Appropriate and inappropriate frequently asked questions

The financial situation of HYY and Ylva has attracted a lot of interest among our members recently. Below, we answer some of the appropriate and inappropriate questions related to the situation that we have received.

 

What is going on with HYY and Ylva right now?

Ylva is currently looking for the best way forward after a massive increase in its project costs. The company is looking into the market values of select properties, which is a part of normal real estate business. Assessing market values does not equal selling the properties. However we decide to move forward, the overall interests of the Student Union and our group will be taken into account.

In addition to this, HYY’s Board has authorised Ylva to sell certain real estate shares.  Ylva will communicate about this when the time is right.

HYY currently operates in accordance with the budget and the implementation plan of the Strategy for 2025 approved by the Representative Council. For HYY, or operating finances, the situation has not caused budget deviations. If deviations from the budget of operating finances occur, these will be addressed either as individual budget overruns or through a supplementary budget, as has been done before in our financial planning.

 

Why is HYY in this situation?

Ylioppilaslehti published Alli Hallonblad and Roosa Welling’s creditable in-depth report on the situation on 17 March 2025. The report provides a background for the decisions that have led to the current situation from a long-term perspective. We recommend reading the report!

TL;DR: Ten years ago, we wanted higher returns on HYY’s assets and set the goal of having no membership fees by 2025. This goal was shared by the Representative Council elected by our members, HYY’s Central Office and Ylva. The Representative Council set the goal, and Ylva then sought and found suitable ways to help us reach it. All decisions on various projects and opportunities for further investments were made by HYY’s Board or Representative Council at the approval of Ylva’s Board and based on its presentation. Ylva has leading real estate professionals both as employees and as members of its board. Risk assessments made and approved by professionals were utilised for all decisions.

The risk level compared to the amount of capital HYY has, HYY’s equity ratio and HYY’s long-term financial stability was considered moderate. The coronavirus crisis, the war of aggression Russia launched on Ukraine, the rising costs in the construction industry and rising interest rates were all risk factors that were realised almost simultaneously or right after one another when the construction projects were already under way – all worse than anyone had been able to imagine in any scenario.

We are currently focusing primarily on finding solutions to move forward.

 

Is/are the right / the left / reptilians / evil boomers to blame for this?

There is no single ‘culprit’. It would be very worrying if all this really had just one culprit.

As Ylioppilaslehti puts it: ‘hindsight is always easier than foresight’. The current situation is in no way exceptional compared to many other parties involved in real estate business in Finland, and student decision-makers or Ylva’s operative management have not made any investment decisions based on political ideology. The Representative Council and HYY’s Board made unanimous decisions on these matters at the time, as the goal of having no membership fees by 2025 had widespread support.

All decisions related to the projects were made after the matters had been prepared by Ylva’s operative management and presented by Ylva’s Board. Ylva’s Board has had many leading real estate professionals as members. However, even the best real estate professionals did not have a crystal ball at their disposal in 2019.

 

Why does the Representative Council discuss vegan food instead of finances?

The Representative Council discusses HYY’s finances nearly every week in various preparatory bodies: the Financial Committee, the Preparatory Committee, evening sessions, the Supervisory Board and as part of the Representative Council meetings. Students also have representatives on Ylva’s Board. Business operations also include business secrets and confidential material that cannot be publicly available or on display during the livestreams of Representative Council meetings, for instance. To sum up, the Representative Council groups are up to date on the situation.

The Representative Council’s operation continues as normal for all other parts, just as HYY’s activities do. Right now is thus exactly the right time to discuss vegan food, as the Representative Council is discussing Ylva’s Ownership Strategy, which addresses issues such as the sustainability of business operations and the selection of plant-based protein available in UniCafes, for instance.

 

Will HYY’s membership fees be used to pay off Ylva’s debts? Am I now 9,000 euros in debt?

No they will not, and no you are not. HYY’s membership fees will not be used to pay off Ylva’s debts or fund Ylva’s operations in any way.

100% of the membership fees go to HYY’s operating finances, or student activities.

 

Is everything going wrong for Ylva right now?

Everything is not going wrong. The Student Union has practiced responsible financial management through its group for generations.

Ylva is doing fine in other respects: its restaurant business is turning a profit, and considering the diversity of our premises, their rental level is good even now. However, after two major construction projects, we are in the same situation as the real estate and construction industry in Helsinki is in general. Costs went through the roof for reasons that no-one could have predicted: the coronavirus, war, the rising construction costs and rising interest rates. At the moment, responsible financial management translates into looking into all the different options to find the best way for the Student Union to move forward.

