New way for community associations to change percentages from 1 July 2022

Community facility and percentage

A community facility is a facility that is common to several properties, for example a single road. Each property has a percentage that regulates how large a share of the facility's costs the property must pay. This applies partly to costs for construction, associated with building the facility, and partly to costs for operation, to operate and maintain it. When conditions change, the ratios may also need to be changed.

The change in the law makes it possible for the community association that manages the facility to change the ratios itself. The change will take effect if it is approved by the surveying authority. This increases the self-determination of the community associations and can make it easier for them to change the percentages. This also reduces the risk of obsolete percentages, ie that an association refrains from changing the percentages, even though the circumstances have changed.

How does it work?

The decision to change percentages shall be taken at a general meeting with a two-thirds majority of the votes. The decision may refer to the percentage of one or more properties, for the construction or operation of the community facility. When the association decides to change the percentages, it must at the same time decide on compensation.

The National Land Survey must approve the changed percentages , only then will they apply. The change in the percentage may not be contrary to the Civil Engineering Act. This means in the first place that you must follow the rules on the determination of the percentage, and the rules on compensation. you agree. The community association cannot bear the cost. Read more under detailed information on this page.

The Swedish Surveying and Mapping Authority can approve changes no earlier than 1 July 2022, when the change in the law enters into force. This also applies if the association's decision has been made before this date. If the community facility is located in a municipality with a municipal surveying authority, the application for approval must be sent there.

Information about which municipalities have a municipal surveying authority. For other municipalities in the country, the application is sent to us at Lantmäteriet .

What can the association not decide on?

What the community association can not decide on is the entry or exit of a property in the community facility. To handle this, you need to apply for a service or make an agreement.

A new type of matter

The possibility for the association to change the number of shares by decision of the AGM is a new possibility that has not existed before, so it is not possible at present to provide any estimates on how a long time such a case can take to process, and thus not what it may cost.

Lantmäteriet takes payment partly by charging a basic amount of SEK 3,600 and an hourly cost based on time spent, which you have to pay even if they changed the share figures will not be approved.

More information

Here you get more information about Changing Percentages and detailed information about Changing Percentages Section 43 a of the Civil Engineering Act.

If you want to read more about the change in the law, we refer for the time being to government bill 2021/22: 122 (new window, in Swedish) , which is available on the government website. 

Read more about:

• community Associations
• community Facilities
• agreement
• procedure.

Detailed information

Change of percentage may not conflict with läggningslagen (AL) (new window) .

Percentage (§ 15 AL)

Percentage for the operation shall be distributed according to what is reasonable with regard primarily to the extent to which each property is expected to use the community facility.Percentages for the execution shall be distributed according to what is reasonable with regard primarily to the benefit each property has of the community facility. execution and operation are stated in a common series of percentages, ie the properties receive the same percentages for execution and operation.

Remuneration (37–39 §§ AL)

V id increased share, the owner of the property must pay compensation to other shareholders for the share in any surplus that he or she receives through the increase. In the event of a reduced shareholding, the owner of the property shall receive compensation from other shareholders for the share in any surplus that he or she loses through the reduction. If, instead of a surplus, there is a financial deficit, the property owner who receives a reduced shareholding must pay compensation to other shareholders corresponding to his share of the deficit.

A surplus or deficit means the difference between the value of the facility and the association's assets. on the one hand, and the association's debts, on the other hand. The value of the facility is estimated according to what is reasonable, taking into account primarily the costs of its construction as well as the facility's age and continued usability.

Approval

It is the association's responsibility to show that the change follows the law's rules. and to present a document that is so complete that the surveying authority can make its assessment. The investigation must in any case state the principle for the share ratios that have been in force so far, as well as what change in the share ratios is made and what the reasons for the change are, ie. how the new percentages have been calculated. It must also be clear what compensation has been determined and how it has been calculated.

Exactly what investigation and documentation is required to show this depends on the circumstances of the individual case. The conditions can be very different if the community facility, for example, includes a simpler exit road or a multi-storey garage. It is therefore not possible to say unequivocally what documentation is required in each individual case. If the association is unable to produce the relevant documentation itself, a consultant may need to be hired.