Dzivarasekwa Slum Upgrading Project, Zimbabwe

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Dzivarasekwa Slum Upgrading Project, Zimbabwe

Mismatches Vulnerable groups Demographic/Urban growth
Policies and regulations Local policies Planning Governance Evictions Participatory processes
Financing Savings systems Public-private collaboration
Promotion and production Favelas/Slums

Main objectives of the project

The Dzivarasekwa Slum Upgrading Project, situated in Dzivarasekwa Extension, is a significant component of the broader Harare Slum Upgrading Project. Spearheaded by the Zimbabwe Homeless People's Federation and the Dialogue on Shelter for the Homeless Trust, in collaboration with the City of Harare and the central government, this initiative marks the first instance of city authorities partnering directly with slum communities in such a manner. This innovative partnership model empowers residents to actively participate in all aspects of the upgrading process, ensuring that improvements align closely with their needs and priorities. Additionally, residents receive training across various fields, including construction, fostering skills development and community involvement. Commencing in 2011, construction efforts remain ongoing, with 480 families poised to benefit as primary recipients of land for housing development, leading to enhanced tenure security and the provision of essential services such as water and sanitation facilities.

Date

  • 2011: Rehabilitación

Stakeholders

  • Promotor: City of Harare
  • Promotor: Zimbabwe Homeless People’s Federation
  • Promotor: Dialogue on Shelter for the Homeless in Zimbabwe Trust
  • Bill and Melinda Gates Foundation
  • Slum Dwellers International (SDI)
  • Selavip Foundation

Location

Continent: Africa
Country/Region: Harare, Zimbabwe

Description

Following independence in 1980, Zimbabwe witnessed a significant influx of rural residents migrating to urban areas, resulting in the rapid proliferation of slums throughout major towns and cities. However, the lack of housing development exacerbated this issue. In response, the government launched a nationwide slum clearance campaign in 2005, displacing thousands and demolishing their homes. During this campaign, slum dwellers were relocated to holding camps, including the one in Dzivarasekwa Extension in Harare, where basic services were lacking. Two years later, the government allocated land to upgrade the settlement, aiming to prevent further eviction and displacement. In 2010, a memorandum of understanding was signed between the Dialogue on Shelter for the Homeless in Zimbabwe Trust, Zimbabwe Homeless People’s Federation, and the City of Harare, focusing on city-wide slum upgrading initiatives, marking a radical shift in approach where city authorities collaborated directly with slum communities.

The Dzivarasekwa project aimed to enhance living conditions for residents, promote inclusive local government practices, and serve as a model for upgrading other slums under the Harare Slum Upgrading Project (HSUP). The project's implementation involved distinct roles for various organizations. The Dialogue on Shelter for the Homeless in Zimbabwe Trust and the Zimbabwe Homeless People’s Federation were responsible for documentation, labor provision, community mobilization, and construction, while the City of Harare oversaw infrastructure installation, technical expertise provision, and project supervision. A project management committee, comprising community, alliance, and city representatives, supervised the upgrade project. Funding for the project was sourced from savings by beneficiaries, waivers from the City of Harare, and contributions from partners like the Selavip Foundation, SDI, DFID, and the Bill and Melinda Gates Foundation.

Community engagement was integral to every phase of the Dzivarasekwa initiative to ensure improvements aligned with residents’ needs. Community members participated in data collection, mapping, inventorying, service upgrading, and housing planning and construction. Architectural designs for new homes were developed through community consultations, leading to the adoption of a semi-detached design to reduce construction costs. Residents contributed to trench digging, pipe laying, and house building, while artisan training programs produced teams of plumbers and bricklayers. Housing beneficiaries were selected based on household employment status and income, with priority given to vulnerable households led by children, elderly, or women. The average cost per 24 square meter house was $2,400 USD, financed through resident loans from savings groups.

