THE ROLE OF HOUSING POLICY REDUCING EXTREME INCOME DISPARITIES UNECE/UNDP seminar (Geneva 2-3 October 2003) Dr. Iskra DANDOLOVA Bulgarian Academy of sciences

Outline  Housing policy concept  Housing in SEE  Current trends in housing policy development in SEE  Relevance of social housing policy  Recommendations  Conclusion

Housing policy concept Housing : a basic physical & social need  Housing is inextricably linked to people’s physical survival and security  Symbol of existence, identity, solidarity  Basic place for labour activities  Key factor for stabilizing population movements  Instrument for managing the dynamic processes of urbanization and migration  Analysis of specialized housing information is a condition for developing a successful housing policy Housing and poverty

Housing policy = Acces to Housing  Regulation of the market  Housing provision  Provision of social protection and social services support  Empowerment of vulnerable people

Building blocks of Housing policy aims: Housing policy = HM + SH + RE  1. Access through the Marketplace  2. Redistribution through the State : Social housing  3. Reciprocal exchange

Current Trends in Housing Policy Development in SEE Housing policy development process is decelerated by:  Decentralization  Mass Privatization  Restitution

General Housing statistics in EU & SEE  EU : 377 mln people occupy 171 mls housing units (incl. 7% vacant units)  3 mls homeless  18 mls in inadequate accommodation  300 – 500 dwellings per 1000 inhabitants  SEE 1990 : 59 mln people occupy 19 mln (approx)  SEE 2001 : 56 mln people occupy ??? mln housing units  ??? mln homeless  2 mln people homeless as a result of the conflicts  5 mln people deeply affected in housing by the conflicts  ??? mln units in inadequate accommodation  150 – 450 dwellings per 1000 inhabitants

Current Trends in Housing Policy Development in the SEE Region  Specific historical and geopolitical challenges of the region  Brief and frail history of the social housing before the transition  Emergence of SH notion with the reform process  Some good social policy elaboration examples: Croatia and Romania  Lack of clear division of competencies between central and local government  Lack of specialized participants

Current Trends in Social Housing Policy Development It has been observed in the region the setting up of a selection criteria for the demand  Elaboration of a set of criteria used by authorities for granting access to SH  In some current practices, the economic criteria are the most used criteria for screening social housing candidates

Current Trends in Social Housing Policy Development Inadequate availability of SH stocks  Insufficient new construction Some new constructions are privatized A small number of new dwellings have been completed  Unused potential of private housing in the social housing policy ; It is not used as an instrument in the policy ; the private stock has a strong potential for enlarging social housing stock

Current Trends in Social Housing Policy Development

Relevance of social housing policy Every country in the region has a great interest in assuring a social housing strategy: to protect vulnerable groups to ensure social cohesion to facilitate labour mobility stabilize young countries

The Building Blocks of Social Housing Policy Access InstitutionLegislation Social housing stockEligible vulnerable groups  access to SH is possible through a clear legal base and system of institutions  right to access is not a real access

EU Housing policy benchmark To promote reforms towards a democratic model  Addressing the issues in accordance with European Standards, the European Social Charter and the Charter of Fundamental Rights EU Council in Nice Dec/2000 objectives:  To facilitate participation in employment and access to all resources, rights, goods, services  To prevent the risk of exclusion  To help the most vulnerable  To mobilise all relevant bodies

The new paradigm to housing policy :  Housing as economic engine Instruments for enabling housing policy:  Property rights  Mortgage finance  Subsidies  Residential land  Building industry

Recommendations  Establishment of a legal base and a system of institutions  Targeting eligible vulnerable groups  Clear definition of the competencies of the relevant authorities, establishment of a permanent national unit  Designing specific financing mechanisms to ensure fiscally sustainable flow of resources for SH

Recommendations  Using private stock in the enlargement of the SH capacity. Incentives should be designed for private owner to rent dwellings to people in need  Definition of an allocation system, giving a priority to well targeted groups  Avoidance of the creation of entire residential areas  Providing training for personnel

Conclusion Housing policy is a major factor against poverty: Identification  Address Identification of individuals  Protection & relative security  Privacy  Facilities for physical needs  Facilities for social alternatives  Potencial for individual development  Potencial for labour activities (in/about)  Makes people socialy inclusive THE SUCCESS OF THE HOUSING POLICY ULTIMATELY DEPENDS ON ITS CONSTRUCTION AS AN INTEGRAL SYSTEM.