Case study type: Políticas y regulaciones

Solidarités Nouvelles pour le Logement (SNL) strategies to provide affordable housing (France)

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Solidarités Nouvelles pour le Logement (SNL) strategies to provide affordable housing (France)

Mismatches Segregation Vulnerable groups
Policies and regulations National policies Local policies Regulation Global frameworks Governance Public-private initiatives Participatory processes
Financing Financial actors Cultural actors Public-private collaboration
Promotion and production Public-private partnerships Private promotion Progressive housing

Main objectives of the project

SNL's housing initiatives exhibit a diverse range of strategies, from prioritizing access to properties by transforming them into affordable housing in small towns, to securing long-term housing solutions in urban areas like Paris through partnerships with private investors and legal frameworks, and employing specific lease mechanisms for sustainable refurbishment efforts.

Date

  • 1988: Implementation

Stakeholders

  • SNL

Location

Continent: Europe
Country/Region: France

Description

The French government estimates a need for 500,000 new housing units to address housing demands adequately, yet only around 350,000 units are constructed annually. Despite municipalities being obligated to provide social housing, this obligation is not consistently met, resulting in a shortage of affordable homes. Additionally, some properties remain vacant due to owners being dissuaded from renting them out because of taxation concerns.

Solidarités Nouvelles pour le Logement (SNL) addresses these challenges by providing temporary housing to vulnerable households and supporting them until they can secure permanent accommodation. In 2018, SNL housed 2,894 individuals, including 1,285 children, many of whom were previously homeless or living in inadequate conditions. SNL operates through SNL-Prologues, a real estate social enterprise that acquires, renovates, and manages properties for housing vulnerable families. SNL-Prologues, as a social economy cooperative, has opened its capital to social savings funds and private investors and is exempt from certain taxes due to its social mission.

One of SNL's strategies involves collaborating with local authorities to acquire properties rented with low-comfort features, converting them into decent and affordable housing.
For instance, in a small town where affordable housing was scarce, SNL successfully lobbied the local government to grant them the right of first refusal for a property unlawfully rented by slumlords. By persuading the municipality to address the needs of the households affected, SNL gained priority access to acquire the property. This allowed SNL to transform it into decent and highly affordable housing for five families, preventing it from being acquired by another investor. In Paris, SNL utilizes legal frameworks to partner with private investors, securing housing for vulnerable households through innovative financial arrangements and subsidies. Under this arrangement, private investors grant SNL-Prologues the usufruct right, enabling SNL-Prologues to rent the property for a specified period. Through financing of €150,000, sourced from subsidies provided by local authorities and NGOs, SNL is poised to accommodate vulnerable households in six affordable dwellings for a duration of 20 years. Additionally, in Paris, SNL utilized a specific lease mechanism known as "bail à réhabilitation" (renovation lease) to temporarily assume ownership of a 110 m2 apartment in the city center. Through extensive refurbishment efforts, SNL reduced the property's energy consumption by 35% and subdivided it into two smaller apartments suitable for two formerly homeless families. The property owner benefits from tax incentives associated with renting under this status, and upon the lease's expiration in 18 years, they will regain possession of a refurbished property.

SNL's efforts result in significant social impact, with 97% of individuals transitioning to permanent housing after an average stay of three years in SNL-provided accommodation. The average annual cost per dwelling, including acquisition and renovation, is €3,660, with funding sourced from rent payments (32%), public subsidies (50%), and private philanthropy (16%). Notably, the cost of housing a family in a hotel room is significantly higher at €6,240 per year, underscoring the cost-effectiveness of SNL's approach.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Social Rental Agencies in Belgium

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Social Rental Agencies in Belgium

Mismatches Vulnerable groups Vacant housing
Policies and regulations National policies Local policies
Financing
Ownership and tenure Rental and temporary tenure

Main objectives of the project

Social rental intermediation, although initially seeming paradoxical, offers a solution to the pressing need for affordable housing by incentivizing private landlords to make their properties accessible to vulnerable populations. This approach, with deep roots in Belgium and gaining traction across Europe, establishes a link between private landlords and marginalized individuals, facilitated by public or nonprofit intermediaries. These intermediaries provide incentives to landlords, such as rent guarantees and maintenance support, while assuming financial risks. Despite being primarily funded by public resources, social rental agencies have become attractive investments due to tax benefits and steady income streams. In Belgium, successful implementation has led to significant growth in housing units managed by Social Rental Agencies, particularly in Brussels where government incentives drive investment.

