Boligbyggelag
A boligbyggelag (BBL, housing cooperative federation) is a cooperative enterprise that builds and manages borettslag (housing cooperatives) and gives its members a forkjøpsrett (pre-emption right) to homes in affiliated cooperatives. You join by paying a low annual membership fee and start accruing seniority, and when a home in an affiliated cooperative is put up for sale, your membership lets you step into the highest bidder's offer. This ownership form is governed by bustadbyggjelagslova (the Housing Cooperative Federations Act) of 2003.
The largest federations in Norway are OBOS (more than 600,000 members, head office in Oslo), USBL (Oslo and Akershus), BBL Boligbyggelaget Vest (Bergen), Trondheim BBL (TOBB) and BORI BBL. Most BBLs are regional, but over the past 20 years OBOS has expanded considerably outside Oslo, including to Stavanger, Bergen, Trondheim and Sweden. The federations are run as cooperatives: the members own the federation jointly and the board is elected at the general meeting.
A BBL has two core functions: building and management. As a developer, the federation builds new borettslag and sells the shares to its members. Membership seniority decides the queue order for new projects and pre-emption in existing cooperatives. As a manager, the BBL handles accounting, board services, maintenance planning and technical operation of the borettslag affiliated with it. Most affiliated borettslag are managed by their BBL for a fixed annual fee, and the cooperative's own board uses the BBL's expertise and tools rather than building the equivalent in-house. This gives professional operation even in smaller cooperatives.
The pre-emption right is the BBL's most important member benefit, and it works like this: when an andelsleilighet (cooperative flat) in an affiliated borettslag is sold, the sale is announced to the members through the BBL with a short deadline (typically 20 days). The member with the highest seniority who claims pre-emption within the deadline can step into the winning bidder's agreement at the same price and on the same terms, see burettslagslova §§ 4-11 to 4-21. It is one of the most established mechanisms in the Norwegian housing market. Pre-emption costs the seller nothing, but in practice it can give BBL members an advantage when attractive homes come up.
A BBL is not the same as a borettslag. The borettslag is the individual enterprise that owns one or more residential buildings. The BBL is the umbrella organisation that has built or manages the borettslag and sells member services. A borettslag affiliated with a BBL is called an affiliated borettslag, while a borettslag without such a link is called independent. Pre-emption through a BBL applies only in affiliated cooperatives. Alongside homes, the largest federations offer members discount agreements on insurance, electricity, building materials and loans. OBOS Banken is one example of a BBL-owned bank aimed at members.
For tax purposes, BBL members are not taxable on the membership itself. Ordinary housing tax rules only come into play once an offer is realised through the purchase of a share. Felleskostnader, fellesgjeld and adkomstdokumenter in an affiliated borettslag work as they do in any other borettslag.
From Placepoint's dictionary: Boligbyggelag
More information: Lovdata: Bustadbyggjelagslova, NBBL: Norske Boligbyggelags Landsforbund, Store norske leksikon: boligbyggelag
English: Housing-cooperative federation (Norwegian-specific umbrella organisation that builds and manages borettslag).
Frequently asked questions
What is a boligbyggelag?
A boligbyggelag (BBL) is a cooperative enterprise that builds and manages borettslag and gives its members a forkjøpsrett to homes in affiliated cooperatives. This ownership form is governed by bustadbyggjelagslova of 2003.
Which are the largest boligbyggelag in Norway?
The largest are OBOS, USBL, BBL Boligbyggelaget Vest, Trondheim BBL (TOBB) and BORI BBL. Almost all of them are regional, but OBOS operates in several Norwegian cities and in Sweden.
What is the difference between a boligbyggelag and a borettslag?
The boligbyggelag is the umbrella organisation that builds and manages borettslag. The borettslag is the individual enterprise that owns one or more residential buildings. Affiliated borettslag are managed by their BBL.
What is the pre-emption right in a boligbyggelag?
When a share in an affiliated borettslag is sold, the BBL member with the highest seniority can step into the winning bidder's agreement at the same price and on the same terms within a short deadline (typically 20 days).
Is membership worth it?
That depends on how many affiliated cooperatives there are where you want to live. In Oslo, with OBOS, the pre-emption right is a significant advantage. In smaller towns with few affiliated cooperatives, membership is most attractive for new-build projects with a seniority queue.