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Financing

Housing Cooperative

Access to housing in Amsterdam is increasingly difficult. For more and more people it has become impossible to buy a property with a mortgage. At the same time the social rent sector has shrunk beyond recognition, while the private rental market has sky-high prices.

Housing cooperatives offer an alternative model for accessible living, based on principles of collective ownership, solidarity and sharing. As members of a cooperative, people rent affordable apartments, run the association, and manage the property all at the same time. In this way, the building can never be divided into individual units and/or sold on the market.

The municipality of Amsterdam also sees the potential of cooperatives for a healthy and accessible housing climate in the city. The current city government, as announced in their Action Plan Wooncoöperatie, aims to deliver 7000 homes through the cooperative model in the next five years. De Nieuwe Meent is the second pilot project of this program. Its success should therefore also pave the way for more collective housing initiatives throughout the city.

Business Case

The total investment of the project is about €6M. Most of that money is used to cover construction costs (around €4,5M) and design and development costs (around €750.000).

70% of the total budget is covered by a loan, 3% is covered by a downpayment (borg) from members of the cooperative, and 18% consists of loans and subsidies dedicated to social and/or sustainable projects offered by the city of Amsterdam, the Province of Noord Holland and the State. We already received €160.000 used to cover the project costs so far. The city of Amsterdam has also created a new special fund of €50M euros to support housing cooperatives.

The remaining 9% of our total budget of €450.000 will be covered through crowdfunding. We will launch our first crowdfunding campaign soon. During the campaign supporters of dNM can donate or purchase bonds with a 5, 10, or 15 years time span and an interest rate of 1,8%. Supporters will become ‘dNM Neighbours’ of the dNM community.

Upon completion of the building the rents collected will cover operation costs and loan repayments. As defined in dNM Statutes, once we have paid back our debts, all surplus will be used by the cooperative itself for improvements to the common good or invested in projects that share the same principles of collective home ownership, solidarity and sharing. In this way we will enable the housing cooperative movement to keep growing stronger!

Investment Costs vs. Financing
Maintenance Costs vs. Income
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