Revised Allocation Framework of the South Iceland Development Fund (Uppbyggingarsjóður Suðurlands)
The Board of the Association of Local Authorities in South Iceland (SASS) has decided to revise the procedures for allocations from the South Iceland Development Fund. At the Association’s 632nd board meeting, it was approved to reduce the number of annual allocations from two to one. The change will be implemented as a pilot project for the next two years.
Following this decision, the traditional spring allocation, which has typically taken place in February or March, will not be held in 2026. Instead, a single allocation round will be announced in the coming autumn.
The aim of this change is to align SASS’s procedures with those of other regional associations, all of which have adopted the practice of allocating funds once per year. At the same time, emphasis is placed on increasing efficiency in the administration of the Fund and ensuring that human and financial resources are used as effectively as possible in support of regional development in South Iceland.
The change is also intended to provide increased flexibility for SASS’s regional development officers and project managers to focus on advisory services, follow-up, and other strategic development initiatives throughout the year.
It is considered that a single annual allocation will contribute to improved oversight and increased transparency in the evaluation of applications. When all applications are submitted at the same time, better conditions are created for targeted prioritisation in line with the priorities of the South Iceland Regional Development Plan, as well as for fair comparison between projects. This reduces the risk of arbitrary decisions and ensures equal treatment of applicants.
Despite the change in allocation frequency, funding will continue to be awarded within two categories: Culture on the one hand, and Business Development and Innovation on the other. Expert committees will operate in the same manner as before.
The pilot project will be evaluated after two years, following which a decision will be made on the future allocation framework.