Hot water cut as two Killinkoski housing firms face bankruptcy

Two housing companies in Killinkoski face bankruptcy after years of unpaid maintenance fees. Asunto Oy Killinkiven and Asunto Oy Ollinkiven had electricity to their shared spaces cut and residents no longer have hot water; bankruptcy petitions were filed with the Pirkanmaa district court on July 10, YLE reports.

Chair Tuula Peltonen said owner-occupiers have generally paid their fees, but many investor-owned flats that are rented out have fallen into arrears for years. The boards tried debt collection and enforcement, but those processes are slow. Some enforcement claims run to tens of thousands of euros. The companies have even taken possession of some apartments. They cannot rent them out because repairs are needed and there are no funds.

Residents say they are living in uncertainty. Pertti Hanhikangas, a resident and former chair, said he can only shower at a property in nearby Ähtäri and called the situation unbearable. Peltonen warned people may lose their homes, saying the buildings, partly oil-heated and built in the 1970s and 1980s, are struggling as heating and other costs rise.

Legal expert Jenni Valkama of Isännöintiliitto said bankruptcies remain relatively rare but are increasing, especially among small housing companies in sparsely populated areas with many investor-owned units.

These cases follow a May report on token-sum property deals in Pirkanmaa that left some housing companies insolvent and echo concerns raised after recent changes to housing-company loan rules that may increase financial strain on small housing firms.