Since commencement in 2011, approximately 2,050 residents have obtained secure land tenure, 336 homes have been constructed, and 1,344 people have been housed. Sanitation facilities have been upgraded, solar-powered water and lighting systems installed, and roads tarred. Slums like Dzivarasekwa are now recognized as integral parts of the city, aligning with its broader development agenda. This integration fosters community inclusion and secures housing rights and access to basic services. The project contributed to the formulation of the Harare Slum Upgrading Strategy in 2012, enhancing residents' understanding of city processes, rights, and obligations. This initiative established a precedent for constructive engagement between local authorities and slum communities, contrasting previous adversarial relations marked by evictions and demolitions. Lessons learned from the Dzivarasekwa project are being applied in other HSUP initiatives across Harare and beyond, such as in Masvingo, where the city council has supported the construction of 1,000 eco-san toilets.

Chamazi Community Housing

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Chamazi Community Housing

Mismatches Location Segregation Services Vulnerable groups
Policies and regulations Governance Evictions
Financing Financial actors Savings systems Sustainable development financing Public-private collaboration
Promotion and production Public-private partnerships Self-management Self-promotion Self-construction Cooperatives Favelas/Slums
Ownership and tenure Shared ownership

Main objectives of the project

When the expansion of Tanzania’s Dar Es Salaam port led to the demolition of the homes of 36,000 individuals, the Chamazi Community Based Housing Scheme rallied displaced communities, civil society organizations, government entities, donors, and the private sector to collaboratively construct new and affordable housing. Currently, a new neighborhood is being developed, displacing informal settlements and presenting an innovative solution for addressing evictions. It serves as a model for transitioning from displacement to cooperative housing, demonstrating a proactive approach to housing challenges.

Date

  • 2006: En proceso

Stakeholders

  • Promotor: Muungano Housing Cooperatives
  • Promotor: Centre for Community Initiative
  • Promotor: Tanzanian Urban Poor Fund
  • Temeke Municipal Council
  • Reall
  • Slum Dwellers International (SDI)
  • Tanzania's Ministry of Land, Housing, and Human Settlement Development

Location

Continent: Africa
Country/Region: Dar es Salaam, United Republic of Tanzania

Description

In 2006, the Tanzanian government demolished 7,351 houses in Kurasini to facilitate the expansion of the Dar Es Salaam port, resulting in approximately 36,000 individuals being displaced. Despite the government offering relocation only to homeowners, a significant portion, about 80%, of the affected residents were tenants. In response, the community took proactive measures by securing 30 acres of land for resettlement and pooling together approximately 24 million Tanzanian shillings (equivalent to US$ 24,000) from 300 members to purchase the land. The Tanzania Federation for Urban Poor (TFUP), with support from the Centre for Community Initiative (CCI), played a pivotal role in assisting the dispossessed tenants in utilizing their savings for the land acquisition scheme.

This initiative was made possible through the establishment of the Chamazi Community Based Housing Scheme, also known as Muungano Housing Cooperatives, spearheaded by the affected community’s savings, along with the Tanzanian Urban Poor Fund. Collaboratively, they secured a loan of US$ 100,000 from Slum Dwellers International (SDI) and US$ 40,000 from the UK-based organization Homeless International (Reall) for water and sanitation infrastructure, including a solar-powered water pump for the community borehole, facilitated by the Temeke Municipal Council. Additionally, CCI provided training to the community in construction skills, enabling on-site fabrication of construction materials by community members who actively participated in house building. Other partners contributed expertise and professional guidance in surveying, land acquisition, building planning, and house design. The establishment of the Muungano Housing Cooperative played a crucial role in enhancing community-led land planning, ownership, management, and financial resource mobilization.

The project significantly improved access to water and sanitation facilities, with sewage now being treated using a constructed wetland employing recyclable water technology. One of the primary challenges encountered was the necessity to construct houses for a large number of people within limited land space. Through collaborative efforts with various stakeholders, the scheme successfully influenced the Temeke Municipal Council and the Ministry of Land, Housing, and Human Settlement Development to reduce plot sizes from a minimum of 400 square meters to 150 square meters. This reduction in plot sizes is essential for enhancing decentralized infrastructure services such as water supply and sewerage systems.

