Social housing bosses have been privately renting out homes for too much money

Research by media outlets NOS and Nieuwsuur has shown that executives and board members at 20 social housing corporations directors have been renting out private homes for personal gain. They often charge hundreds of euros more for this than the government considers appropriate. A number of them rent out homes in the regions where the housing corporations themselves are active. The corporations themselves said they knew nothing about it, according to NOS and Nieuwsuur.

The social housing leaders have bought low-cost apartments in and around cities with a large housing shortage. Research shows that one of them rents out five homes, another rents out ten, and someone else even has 33 homes on the market. These are homes that are just above the social housing rental limit and fall in the free market sector. Housing Minister Hugo de Jonge wants to introduce maximum rents for this type of housing.

The Autoriteit Woningcorporaties, which is responsible for supervising the sector, will conduct an investigation into the findings of NOS and Nieuwsuur. It is no longer possible to talk about "incidents," said Ton Hugens, the head of the social housing authority. He believes the "appearance of a conflict of interest" in the cases studied is "constantly an issue."

Martin van Rijn, who chairs social housing association Aedes, said he thinks it is undesirable for executives and board members to rent out private real estate that is "focused on returns." Aedes is going to tighten up its integrity code. In it, the organization writes that there is "zero tolerance" for obvious conflicts of interest.

In addition, it will apply that "in principle it is not desirable" for social housing corporation executives or board members to rent out homes for profit. If they do, they will be obliged to report this and have it assessed. If the rental is eventually approved, an explanation must be provided.

Aedes is also reviewing all existing cases of renting by social housing directors. If this reveals potential conflicts of interest, this may result in them having to sell their real estate, transfer control of it or resign their position with the corporation.

Board members at six corporations have resigned after being confronted with the investigation by NOS and Nieuwsuur. At two other corporations, executives announced that they would sell their real estate.

The social housing association sector faced discredit in 2014 due to multiple integrity issues at several social housing corporations, including Vestia and Rochdale.