Date Type: Implementation

Landsbyggefonden – the Danish national fund for non-profit housing

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Landsbyggefonden – the Danish national fund for non-profit housing

Policies and regulations National policies
Financing Financial actors Mortgage systems Public funding Progressive financing

Main objectives of the project

Denmark boasts a rich history of social housing, characterized by a unique approach that extends beyond solely catering to low-income individuals. Through a system of non-profit housing organizations, the country has fostered a model of affordable housing accessible to individuals across all income brackets. One of its most notable innovations is the Landsbyggefonden, a fund that facilitates a self-financing model for these non-profits. Once mortgage obligations are fulfilled, tenants' rents contribute to the fund, enabling the construction of new buildings or the implementation of necessary improvements.

Date

  • 1967: Implementation

Stakeholders

  • Landsbyggefonden

Location

Continent: Europe
Country/Region: Denmark

Description

Social housing in Denmark is a fundamental pillar of the country's welfare system, designed to be non-profit and inclusive, fostering a diverse tenant mix for the benefit of individuals and society as a whole. Its primary aim is to provide affordable housing to all those in need. Presently, nearly one million people in Denmark—equivalent to one in six residents—reside in social and affordable housing, comprising approximately 600,000 housing units. Moreover, the proportion of social housing per capita continues to rise.

At the heart of Denmark's affordable and social housing model lies the National Building Fund, known as Landsbyggefonden (LBF). Established in 1967, LBF is instrumental in maintaining high standards of housing stock and enhancing tenant well-being. It also plays a pivotal role in counteracting economic downturns, such as the COVID-19 pandemic recovery efforts. Financed by tenant rents from non-profit housing organizations, LBF supports the expansion of affordable and social housing, as well as the renovation of existing properties.

Under the LBF framework, when mortgage loans for housing construction are repaid, tenants continue paying rents at the same level, with any surplus contributing to the fund as savings. This pooled resource is then utilized to finance the construction of new affordable and social housing units, as well as the refurbishment of existing ones. Such renovations encompass improvements to both interior and exterior spaces, the modernization of buildings to ensure accessibility for the elderly and disabled, and energy efficiency upgrades. Additionally, the fund covers demolition costs in socially vulnerable housing areas and supports infrastructural changes.

LBF serves as a vital mechanism for ensuring self-financing within the social and affordable housing sector, with savings being reinvested to maintain and enhance dwellings and to provide additional housing opportunities. By establishing a closed financial loop, it reduces the government's need to continually invest in new social housing and facilitates long-term planning for housing funding. Furthermore, it helps mitigate disparities in financial strength among various social housing providers and in the development costs of different estates, thereby influencing rental rates to reflect development expenses.

The fundamental goal of the Fund is to foster socially cohesive, safe, and sustainable communities, with a particular emphasis on investing in social activities and reducing rental prices. These endeavors are often organized through local partnerships involving schools, municipalities, or non-governmental organizations, with the aim of promoting employment opportunities and improving educational outcomes for tenants.

Managed by a nine-member board comprising representatives from housing organizations, tenants, and the two largest municipalities in Denmark, the budget of LBF must be approved by the housing minister to ensure effective governance and oversight.

After the success of Denmark, the idea is being used in other countries. In fact, this model is also used in Austria, with the Equity investment funds.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Rent control in Catalonia

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Rent control in Catalonia

Policies and regulations National policies Local policies Governance Price control

Main objectives of the project

In 2020, Catalonia (the region of Barcelona) implemented a restrictive rent control mechanism. Defining a price index in the area, depending on the features of the unit, any owner could surpass the limit of it. By doing so, in the year the limit was set in place, the prices decrease compared to other areas without the regulation.

Date

  • 2024: Implementation
  • 2020: Implementation

Stakeholders

  • Metropolitan Government of Barcelona
  • Catalonia's Government

Location

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

Description

Barcelona, as a global city, faced a big challenge: housing rent. The city has a low social housing stock and private owners had a lot of power to determine the price of the rent. As a result, a speculative increase on the rent was set in place. To avoid it, the government of Catalonia implemented a rent control that became one of the most restrictive ones in Euroe

In 2020, the Catalonia Government created a price index for each area of the country. The price index was based on the features of the building and the rent currently paid in the zone (in new and old contracts). Then, all new contracts made in the zones must be lower than the index. There were fines for non-compliance, ranging from EUR 3,000 to EUR 90,000 depending on the seriousness of the offence.