Date

  • 1997: Implementation

Stakeholders

  • Social Rental Agencies

Location

Continent: Europe
Country/Region: Belgium, Brussels

Description

Initially, the notion of utilizing private rental housing for social purposes may appear paradoxical. After all, private housing is owned by individuals or entities expecting a return on their investment, rather than serving as a substitute for social landlords. However, in Belgium, a significant portion (70%) of private landlords are small-scale operators. Moreover, the private rental sector increasingly accommodates modest households, with over a quarter of European households dedicating more than 40% of their income to housing. This underscores the relevance and necessity of addressing social concerns within the private rental market as a matter of public policy. Even with political will to invest in and construct more social housing, several years would be necessary to realize such endeavors.

A solution to this challenge is social rental intermediation, a relatively novel approach in Europe but one with deep roots in Belgium. The concept involves incentivizing private property owners to make portions of their rental stock more affordable and accessible to vulnerable populations. Social rental intermediation establishes a connection between private landlords and individuals typically excluded from the housing market. This intermediary, often a public entity or nonprofit organization funded by public resources, offers incentives to landlords who agree to rent their properties at reasonable rates. In return, landlords benefit from guarantees related to rent payment and property maintenance. Conditions typically include granting the social rental agency discretion in selecting tenants and setting rents below market rates. The Social Rental Agency (SRA) assumes financial risks associated with unpaid rents and property upkeep. This may entail assistance with renovation management and other incentives, such as tax advantages. Beneficiary households can access social support services as needed, typically coordinated by the organization operating the SRA.

In Belgium, SRAs were established in the late 1970s and have since become institutionalized. For example, the SRA Logement pour Tous in Brussels originated as an initiative of a nonprofit organization to assist migrant families facing discrimination in finding affordable housing with the aid of social workers. These agencies have been supported by government sponsorship since housing legislation formalized their role in 1997.

SRAs are primarily funded through public sources, presenting a challenge. However, they have become an attractive investment for property owners, rental agencies, and government entities due to the shifting of financial risks and the assurance of steady income and tax benefits. In Brussels, significant investments, encouraged by fiscal incentives, are being made in constructing rental properties for intermediation purposes. This policy has proven successful in Belgium, with SRAs adding 6,500 units in the past four years alone.

In Brussels, 23 SRAs manage 5,500 housing units, with an annual growth rate of 10%. The success can be attributed to regional government incentives, including tax exemptions and reduced VAT rates on new dwellings. Major corporations are undertaking large-scale projects, often involving the construction of hundreds of units, presenting a significant opportunity for SRAs to rapidly expand their housing inventory. However, the incentives in Brussels typically require the availability of units to rental agencies for only 15 years.

Rental intermediation serves as a valuable short-term solution for rapidly increasing affordable housing stock. It taps into an essential segment of the housing system that may not otherwise be fully utilized and can enhance value through renovation, mobilization of private stock, and combating discrimination. However, it should be viewed as a temporary measure and not a substitute for social housing, which provides a long-term safeguard for affordable housing stock.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Ixtepec Reconstruction

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Ixtepec Reconstruction

Mismatches Security Climate change
Policies and regulations Building capacity Participatory processes
Urban Design Services and infrastructure Environments Quality Liveability Participatory processes
Promotion and production Private promotion Innovation Materials Self-management Self-promotion Self-construction

Main objectives of the project

In September 2017, Oaxaca, Mexico, experienced its most devastating earthquake in history, severely damaging the traditionally constructed homes of indigenous communities. However, the intervention of the local NGO Cooperación Comunitaria (CC) revolutionized the situation, rallying the community to construct homes capable of withstanding earthquakes while utilizing traditional techniques suited to the local climate and culture. This initiative stood in stark contrast to the approach of state and federal governments, which aimed for a rapid, market-driven reconstruction. Their plan involved demolishing affected homes and providing a 120,000-peso card to construct standardized prototypes, disregarding the needs of the population, local organization, and the cultural and climatic context of the region. In response, CC has worked alongside affected communities, supporting processes of social reconstruction, fostering solidarity and self-organization, and respecting their cultural traditions and way of life.

Date

  • 2017: Construction

Stakeholders

  • Promotor: Cooperación Comunitaria

Location

Continent: North America
Country/Region: Mexico

Description

In 2017, the devastating earthquake in Oaxaca struck the indigenous community of Ixtepecano, prompting the municipal government to initiate demolition, replacing traditional architectural heritage with modern, inadequate housing. However, the intervention of local NGO Cooperación Comunitaria A.C. brought about a significant transformation.

The initiative began within the community itself when the Ixtepecano Committee, a local organization, reached out to Cooperación Comunitaria A.C. to aid in rebuilding homes. CC conducted thorough assessments of the damage and vulnerability of families, including mapping exercises. Through assemblies and meetings, a reconstruction model was collaboratively developed with the families. As part of the technical assistance and social support process, CC revived traditional construction methods with the communities, emphasizing the use of local materials to reduce ecological impact and make self-construction of housing feasible. Traditional housing styles such as Bajareque, Adobe, and brick and rope were recovered and reinforced to withstand earthquakes and strong winds without compromising cultural and climatic suitability.

