Fund for Rent Subsidies Extended

The municipalities’ ability to use a special fund of 150 million Danish kroner for rent subsidies is now extended until the end of 2027. This was announced by the Ministry of Social Affairs and Housing in a press release.

The fund was originally allocated as part of the agreement on the Fonden for Blandede Byer and aims to assist those seeking housing in an urgent housing situation, especially socially marginalized individuals with low purchasing power, including the homeless. Municipalities can use the funds to provide rent subsidies to individuals whom they allocate housing to.

The money has been distributed in two application rounds in 2022 and 2023, but several municipalities have not yet utilized their allocations. The funds were set to expire at the end of 2025, but Minister of Social Affairs and Housing, Sophie Hæstorp Andersen, has now decided to extend the period of use by two years.

“It is crucial to me that the rent subsidy funds actually reach those who need them the most,” stated the minister in connection with the extension. She also encourages municipalities to take advantage of the opportunity to help more people with urgent housing needs.

On November 21, Social- og Boligstyrelsen (the Ministry of Social Affairs and Housing) sent the amendment to the regulation for consultation. The extension is expected to come into effect before the end of 2025.

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