Hafnarfjörður abandons 260-apartment plan as other councils may step in

Hafnarfjörður has dropped plans to build 260 apartments for people working temporarily in the capital region, and other municipalities may take the project forward, mbl.is reports.

The proposal would have included 130 housing units on about 10 hectares near Krýsuvíkurvegur and Hvaleyrarvatnsvegur, close to the Vellir residential neighbourhood. Hafnarfjörður’s governing majority, made up of the Independence Party, Viðreisn and the Social Democratic Alliance, decided to abandon the plan after residents objected.

Orri Björnsson, chair of Hafnarfjörður’s town council, said the project could not proceed within the municipality unless its growth boundaries were expanded. He said the town hoped to present proposals for expanding those boundaries this winter, but the planning process could take about two years from the time a proposal is submitted.

Orri said the shortage of suitable housing for temporary workers remained unresolved. He said the town had been told that an estimated 500 to 600 people live in commercial premises in Hafnarfjörður without being registered as residents, with about 2,000 people in that situation across the capital region.

Dropping the plan means no agreement will be confirmed with Styrkás Fasteignir ehf. Orri said the decision would reduce housing supply for temporary workers, increase demand for unsuitable accommodation and lower Hafnarfjörður’s revenue. However, he said the town judged that continuing was not worthwhile given the level of local opposition. He added that other municipalities might now take the project forward.