After a year in motion, the policy was overruled by the constitutional court. The argument was not about the content, but about the legal power Catalonia had to do the regulation. For this reason, in 2024, Catalonia promoted a new rent control based on the legal framework of the Spanish State. In this case, the price index only affects owners of more than 5 housing units. For the rest of landlords, the limitation is that the new contract cannot be above the old one.

Although it is too early to assess the new regulation, the one in 2020 has proved to be effective. Doing a diff-in-diff analysis, the Observatory of Metropolitan Housing (the public agency responsible to assess housing policies) stated that the regulation lowered the price for tenants during the year it was enforced.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Finques d’alta complexitat

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Finques d’alta complexitat

Mismatches Vulnerable groups Vacant housing
Policies and regulations Local policies
Financing Mortgage systems Supply subsidies Demand subsidies
Ownership and tenure Protection of social housing

Main objectives of the project

In Spain, refurbishment loans or subsidies that aim to help the most needed citizens have a high non take-up. In other words, subsidies for energetic improvements in the buildings usually end up vacant or in the hands of those who are not in most need. To tackle this issue, the Barcelona City Hall started the program “Finques d’alta complexitat” (High complexity properties, in english). The goal of the program is to have a proactive attitude of the administration and help those most deprived buildings to access to the loans or subsidies.

Date

  • 2019: Implementation

Stakeholders

  • Ajuntament de Barcelona
  • Foment de Ciutat
  • Vincle

Location

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

Description

During the 1960s and 1970s, Spain experienced a significant surge in social housing development. However, unlike traditional rental models, individuals who gained access to these properties became owners rather than tenants. This was facilitated by a system that allowed for the sale of affordable housing units. Over time, the protective measures on these properties, such as rent limits and restrictions on tenants, were lifted, effectively transforming occupants into unrestricted owners. Consequently, a complex issue emerged wherein low-income owners found themselves residing in deteriorating properties in dire need of renovation.

To address this challenge, Spanish authorities initiated various subsidies and public loan programs aimed at facilitating building refurbishments. However, these initiatives faced considerable challenges, particularly in disadvantaged neighborhoods and among low-income property owners. In those communities, non take-up issues emerged. Social complexities within these communities, such as squatters and elderly residents, compounded the issue. Additionally, many individuals lacked the necessary understanding of how to navigate subsidy programs, while others struggled to afford the financial contribution required for refurbishments due to their precarious financial situations.

In response, Barcelona implemented the "Finques d'Alta Complexitat" program as part of the broader "Pla de Barris" initiative, which focuses on revitalizing deprived neighborhoods. Unlike previous approaches, this program offers subsidies covering up to 100% of refurbishment costs, contingent on the socio-economic profile of the residents. However, the key innovation lies in the proactive engagement of the public sector with the affected communities.

Rather than simply announcing the availability of subsidies, representatives from the city hall, including social workers, architects, and technicians, actively visit the targeted buildings to engage with residents. This interdisciplinary team assists residents throughout the refurbishment process, addressing any barriers or concerns that may arise. By fostering community cohesion and facilitating communication, this approach has not only increased participation in the program but also mitigated potential conflicts, such as rent hikes post-renovation.

Furthermore, the program has contributed to the preservation of social housing by converting vacant or new units into rent-controlled properties managed by the public sector. Since its inception, the "Finques d'Alta Complexitat" program has benefited 123 estates, providing support to 1,582 families and demonstrating its effectiveness in addressing the complex challenges of urban housing renewal.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Home Town Helsinki and the Hitas: Affordable housing in Helsinki

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Home Town Helsinki and the Hitas: Affordable housing in Helsinki

Mismatches Diversity
Policies and regulations Local policies Land
Promotion and production Public promotion Public-private partnerships
Ownership and tenure Shared ownership Protection of social housing

Main objectives of the project

Helsinki, Finland, boasts one of the largest inventories of public land in Europe, enabling the city to pursue an ambitious long-term strategy aimed at fostering affordable housing. The objective is to cultivate mixed neighborhoods, incorporating various housing typologies—whether ownership, market rental, or social housing—provided by the public sector. To achieve this goal, Helsinki is actively collaborating with the construction industry and introducing innovative regulations, including the revitalization of the Hitas system and the introduction of the "company share" model.

