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Innovations in social housing: governance, funding and civil society participation. Examples from Flanders, Germany, Ireland The Netherlands, UK & Switzerland. Gerard van Bortel, OTB Research Institute for Housing, Urban and Mobility Studies. Structure.
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Innovations in social housing: governance, funding and civil society participation Examples from Flanders, Germany, Ireland The Netherlands, UK & Switzerland. Gerard van Bortel, OTB Research Institute for Housing, Urban and Mobility Studies
Structure Background: from government to governance Social housing provision: beyond state and market England Germany Making the private rental sector more social Ireland Flanders (Belgium) Financing social housing investments The Netherlands Switzerland
From government to governance The state is pulling out of affordable housing provision Market State Public (often municipal) housing companies Arms Length Management Organizations (ALMO’s) Housing Associations Private Investors Home owners Secondary sales England England England “Right to Buy” Germany The Netherlands Germany
Beyond state and market: residents and community • Tenant driven supervision (England) • Tenant Management Organizations (England) • Self-organized resident organizations (Germany)
Tenant focused supervision in England OLD Supervision and Funding in housing provision Funding and Support in Community development NEW Funding and support in housing and community development Supervision
Tenant Management Organizations (TMO) • Right to Manage Regulation. • Tenants of English council housing have the possibility to choose their own housing management organization. • TMO’s need to demonstrate competence.
Socially motivated housing alternatives in Germany • Social housing in Germany has changed dramatically due to privatisation • New strands of innovative informal social housing driven by civil society • Cooperatives / Resident organised building groups supported by regions (Länder), municipalities, value-orientated banks and third sector organisations • Slowly filtering into main stream social housing
Socially motivated housing alternatives in Germany • New initiatives better address changing housing needs: individualisation, create a mix of different social/economic households. • Innovative Funding Strategies (affordable land and finance, information and support). • Municipalities (e.g. Munich, Hamburg, Leipzig and Berlin) sell land, brown field locations or vacant inner city buildings at reduced prices if number of social housing targets are met. “Social Plot Management”
Affordable housing in the private rental market • Many low income households are dependent on housing in the private rental sector • Especially in countries with a small social rental sector • Private landlords do not like to rent to households on welfare benefits • Rent supplements can lead to cost inflation • Quality of affordable private rental properties is often low • Initiatives to expand affordable homes by making part of the private rental stock more ‘social’.
Affordable housing in the private rental market Source: Housing Europe, 2007. Cecodhas
Affordable housing in the private rental market Source: Housing Europe, 2007. Cedhocas
Affordable housing in the private rental market • Social Rental Offices [Sociale Verhuur Kantoren] (Flanders) • Rental Accommodation Scheme (RAS) (Ireland) • Acquire rental homes from the private market • These organizations are part of (or closely linked with) the local authorities • Rents are often below market level, because Social Rental Offices are stabile tenants, provide support to their tenants and invest in the property. • Remains a small initiative (5.000 in Ireland, 4.000 Flanders)
Housing Finance • Key question: • How to create a favourable access to capital markets for social housing investments with a minimum of government involvement? • Examples: • The Netherlands • Switzerland
Housing Finance in The Netherlands Triple A credit rating Contribution Central Housing Fund (CFV) Social Housing Guarantee Fund (WSW) Guarantee by national and local governments Housing association Loan Bank
Housing Finance in Switzerland (also in NL) Bond Issuing co-operatives Share certificate Individual Investors Co-operative Secretariat Subscription Bonds Loan Individual non-profit builders Guarantee Swiss Government Lanwson (2007); Bond Issuing Cooperative (FOH, 2006)