Another major issue has been the end of the funds. Many families, thus, are now in possession of a land but without the capability to build new homes. However, the community has lowered the price of the construction by using recycle materials. For example, they are building its community center with plastic bottles instead of bricks. An innovative approach used in other affordable housing buildings. They are testing it in the new community center under-construction. Thus, the community center building will function as a pilot project and learning platform for new affordable building techniques. One of these is the already mentioned bottle wall technique, where re-used water bottles are filled with sand and stacked like bricks for a load bearing wall structure.

The Chamazi Community Based Housing Scheme is an example of how dispossessed people can form a community, build affordable housing, generate new neighborhoods and propose a new governance scheme to tackle the housing crisis they live in.

Revivier Centro

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Revivier Centro

Mismatches Vacant housing
Policies and regulations National policies Local policies Planning Global frameworks Public-private initiatives
Urban Design Services and infrastructure Environments
Promotion and production Public-private partnerships

Main objectives of the project

Reviver Centro is a comprehensive revitalization initiative aimed at the central region of Rio de Janeiro, focusing on urban, cultural, social, and economic rejuvenation. Its primary aim is to draw in new residents by leveraging the abundance of vacant buildings and land that have remained unused for decades in an area rich in infrastructure and cultural heritage. Additionally, the project involves the establishment of new green spaces, promotion of sustainable urban mobility, and activation of public areas through artistic interventions. However, one of the foremost hurdles lies in addressing housing issues. Here, their initiative on generating affordable housing while using the land available in the center is the biggest innovation.

Date

  • 2021: Implementation

Stakeholders

  • Rio Metropolitan Government

Location

Continent: South America
Country/Region: Brazil, Rio de Janeiro

Description

Amidst the global discussions prompted by the pandemic, which transformed many cities into virtual ghost towns, Rio de Janeiro embarked on a transformative journey with the Reviver Centro project to reshape its metropolitan landscape post-COVID-19. Focused on addressing the desolation of Rio's Central Business District, severely impacted by business closures, resident exodus, and the absence of daily workers, the initiative aims to lure people and enterprises back to the historic heart of the city.

Employing a distinctive mechanism of land-value capture through the transfer of development rights, the city offers entrepreneurs the opportunity to acquire prime areas in Rio by building and/or retrofitting residential units. In other words, developers that build on the central part of the city or allow the city with new land can, then, built on other more lucrative parts of the city above the preestablished limits. Basically, in exchange for buildings in the Center, the real estate market will receive the right to pay to build above the standard established by law in neighborhoods in the South and North Zones, such as Copacabana, Ipanema, Tijuca and Méier. The money paid by developers becomes the fund to finance the urbanization of the center. This innovative approach generates funds and new land and buildings to develop crucial infrastructure projects, including active transport networks, the city's inaugural affordable housing program, offering subsidized rental options for low-income residents, and green infrastructure initiatives. In a span of just ten months, 1,317 residential units across 18 buildings have been licensed, raising approximately R $2.2 million.

In terms of the housing initiatives that could be develope with the scheme, Rio has implemented two main programs: the Social Rental program and the Self-Management Program. The Social Rental program, established under the Municipality's Housing Policy, aims to produce and offer rental properties, attracting residents to activate the residential character of the Center. It leverages existing vacant properties and forms a rental immobilization park while providing mediation, legal, and technical assistance to facilitate formal contracts between owners and eligible tenants. Prioritizing access for individuals working in the central region but not residing there, the program promotes housing diversity, catering to marginalized communities such as families led by women, black, indigenous, LGBTQI+ populations, and social minorities.

The Self-Management Program, on the other hand, strives to ensure decent housing access for the low-income populace through participatory processes. It emphasizes specialized technical aid, support for social technical work, environmentally sustainable project development, and encourages collective housing unit living. Authorized by the Municipality, non-profit entities can participate in architectural design and social housing development in areas designated for the Social Interest Housing policy or funded through municipal collections.