Date

  • 2016: Implementation

Stakeholders

  • Helsinki City Hall

Location

Continent: Europe
City: Helsinki
Country/Region: Finland, Helsinki

Description

In 2016, the City of Helsinki introduced the "Home Town Helsinki" long-term policy aimed at fostering a diverse mix of housing to cater to various needs and life circumstances. A central objective was to cultivate mixed-tenure neighborhoods throughout the city, setting targets for both rented and owned housing production in regulated and unregulated markets. Out of the 6,000 dwellings generated annually, 25 percent are subsidized and regulated rental housing, while 30 percent are unsubsidized but subject to regulated ownership, ensuring price and quality control. Helsinki's substantial public land ownership, coupled with conditional land leases, enables the city to pursue its ambitious goals of affordable and inclusive housing.

With ownership of 70 percent of its land area, Helsinki plays a significant role in providing and advocating for affordable housing. The city boasts a portfolio of 60,000 housing units, with 48,500 government-subsidized for rental purposes. Most new housing developments occur on city-owned property, with the municipality directly producing 1,500 dwellings annually, including 750 units of subsidized rental housing.

Housing transactions on city-owned land operate under the "company share" model, applicable to both owner-occupied and subsidized flats. Under this model, the exchange involves trading the company share rather than the title to the land and housing, a process managed by the city.

Helsinki employs a distinctive approach to ensure that middle-income families can afford to reside in all neighborhoods, including the priciest ones. This approach, known as the "Hitas" system, aims to reduce housing costs on publicly owned land. Hitas homes, typically priced below market rates, have an upper limit on selling prices. These homes are situated on rental plots owned by the city. The pricing of units is based on actual production costs, with maximum prices regulated by the city. The selling price is established when the plot is assigned for construction, and subsequent sales must not exceed this maximum price. Allocation of Hitas units is through a lottery system. While owners incur lower monthly costs, they also pay land rent fees. This scheme proves effective in areas where market costs surpass production expenses. For builders in Helsinki, developing Hitas units on public lands is the sole viable option, ensuring guaranteed sales despite lower profits due to high demand.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Tourist short-term rental regulations in Palma, Mallorca, Spain

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Tourist short-term rental regulations in Palma, Mallorca, Spain

Mismatches
Policies and regulations Planning

Main objectives of the project

The new modalities of tourism endanger our cities and the option to have affordable housing. Nowhere is this reality more clear than in Mallorca. For this reason, the City Hall adopted a new regulation to protect the multi-family buildings of the city. The ban was one of the most restrictive ones in Europe: no apartment can be rented to tourist in the whole city.

Date

  • 2018: Implementation

Stakeholders

  • Palma City Hall
  • Consell de Mallorca

Location

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

Description

Palma is located in the south of Mallorca. It is considered one of the most touristy cities in the world. The tourist activity has been built with to features: low-salaries (to compete with other destinations in price) and land speculation. Since the 2008 crisis, as in other cities in Europe, the speculative nature of tourism moved to short-term rentals of housing units. To avoid the harsh consequences, the city hall took a drastic measure.

In 2018, the city council of Palma introduced regulations to ban all tourist rental apartments in the city, leaving only a small number of single-family homes available for rent by tourists on a short-stay basis. This measure was disputed in court. In 2022, the city hall won the case at the Suprem Court of Spain.

The interesting part of the regulation is how they used a legal loophole to implement it. In 2017, the Balearic Island Parliament approved a new regulation for tourist rental apartments. In the new law, they stated the possibility of banning new short-term rental licenses. However, a territorial plan needed to be approve. Moreover, a complete ban was not possible. There was a mandate to specify which typologies of housing and in what zoning areas the ban could be introduced. Yet, considering the urgent need of regulation in some zones, either the regional government or, only for the city, Palma’s city hall, could enforce precautionary measures.

This “urgent” regulation was thought as an instrument to define a new and provisional zoning area of the city (such as its center) and for a specific type of building. For example, to stop a new big project of tourist apartments or hotels. However, Palma declared that all the municipality should be zoned as a zoning district with urgent need for banning short-term rentals. As for the typology of housing, they ban all multifamily apartments to be rented to tourists. We have to bear in mind that multifamily buildings are overwhelmingly majority in the city. So, by using the loophole, nearly every building in the city was affected by the ban.

