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Complementary construction compensation

The City of Helsinki aims to promote complementary construction in old areas, through forms such as building additional floors for apartment buildings or constructing a new building next to an older one, on the same plot.
The City wants to promote complementary construction with financial incentives. In connection with the preparation of plan revisions, talks are held with the plot’s tenants about complementary construction compensation.

Principles for the payment of complementary construction compensation

Complementary construction compensation applies to housing associations occupying plots leased from the City. The City pays tenants complementary construction compensation amounting to 1/3 of the net value increase of the permitted building volume created by the plan revision. The compensation can be greater, at most 2/3 of the net value increase, if current parking spaces must be replaced elsewhere and this causes significant replacement investments (e.g. ground-level parking spaces are moved to a facility or underground). The compensation will be paid in connection with the renewal of the lease contract, after the plan revision has entered into force.

Size of the compensation

In practice, the compensation is calculated by first determining the value of the additional permitted building volume, which is calculated according to a reasonable price level for each area. After this, the necessary costs for this to be achieved, i.e. so called replacement investments such as demolition of buildings, transfers of wiring, and yard and parking space arrangements, are deducted from the value of the permitted building volume. Finally, the net value increase is divided so that the tenant usually receives 1/3, or a maximum of 2/3.

The following persons can assist with complementary construction compensation matters:

The Urban Environment Division, Land Property Development and Plots

15.12.2021 16:02