The Housing and Construction Authority (HMS) determines the eligibility for housing benefits for those in the rental market. It is permissible to reclaim overpaid benefits if it becomes clear that the recipient received an overpayment. HMS sends a claim to the debtor’s online bank or deducts the overpayment from future benefits.
It is possible to arrange an interest-free payment plan with HMS. If the payment cannot be collected in this way or if the payment plan is not adhered to, the claim is sent to the District Commissioner of Northwest Iceland for further collection.
The principal amount of the payment is collected, along with any applicable interest or surcharges.

Collection Process

When a claim is created, it appears in the debtor’s online bank. Collection letters are sent to the debtor’s inbox on island.is. If the claim is not paid within 30 days after the collection letter has been sent, and no agreement is made, a payment request is issued by a process server.

The following remedies are available to enforce payment:

• Offsetting against state credits

• Registration on the credit default register

Payment Installments

Requests for payment installments must be submitted in writing to innheimta@syslumenn.is or by letter to the office of the District Commissioner of Northwest Iceland. The minimum monthly payment for installment agreements is ISK 10,000.

Claims can be paid into bank account 0159-26-267, ID number 660914-0990. The debtor’s ID number and name must be included with the payment.
Payments can also be made by credit card.

Surcharges

It is permitted to add a 15% surcharge to the overpaid amount if the recipient has provided false, misleading, or incomplete information.

Appeal Routes

A party may request an explanation, review, or appeal the decision of the Housing and Construction Authority to the Welfare Appeals Committee within three months of the date of the letter from HMS. More information about appeal routes can be found with the Welfare Appeals Committee.

Filing an administrative complaint does not suspend the legal effect of the decision but postpones enforcement. If HMS’s decision has been appealed, confirmation must be sent to the District Commissioner at innheimta@syslumenn.is.