The territorial plan, approved two years after the ban, respected the regulation of the city. The Palma experience gives proof of how legal loopholes can empower cities to take bold regulations to face the housing crisis we live in. Now, the houses thought as affordable for people are being protected.

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Affordable Housing Bonus Program in San Francisco

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Affordable Housing Bonus Program in San Francisco

Mismatches Vulnerable groups
Policies and regulations National policies Local policies Planning Public-private initiatives

Main objectives of the project

San Francisco has faced challenges in ensuring affordable housing for its low and middle-income residents. However, through a reevaluation of California's Density Bonus schemes, a solution has been achieved. This involves providing incentives for the construction of affordable housing by allowing developers to surpass construction regulations.

Date

  • 2016: Implementation

Stakeholders

  • San Francisco Planning

Location

Continent: North America
Country/Region: San Jose, United States of America

Description

In California, the public administration does not have a lot of finance or land options to develop affordable housing. In a system relying on private investment, the USA and California have developed a way to push privates to build affordable housing. One of these options is the Density Bonus.

In a density bonus scheme, a developer is permitted to build a larger project on a site than would otherwise be permitted, in exchange for including specific elements such as a certain percentage of affordable housing units. In some cases, a developer can contribute land or funds for creating off-site affordable housing. In California, State law requires local governments to encourage housing development for all income levels and assist in the development of adequate housing to meet the needs of low- and moderate-income households. In 2016, the city of San Francisco revised its original scheme to adopt a 100 per cent “Affordable Housing Bonus Program”.

San Francisco encountered a significant issue with its density bonus scheme: the majority of housing units were allocated to low-income individuals, neglecting access for middle-income workers. Additionally, these schemes fell short of achieving the diverse mixture typical of a dense city like San Francisco. In response, the city introduced the "Affordable Housing Bonus Program" to address these challenges.

First, the program determines commercial corridors where developments can be made. The idea is to build in diversity and mixture of use. Then, the Local AHBP will offer incentives to project sponsors that elect to provide 30 percent or more affordable housing units on-site. Of this 30 percent, 12 percent must be permanently affordable to low- and moderate-income households and 18 percent permanently affordable to middle-income households. Projects that include 30 percent or more affordable units for low and middle-income households will be able to build more residential units and up to an additional two stories than currently allowed under existing zoning regulations. Yet, the Local AHBP includes special incentives for 100% affordable housing developments. These projects are generally built by non-profit developers, and usually require public subsidies. Projects with 100 percent affordable units will be able to build more residential units and up to three additional stories of residential development than currently allowed under existing zoning regulations.

This program goes beyond the State one, allowing for only one story more and having just a maximum of 20% of affordable housing.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Homma Himaan- Homes That Work

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Homma Himaan- Homes That Work

Mismatches Vulnerable groups
Policies and regulations
Ownership and tenure

Main objectives of the project

Homma Himaan was a service that supports young people in finding a home and work in one ‘package’.

It gave 18–26-year-old adults the possibility of combining housing and part-time employment. Homma himaan worked via a digital apartment and job search platform.

Date

  • 2018: Implementation

Stakeholders

  • Nuorisosäätiö
  • Setlementtiasunnot
  • Y-Foundation
  • Helsinki Youth Department

Location

Continent: Europe
City: Helsinki
Country/Region: Finland, Helsinki

Description

Homma Himaan was a pilot program, closed in 2018. However, the results and the idea are fascinating due to their integration of youth policies, employment and housing. Provided you had entered the program, as a tenant you were offered a work and a house. The tenants received a salary for the work done for the good of the neighbourhood.

Tasks included, for instance, working as the property manager’s assistant, helping out elderly residents and developing the operations on shared premises. This allowed the residents to compensate part of their rent through work. The aim was to support the youth on their path to independence and at the same time create their own well-being within the residential community around them.

The initiative involved Helsinki Youth Department and social housing providers in Helsinki, such as Y-Foundation, Setlementtiasunnot, Nuorisosäätiö and Nuorisoasuntoliitto/NAL-Asunnot (and the aim is to further spread it across the country). Employee (that are also tenants) determines the working hours, depending on their needs. Yet, residents decide on the content of their work.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España