Housing Reforms for Resilient Housing Systems

in UNECE Region

Housing Reforms for Housing Reforms for Resilient Housing SystemsResilient Housing Systems

in UNECE Region

Committee on Housing & Land Management Geneva,

October 3-4, 2011

Dr Sasha Tsenkova

Housing Reforms Housing Reforms

• Achievements/Opportinities

• Implementation ChaIlenges

• Building Resilient Housing Systems

Housing Reforms Housing Reforms

Main Challenges

Main Challenges

RecommendationsRecommendations

Objectives Objectives

Western Europe

models of social rented housing

Western Europe

models of social rented housing

Eastern Europe:

Social rented sector

Challenges of the sector

Conclusion

Policy Reforms

Policy Reforms

Challenges

Discussion & Conclusion

• Review regulatory, fiscal/financial and land management instruments;

•Evaluate housing systems performance: quality, new production, affordability and choice

•Provide strategic recommendations for priority actions in the region

Approach

• UNECE country profiles •Azerbaijan (2010), Kyrgyzstan (2010), Belarus (2008), Georgia (2007), Serbia and Montenegro (2006), Russia (2004), Armenia (2004), Albania (2002), Republic of Moldova (2002), Romania (2001), Lithuania (2000), Slovakia (1999), Poland (1998)

•http://evds.ucalgary.ca/profiles/sasha-tsenkova

1. Strengthening political support for housing reforms

47

57

77

82

84

85

87

91

92

92

93

94

96

98

98

100

0 20 40 60 80 100 120

Czech Republic

Poland

Latvia

Bosnia & Herzegovina

Slovenia

Slovak Republic

Croatia

Lithuania

Bulgaria

Serbia

Hungary

Romania

Estonia

FYR Macedonia

Montenegro

Albania

70

75

79

83

83

87

90

92

96

97

97

98

0 20 40 60 80 100 120

Russian Federation

Ukraine

Turkmenistan

Azerbaijan

Belarus

R. Moldova

Tajikistan

Georgia

Armenia

Kyrgyzstan

Kazakhstan

Uzbekistan

1. Strengthening political support for housing reforms

• Progress to address the institutional and regulatory ‘vacuum’ is uneven;

• Incomplete legislation (condominium management & mortgage), often delegating responsibilities to for social housing to the local government level;

• Ineffective rule enforcement, limited capacity for implementation of housing policy.

2. Establishing reliable and effective housing institutions

• Decenralisation & devolution of housing policy responsibilities; role of housing agencies & government mortgage finance

• Diverse and robust housing market institutions housing production & market intermediaries as well as informal market agents.

2. Establishing reliable and effective housing institutions

• Lack of adequate institutional capacity of public institutions; corruption& red tape;

• Lack of adequate resources at the local level to fulfil housing mandates;

• Lack of well established, transparent and efficient private sector institutions in housing.

3. Developing effective land administration & land management systems

• Land administration reforms (privatization & registration systems);

• Effective land-use planning to guide development (land with clear title, zoning regulation);

• Growth of informal cities, poverty & exclusion.

4. Mobilizing Housing Finance and Fiscal Support

2%4% 4%

7% 8% 9% 10%12% 12% 12%

15%18%

34%36%

50%

0%

10%

20%

30%

40%

50%

60%

Rus

sia

Rom

ania

Ser

bia

Alb

ania

Slo

veni

a

Ukr

aine

Bul

garia

Pol

and

Slo

vaki

a

Hun

gary

Cze

ch R

epub

lic

Lith

uani

a

Latv

ia

Est

onia

EU

27

4. Mobilizing Housing Finance and Fiscal Support

The lack of financial transparency in

housing policy and fiscal sustainability, in

addition to low targeting reflect the

rudimentary nature of fiscal housing policies

in the region.

The lack of financial transparency in

housing policy and fiscal sustainability, in

addition to low targeting reflect the

rudimentary nature of fiscal housing policies

in the region.

5. Facilitating Improvements in Housing Quality

The new faces of urban poverty and housing deprivationThe new faces of urban poverty and housing deprivation

5. Facilitating Improvements in Housing Quality

Ensuring Safety and Quality in Privatized Multi-apartment HousingEnsuring Safety and Quality in Privatized Multi-apartment Housing

6 Sustaining Housing Investment and Production

0

2

4

6

8

10

12

1980 1985 1990 1995 2000 2004

Czech Republic Estonia Hungary Latvia

Lithuania Poland Slovak Republic Slovenia

0

1

2

3

4

5

6

1990 1995 1997 1998 2000 2002

Bulgaria Macedonia Romania Serbia Moldova Croatia

*Dwellings completed per 1000 inhabitants

Source: Tsenkova, 2010b

*Dwellings completed per 1000 inhabitants

Source: Tsenkova, 2010b

6 Sustaining Housing Investment and Production

6 Sustaining Housing Investment and Production

Housing Policy

Reforms

Policy Challenges

Policy Challenges

Recommendations

7. Affordability & Choice

0%

20%

40%

60%

80%

100%

Cze

ch R

ep

Est

onia

Latv

ia

Lith

uani

a

Hun

gary

Pol

and

Slo

veni

a

Slo

vaki

a

EU

Homeowners free Homeowners with mortgage Market rent Subsidised rent Rent free

Source: EC, 2010 Notes: EU refers to EU25; data based on EU-SILC Survey carried out in 2007.

Source: EC, 2010 Notes: EU refers to EU25; data based on EU-SILC Survey carried out in 2007.

7. Affordability & Choice

9,072

11,557

17,931

25,394

20,810

3,310 3,4115,050

6,9998,678

10,567

12,939

16,320

22,166

6,5906,151

4,9412,7042,546

13,967

11,944

10,549

1,993 2,357 2,4243,169

4,0395,038

6,8437,987

0

5,000

10,000

15,000

20,000

25,000

30,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

руб

/ кв

. м

Construction costs

Prices in the secondary market

Prices in the primary market

Housing Policy

Reforms

Policy Challenges

Policy Challenges

Recommendations

Housing on the Political Agenda

Priorities for a resilient housing system in 7 domains

• Mobilizing housing finance• Building effective institutions• Targeting fiscal support to assist the

socially vulnerable people

http://evds.ucalgary.ca/profiles/sasha-tsenkova

Housing Policy

Reforms

Housing Policy

Reforms

RecommendationsRecommendations