With Revivier Centro, Rio has tackled the issue of empty buildings and voids in the center, while gaining financial resources to enhance social housing schemes. An integral approach to change the city center with affordable options.

Strasbourg strategy against empty houses

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Strasbourg strategy against empty houses

Mismatches Vacant housing
Policies and regulations Global frameworks Governance Data and monitoring Evaluation and impact
Financing

Main objectives of the project

Addressing housing concerns encompasses not only individuals without homes but also properties without occupants. In response, Strasbourg Eurométropole (Metropolitan Area of Strasbourg) initiated a strategic approach aimed at transforming vacant dwellings into accessible housing options. This initiative reflects a meticulously devised policy grounded in comprehensive data and knowledge, designed to bolster the city's social housing sector while providing viable solutions for owners of unoccupied properties.

Date

  • 2015: Implementation

Stakeholders

  • Strasbourg Eurométropole

Location

Continent: Europe
Country/Region: France, Strasbourg

Description

Strasbourg recognized the pressing issue surrounding vacant housing: many properties could easily be repurposed into social rental units. However, understanding why these properties remained unoccupied proved challenging. Thus, an assessment program was initiated. Leveraging the Ministry of Economy and Finance's list of vacant homes, city hall corresponded with listed owners, arranging interviews to delve into the reasons behind the vacancy. The focus was primarily on small landlords, who often cited concerns such as unpaid rent, property degradation, and cumbersome administrative procedures as deterrents to renting out their properties. The result of the meeting was that the existing systems lacked clarity, exacerbating the situation. Some owners had previously rented out their properties but encountered difficulties, ranging from tenant disputes to necessary but unaffordable building repairs.

Armed with insights into the issue, the city swiftly moved toward solutions. A comprehensive 'toolbox' was developed, comprising easily understandable documents and accessible financial assistance to guide owners through their options. Free advice is now available, covering property valuation, heritage significance assessment, and eligibility for grants. The National Habitat Agency steps in to assist landlords in connecting with new tenants or mediating disputes with existing ones.

To incentivize owners to make their properties available for social housing, the Eurometropole offers grants of up to €3,000. This incentive, disbursed on a 'half now, half later' basis, provides €1,500 upon removing the property from vacancy and offering it for social housing, with an additional €1,500 granted if the tenancy lasts at least two years. Each municipality within Strasbourg Eurometropole manages the disbursement, tailoring the system to local needs.

Furthermore, the city negotiated preferential rates with banks, resulting in zero-interest loans for owners undertaking building improvements to make their properties tenant-ready. To assist owners in finding suitable contractors, the city compiled a categorized list of companies operating in various service areas.

These initiatives aimed at small landlords are driving an increase in affordable rents while aiding struggling families in managing their real estate assets. Since May 2016, the Eurometropole has spent €320,000 (€1400 per dwelling). It has mobilised 230 vacant dwellings (all rented at social rental rates), 87 of which were rented through rental intermediation (40%). Ten municipalities are involved and over 500 landlords have been met.

NextGeneration NYCHA Sustainability Agenda

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NextGeneration NYCHA Sustainability Agenda

Mismatches Climate change
Policies and regulations Governance Data and monitoring
Promotion and production Public promotion Public-private partnerships

Main objectives of the project

The New York City Housing Authority (NYCHA) has formulated a comprehensive strategy aimed at reducing emissions across all sectors by 80% by 2050 while safeguarding 300,000 residents from the adverse effects of climate change, including heat waves, storms, and rising temperatures. To achieve this goal, the city is enacting groundbreaking policies to decarbonize energy consumption in residential buildings throughout NYC.