 

Why have you not communicated to the members about the situation?

HYY’s financial situation has been addressed in the Medium-term Financial Plan and the budget proceedings in Representative Council meetings, for instance, with the latter also publicly livestreamed in the name of transparent decision-making.

Ylva’s more detailed financial information and unfinished processes are generally business secrets. For us to be able to conduct our business activities in a sensible way, we sometimes have to limit discussion to the decision-making body that is relevant to the matter at the time. It would also be highly unusual to communicate about unfinished processes or market rumours.

We will communicate to our members as soon as there is something to communicate and the matters are public. You can read about this year’s budget, for instance, in the secretary general’s blog post (only in Finnish) published in the autumn.

 

Why did HYY not diversify its investments, invest in cryptocurrencies or bet everything on red at a casino?  

Investment decisions in real estate business in particular were made based on the expectations and identified risk levels of the time. HYY’s Representative Council approves an Ownership Strategy for Ylva as well as an annual target budget and risk and investment framework. The Ownership Strategy guides the Student Union’s value judgements and the framework of our operations from the perspective of the sustainability of our business operations, for instance. Ylva also actually had diversified investments such as an investment portfolio, which was realised as the cost levels rose as part of the rising construction costs.

One has to remember that no investments made in search of profits are without risks. This could also be said in another way: properties located in the Helsinki city centre and the inner city area were still considered relatively low-risk investments before the coronavirus.

 

Will we lose our organisational premises?

The student houses used by organisations and the Old Student House are culture-historically important properties to HYY and, in many ways, at the heart of our activities. Currently, no decisions have been made. If premises in organisational use would be about to undergo changes, we would tell you about this as soon as it is possible.

 

Why have cuts not been made to activities instead of raising the membership fee?

Cuts have also been made to HYY’s activities.

Previously, HYY’s membership fees have amounted to 30% of HYY’s income, with the remaining 70% entered as income from the profit distribution from Ylva’s business operations. We are now in a situation in which the Student Union covers most of its operations with income from membership fees, which is the way other student unions operate too.

The Representative Council annually decides on the Student Union’s activities and the size of the membership fee. Comparing the budgets for 2021 and 2025, the expenditure budget has decreased by a total of 10%. However, because the Student Union is receiving an internal loan within the group in exchange for rent, the actual expenses have decreased by over 40%. Operative cuts have been made to Ylioppilaslehti and the operating grants for organisations, for instance. It is worth noting that inflation has increased all costs during the past four years, which means that keeping the budget at the same figure in euros would actually also constitute a cut to the activities we are able to realise.

 

Where do HYY’s membership fees even go?

100% of HYY’s membership fees are used according to HYY’s budget to attend to our statutory duties and on the Student Union’s various functions, the major guidelines for which are set by the Representative Council.

The membership fees are used to fund the maintenance costs of premises in HYY’s own use and in organisational and festive use, Ylioppilaslehti, advocacy work and advice services such as legal aid guidance, the childcare service Little HYY, events organised by the Student Union, such as the Fresher Adventure and Opening Carnival, and the Student Union’s general administration, such as the Representative Council elections. Membership fees also cover costs caused by the selection and training of student representatives in administration as well as advocacy work on the national level through SYL and in Helsinki and at the University through HYY. You can check out this year’s budget in more detail here.

 

Why do you not just stop funding events/Ylioppilaslehti/Little HYY/politicking?

The Representative Council decides on the Strategy, the choices derived from it and the membership fee. Current services should not be thought of as unchangeable – HYY lives in the present and changes its operations as needed. It should be noted that running down services uncontrollably could lead to a reality that does not serve our members. The Representative Council discusses the development of HYY’s services. Individual cuts aimed at HYY’s operating finances, and thus services, will unfortunately not resolve the group’s overall situation. Through the membership fees, HYY may continue to have services that the Representative Council elected by our members and the Board decide the Student Union should have.

 

Will HYY go bankrupt?

HYY will not go bankrupt. HYY’s operations in the future may be different to what they are now, but we were also different 50 years ago. HYY exists and will continue doing so, just as it has for the last 156 years.

 

For further questions, please contact:

Paula Karhunen

Secretary general

paula.karhunen@hyy.fi

040 081 6426