Recognizing the importance of economic recovery alongside housing reconstruction, traditional ovens and kitchens were integrated into the rebuilding process to revive local women's livelihoods. An Arts and Trades Centre was established to train individuals in traditional building techniques for kitchen construction. Additionally, local maize varieties were reintroduced for staple totopos production, while workshops on construction skills, disaster risk management, and natural resource utilization were conducted. Notably, 107 women have revitalized their businesses through the restoration of 196 traditional ovens and kitchens, contributing to household economic recovery. Model kitchen proposals developed in community design workshops, education on natural resource management for 247 individuals, and training for 73 builders on reinforcement techniques further enhanced community resilience.

The project has restored and reinforced 58 traditional houses, built 22 new reinforced houses, reinforced 90 kitchens with the bajareque cerén construction system, constructed 256 comixcales and 27 bread ovens, along with 2 community centers and 2 dry toilets. This reconstruction process underscores the effectiveness and necessity of traditional collective work and mutual support approaches. Activities reinforcing community organization, such as integral community diagnosis and participative design, along with technical knowledge transmission and training on risk management and housing rights, are integral parts of the project. Continuous evaluation of housing conditions, usage, and maintenance ensures sustainability.

This project exemplifies how community empowerment can counter government displacement and update traditional structures to meet 21st-century needs, emphasizing resilience. Furthermore, it emphasizes the importance of cooperative and communal economic structures alongside housing restoration to ensure affordability.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Habitatge Metròpolis (HMB), Barcelona

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Habitatge Metròpolis (HMB), Barcelona

Policies and regulations Local policies Global frameworks Governance Public-private initiatives
Financing Public funding Public-private collaboration
Promotion and production Public-private partnerships
Ownership and tenure Protection of social housing Public-private partnerships

Main objectives of the project

Habitatge Metròplis is the metropolitan operator for the promotion of public housing. A mixed public-private company that seeks to build social housing in a profitable way for the private company. Its greatest advantages are 1) the innovative governance it assumes and 2) its metropolitan dimension.

Date

  • 2019: Implementation

Stakeholders

  • Promotor: Barcelona City Council
  • Promotor: Metropolitan Area of Barcleona (AMB)
  • Promotor: Neinor Homes, S.A

Location

Continent: Europe
City: Barcelona
Country/Region: Barcelona, Spain

Description

Barcelona is facing the biggest housing crisis in recent years. In the capital and its metropolitan area, rents are much higher than in the rest of the country. This is causing applications for social housing to skyrocket. Despite this, the number of social housing units in Barcelona is well below the European average and is falling. This is due to the fact that for years, social housing was under ownership regime. That is, after a few years it ceases to be protected and goes to the free market. Thus, there is a need to build social housing quickly and in large quantities.

Unfortunately, the administration alone could not cope with the great demand. That is why they have decided to promote a metropolitan operator. That is to say, they have created a mixed company, between the public and private sectors, to promote social housing for the metropolitan area of Barcelona. The goal is to build 4500 homes in 6 years, 50% within the city of Barcelona and 50% in the metropolitan area. The shareholders of the company are the AMB (25%), the Barcelona City Council (25%), the company NICRENT Residencial (50%), of which Neinor Homes, S.A. and CEVASA are 50% shareholders. The balance between public and private partners and the relationship of equality, co-responsibility and long-term trust is the basis for sharing investment efforts, risks, costs and benefits. This formula guarantees the social goals of the project and its economic success, taking into account the technical capabilities and economic solvency of the participating partners.

Unlike in the past, all the housing will be for subsidized rental at below-market prices and will always be publicly owned. In this way, the land will remain under social housing protection, despite the passage of time. With regard to construction, the operator must guarantee environmental quality and sustainability with energy saving criteria and promote accessibility and architectural quality.

It is the first company of its kind to have a metropolitan dimension in Spain. In fact, Spain has a high deficit of metropolitan housing policies. A study has detected 384 institutions operating in Spain's metropolitan environments. Of these, only about 30 deal directly or indirectly with the issue of housing, despite being one of the main problems of Spanish cities (1). Thus, the operator is innovative because it assumes, for the first time, that housing does not have a municipal dimension, but goes beyond its limits. In this way, its metropolitan approach is vital for developing a joint housing policy among the 36 municipalities that make up the Metropolitan Area of Barcelona.

