Financing and implementing inclusive housing Samir Kulenovic CEB Technical Advisor Housing, Urban Development European Network for Housing Research Conference in Tirana, 4-6 September 2017

CEB: the social development bank in Europe The oldest European multilateral development institution, set up in 1956 41 member states Based in Paris, France Promoting the values and principles of the Council of Europe

Geographical focus solidarity among the CEB member states increased support to 22 target countries As a manifestation of solidarity among the CEB member states, the Bank provides increased support to 22 “target countries”: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Georgia, Hungary, Kosovo, Latvia, Lithuania, Malta, Montenegro, Poland, Republic of Moldova, Romania, Slovak Republic, Serbia, Slovenia, “the former Yugoslav Republic of Macedonia” and Turkey

CEB’s social mandate invests in projects with a social impact responds also to emergency situations sectoral line of action: strengthening social integration environment public infrastructure with a social vocation MSMEs for the creation and preservation of viable jobs There are 10 sectors of action where CEB finances projects: Aid to refugees, migrants and displaced persons; Housing for low-income persons; Improvement of living conditions in urban and rural areas; Natural or ecological disasters; Protection of the environment; Protection and rehabilitation of historic and cultural heritage; Health; Education and vocational training; Infrastructure of administrative and judicial public services; MSMEs

Sectoral priorities 3 priorities set in the new Development Plan 2017-2019: Sustainable and inclusive growth Integration of refugees, displaced persons and migrants Climate action: developing adaptation and mitigation measures

Emergency situations Migrant and Refugee Fund Regional Housing Programme MRF: € 18 million for emergency projects: Croatia, Greece, Serbia, Slovenia, FYROM In 2016, the migrant and refugee crisis continued to be one of the biggest challenges facing Europe. From providing emergency aid to funding long-term integration, the CEB was at the forefront of support to migrants and refugees and the communities that host them accross the continent. The CEB assistance was used primarily to increase shelter capacity and improve conditions in reception centres, as well as to provide food, health care and legal advice to migrants and refugees.

Emergency situations RHP: EUR 183 million for 9 500 housing units Partner Countries, International community, and Donors BiH Serbia Montenegro Croatia EC, UNHCR, OSCE Donors: EC, the USA, Germany, Italy, Norway, Switzerland, Denmark, Turkey, Luxembourg, Cyprus, Romania, the Slovak Republic, the Czech Republic, Hungary and the former United Nations High Commissioner for Refugees, Ms Sadako Ogata, pledged contributions

2016 approvals

ALBANIA and CEB Accession:1999 Share in the capital: 0.245% Loans: 30 loans, € 177 million Grants:2 grants, € 1,3 million Housing Project: Social Housing for Low-Income Persons, 2 300 housing units in eight municipalities FIP 17678 – Social Housing for low-income persons. The objective of this project is to build 2300 social dwellings in eight municipalities of Albania to provide housing for 6000 persons (among others: Durres, Kavaje, Kruje, Shkodra, Shijak, and Tirana)

Project cycle Evaluation 7 Completion 6 Identification 1 Appraisal 2 Disbursements & monitoring 5 Approval by the Administrative Council 3 Negotiation of loan agreement 4

Assessment Institutional and Implementation Arrangements Project Progress and Outputs Costs and Financing Socio-Economic Effects and Sustainability Environmental Effects Ownership of the project, Project governance /Institutional arrangements, Overall Project Design, Project Management, Accounting, auditing and control systems, Monitoring and evaluation Progress / timeliness, Changes in scope and rationale, Enabling sector policies, Quality of outputs / compliance with standards, Operation and maintenance , Cost variances and rationale, Cost effectiveness and affordability Financing plan, Economic benefits, Social benefits and sustainability, Social safeguards management, Project compliance with standards , Project impact on environment, Climate change adaption, Environmental safeguards management, Economic and financial, Institutional

Sustainable and inclusive growth Housing Housing finance: low-income persons integration of refugees, migrants, displaced persons and other vulnerable groups energy efficiency Housing: about 20% share of total loans First housing project: home ownership for refugees, Greece, 1956

Affordability housing policies and markets fiscal space, on-lending finance instruments: public, private, PPP, direct lending, intermediaries mortgage terms, subsidies tenure: rental, ownership, mixed eligibility criteria locations, housing modality, technical solutions culture income generation measures Markets: unitary and dual; Before 4-6%GDP long term average, 0,5%,

Who cannot afford? 13 sample project, total cost EUR 760 M 30 000 families Markets: unitary and dual; Before 4-6%GDP long term average, 0,5%, Categories of Beneficiaries Type of tenure

Affordability measures, sample project competition intermediary banks and insurance companies reduce beneficiary down-payment longer tenure administrative and technical support to beneficiaries spread of geographic locations, 2nd hand houses eligibility criteria: scoring weight on low income Markets: unitary and dual; Before 4-6%GDP long term average, 0,5%,