Date

  • 2016: Implementation
  • 2021: Implementation

Stakeholders

  • Promotor: New York City Housing Authority (NYCHA)

Location

Continent: North America
Country/Region: New York, United States of America

Description

In 2016, the NextGeneration NYCHA Sustainability Agenda was crafted as a 10-year blueprint aimed at cultivating healthy and resilient homes capable of withstanding climate change impacts, while aligning with the city’s pledge to reduce greenhouse gas emissions by 80% by 2050. This plan delineates 17 strategies to curtail NYCHA’s carbon footprint by 30% by 2025, bolster resilience, and uphold resident well-being. These strategies encompass enhancements in heating and hot water efficiency, establishment of standards for both new and existing buildings, widespread adoption of clean energy, and facilitation of residents' access to economic opportunities.

Central to this agenda are the following objectives: (1) Eliminate the root causes of mold by fixing leaks in roofs, façades, and pipes and by modernizing ventilation systems; (2) Eliminate overheating and unplanned heat and hot water outages; (3) Start on the path to meeting the City’s goal of reducing greenhouse gases by 80 percent by 2050; (4) Address climate adaptation and resiliency in all capital planning; and (4) Incorporate sustainability into day-to-day management of all properties.

Flood risk and stormwater management stand out as priorities, with resilience plans underway for all housing susceptible to coastal flooding. This includes risk evaluations and retrofit directives informed by lessons from Hurricane Sandy. The initial phase of stormwater infrastructure implementation projects holds the potential to capture approximately 72 million liters per year. Furthermore, NYCHA aims to furnish backup power for all Sandy-affected developments, establish microgrids at select developments, and install 25 MW of solar power to shield public housing residents from climate change's short- and long-term effects. These efforts involve deep retrofits to diminish energy consumption and the deployment of solar panels on residential rooftops, complementing the city’s 2025 target of 100 megawatts of solar energy for municipal buildings.

A pivotal aspect of the plan involves transitioning away from fossil fuel reliance in heating and cooking via innovative electrification solutions. Through initiatives like the Clean Heat for All challenge, manufacturers were invited to develop new cold-climate heat pumps, capable of swift installation in windows, minimizing resident disruptions. The city plans to procure 24,000 heat pumps to expedite low-cost electrification in tens of thousands of multi-family buildings, ensuring dependable heating. Additionally, geothermal energy solutions are being implemented, and gas stoves are being replaced with induction cookstoves in select buildings.

These actions not only create equitable job opportunities for public housing residents but also contribute to overhauling the city's electricity supply. More than 300 city residents have been employed to execute these initiatives, with an additional 40 enrolled in solar training programs. NYCHA is also establishing the Clean Energy Academy to train 250 residents over four years in green jobs within the solar and building decarbonization sectors.

The plan stands as a prime example of how affordable housing can fortify climate resilience in urban landscapes while promoting integration and social justice. After the success in 2016, in 2021 the strategies were updated by the new administration.

Inclusionary Housing in Johannesburg

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Inclusionary Housing in Johannesburg

Mismatches Segregation Diversity
Policies and regulations Local policies Planning
Urban Design Inclusion
Promotion and production Public-private partnerships Private promotion

Main objectives of the project

In 2019, the Johannesburg City Council approved the Inclusionary Housing project, making it the inaugural inclusionary housing policy implemented anywhere in Africa. This initiative aims to ensure that every development includes a percentage of social housing units. The objective is to augment the availability of smaller units in strategically situated areas of the city, thereby alleviating the housing backlog, gradually lowering housing prices, and diminishing travel times, expenses, and emissions in a city where these factors are excessively high.

Date

  • 2019: Implementation

Stakeholders

  • City of Johannesburg Metropolitan Municipality

Location

Continent: Africa
Country/Region: Johannesburg, South Africa

Description

The framework works as follows: Inclusionary housing is mandatory for any development application under the jurisdiction of the City of Johannesburg Metropolitan Municipality that includes 20 dwelling units or more. Different options (and associated incentives) are given for inclusionary housing that developers may choose from. In each option, a minimum of 30% of the total units must be for inclusionary housing. When inclusionary housing is applicable, it will be implemented as a condition for development (in land use/development approvals) by the City of Johannesburg. The City may take action against developers/owners who do not comply with the conditions for inclusionary housing outlined in land use/development approvals, as with any condition of approval. Yet, a developer developing below the threshold of 20 units, but who meets the criteria for one of the inclusionary housing options detailed in the framework approved, may still benefit from the incentives associated with the option chosen.