(1) To see more into: Tomàs, M. (2023). Metrópolis sin gobierno. La anomalía española en Europa. Ed. Tirant lo Blanch.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Sitio Libis, Metro Manila

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Sitio Libis, Metro Manila

Mismatches Location Vulnerable groups Climate change
Policies and regulations Local policies Governance
Urban Design Liveability Inclusion Participatory processes
Promotion and production Public-private partnerships Self-promotion Progressive housing Favelas/Slums
Ownership and tenure Property registry Land ownership

Main objectives of the project

Sitio Libis residents, threatened with eviction, engaged in a saving strategy with HPFPI's assistance to secure land tenure. They navigated government programs and partnered with TAMPEI for a negotiated re-blocking project, alleviating challenges like flooding and narrow streets. This case underscores the transformative potential of community-led initiatives bolstered by NGO and government collaboration in addressing social and environmental issues.

Date

  • 2019: Construction

Stakeholders

  • Architect: TAMPEI
  • HPFPI

Location

Continent: Asia
Country/Region: Philippines, Quezon City [Manila]

Description

For decades, the inhabitants of Sitio Libis dwelled informally on privately-owned land, lacking legal entitlement and facing constant eviction threats. In 2010, the landowner, a bank, issued a one-year ultimatum: purchase the land for 30 million Philippine pesos or face eviction. Fearing displacement, residents sought assistance from local authorities and contacted various organizations for help. The Homeless People's Federation of the Philippines (HPFPI) was the sole responder, offering a savings strategy to secure tenure.

Initially hesitant, the community eventually embraced collective saving as the optimal path to secure their tenure. With 1.5 million pesos saved, they approached "Homeless" (the federation) for an additional 1.5 million loan, enabling them to make the full 10% down payment on the land. This paved the way for the government's Community Mortgage Program (CMP), facilitating the land transfer to the community association, with the government covering the remaining balance under the CMP.

With secure tenure achieved, the community engaged in negotiations with the government to address settlement conditions. They faced acute shocks like perennial flooding, partly attributed to man-made factors such as factory interventions obstructing drainage channels. Additionally, tangled electrical wiring posed fire risks, compounded by narrow streets hindering emergency services' access. With newfound tenure rights, the community compelled government action.

To address these challenges, they initiated a reblocking project with TAMPEI's assistance, involving a comprehensive management plan. This included drainage improvement, solid waste management, road widening, and home upgrades. Negotiating the reblocking process, the community managed to minimize relocations and disruptions. It was a slow start, given regulatory road width requirements, but eventual amendments allowed for progress, supported by a 15 million peso grant from the National Government.

The re-blocking initiative necessitated the modification of houses to accommodate road widening, a process negotiated and overseen by the community to minimize displacement and disturbance. Initial progress was sluggish due to regulations mandating six-meter-wide access roads, significantly impacting housing space. Eventually, the city government relented, reducing the road width requirement to four meters, contingent on the installation of fire hydrants at strategic points, a process requiring four years for legal amendment.

It was another three years before the re-blocking endeavor commenced, aided by 15 million pesos secured from the National Government through HPFPI and TAMPEI support. This funding facilitated the relocation of displaced residents. Community members collaborated to ensure housing for all, exemplified by instances where homeowners sacrificed parts of their own homes to accommodate those in need or those whose houses were teared down because of the redesign of roads. The re-blocking efforts also encompassed improvements in drainage and electrical wiring to mitigate flooding and fire hazards.

The reblocking project exemplifies how community-led initiatives can drive positive transformation. However, it underscores the necessity of external support for significant change in low-income communities. In Sitio Libis, the collaborative efforts of NGOs, government entities, and the private sector were instrumental in facilitating positive community outcomes. While the community demonstrated self-mobilization in addressing natural and social challenges, their success was augmented by leveraging available support systems and programs provided by governmental and civil society organizations.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Masoveria Urbana, Vilafranca, Spain

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Masoveria Urbana, Vilafranca, Spain

Mismatches Vulnerable groups Vacant housing
Policies and regulations Local policies Regulation Participatory processes
Promotion and production Private promotion Self-management
Ownership and tenure

Main objectives of the project

In the global North, there's often a misconception that access to affordable housing is limited to either ownership or renting. However, historical precedents suggest otherwise. Vilafranca leveraged an ancient land ownership and possession scheme permitted by their traditional private law to devise a solution for affordable housing: the concept of "masoveria”. In Catalan tradition, "masoveria" entails an agreement wherein a property owner grants the use of a house in the countryside to a tenant at no cost. In return, the tenant assumes responsibility for maintaining and cultivating the land and fields associated with the property. This concept has been adapted in urban contexts through initiatives known as "Urban Farmhousing" or "Masoveria Urbana." In these initiatives, buildings in need of renovation and often left vacant are temporarily leased by the owner to tenants at no charge. In exchange, the tenant undertakes necessary rehabilitation works to improve the property.

