing construction for special groups. The grants are awarded by Varke, the state-subsidised housing construction centre.

During the current government term, 15 million euros in investment grants for special groups is available annually, compared with 120 million euros in 2022.

Grants are awarded for housing projects for people with disabilities and homeless people. Investment grants for housing for older people are not available during the current government term.

“These are political decisions that every government makes,” said Sonja Manssila, a special adviser at Varke.

Uncertainty is slowing construction

According to a forecast by Statistics Finland, about 767,000 people in Finland will be aged 75 or over in 2030. However, the number of older people is expected to begin falling in about 10 years.

The anticipated change increases the risks of new construction for both developers and banks. Central Finland’s wellbeing services county, for example, has no community housing project for older people in its investment programme.

Petteri Kontro, the county’s director of premises services, said population forecasts are being considered in the planning of future facilities.

“Will there still be older people living in community housing in 40 or 50 years? That is one question mark at the moment,” Kontro said.

Kontro said renovation should always be considered alongside new construction. The wellbeing services county has so far rented most of its premises through open-ended contracts, while new buildings have rental periods of 10 to 15 years.

Kontro encouraged municipalities to build accessible homes for older people. As residents’ needs change, the homes could also be used for community housing.

Varke’s Manssila said alternatives to new construction must also be developed. For example, vacant or underused properties could be converted for community housing.