The incentives are, usually, the possibility to build extra units, hence, an increase in the allowable residential floor area, densifing the area in development. All the incentives depend on the options that planning allows and that the developer choose. Each option have some mandates regarding the 30% of inclusionary housing and some incentives. For example, Option 1 asks to have social housing units, hence, it has greater incentives than other options. Yet, in some options they can be sold in the open market. In those cases, incentives are tighter and the main goal is to densify the area and generating mixed communities by allowing a diverse typology of housing units.

Indeed, a primary objective of the program is to foster a compact city by densifying urban developments. By transitioning towards a more condensed urban landscape instead of perpetuating urban sprawl, the aim is to safeguard the remaining natural and biodiverse areas on the city outskirts, preserving the ecosystem services they offer. This approach is anticipated to enhance air quality by enhancing city efficiency. A compact city model is both environmentally and economically sustainable. It promotes increased density and proximity, resulting in reduced energy consumption for transportation, optimized land use management, and the conservation of rural land and biodiversity. Medium to high-density settlements in a city also lead to decreased service costs, improved accessibility to public facilities, and more efficient infrastructure provision, thereby enhancing economic sustainability and feasibility.

Anti-eviction Office in Palma, Mallorca, Spain

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Anti-eviction Office in Palma, Mallorca, Spain

Policies and regulations Local policies Governance Evictions Price control

Main objectives of the project

Established in 2015 in response to Mallorca's housing crisis, particularly in Palma, the Anti-eviction Office has become a beacon of hope for struggling families facing eviction threats due to unaffordable mortgages and rising rent prices. Financed by the municipality, the office's primary goal is to prevent evictions by offering legal aid and guidance to affected families. Acting as a mediator between tenants, owners, and financial institutions, it strives to find solutions and emergency housing alternatives when mediation fails. With its transdisciplinary team, the office provides comprehensive assistance, streamlining housing support previously fragmented across different governmental levels.

Date

  • 2015: Implementation

Stakeholders

  • Palma City Council

Location

Continent: Europe
City: Palma de Mallorca
Country/Region: Palma de Mallorca, Spain

Description

In Mallorca, Spain, the 2008 crisis was above all a housing crisis. Mortgages could not be paid and rent was rising while luxurious houses and short-term rental tourist apartments were on the rise. In this context, Palma, its city, faced a wave of evictions. The result could have been homelessness and a social emergency situation. However, in 2015, the Anti-eviction Office was created.

The main goal of the office was to stop all the eviction processes they could. Financed by the municipality, the Anti-eviction Office offers orientation and legal aid to all the families struggling to pay the rent or threatened for eviction. Its aim is mediating between owner and tenant or between owner and financial institution. In case the mediation is not possible, the municipality tries to find an “emergency housing alternative”. The office also does a work of prevention and education, helping families to manage their rent and services. The team behind it is transdisciplinary, helping te citizens from different angles.

The biggest virtue of the Office is becoming a one-stop office regarding housing issues. Before its creation, housing was divided in three different administrations (national, regional and local government), each one with its own procedures and areas. The Office was a way to help all citizens from the same office for any issue regarding housing and eviction in a situation of emergency. In the last 8 years, the office has stopped nearly two thousand evictions, representing the 65% of the cases. Moreover, similar schemes can be found in Barcelona and other major cities of Spain.

Tenant’s democracy in Denmark

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Tenant’s democracy in Denmark

Policies and regulations Building capacity Participatory processes
Promotion and production Self-management

Main objectives of the project

In numerous European countries, social housing landlords have established mechanisms for tenant involvement in governance, with Denmark leading the forefront in this domain, where it has evolved into what is commonly referred to as "tenant democracy." Within this system, tenants of housing associations possess the ability to wield substantial influence over estate management.