Date

  • 2017: Implementation

Stakeholders

  • Vilafranca City Council

Location

Continent: Europe
Country/Region: Spain

Description

Vilafranca del Panadès, located in the same region as Barcelona, is considered part of its metropolitan area despite its position on the frontier with the countryside. As the capital of wine in Catalonia, Vilafranca boasts a rich tradition of agriculture. Interestingly, this tradition has become pivotal in addressing the city's urban challenges.

Within the framework of the ALT/BAU URBACT network, Vilafranca identified a significant number of vacant buildings in its city center. The objective was to restore these buildings to tackle the city's most pressing issue: the housing crisis. Following the economic downturn of 2008, finding affordable housing in Vilafranca became increasingly difficult, with prices soaring. Meanwhile, many vacant buildings remained in need of refurbishment, offering potential solutions that could benefit younger residents.

In the rural areas surrounding Vilafranca, there exists a particular type of unused contract known as Masoveria. Under this arrangement, a landowner grants a "masover" the use of the land for agricultural purposes, allowing the landowner to retain ownership while the "masover" benefits from cultivating the land. Recognizing the potential application of this concept in the housing sector, Vilafranca sought to adapt it to their urban challenges.

The proposed solution operates on a simple premise: property owners lacking the financial means to renovate their vacant buildings lease them to younger individuals, who take responsibility for refurbishing the properties. In exchange, the tenants have the right to use the house unit with the condition of improving it. This arrangement not only addresses the housing crisis by providing access to housing without exorbitant costs but also benefits property owners by ensuring their properties are maintained and improved.

This system allows people without house to access one (without paying the market prices!). And then, people with vacant houses earn someone maintaining it and improving it. Central to the success of this initiative is the support of the local council. The municipality actively promotes this model through its website and press releases, maintaining a list of interested owners and tenants. Potential matches are facilitated through initial meetings, with the municipality offering assistance in drafting leasing contracts and navigating the process. Additionally, the municipality serves as a mediator if necessary, fostering collaboration between owners and tenants.

To further promote awareness and engagement, the city council organizes festivities in areas with vacant buildings, featuring music and family events on weekends. These events aim to attract citizens to these areas, allowing them to explore the vacant buildings and appreciate their heritage value. Ultimately, the goal is to empower citizens to make use of these opportunities and contribute to the revitalization of these spaces.

This project exemplifies two key insights: firstly, the innovative utilization of traditional legal frameworks to provide affordable housing without significant public expenditure, and secondly, the proactive role of the public sector in facilitating collaboration among stakeholders, positioning it as a leader in urban development rather than merely a provider of services.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Revolutionary Planning: The Mukuru Special Planning Area, Nairobi

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Revolutionary Planning: The Mukuru Special Planning Area, Nairobi

Mismatches Functional adequacy Services Diversity Vulnerable groups
Policies and regulations Local policies Regulation Planning Public-private initiatives Participatory processes
Urban Design Inclusion Segregation Public-private initiative Participatory processes
Promotion and production Favelas/Slums

Main objectives of the project

Muungano wa Wanavijiji, a grassroots movement born in Nairobi during the 1990s, embarked on its inaugural slum upgrading initiative in 2003, providing affordable single-room units adaptable for future expansion in Mukuru. Despite commendable progress, doubts persist regarding the scalability of such initiatives to address Kenya's extensive slum population. The designation of Mukuru slums as a Special Planning Area (SPA) by the Nairobi City County Government in August 2017 signifies a pivotal shift. The instrument presented an opportunity to enhance government-led planning, with the aim of integrating Mukuru's development into the city's overarching 20-year vision, potentially laying the groundwork for sustainable urban growth. A pilot project of how to integrate the slums, secure tenure and build a cohesive city.

Date

  • 2017: Implementation

Stakeholders

  • Promotor: Muungano wa Wanavijiji
  • Nairobi City Hall
  • Akiba Mashinani Trust (AMT)
  • SDI Kenya
  • Kenya Medical Association
  • Pandya & Poonawala advocates
  • Sullivan & Cromwell LLC
  • Caritas Switzerland
  • Strathmore University Business School
  • University of California, Berkeley

Location

Country/Region: Kenya, Nairobi

Description

Muungano wa Wanavijiji, a movement formed in Nairobi during the 1990s in response to widespread evictions in informal settlements, federated with the global SDI network in 2001. By 2003, Muungano constructed its initial slum upgrading houses: 34 single-room units, each spanning 16 square meters, matching existing informal structures. Priced at $1,000 per unit, owners could incrementally expand them into two-bedroom apartments. While seen as a milestone in affordable, in situ slum upgrading, questions lingered about its applicability to Kenya's 5 million slum residents. Even after a decade and 10,000 homes, scaling remains a challenge. For this reason, they fought for a change in legislation and planning, to secure support for the upgrading.

