Amsterdam’s municipality is facing acute problems with the computer systems used to administer leasehold rights and calculate and collect ground rent. The replacement system, known as NISE, has been delayed several times since its launch in 2020 and will not be introduced in 2026. At the same time, insufficient investment was made in maintaining the existing Hermes system, while much of its technical support has been unavailable since October. This has increased the risk of failures, although the system is still operating and no effects on residents’ services have been reported so far.

Alderman Alexander Scholtes apologized to the city council for not being informed in time and for providing incomplete information. Officials had identified the risks in March, but Scholtes said he did not receive the findings until October. The municipality has reinforced the team, brought in an external party and is taking measures to keep Hermes safe and operational. Scholtes said he could not guarantee that residents would not notice consequences. The additional costs are still being assessed, while possible future scenarios for the replacement system include restarting the project or building on useful parts of the work already completed. The lease systems have been designated a high-risk project, with further updates to the council planned.