Sweden: Housing Cooperatives May Soon Reject Criminals

Sweden's government, in collaboration with the Sweden Democrats, is moving to grant housing cooperatives greater power to exclude individuals with criminal backgrounds from homeownership.

Following similar regulations introduced for rental properties in 2024, the new proposal aims to allow housing cooperatives to forfeit a property if the owner engages in repeated criminal acts or otherwise fails to maintain safety within the building. "You should not be able to terrorize a stairwell," stated Benjamin Dousa, Minister for Aid and Foreign Trade, who was acting as a substitute for the Minister of Justice.

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You should not be able to terrorize a stairwell.

The proposed legislation seeks to lower the threshold for cooperatives to take such action. Previously, the focus was primarily on crimes committed within the cooperative's own building. However, the new rules would allow cooperatives to act if crimes occur in nearby public spaces, such as bus stops or subway entrances.

"We are lowering the threshold and increasing the possibilities for housing cooperatives to forfeit a housing right. Before, it was very oriented towards the house itself, but if crimes are now committed, for example, at a bus station, subway entrance, or a shop, the housing cooperative can act," Dousa explained, citing examples like recurring drug dealing or weapons offenses.

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We are lowering the threshold and increasing the possibilities for housing cooperatives to forfeit a housing right. Before, it was very oriented towards the house itself, but if crimes are now committed, for example, at a bus station, subway entrance, or a shop, the housing cooperative can act.

The proposal also includes provisions allowing cooperatives to deny potential buyers if they are aware of criminal activity associated with them. This move has drawn criticism, with concerns raised about the burden placed on cooperative boards to identify individuals involved in crime and the potential complications for sellers if a cooperative suddenly rejects a buyer.

Dousa defended the proposal, stating, "I think it is fully reasonable that the rights we have given to property owners on the rental side are now also given to housing cooperatives. I see it as an opportunity for the cooperatives to alleviate the powerlessness many have felt." The proposed regulations are slated to take effect on January 1, 2027.

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I think it is fully reasonable that the rights we have given to property owners on the rental side are now also given to housing cooperatives. I see it as an opportunity for the cooperatives to alleviate the powerlessness many have felt.