On August 11, 2017, Kenya's official journal, the Kenya Gazette, declared 550 acres (occupied by Mukuru slums) as a Special Planning Area (SPA), aiming to develop a participatory physical development plan. Mukuru houses 100,000 households and businesses, requiring complex planning due to contested land ownership and informal service delivery systems. Unlike typical international agency-driven interventions, the Mukuru SPA is led by the Nairobi city government, signaling a statutory commitment to the project without mentioning "slum" or related terms. It aligns with the city's 20-year vision, integrating into the City Integrated Development Plan. Muungano sees this as a chance to establish institutional infrastructure for inclusive slum upgrading at city scale.

The planning process for Mukuru's slum upgrade, running until August 2019, adopts a holistic approach involving county departments and non-state actors, reconfiguring traditional planning. Thirty-seven organizations commit to the plan's development, pooling diverse resources toward common objectives. Notably, private sector involvement is unprecedented, with firms like the Kenya Medical Association leading health services planning. Academia, represented by institutions like Strathmore University and the University of Nairobi, plays a significant role in leading various consortia. Legal expertise from global and local firms addresses land and legal issues. This multi-sectoral approach aims for meaningful community engagement and sustainable development in Mukuru, structured through eight consortiums.

Muungano's participation in the planning process is largely self-financed. It is done thanks to the consortium of Community. They established women-led community savings groups for organizing, learning, and gender-focused upgrading. Household-level slum enumerations, carried out by these groups, foster consensus-building and provide vital data for interventions. Muungano's project financing relies on community savings groups, leveraging resources, sometimes at high ratios, to secure development finance. They aim to expand the number of savings groups from 53 to 330 by the SPA's end in 2019.

The shift from viewing slum improvement as solely a concern for slum dwellers to a citywide challenge is significant. The SPA demonstrates a multidisciplinary and multi-sectoral approach, reframing challenges as issues for the entire city. It fosters new understandings and innovations, mobilizing social, political, and economic resources from various sectors to address the city's challenges collectively, leveraging political opportunities such as constitutional changes and county creation. Research, including community-collected data, frames the problem as solvable through collective effort.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Kyoto tax on vacant housing

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Kyoto tax on vacant housing

Mismatches Vacant housing
Policies and regulations National policies Local policies
Financing

Main objectives of the project

The Kyoto municipal government implements a vacant home tax to combat the city's housing crisis, targeting unoccupied properties, including vacation homes and tourist rentals. With the tax set to be enforced in 2026, owners face increased tax bills, with exemptions for historically significant or lower-value properties. The tax aims to address housing shortages and declining population by encouraging property utilization.

Date

  • 2026: Implementation
  • 2023: En proceso

Stakeholders

  • Kyoto City Hall

Location

Country/Region: Japan, Osaka [Kyoto]

Description

Kyoto, renowned as one of the nation's premier travel destinations, boasts a considerable number of privately owned vacation homes. Moreover, unoccupied residences are not uncommon across Japan as a whole. Unlike many other countries, homeowners' associations in Japan are less stringent regarding a property's outward appearance. Moreover, vandalism rates remain low, and there's generally minimal intrusion from the homeless community, contributing to a relaxed attitude towards leaving homes unattended for extended periods. Consequently, it's not surprising for individuals to find themselves with vacant properties, especially in a city like Kyoto. However, despite this abundance of empty homes, Kyoto is grappling with a pressing housing crisis. Strict building regulations aimed at preserving its historical landscape have led to a shortage of available housing, prompting a significant exodus of younger residents who struggle to afford skyrocketing prices.

To address this crisis, the government has introduced a pioneering measure in Japan: a tax on vacant buildings and housing units. Approved by the central government in 2023, this vacant tax is slated for enforcement in 2026. he goal of this vacatio legis is to gove time to owners to either sell, rent or occupy their properties to avoid the tax. The message of the government is clear: the aim of the tax is not to increase public revenue, but to force a solution to the housing crisis.

Despite not being a prime goal, revenues from the tax are projected to be substantial, with an additional ¥950 million annually for the municipal budget. The tax itself will be calculated based on the value and location of the empty home, expected to be approximately half the standard homeowner/property taxes. Consequently, owners of unoccupied homes could see their tax burdens increase by around 50 percent. Notably, the tax structure is tailored to each unit, imposing higher taxes on luxurious real estate. For instance, the Kyoto municipal government estimates that a vacant 40-year-old apartment, struggling to find a buyer, would incur an annual tax of around ¥24,000, whereas a five-year-old condominium used sporadically as a vacation home could face an annual bill of approximately ¥939,000.

It's worth noting that the tax indirectly affects tourist apartments within the city. The definition of vacant houses encompasses those temporarily rented for tourism. However, there are exceptions. Homes of historical significance and those below a certain value are exempt from the tax. The government's rationale is that tourism contributes to the preservation of such buildings, thus warranting tax exemptions.

