Established in 1985, the Y-Foundation is a social enterprise that specialises in providing housing to individuals that have experienced, or are at risk of homelessness.The not-for-profit organisation is one of the key developers of the Housing First principle in Finland, which is now included in the national housing strategy. With the number of rough sleepers decreased by 66 per cent since 2008, Finland represents the only country within the European Union with declining levels of long-term homelessness.
Operating across fifty cities and municipalities, the Y-Foundation owns and manages more than 17,000 mixed-tenure, medium-to-high density dwellings, of which40 per cent are allocated as ‘specialised housing’ for vulnerable and high-needs target groups. The remaining 60 per cent constitute state-subsidised affordable rental homes which are rented out to partners organisations and municipalities who then sublet the apartments out to low- and moderate-income households.
To date, over 12,000 individuals who had experienced or were at risk of homelessness have been allocated housing through the Y-Foundation’s Housing First model.
The Y-Foundation currently (June 2021) has 790 units under construction and intends to build or acquire an additional 5,500 new apartments by 2030.
Built form
The Y-Foundation housing approach involves the purchasing, building and renovating of congregate and scatter site housing across Finnish cities and municipalities.
All Y-Foundation housing meet Finland’s ecology and energy efficiency requirements, with high levels of thermal insulation, including triple-glazed windows and the use of solar panels, for example. To further improve energy efficiency and reduce CO2 emissions, most properties were equipped with the Leanheat system in 2020. This system uses artificial intelligence to maintain an energy-efficient indoor temperature and increase comfort while significantly reducing heat consumption.
With the aim to be a carbon-neutral housing provider by 2035, all new developments include eco-friendly construction processes and integrate a diverse range of renewable energy sources into each building design. For example, a recently completed solid wood apartment building constitutes the first Y-Foundation property fully equipped with a waste-water heat recovery system.
Most Y-Foundation homes are located within central city areas. This enables residents to be close to employment, opportunities, key amenities and support services while simultaneously increasing access to public transport and reducing the cost of driving and the need for parking spaces.
Financial details
Y-Foundation housing has been acquired using unique two methods. The organisation purchases private sector housing, which is then re-let as affordable housing at below-market rents.
New developments are typically financed using a blended funding model approach. This includes government-issued grants and soft 40-year loans from the Housing Finance and Development Centre of Finland (ARA), loans from financial institutions, investment grants, as well as Y-Foundation internal capital to finance new investments. The Funding Centre for Social Welfare and Health Organisations (STEA) also provides grants for acquiring individual support apartments for tenants with high and complex needs. Not-for-profit housing associations such as Y-Foundation can apply for grants to cover 50 percent of renovation costs in Finland.
As of 2021, the organisation generated €135.7 million in revenue with a rent margin of 28.9 per cent. Rental income is used to cover the organisation’s operating cost, servicing loans and housing maintenance. Under this business model, the Y-Foundation produces significant surpluses, which are reinvested into the development or purchasing of new properties. As an example, the organisation reinvested €12.7 million to buy and build new properties in 2013.Additional information about the organisation’s financial position is available in the 2021 Board of Trustees Report.
Moreover, not-for-profit housing associations such as Y-Foundation can apply for grants to cover 50 percent of renovation costs in Finland.
Property and tenancy management
Forty per cent of Y-Foundation are allocated to Housing First clients. These apartments, dubbed Y-Kodit (Y-Homes), are primarily located in the Helsinki region. Y-Kodit are offered unconditionally to those with a homeless background, to those who have lost their credit rating, or to those who have otherwise become displaced from the rental housing market.
Y-Kodit tenants have a choice regarding the dwelling type and location. Housing is permanent, and each tenant receives an individual rental agreement.
Following the Housing First principles, all Y-Kodit tenants receive access to a range of support services typically through a tailored, person-centred case management model with the goal of enabling independent living. Through this system, 82 percent of Y-Kodit tenants sustained their tenancies for two years or longer.
Given the positive tenancy and well-being outcomes since launching its Housing First program, the Y-Foundation anticipates two-thirds of its tenants will be living independently without the need for support by 2022.
Property management for the Foundation’s properties is mostly handled by in-house staff. However, the management of some regionally located Y-Foundation housing is outsourced to partner organisations. Property maintenance is typically outsourced to external services, however, some properties include in-house property maintenance service units.
Further information
The Y-Foundation has been successful in influencing homelessness policies and legislation at a national level and continues to openly share information about projects and programs while providing training to interested stakeholders. The Y-Foundation also coordinates Finnish organisations in the European umbrella organisation FEANTSA (the European Federation of National Organisations working with the Homeless), which acts on behalf of homeless people throughout Europe.
For further information about The Y-Foundation, please visit: https://ysaatio.fi/en/home
Additional resources for this profile
Y-Foundation – Residents’ Stories: https://ysaatio.fi/en/apartments/residents-stories
Y-Foundation Board of Trustees’ report and financial statement 2020: https://ysaatio.fi/assets/files/2021/04/Y-Foundation-Board-of-Trustees-report.pdf
The Finnish Homelessness Strategy: https://helda.helsinki.fi/bitstream/handle/10138/153258/YMra_3en_2015.pdf
Housing First Finland: https://ysaatio.fi/en/housing-first-finland
