Aarhus City Council

City Council considers 8.7 million kr. for six supportive housing units at Østervang

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Document date: 7. oktober 2026
Section: City council
Status: Beta
Source: Aarhus Municipality meeting documents — Aarhus City Council 7 October 2026 · item 19 (agenda + recommendation + appendices) ↗

Summary

On Wednesday 7 October 2026, Aarhus City Council will consider a recommendation for a capital appropriation of 8.7 million kr. for six new supportive housing units and relocation of service areas at Forsorgshjemmet Østervang in Tranbjerg. The units are intended to give socially vulnerable and homeless people affordable housing with support and are expected to be ready in mid-2027.

What it means for you

If the City Council adopts the recommendation, there will be six additional independent apartments for residents who struggle to live in ordinary housing areas. Rent will be in the range of 2,700–3,400 kr. per month plus approx. 330 kr. for utilities, and residents can apply for housing benefit. The service areas will be moved internally so they are closer to the other services in the building.

Background

According to the recommendation, Aarhus Municipality is seeing growing need for housing for socially vulnerable and homeless people who, because of substance abuse or mental or social challenges, need an alternative housing and support solution. At Østervang there are already 24 supportive housing units in addition to the ordinary care home places. Technical and Environmental Affairs and Social Affairs and Employment therefore propose conversion work in block A, where the current service areas have been located, while the service areas move to the first floor in block C.

The space was freed because a total of 10 care home places (§110) were previously closed as part of the Housing First strategy, which prioritises own housing over temporary care home places. After the conversion, the care home will have 44 care home places and 30 supportive housing units. The address is Trankær Mosevej 25. Technical and Environmental Affairs, Aarhus Ejendomme, is the developer. The case was withdrawn from the City Council agenda on 26 August 2026 and is now back.

Figures and facts

Total capital expenditure: 8.7 million kr. (2026 prices) for six supportive housing units and relocation of service areas (Appendix — Recommendation)
State subsidy: 2.55 million kr.; municipal funds: 2.55 million kr. from Skæve Boliger and 2.8 million kr. from energy renovation; loan from Kommunekredit: 0.8 million kr. (Appendix — Recommendation)
Appropriations: 0.8 million kr. in 2026 and 7.9 million kr. in 2027 (Appendix — Recommendation)
The units will be 30–40 m²; units ready for use mid-2027, service areas end of 2027 (Appendix — Recommendation)
Price per m² approx. 18,700 kr.; total gross floor area for the construction 465 m² (Appendix — Appendix 2: Key figures for unit prices)

Who said what

The Municipal Executive recommended on 23 June 2026 that the City Council adopt the recommendation from Technical and Environmental Affairs and Social Affairs and Employment of 4 June 2026. Alderman Nicolaj Bang and Sarah Jarsbo did not take part in the Municipal Executive’s handling of the case. The Mayor’s Department has no comments.

A citizen group represented by Inge Merete Bossow, Magnus Larsen and Narcis Jørgensen has, in a submission on an action plan for Østervang, called for a changed resident mix in the short term and closure or other use of the site in the longer term. That submission is attached to the case but does not concern the capital appropriation as such.

What happens next

The City Council will consider the recommendation on Wednesday 7 October 2026. It is recommended that capital expenditure appropriation of 8.7 million kr., capital income appropriation of 2.55 million kr., a loan from Kommunekredit of 0.8 million kr. at project completion, funding from allocated funds for supportive housing and energy renovation, and release of the appropriations in 2026 and 2027 be granted. If the City Council adopts the recommendation, Aarhus Ejendomme will proceed with the conversion with a view to readying the units for use in mid-2027.