Date

Stakeholders

  • Promotor: BL- Danish Federation of Non-Profit Housing

Location

Continent: Europe
Country/Region: Denmark

Description

Denmark boasts a rich history of equitable housing policies spanning over a century. In 1919, through broad political consensus, Denmark pioneered a national public social housing system accessible to all. Unlike public housing models elsewhere, social housing in Denmark is not confined to low-income households but is open to all residents. Nonprofit housing organizations, where tenants are associates, develop and own the buildings, while residents actively shape their living conditions through a system of tenant democracy. Regulated extensively under Danish welfare policy, nonprofit housing development encompasses stringent controls over financing, design, construction, and management, including waiting lists for housing units. Danish law allows each municipality to allocate up to 25% of its social housing stock for marginalized communities such as refugees, the unemployed, and people with disabilities. Social housing comprises approximately 20% of Copenhagen's housing stock, while market-rate rentals and private co-ops constitute 43% and another significant portion, respectively.

A cornerstone of tenant democracy in Denmark lies in tenant boards. Each housing estate annually elects its tenant board, which subsequently forms part of a larger assembly. This assembly convenes annually to elect a board, approve budgets and rents, determine maintenance and renovation projects, and establish local rules. Tenants hold substantial power in decision-making, with the board having the final say, even on major renovations. Disputes are resolved through municipal assistance mechanisms when necessary, ensuring equitable outcomes. While tenants maintain the majority on the organization's board, municipal representatives often occupy seats as well. Thus, participatory methods, reinforcing local power and horizontal governance are the main features of the model.

To further empower tenant boards, housing associations offer various tools and resources. These include dedicated web portals for board members and a range of courses, such as an annual weekend seminar for local housing company chairpersons and chairwomen, along with meetings held in local settings with high-level executives from the housing associations.

Swedish Tenants’ Union

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Swedish Tenants’ Union

Mismatches Price
Policies and regulations National policies Regulation Building capacity Price control
Ownership and tenure Protection of social housing

Main objectives of the project

In most countries globally, rent prices are primarily dictated by market forces. However, Sweden, shaped by its history of progressive ideals and left-leaning governance, has upheld a unique rent model grounded in the concept of "use-value." Here, rent isn't subject to market fluctuations but rather negotiated between landlords and tenants, taking into account the specific attributes of the property. This system stems from a longstanding regulatory approach in Sweden that treats all rental housing equally, regardless of form or tenure.

Date

Stakeholders

  • Hyresgäst­föreningen

Location

Continent: Europe
Country/Region: Sweden

Description

In the housing sector, a significant challenge arises from the unequal distribution of power and information among stakeholders, leaving tenants particularly vulnerable in an imperfect market environment. This concern prompted Sweden to organize tenants into mass grassroots unions as early as the 19th century. The primary objective was to enable tenants to negotiate rent and housing conditions with property owners. Following the establishment of the welfare state, the methodologies of negotiation developed by these Tenant Unions were formalized into law.

Presently, all tenants in Sweden, regardless of whether housing is provided for profit or not, possess the right to participate in negotiating rents and tenancy conditions. This right is reinforced by tenant mobilization and active campaigns advocating for tenant rights. With a membership of 500,000 individuals, the Tenants' Association has not only become one of Sweden's largest grassroots movements but also the world's largest tenants' association. The Association, alongside representatives of landlords, engages in negotiating tenancy agreements. In instances where landlords refuse to negotiate with tenants, a statutory Rent Tribunal holds the authority to impose arrangements regarding rent levels and tenancy conditions.

Currently, the largest tenant union negotiates rents for three million tenants residing in 1.5 million apartments. These apartments are situated across 300 municipal housing associations and 45,000 private rental properties. Approximately 4,000 elected members participate in rent negotiations.

