Ministry of the Environment
1 August 2019
Housing policy
The housing policy improves the opportunities for all people to find housing to suit their situation in life, as
well as promoting sustainable development, the functionality of society and the labour market, and the
possibilities for social engagement among residents. Immigration and internal migration, as well as a
shortage of social housing especially a lack of small flats and high housing prices in the metropolitan area,
particularly in Helsinki, are contributing to homelessness.
Fi la d s populatio is agei g rapidl ; i
, there ill e arou d .
illio itize s o er the age of .
This ill ha e a dire t i pa t o housi g. The Go er e t s housi g poli atte pts to e sure that older
people can live in their homes safely, regardless of their capacity to function or their wealth. This also
increases the need for the provision of services for older people living at home.
Additionally, other special groups, such as people with disabilities, dementia or mental health problems and
the homeless have specific housing needs, which can be fulfilled through independent housing and related
care, supported housing or service housing. The state supports the housing of these groups of people through
interest subsidy loans and special investment grants for the construction, acquisition or renovation costs of
housing units. The investment grants are issued along with interest subsidy loans and they cover the costs
generated by the special spaces needed by the special groups in question. The maximum amount of these
grants is 50 percent of the approved costs of the housing unit.
Homelessness programmes since 2008
In recent years, the state has launched and funded programmes aimed at reducing homelessness, which have
tackled the situation of the most vulnerable long-term homeless in particular. With the help of these
programmes, municipalities and organisations have provided new housing for the homeless and reformed
the services aimed at homeless people.
Since 2008, the national homelessness strategy in Finland has been based on the Housing First model.
Traditionally, housing has been seen as the final goal of a social recovery process. Housing First shifts the
paradigm and puts housing at the top of the list, as the first step in helping homeless people get back on their
feet. The idea of Housing First is simple: to give people permanent housing and the support they need as
soon as they become homeless. When a person has a roof securely over their head, it is easier for them to
focus on solving their other problems. It is important for the implementation of the model that more
affordable housing is available on the market. Finland is the only country in the EU where the number of
homeless people has declined in recent years.
PAAVO I
The programme to reduce long-term homelessness PAAVO (2008–2011) was based on the government
decision of February 2008. The programme was administered by the Ministry of the Environment and its
implementation involved the Ministry of Social Affairs and Health, the Criminal Sanctions Agency, The
Housing Finance and Development Centre of Finland (ARA) and Finland's Slot Machine Association (RAY). The
PAAVO programme covered ten cities with the largest percentages of homeless people: Helsinki, Espoo,
Vantaa, Tampere, Turku, Lahti, Jyväskylä, Oulu, Joensuu and Kuopio. They all signed letters of intent with the
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