Given its pioneering nature, other cities in Japan are likely to monitor Kyoto's implementation of the vacant tax closely, with the potential for similar measures to be adopted elsewhere in the future.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Vancouver’s (WA, US) tax property levy to build affordable housing

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Vancouver’s (WA, US) tax property levy to build affordable housing

Mismatches Financing
Policies and regulations Local policies Regulation Governance Participatory processes
Financing Public funding

Main objectives of the project

In response to an escalating housing crisis, Vancouver, WA implemented a property tax levy aimed at generating $42 million over a seven-year period for an affordable housing fund. The city employed a meticulously crafted strategy to garner backing from both industry stakeholders and residents for the levy proposition. City officials engaged industry representatives early in the levy proposition's design process and adjusted plans for the affordable housing fund based on their feedback. Moreover, the city actively involved residents by organizing community meetings to solicit input, incorporating suggested changes to address concerns, and launching a homelessness awareness campaign to educate residents on their role in promoting affordable housing and the significance of the levy. The city's strategic approach proved successful, with the levy proposition receiving approval from 58 percent of voters in 2016.

Date

  • 2016: Implementation

Stakeholders

  • Bring Vancouver Home Coalition
  • Vancouver City Council
  • Vancouver Housing Authority

Location

Continent: North America
Country/Region: Portland, United States of America

Description

The public administrations have a huge constraint to work out affordable housing solutions: financing them. To do so, they have to increase taxes. Yet, this means in the vast majority of cases facing opposition. Vancouver offers a different narrative. Vancouver is proof of the ability to enforce new taxes to create a fund for affordable housing if the proper political coalition is formed.

In June 2016, data from Apartment List revealed that Vancouver ranked third nationwide for the swiftest rent hikes. Situated adjacent to Portland, OR, Vancouver experienced a staggering 38 percent surge in average rents from 2011 to 2016, juxtaposed with a mere 3 percent uptick in median income. The mounting pressures in Portland's housing market propelled Vancouver's population and housing demand, catalyzing gentrification and the subsequent displacement of numerous low-income households. By 2016, the Affordable Housing Task Force of Vancouver disclosed alarming statistics: an estimated 11,675 households with very low incomes were grappling with housing cost burdens, while nearly 700 individuals resorted to shelters in Clark County, where Vancouver resides. Moreover, over 2,000 children and youths found themselves homeless or lacking stable accommodations, many resorting to couch-surfing or enduring overcrowded conditions. The Task Force underscored a notable surge in households seeking rental assistance, prompting the Vancouver Housing Authority to replace its traditional waitlist with a lottery system limited to households facing the most acute needs.

In response to these distressing figures, the Vancouver City Council declared a housing emergency, a move sanctioned by State law, enabling the City to propose a ballot measure for a property tax levy to establish an affordable housing fund. The levy, anticipated to amass $6 million annually for seven years spanning 2017 to 2023, aims to aid individuals at risk of homelessness and foster the creation and preservation of affordable housing for residents with incomes at or below 50 percent of the area median. The City aims to develop 336 affordable housing units, safeguard 454 units, furnish rental assistance to 1,500 households to prevent evictions, and augment the count of shelter beds within the city. On June 20, 2016, the City Council unanimously greenlit the inclusion of the property tax proposition on the November ballot.

Anticipating a public hearing on the proposed property tax levy, personnel from the City's Community and Economic Development Department conducted surveys and convened several public meetings to gauge community sentiment regarding the tax proposal and the affordable housing fund. Although a segment of Vancouver residents voiced resistance to heightened taxes, a substantial majority emphasized the City's obligation to confront the housing crisis. To garner support for the levy, the Bring Vancouver Home Coalition emerged. Comprising nonprofit and for-profit housing developers, homeless service providers, mental health and healthcare professionals, and education advocates, the Coalition raised over $100,000 to orchestrate a public outreach campaign bolstering the levy. Employing professional campaign staff, the Coalition orchestrated a multifaceted strategy encompassing door-to-door canvassing, website dissemination, and cable television advertisements advocating for the affordable housing fund. Additionally, the Coalition convened four community forums and engaged with neighborhood associations, churches, and advocacy groups championing fair housing and combating homelessness.

Resistance to the tax levy primarily stemmed from real estate agents, for-profit developers, and residents apprehensive about their ability to afford escalated property taxes. To assuage concerns, the City implemented exemptions for specific groups from the tax burden, including low-income residents, individuals with disabilities earning below $40,000, and seniors reliant on fixed incomes. These provisions averted burdening the very residents the levy aimed to assist. Furthermore, the City facilitated for-profit developers' access to a portion of the funds for housing development, garnering support from developers and residents who might have otherwise opposed the proposition. In November 2016, the levy secured passage with 57.6 percent of voters' support. Over the subsequent six years, property owners would be taxed $0.36 per $1,000 of assessed property value, equating to $180 annually for a property valued at $500,000.