The system mirrors the process by which wages are determined in Sweden, characterized by broad sector-based negotiations between organized labor and employers' organizations. This system operates on the principle of "bruksvärde," or "use-value," which aims to both model market rents and ensure fixed tenure and reasonable rents for tenants. Rent is established based on various factors including the size, design, location, and physical condition of the apartment in question.

In addition to negotiations, the Tenant's Union advocates for policy innovations such as rent regulations for housing in the free market and the promotion of cooperatives or social housing.

“Mietpreisbremse” and “Mietendeckel”: Rent regulation system in Germany

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“Mietpreisbremse” and “Mietendeckel”: Rent regulation system in Germany

Mismatches Price
Policies and regulations Price control

Main objectives of the project

Germany, particularly Berlin, faces a significant challenge regarding its rental sector, which plays a crucial role in the city's housing supply. Unfortunately, it has transformed into a speculative market, resulting in forced evictions and a diminished quality of life for millions of Germans. Consequently, Germany has implemented some of the most stringent rent control laws in an attempt to address this issue. Examining the evolution of these regulations provides insight into their impact on affordable housing.

Date

  • 2015: Implementation
  • 2019: Implementation

Stakeholders

  • German Federal Government

Location

Continent: Europe
City: Berlin
Country/Region: Berlin, Germany

Description

Germany is renowned for its extensive rental sector, offering tenants secure tenancies and protection from eviction, making renting an appealing option compared to home ownership. Since the 1970s, a system has linked rent increases to a reference rent for similar-quality local dwellings, updated regularly, usually every four years. A database known as the Mietspiegel provides a nationwide benchmark for tenants and landlords to index rents. However, due to the pressure of rising rents, the Federal Government introduced an even more restrictive law in 2015.

The law, known as the Mietpreisbremse (Rent Control), is a nationwide regulation that took effect in 2015. It mandates the maximum amount of rent a landlord can charge. According to the law, the net cold rent may not exceed 10 percent above the local comparative rent, as set out in the regional rent index. If the landlord charges more than the permitted rent, the tenant is entitled to a rent reduction.

In principle, the Mietpreisbremse applies to tenants living in areas with tight housing markets and to federal states that have implemented corresponding regulations. Besides Berlin, Hamburg, and Munich, many other medium-sized to large cities in Germany are also covered by this regulation. All rental properties are subject to the regulation, with some exceptions, such as newly listed apartments (to encourage new housing supply) or apartments renovated for energy efficiency or necessary modernization.

In 2020, Berlin implemented an additional rent price regulation, the Mietendeckel. This cap prevented owners of flats built before 2014 from charging more than what had been agreed upon in June 2019, effectively freezing all rents. It also stipulated that rents exceeding acceptable levels by 20% should be reduced, varying based on location and quality. Landlords failing to comply with the new law faced heavy fines. The policy was intended to be in place for five years. Unlike the Mietpreisbremse, which sets a limit on rent increases, the rent cap froze rents and utilized a more restrictive index. With Berlin’s law, no increase were possible. Not even a 10%. This measure meant that hundreds of thousands of households were eligible for significantly lower rents, countering the skyrocketing rents of recent years and preventing speculators from buying buildings solely for rent gouging. However, the court ruled that Berlin, as a state in the German federal system, lacked the constitutional authority to impose the cap.

Following the ruling, the Mietpreisbremse was revised to achieve a similar effect to the Mietendeckel. It now protects tenants in Berlin affected by the invalidated regulation by giving the Mietpreisbremse a retroactive effect. Tenants whose tenancies began after April 2020 can reclaim up to 30 months' worth of excess rent paid. Meanwhile, the German government is working to extend Rent Control until 2025.

Both experiences serve as examples of regulations with mixed effects on the rental market. While prices continue to rise, many Berliners and Germans have been able to reduce their rent. Germany offers a broad range of regulations to be tested in the future to determine how cities can lower or control rents.