Social Housing in Italy: Current Situation and Proposed Improvements

1. LONDON 10-11 JUNE 2015 | ATER TREVISO | Ing. F. Bellin - F. Zambon

2. Social housing history in Italy 1995 1996 Before 1977 1977 1971 The Italian State transferred to Regions the function to estabilish the assignement criteria and to determine the amount of the fees The legislative power about public houses belonged to the Italian State The Regional Law n.10/95 set up the companies for management of public houses. In Veneto Region, the previous public companies IACP are replaced by separate accounting entity public companies, called ATER The Regional Law n.10/96 regulated the location and the rents for public houses The Presidential Decree n 616 transferred to the Municipalities the function of assignement of social housing dwellings LONDON 10-11 JUNE 2015 | ATER TREVISO | Ing. F. Bellin - F. Zambon

3. Social housing in Italy – current situation • Social housing in Italy is mostly regulated by Regional laws, because at the National level we have only guidelines. Social housing italian companies can be currently both public and private operators. • In Italy there are three types of social housing: • Edilizia Residenziale Pubblica (ERP) – Edilizia sovvenzionata Enti pubblici o loro dirette emanazioni (Aziende Territoriali per l’Edilizia Residenziale) realizzano e gestiscono gli interventi, con finanziamento pubblico – Edilizia convenzionata Interventi attuati dalle ATER, dalle cooperative edilizie e loro consorzi e dalle imprese. Mediante convenzione l’ente pubblico attribuisce beni o contributi al developer – Edilizia agevolata Interventi attuati dai privati, realizzati con agevolazioni creditizie previste da leggi statali o regionali o da disposizioni dell'Unione europea o di altri organismi internazionali, nonchè di enti pubblici • ATER TREVISO IS: A PUBLIC ECONOMY ORGANIZATION, (separate accountingentity/ public undertaking) incorporated and havingindipendentpatrimonial and book-keepingorganization. • MAIN FINANCING SOURCES: public national/regional/UE funds; itsownolddwellings sellers; apartmentsrents • USE OF PROFITS: inretrofitting the existingheritage and in building new dwellings • EXTERNAL INVESTORS: NO ( because the rents are notparticularlyprofitable) • INSOURCING OF SERVICES: 100% administralfunctions and 90% technicalfunctions LONDON 10-11 JUNE 2015 | ATER TREVISO | Ing. F. Bellin - F. Zambon

4. Social housing average renting fee in ATER dwellings CRITICAL POINT About 47% of tenants pay an average fee of 34 € LONDON 10-11 JUNE 2015 | ATER TREVISO | Ing. F. Bellin - F. Zambon

5. Social housing heritage and average rents About 93 % of dwellings are rented to very low incomes pepole. The remaing ones 7 % are rented to low-medium income persons. LONDON 10-11 JUNE 2015 | ATER TREVISO | Ing. F. Bellin - F. Zambon

6. The Italian legislation about social housing is wrong • CRITICAL POINTS • The Municipality provides to assignement of social apartments, therefore the companies don’t‘ have the control of the general situation; • The renting fee is too low to grant an equal revenue, in fact the tenants pay the rent based on their incomes. • There is still to much much bureaucracy in Italy! It paralize the day by day activities of the companies. • ATER has in charge the total welfare: if the tenants don’t pay the rents and building expenses ( heating etc..), the company must pay for them! • In the current situation it is impossible for us to maintenance the whole heritage. Not only, it’s also impossible to keep current functional level of existing shareholders. • We lack resources to acquire new apartments to rent and to refurbish all the apartments. • With this background you can easily understand that the social housing system in Italy cannot survive without public funding. • …… LONDON 10-11 JUNE 2015 | ATER TREVISO | Ing. F. Bellin - F. Zambon

7. The new proposal • The assignement and the management of public apartments should be headed by a single subject: the social housing companies or the Municipalities. • The rent level should ensure adequate revenue in order to attract also private investments. • The maximum reduction of bureaucracy giving all the resposabilities to the subiect incharged of the system management. LONDON 10-11 JUNE 2015 | ATER TREVISO | Ing. F. Bellin - F. Zambon

8. A recent instrument – VENETO CASA FUND Veneto Region on february 2007 resolved the formation of a closed-end fund , called ” Fondo immobiliare etico – Veneto Casa”, in order to contribute towards the realization or the purchase of new social housing .dwellings to rent to people with low-medium incomes. The Fund also requires whether institutional or private investors. Currently the fund is managed by «Investire immobiliare sgr» from Rome, which has more than 50 % shareholding. LONDON 10-11 JUNE 2015 | ATER TREVISO | Ing. F. Bellin - F. Zambon

9. Thanks you for your attention • If you need further information: f.zambon@atertv.it