Housing corporations authority positive about compliance with critical legislation and regulations

Nearly all housing corporations comply correctly with the rules tested in the lawfulness assessment. The few deviations identified do not cause concern, but do require housing corporations to take corrective action and exercise greater vigilance.

This is evident from the annual assessment by the Housing Corporations Authority (Aw). The Aw checks whether housing corporations comply with a number of important rules from the Housing Act and lower-level regulations. The results of this lawfulness assessment underscore that housing corporations take their legal obligations seriously. This is one of the indicators used to determine whether corporations handle public funds with due care.

Assessment by the Aw

The Aw examines eight points to determine whether corporations comply with critical legislation and regulations. These aspects are considered critical because they stem from European regulations governing the granting of state aid. Alternatively, they are closely linked to ensuring that corporation funds are used for their intended social purposes.

For this assessment, the Aw used the most recent annual reports and accountability information (dVi) from all housing corporations for the 2024 reporting year. In that year, 272 housing corporations were active. Each housing corporation received the results of the assessment of its organisation in the form of a lawfulness letter.

The Aw calls for attention to data quality

Data quality remains a point of attention regarding the dVi submitted by housing corporations. In 2024, the dVi submitted by 27 housing corporations was incomplete or incorrectly filled in for one or more lawfulness aspects. This creates unnecessary extra work for the corporations themselves, the auditors, and the Aw. Improving data quality will contribute to a more efficient supervision process.

Key findings of the lawfulness assessment

The results of the lawfulness assessment show that housing corporations are carefully fulfilling their social mission:

Missing annual accounts

One housing corporation received an overall disclaimer. This housing corporation did not have approved annual accounts available. These accounts are essential to ensure sufficient certainty about the accuracy of the data submitted. The housing corporation in question is under enhanced supervision by the Aw. The relevant supervisor will examine, based on the specific context, which (follow-up) actions and measures are necessary.

State aid rules for allocation

269 of the 272 housing corporations met the requirements of the state aid rules for allocation. Housing corporations must comply with the state aid rules for allocation to qualify for state aid. In the Netherlands, housing corporations receive state aid in the form of guaranteed loans, which enable them to obtain a lower interest rate. The assessment shows that nearly all housing corporations complied with the state aid rules for allocation in 2024. Of the three housing corporations that did not meet the requirements, two were given the opportunity to rectify this. The next lawfulness assessment will verify whether this has been achieved and whether the housing corporation complies with the rules for both the 2024 and 2025 reporting years (as applicable). Since rectification was no longer possible for the other housing corporation, this case was referred to the supervisor at the Aw. The supervisor will examine, based on the specific context, which (follow-up) actions are necessary.

Appropriate allocation

260 of the 272 housing corporations allocated housing appropriately in 2024. Appropriate allocation ensures that a sufficient number of households entitled to rent allowance can live in affordable rental housing. Each corporation must allocate at least 95% of eligible households an appropriate home annually, based on their current income. The so-called cap limits serve as the benchmark. The 95% standard is assessed based on an average of allocations over the past two years. Twelve housing corporations did not meet the 95% threshold in the past year. Nine of these can rectify this in the coming year by allocating an appropriately high percentage of suitable housing in the next year, ensuring the two-year average exceeds 95%. In the other three cases, this was no longer possible. These cases were therefore referred to the supervisor at the Aw, who will examine, based on the specific context, which (follow-up) actions are necessary.

Rent administration accountability

270 of the 272 housing corporations complied with correct and transparent rent administration accountability. In two cases, the auditor could not confirm the accuracy and completeness of the rent administration accountability. The corporations in question have been given the opportunity to rectify this.

Rent cap rules

270 of the 272 housing corporations correctly applied the rent cap approach. Each year, it is determined by what percentage rents may be increased. Additionally, housing corporations may increase rents for some properties by a larger percentage than for others, based on rent policy. This is done, for example, to align rents more closely with the quality of the property. The Aw concludes that the rent cap approach is generally applied correctly. In 2024, two housing corporations implemented a slightly higher rent cap increase than permitted. These corporations have been given the opportunity to rectify this in 2025 or 2026. The Aw will assess, during the lawfulness assessment for the 2025 or 2026 reporting year, whether the corporations have succeeded in doing so.

Maximum Income Standards Act

All housing corporations complied with the Maximum Income Standards Act (WNT). The WNT aims to curb excessive remuneration and severance packages in (semi-)public sector institutions. The WNT sets and publicises standardised remuneration and severance package limits for top officials in these institutions. The maximum remuneration levels are indexed annually.

Simplified regime

74 of the 77 housing corporations that fell under the so-called simplified regime complied with the applicable rules. Small housing corporations may opt for the simplified regime, which exempts them from the obligation to apply asset separation. Of the 77 housing corporations that fell under the simplified regime in 2024, three did not meet the standard that non-core activities may not exceed 5% of annual turnover. These three cases were referred to the supervisor at the Aw, who will examine, based on the specific context, which (follow-up) actions are necessary.

Compliance with other tested rules

244 of the 272 housing corporations also correctly complied with the other rules tested. Nearly 90% of all housing corporations complied with the rules individually examined as part of the lawfulness assessment. These rules pertain to:

• Providing capital or guarantees to affiliated enterprises.
• Compliance with rules for entering into transactions with financial institutions.
• Meeting certain requirements when selling real estate.
• Multiple tendering of work on or construction of social real estate.
• Compliance with rules for entering into derivative transactions.
• Ensuring access to the rent administration when entering into a new intermediary rental contract.
• Compliance with complaint regulations regarding the actions or omissions of approved institutions.
• Meeting the requirements of a demolition and relocation costs regulation, including the associated conditions.

The housing corporations that did not (fully) comply with the rules received a warning.