Bjarg íbúðafélag has a temporary payment delay intended to assist tenants who are experiencing payment difficulties following a job loss or reduced employment rate due to COVID-19.

Tenants that become unemployed or have their employment rate decreased, because of the COVID-19 virus, after April 1st., 2020 (first possible day to delay payment will be the 1.st of may 2020) to delay payments of partial amounts of their rental fees for up to 6 months.

Payment delay for each month can at maximum be 50% of the tenants s monthly rental fee. 

The payment delay option is temporary and is available to Bjarg tenants up until and including on June 1st, 2020.

Only tenants whose payments are up to date, who are not in arrears with their lease payments and have valid security for their lease can apply for the payment delay option. If their security becomes invalid or inactive during the payment delay period or during the active time period of the rental contract, then the payment delay agreement becomes invalid, as well as the lease agreement.

A request for deferral should be sent to bjargibudafelag@bjargibudafelag.is

Reduced employment rate

A tenant whose employment rate is reduced and has been accepted for payments from Vinnumálastofnun (Directorate of Labour) can apply to delay a partial amount of their rental fee for up to 6 months at maximum. A tenant who fulfills these conditions of the payment delay option must apply for the option on Bjarg íbúðafélag’s website and attach the following documents:

  • Confirmation from Vinnumálastofnun (Directorate of Labour) that the applicant’s application for payments due to a reduced employment rate has been accepted.
  • Documents that detail the tenant’s decrease in income in ISK amount due to the reduced employment rate and when the decreased employment rate take effect – for example, a confirmation of these details from the tenant’s employer.
  • If the tenant’s application has not yet been accepted by Vinnumálastofnun (Directorate of Labour), and is still under review, then the tenant has to turn in a confirmation from Vinnumálastofnun (directorate of Labour) confirming that the tenant’s application is under review as well as the documents accompanying the tenant’s application to Vinnumálastofnun (Directorate of Labour).
  • Other documents that Bjarg íbúðafélag ask for in addition.

Unemployment

A tenant who becomes unemployed and has been accepted for payments from Vinnumálastofnun (Directorate of Labour) can apply to delay a partial amount of their rental fee for up to six months at maximum. A tenant who fulfills these conditions of the payment delay option must apply for the option on Bjarg íbúðafélag’s website and attach the following documents:

  • Confirmation from Vinnumálastofnun (Directorate of Labour) that the applicant’s application for payments due to unemployment has been accepted.
  • Documents that detail the tenant’s decrease in income in ISK amount due to him or her no longer receiving salary but instead receiving unemployment benefits and when their termination notice period ends – for example a confirmation from their former employer or their last paycheck.
  • If the tenant’s application has not yet been accepted by Vinnumálastofnun (Directorate of Labour), and is still under review, then the tenant has to turn in a confirmation from Vinnumálastofnun (directorate of Labour) confirming that the tenant’s application is under review as well as the documents accompanying the tenant’s application to Vinnumálastofnun (Directorate of Labour).
  • Other documents that Bjarg íbúðafélag ask for in addition.

Fees and costs

Bjarg íbúðafélag will not be collecting payment of fees or costs due to the payment delay option, including any administrative costs. Interest rates will not be applied to the delayed rental fee payments.

Should repayment of the delayed payments, or the reduced current rental fee payments, fall into arrears, then late-payment interests and collection fees will be added to the payments that are in arrears, unless a differing repayment plan has been specifically agreed upon.

Repayment of delayed rental fee payments

At the end of the payment delay period, the monthly rental fee will automatically revert to its original amount (including index changes applicable from the beginning of the contract). The total amount of delayed payments will be divided into 24 even repayments that will be added to the monthly rent for the following 2 years.

Repayment of delayed payments may be distributed over the time period of new lease agreements made with Bjarg íbúðafélag. If the tenant’s lease period ends within 24 months of the end of the payment delay option, then the remainder of the repayment amount will be payable at the end of the lease when the leased property is returned to Bjarg íbúðafélag.

If a tenant’s application for delayed payments is approved, fully or partially, then the tenant will be sent an addendum to their active lease agreement. The addendum will be sent electronically and signed electronically as well.

The addendum regarding the payment delay will become active when the entity that guarantees the tenant’s security, Leiguvernd, Leiguskjól, the bank that provides the guarantee or the tenant himself, confirms authorization to allocate the existing security towards repayment of the amount of the delayed payment.

Authorization to collect information

A tenant that applies for payment delay authorizes Bjarg íbúðafélag to request and collect information and confirmations from Vinnumálastofnun (Directorate of Labour), and/or other government agencies, at any time while the time period of the payment delay is active (and as often as Bjarg íbúðafélag deem necessary) regarding whether the tenant is still receiving payments due to a reduced employment rate or unemployment.