Social Housing in Post-Social Housing in Post-socialist Europe: Lost in socialist Europe: Lost in

Transition Transition

Plenary 5 ENHR Conference Toulouse

July 7, 2011

Dr Sasha Tsenkova

Albania, Bulgaria, Bosnia and Herzegovina, Croatia, Macedonia (FYROM), Albania, Bulgaria, Bosnia and Herzegovina, Croatia, Macedonia (FYROM), Romania, Republic of Moldova, Serbia and MontenegroRomania, Republic of Moldova, Serbia and Montenegro

The Future of Social Housing

• Reforms & Challenges

• New Financial Regime

• Growth of Informal Housing •Affordable Housing Continuum

Housing Policy Reforms

Social Housing Sector

Informal Housing

Conclusions

Economic & Social Context

Figure I-7 Poverty in the region

0

10

20

30

40

50

60

Albania BiH Bulgaria Croatia FYROM Moldova Romania Serbia andMontenegro

South East Europe - Extent of Poverty %

Nations of Homeowners?

Western Europe

models of social rented housing

Eastern Europe:

Social rented sector

Challenges of the sector

Conclusion

Housing Policy

Reforms

Social Housing Sector

Concluding Comments

35

20

7

26

21 21

10

18

0.2

9

3 2.865

2.20.64

2.1

0

5

10

15

20

25

30

35

40

Albania BiH Bulgaria Croatia Moldova Romania FYROM Serbia

shar

e of

tota

l hou

sing

sto

ck

1990 2002

Fiscal Policies

Table II-3: Matrix of fiscal housing policy instruments in Southeast Europe Country Direct

provision of housing for homeowners

Direct provision of public/social rental housing

Grants/ subsidies to homeowners

Mortgage interest subsidy

Rent control in denationalized housing

Assistance to low income households

Tax incentives

Albania X X X Bulgaria X X X X BiH X Croatia X X X X X FYROM X Moldova X X Romania X X X X X Serbia X Montenegro X Kosovo X Note: ‘X’ policy instrument introduced.

Fiscal policies-limited support for social housing

Romania & FYROM – CEB projects

Kosovo-partnerships.

Affordability constraints & new housing construction

Western Europe

models of social rented houses

Eastern Europe:

Social rented sector

Challenges of the sector

Conclusion

Housing Policy

Reforms

Social Housing Sector

Discussion & Conclusion

Figure III-7 Rates of new construction in South East Europe

0

1

2

3

4

5

6

1989 1991 1993 1995 1997 1999 2001 2003

Year

New

dw

ellin

gs p

er 1

000

Bulgaria

Macedonia

Romania

Serbia

Moldova

Croatia

Source: Tsenkova, 2005: Council of Europe Development Bank Regional Housing Survey

Performance Challenges

Housing Policy

Reforms

Social Housing Sector

Discussion & Conclusion

Main characteristics (command systems): • ownership • rent setting – 5-10% of market rents, backlog in maintenance • panel housing/substandard housing in poor condition with major need for significant upgrades to ensure safety, quality and energy efficiency standards• allocation – some targeting

Housing Policy

Reforms

Social Housing Sector

Informal Housing

Conclusion

Management

Technical & financial

management

SPENDING

Managing revenue budgets and accounts

Rents and arrears collection

Monitoring of privatisation

Emergency repairs and routine maintenance

Welfare advice and assistance

OutputsRoutine

maintenance

Managing revenue budgets and accounts

Rent & Arrears Management

Welfare Assistance

Growth of Informal Housing

Social Mix

Affordable Housing Continuum

Regulated Market Limited Market Regulation/Legalisation

Shelters Camps

Transition Housing Special Needs

Social Housing Private/ Assisted Rental Housing

Low-cost Homeownership

Formal Informal Development

Homeownership

Policy Solutions

• (A) Legalization• (B) Regularization and Upgrading

(C) Resettlement

ALUZNI: legalizing 681 informal zones, (23

000 ha); 350,000 requests

Resettlement

The Future of Social Housing

Ukraine

Housing Policy

Reforms

Social Housing Sector

Discussion & Conclusion

Housing AllowancesIntegrating Informal Housing

New Social Housing Provision