What is innovative about this project?

  • Social: Ensuring co-creation in the process of renovating social and affordable homes.
  • Project planning & management: Attracting and including private capital as a source for funding lighthouse districts.
  • Project planning & management: Financial model and financial feasibility.

Aalborg East is a project derived from a long-term strategy underpinned on resident co-creation to ensure quality of life for the residents. Between 2011 and 2021, the social housing company Himmerland Boligforening (HB) led the district regeneration with the support of a broad set of actors aiming to undertake an integrated approach. HB provided administrative support, led the institutionalisation of cross-sector work (and investment) needed for an integrated solution, and led tenant involvement. East Aalborg, like many other public housing examples in Denmark, benefited from the effective financial structure in place at the national level to support large-scale renovation projects.

Local Partnership

  • Company: ErhvervsNetværk 9220 (a business network created to foster collaboration, business opportunities and synergies between the companies in Aalborg East)
  • Municipality: Aalborg Municipality
  • Housing provider: Himmerland Boligforening
  • Other: The Danish National Building Fund

The ‘Aalborg Model’ was a result of the beneficial relationship between the social housing association, the local business community, the municipality, the community association and social enterprises. The project was underpinned in a long-term strategy underpinned on co-development (with local actors and tenants) to ensure quality of life in the district. HB took over the administrative functions of the business network (180 members), which included Aalborg Portland, the University, and local companies and multinationals (inc. Siemens). The network aimed at increasing the local educational and employment levels. Universities and individual researchers were involved to test tools and replicability. Two utility companies, Aalborg Waste and Aalborg Sewage, were involved to lead on energy transition investments. The project was supported by Aalborg Municipality and received aid from the Danish National Building Fund.

Key Facts

  • Year of construction: 1973
  • Renovation period: 2011-2021
  • Area of intervention (m²): before: 97.000 m² After: 114.000 m²
  • Number of dwellings (before/after): 1050 before and 1220 after
  • Housing typology: multi-apartment buildings, single-family homes and row houses
  • Housing tenure: public rental housing (after), cooperative housing, social (non-profit) rental housing
  • Number of residents: 2.900
  • Shared facilities: health centre with general practitioners, dermatologists, a pharmacy, a dental practice and other health services; Community centre; Fitness centre; The Himmerland Housing Association office; Kaffe Fair, a socially-responsible café, part of the FOKUS Folkeoplysning group (a cultural, creative and well-being service provider).

Financial information

  • Funding sources: significant financial support came from the Danish National Building Fund scheme, which is financed by a proportion of the rents in the sector, and then reinvested to fund renovations. As a type of revolving fund, it acts as a savings account for the entire affordable and social housing sector in Denmark. It is used for large renovation projects and social development plans in vulnerable housing areas. Financial support was complemented by low-interest loans designed to ensure rents remain affordable even after renovation. Both private and public investment were key for the overall renewal of Aalborg East, especially the new housing and service functions.
  • Total cost of renovation (€): 200.000.000 €
  • Subsidies received (€): 50% National Building Fund – 50% own Himmerland resources
  • Rent before and after renovation (€/month): 2011: 7€ per m² per month
    2022: 10.5€ per m² per month
  • Energy bill (€/month): 2022 0.72€ per m² per month.

Context

In recent years, increasing focus has been given to reducing the number of vulnerable areas. In March 2018 the government proposed the strategy “No Parallel Societies in 2030” which classified socially vulnerable areas based on the number of foreign residents or descendants of non-western countries; residents with no access to the job market, number of residents with basic education and average income. These were labelled ‘ghetto areas’ by the Danish government. Aalborg East, an area in the fourth largest city in Denmark, Aalborg, was one of them. Primarily composed of social housing, the area was built as a satellite city in the 1970s. Construction from this period is characterised by large, uniform and energy inefficient housing blocks, widespread social unrest, and rental-payment issues. The district was unpopular with residents, who suffered from stigmatisation outside the neighbourhood.For the past 13 years a lot of attention was dedicated to overturning the image of Aalborg East. The strategy focused on tenants involvement and widespread and binding strategic partnerships.

Goals

  • Improve the living standards of local families, address health-related issues and ensure the general well-being of residents.
  • Minimise carbon footprint by increasing the energy efficiency of buildings and reducing the energy consumption.
  • Change the image of the neighbourhood.
  • Attract new residents to achieve a well-balanced residential mix.
  • Collaborate with the private sector to stimulate economic growth and business opportunities.

Interventions

  • Preservation of the load bearing concrete structure of the existing homes.
  • Concrete façades were replaced by prefabricated wooden ones for higher quality homes and appealing architecture.
  • Added insulation and installation of new windows.
  • Improvement of green areas around the blocks.
  • Reform of the neighbourhood urban design and individual architecture. Different materials (wood, brick, slade) were used in combination in the building envelope, selected to give the neighbourhood a new visual identity.
  • Consideration of different dwelling typologies and sizes in the renovation to cater for the diverse population needs (single residents, families, etc.).
  • Renovation of the city-owned district heating pipes. Radiators were replaced by larger ones. The Aalborg utility companies installed new waste grinders in the kitchens to produce biomass to power urban treatment plants. Rainwater began to be collected from roofs and streets with open basins to be infiltrated underground.
  • Supply of alternative temporary accommodation options to tenants during renovation inside and outside the neighbourhood (different typologies were offered).
  • Consideration of the principle of tenant democracy during the renovation process. Building committees were set up composed of tenants, who had a saying in every major decision.
  • Creation of a health centre and community centre for residents, accessible to all. As the first intervention in the district, it aimed to show the investment potential of the project.
  • Sale of the property to private investors. They redeveloped other parts of the districts, which contributed to current mix of functions, housing and ownership types.

Impact

Since the renovation, the district experienced significant progress, and has now become an attractive place in Aalborg where people wish to live.
After renovation, households reduced their energy use up to 50%. The dwelling types available to residents increased from 3 to 30. Biodiversity also increased as a result of the improved green spaces.
The number of active people rose, as well as the average household income (19%) in the period 2011-2017. Criminality fell by 50% in selected categories. The proportion of 20-24-year-olds who only completed primary school also declined from 25.2% to 18.4% in the period 2013 – 2017. As a result, the reputation of the district changed drastically.
The health centre welcomes 10.000 people yearly for training courses. This investment has succeeded in making the district visited by external people, who otherwise would not visit Aalborg East on a daily basis.

Advice to future “Lighthouse Districts”

  • Involve residents, in the sense of enabling their co-management of the strategy. The project highlighted the importance of involving the tenants early on, close dialogue, honesty and empathy– especially during the rehousing phase.
  • Strive to form a wide coalition of interests and local organisations. The coalition was key to achieving the positive impact in Aalborg East, as the public housing association by itself would not be able to touch all the different dimensions of the ‘Aalborg Model’. The role of Himmerland Boligforening was precisely to facilitate co-management dynamics and the institutionalisation of the network, for example by creating a local steering committee and an advisory board with representatives from corporations, investors and the former assistant secretary general of the UN. The strong engagement from both tenants, the municipality, the business community, and the communities, the complexities of a large-scale renovation project were easier to address.
  • Combat the stereotypes of the neighbourhood. The main challenge perceived by Himmerland was to turn the narrative of Aalborg East around and change the image that the local population and the media had of the neighbourhood.