Examples on additional development

A local plan has been changed in in Espoo's Lähderanta, as a result of which the housing company sold parcels of land from its property for construction purposes and was thus able to partly finance extensive renovations. The property consisted of 4 four-storey residential buildings built in the 1960s with special permits, a terraced house and two commercial buildings. The idea of financing the renovation partly by parcelling the large plot was suggested in the housing company already in the early 2000s; the matter was slowly taken forwards depending on the activity of the board in charge. The housing company soon hired an architect to prepare a project plan. Several opinions and comments were submitted in 2005 to 2006 on the new plan, which was drawn up by the city in co-operation with a consultant.

The plan approved in 2009 enables the construction of one new block of flats and two new terraced houses. In addition, the old commercial buildings on the property can be demolished and replaced by a four-storey residential building with first floor commercial space. The simultaneously approved land use agreement provided for the transfer of the public park areas to the city and the payment of a contractual compensation, which was to be paid no later than five years after the local detailed plan had entered into force.

The renovation was carried out in 2009 to 2010, but the plots were not sold until 2012 due to the economic situation. Two of the three parcels were sold at a price equivalent to quarter of the cost of an extensive renovation project. This part of the loan was paid off when the land sales were completed. Provisions were made in bookkeeping for known capital gains so that the proceeds could be fully utilised without tax consequences. One of the land plots is still to be sold because the company has not succeeded in redeeming all the shares held by a shareholder in a commercial building, which is a part of the company. The block of flats and one terraced house were completed in 2014 on the site of a former tennis court of the housing company, and a separate terraced house was built near the shoreline.

In Leppävaara, Espoo, a local detailed plan has been changed to allow a housing company to demolish both dilapidated buildings on its property and sell the increased building rights to a developer company. The demolition was based on a condition survey commissioned by the housing company's consultant and a cost estimate based on the property's renovation needs. It turned out that the property was in poor condition and the renovation costs were high. Thus the housing company decided to hire a property development consultant and an architect to apply for a change in the local detailed plan. The changes were initiated in 2009 and they came into force in 2011. In the change the old buildings were replaced by a new building and the building rights were increased. The local detailed plan required a land use agreement with the city. Parking on the site was organised relatively cost-effectively in the form of courtyard parking spaces and partly with garage or carport solutions. The shareholders sold their shares to the developer which won the tendering, and they completed a five-storey, 52-apartment block of flats in 2013.

City of Helsinki Infill construction page(external link, opens in a new window) shows examples of different infill development projects by housing companies in Helsinki including detailed processes and profitability statements. The website also features interviews with project participants, representatives of housing companies and residents. 

City of Tampere Infill construction page(external link, opens in a new window) showcases examples of different types of infill development projects in Tampere, including revenues from the projects.