Public housing and making buildings more sustainable are challenging tasks in the Netherlands. Adding extra floors to apartment buildings can offer a solution to the housing challenge. In addition, making apartment complexes more sustainable, such as connecting them to district heating networks and installing solar panels, is an important step in the energy transition. Despite the ample possibilities within apartment buildings, it appears that decision-making on this matter within the Homeowners’ Association (VvE) is difficult. The core of the problem lies in the decision-making rules and regulations of the VvEs. The government is investigating how the decision-making process within VvEs can be simplified.
Adding extra floors and implementing radical sustainability measures in apartment buildings often require an amendment to the deed of division. On November 13, 2025, Berenschot’s research report “Sustainability and the role of the deed of division” was made public. This report was commissioned by the Ministry of Housing and Spatial Planning and provides insight into the legal and practical obstacles for HOAs in becoming more sustainable. The report can be viewed via this link: https://open.overheid.nl/documenten/0234883b-8b77-4ce7-a608-5a6eae9d1117/file
The report emphasizes that immense numbers of deed of division amendments will be necessary in the Netherlands for the purpose of adding extra floors to homes, connecting to heat networks, or installing solar panels. An amendment to the deed of division can only take place with the cooperation of all apartment owners (track 1 process) or with the cooperation of the board, if the decision to amend has been taken in the owners’ association with a 4/5 majority or with such a larger majority as specified in the deed of division (track 2 process). The VvE Sint-Martinushof ruling of the Supreme Court (HR February 24, 2023, ECLI:NL:HR:2023:286) limits the scope of track 2 to management actions. Since adding extra floors and implementing far-reaching sustainability measures often affect the ownership relationships between apartment owners, decisions on these matters will often be concluded to be acts of disposal (rather than acts of management) that require the cooperation of all owners. This means that as soon as one or more owners refuse to cooperate, the decision-making process stops. In that case, the only option left is to apply to the court for a substitute authorization (Articles 5:121 and 5:140 of the Dutch Civil Code).
Unfortunately, however, this legal route also deters many owners’ associations. As a result, many measures are not implemented, even though owners’ associations could make a significant contribution to achieving the Dutch targets.
Together with the State Secretary for Justice and Security, the Ministry is investigating whether and how the amendment of the deed of division could be simplified. Since, according to the Berenschot research report, most amendments to deeds of division are to be expected when connecting to heat networks, a pilot project is being considered for the standardization of deeds of division with regard to connecting to heat networks. The Collective Heat Act (Wcw) bill also provides specifically for heat networks in a regulation that gives the board of a homeowners’ association (VvE) the authority, under certain conditions, to enter into a connection agreement on behalf of the VvE members with a designated heat company for connection to a collective heat supply. This provides a solution in the event that the municipality exercises its power of designation as regulated in the Municipal Instruments for Heat Transition Act (WGIW). The WGIW makes it possible for municipalities to terminate gas supply in neighborhoods, effectively making alternatives such as heat networks mandatory.
In addition, a bill is expected in the near future regarding less drastic sustainability measures, which do not require an amendment to the deed of division. Such HOA decisions currently still require a 2/3rd or 3/4th majority. In practice, this majority often proves to be a stumbling block for decisions on sustainability and maintenance. The bill is therefore expected to stipulate that a simple majority (50+1) of the votes cast can be used to decide on maintenance, sustainability, and the financing thereof, regardless of what the homeowners’ association regulations prescribe. However, if the homeowners’ association regulations provide for a quorum, this will be retained.
If these legislative proposals are adopted and the investigation into the amendment of the deed of division leads to actual simplifications, it will become easier for HOAs to implement desirable measures to upgrade or improve sustainability. HOAs will be able to make decisions more quickly and the risk of deadlock due to division within the meeting will decrease. This is therefore an important development for all apartment owners to follow.
Our firm regularly advises and assists HOAs with these issues. If you need help, please feel free to contact us.
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