21-04-23

Challenge the future

DelftUniversity ofTechnology

Innovations in social housing: governance, funding and civil society participationExamples from Flanders, Germany, Ireland The Netherlands, UK & Switzerland.

Gerard van Bortel, OTB Research Institute for Housing, Urban and Mobility Studies

2Milan 5 March, IRER Social Housing Seminar |

Structure

1. Background: from government to governance

2. Social housing provision: beyond state and market1. England2. Germany

3. Making the private rental sector more social• Ireland• Flanders (Belgium)

4. Financing social housing investments• The Netherlands• Switzerland

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From government to governanceState Market

Public (often

municipal) housing

companies

Public (often

municipal) housing

companies

Arms Length Management Organizations

(ALMO’s)

Arms Length Management Organizations

(ALMO’s)

Housing Associations

Housing Associations Private InvestorsPrivate Investors

England England

The NetherlandsGermany

Home ownersHome owners

England “Right to Buy”

Germany

Secondary sales

The state is pulling out of affordable housing provision

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Beyond state and market: community

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Beyond state and market: residents and community

• Tenant driven supervision (England)

• Tenant Management Organizations (England)

• Self-organized resident organizations (Germany)

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Tenant focused supervision in England

Funding and Support in

Community development

Supervision and Funding in housing provision

Supervision Funding and support in housing and

community development

OLD

NEW

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The National Conversation

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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.

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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

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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”

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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’.

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Source: Housing Europe, 2007. Cecodhas

Tenure types

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Belgium The Netherlands Ireland UK Germany Italy

Other

Social Rental

Private Rental

Home-ow nership

Affordable housing in the private rental market

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Source: Housing Europe, 2007. Cedhocas

Share of social housing in total rental market

23%

76%

38%

66%

11%

26%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Belgium TheNetherlands

Ireland UK Germany Italy

Affordable housing in the private rental market

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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)

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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

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Housing Finance in The Netherlands

Housing associationHousing

association BankBank

Social Housing Guarantee Fund (WSW)

Social Housing Guarantee Fund (WSW)

Guarantee bynational and

local governments

Guarantee bynational and

local governments

Triple A credit ratingContribution

LoanLoan

Central Housing Fund (CFV)

Central Housing Fund (CFV)

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Housing Finance in Switzerland (also in NL)

Share certificate

Swiss Government

Co-operative

Secretariat

IndividualInvestors

Bonds Loan

Individual non-profit builders

Subscription

Guarantee

Lanwson (2007); Bond Issuing Cooperative (FOH, 2006)

Bond Issuing co-operatives

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Thank you!