The property tax levy took effect on January 1, 2017, with the City's Community and Economic Development Department entrusted with managing the funds garnered. Subsequently, the Department has been disbursing grants from the affordable housing fund to developers and service providers. The City fosters resident engagement with the affordable housing fund throughout its funding process, with the Affordable Housing Task Force inviting businesses, nonprofits, real estate agents, and faith-based organizations to participate in a community review panel. Applications undergo scrutiny by city staff and the community panel, appraised according to criteria prioritizing applicants with pertinent experience and a demonstrated commitment to equity. The Task Force diligently monitors and reports data on the outcomes of affordable housing fund utilization, encompassing the tally of preserved and created housing units and the number of individuals assisted by income category. Between 2017 and 2019, the City realized the creation of 137 housing units, preservation of 7 units, provision of rental assistance to 549 households, and addition of 30 new shelter beds for homeless households via the affordable housing fund. Notably, 78 percent of assisted households exhibited incomes at or below 30 percent of the area median.

Through raising awareness of its housing crisis and garnering support from property owners, Vancouver, WA, succeeded in passing a property tax levy to directly tackle the escalating homelessness attributable to soaring housing costs and burgeoning development. Local fund generation facilitated a prompt response to heightened housing needs, enabling the City to target funds to areas of immediate exigency, such as eviction prevention and shelter expansion, while simultaneously fostering housing creation and preservation for the long term.

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CSCAE Consejo Superior de los Colegios de Arquitectos de España

The renter equity program, Cincinnati, OH

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The renter equity program, Cincinnati, OH

Mismatches Price
Policies and regulations Local policies Governance
Financing Savings systems
Ownership and tenure Rental and temporary tenure

Main objectives of the project

Implemented in a neighborhood of Cincinnati, the renter equity program empowers renters to accumulate financial assets while actively engaging in and reaping the benefits of managing their apartment communities. Since its inception in 2000, the program has expanded from one to three apartment communities, with Cornerstone Renter Equity broadening its approach to include supporting families in enhancing financial literacy and attaining financial objectives. Residents emphasize that their contentment with the program primarily arises from the sense of community it cultivates, alongside the augmented wealth and financial stability it brings. For Renters Equity, having an affordable home is also enabling people to have financial stability thanks to their collaboration and involvement in the building.

Date

  • 2000: Implementation

Stakeholders

  • Cornerstone Renter Equity

Location

Continent: North America
Country/Region: Cincinnati, United States of America

Description

The Renter Equity program was initiated in the Over-the-Rhine neighborhood of Cincinnati, aiming to address the financial struggles faced by working-class individuals who are able to pay rent but find it challenging to afford other expenses. This program operates under the premise that renters lack house equity, despite making monthly payments towards their residence, thereby hindering their ability to access the value they've invested in the property for various purposes.

Cornerstone Renter Equity, established in 1986 as a community development loan fund, conceived the renter equity program to have a more significant social impact in Cincinnati. The program awards "equity credits" to residents upon completion of specified "renter obligations," which include timely rent payment, attendance at monthly tenant meetings, and participation in assigned apartment community upkeep tasks. These tasks typically require one to two hours per week and may involve property maintenance or contributing to property management decisions.

Residents can earn a maximum of $10,000 in equity credits over a ten-year period, which are held in a reserve fund managed by Cornerstone. These credits become vested after five years, at which point participants can withdraw them as cash or borrow against them for purposes such as education expenses or debt repayment. However, the program is tailored to a specific target audience: working-class individuals with limited financial assets who do not currently own or plan to purchase a home and hence lack a means of accumulating home equity.

The structure of the renter equity program revolves around three key components: the Renter Equity Agreement, Resident Association Agreement, and House Rules. These documents outline residents' obligations and the property management system's structure, emphasizing the earning of equity credits through fulfilling responsibilities. Prospective residents undergo a comprehensive orientation process, attending three monthly sessions to fully understand program requirements.

Residents benefit from community events and initiatives facilitated by the program, such as block parties, summer camps, monthly management meetings, and collaborative projects like building a playground together. Participants have reported experiencing greater financial security and satisfaction with their apartment communities as a result of accumulating equity credits. They have utilized these credits for various purposes, including funding long-term ventures and addressing financial needs such as paying for education or medical expenses.

While residents appreciate the opportunity for control over property management and the quality of their living environment, the primary appeal of the program, according to evaluations, lies in the sense of community fostered through participation. A majority of residents stay for five or more years and accumulate significant equity, though most end up using the funds to pay off debt or cover essential expenses rather than for investment or purchasing assets like cars or homes.

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Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España