ㅤ Encouraging the residential mobility of social housing tenants: England’s Right to Move policy (United Kingdom)

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ㅤ Encouraging the residential mobility of social housing tenants: England’s Right to Move policy (United Kingdom)

Main objectives of the project

Date

2015:

Stakeholders

Promotor: UK government

Location

Country/Region: United Kingdom

Description

In 2015 the UK government passed the Right to Move statutory guidance under the new Allocation of Housing Regulations for England. This guarantee removed residency or queuing requirements for social housing units if prospective tenants move to take up employment or an apprenticeship. For this, the previous ‘hardship’ criteria have been extended to those moving for work. Local authorities are since required to offer a minimum of 1% of their housing stock under the Right to Move scheme.   Previously, prospective council or housing association tenants often needed to sacrifice their rent-controlled tenancy in order to take up work elsewhere, effectively disincentivising employment as waiting lists were often long and private rental options too expensive for these households. The new regulations thus remove rent-benefit and housing affordability related barriers from employment related moves and encourage residential mobility within the social housing sector and across districts. It is not clear whether the Right to Move programme has catalysed moves between districts and lowered some of the mobility barriers.  

Authors:

Low Income Housing Tax Credit in the United States

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Low Income Housing Tax Credit in the United States

Mismatches

Policies and regulations

Main objectives of the project

In the US, most housing subsidies are provided indirectly via the tax system rather than direct public spending. One of the tax subsidies provided for affordable housing is Low-Income Housing Tax Credit (LIHTC) which were introduced by the Tax Reform Act in 1986.

Date

2018:

Stakeholders

Promotor: United States government

Location

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

Description

Since their introduction LIHTCs have helped to fund three million units of affordable housing. They cost the United States government some USD 9.9 billion per year in tax foregone.[1] LIHTCs are available to both non-profit and for-profit housing developers. Once a housing developer has identified a site and been allocated tax credits, capital is raised by selling the credits to investors. Investors include banks, which have financed 43 per cent on average, 30 per cent from government-sponsored enterprises such as Fannie Mae, 19 per cent from insurance and other finance companies, and 8 per cent from non-financial companies. Tax benefits only flow to investors if the scheme remains compliant for 15-30 years with the rules set when the tax credits were allocated.[2] Notably LIHTCs usually finance around 42 per cent of the costs of a typical housing project. Therefore, to deliver affordable housing this finance must be complemented by public grants and lower-cost financing. To help fund additional dwellings from the USD 10 billion provided via LIHTC, since 2018 LIHTC projects can offer dwellings with higher income ceilings – up to 80 per cent of the local median income, with rents at 30 per cent of this level. Other dwellings in the same housing development must have lower income ceilings and the overall average of all dwellings in the development must be 60 per cent of area median income.[3]

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National Housing Agency of Albania

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National Housing Agency of Albania

Mismatches

Policies and regulations

Financing

Ownership and tenure

Main objectives of the project

The National Housing Agency (NHA) of Albania was established in 1993 and is a state-owned enterprise. It is legally mandated to conduct the following tasks: Financing and entering contracts for construction, completion, and sale of dwellings Conducting research and advising on housing and urban design Sourcing finance to implement its mandate Cooperating with municipalities to meet their obligations in the housing sector Providing low-cost housing and selling it with favourable conditions for families who need housing.

Date

1993:

Stakeholders

Promotor: National Housing Agency (NHA)

Location

Continent: Europe
Country/Region: Albania

Description

NHA was established with the technical assistance of the United States Agency for International Development (USAID) and a World Bank loan to complete the construction of some 6,000 – 7,000 apartments. These were started before 1990 and were left unfinished after the fall of the communist regime. NHA was initially established to manage this loan, the state budget for housing, and other sources of financing. However, in the years following its establishment, NHA accumulated funds from selling apartments to the beneficiaries and subsequently began to use these funds as a revolving fund. This enabled NHA to become self-funding and thereby financially independent from government from 2007 onwards. NHA now uses accumulated funds to provide new affordable housing and funds from selling this are then invested in new apartments. To start a new project, NHA signs an agreement with the mayor of a city. An agreement is signed only if the municipality assigns a plot of land to NHA. In addition, the municipality may also be required to invest in the land-servicing infrastructure required to construct the dwellings, and to reduce related municipal taxes and fees. The selling price of dwellings reflects the cost of construction, including the price of the land and 4 per cent overhead costs, and of land servicing. Purchasers of dwellings are selected by municipalities on the grounds of low income and ability to afford the dwelling purchase price. Purchasers can buy with a bank loan or repay NHA in instalments. Loans and repayment in instalment agreements generally have a term of 15-25 years and attract 3 per cent interest.

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Affordable rental scheme in France – using private homes for social tenants

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Affordable rental scheme in France – using private homes for social tenants

Mismatches

Policies and regulations

Ownership and tenure

Main objectives of the project

Sometimes tax incentives are provided to investors in rental housing regardless of the rent-setting or allocation mechanisms being used. However, in France, the “Louer abordable”[1] (affordable rental) scheme attempts to channel some of this investment into providing additional rental housing for households eligible for social housing, by providing tax and other benefits to investors. This scheme has existed in various forms for about thirty years. It currently secures around 9,000 additional affordable dwellings each year and has thus far accumulated a dedicated stock of 100,000 dwellings provided under this tax framework.

Date

2017:

Stakeholders

Promotor: Agence Nationale pour l’Amélioration de l’Habitat (ANAH)

Location

Continent: Europe
Country/Region: France

Description

In its most common form, the Louer abordable sees an owner of a dwelling sign a rental agreement (a “louer mieux” contract) with the Agence Nationale pour l’Amélioration de l’Habitat (ANAH)[1] – the national agency which manages the scheme. As part of this agreement, the owner hands over management of the dwelling to an approved ‘social rental agency’ for a fixed period, usually either six or nine years, though this can be extended after the end of the initial contract if both parties agree. From the perspective of potential tenants, renting a dwelling provided under this programme is similar to renting a ‘traditional’ social housing unit. Eligibility is determined primarily based on income, but the maximum income allowable varies depending on household size and region.[2] In terms of the tax benefits available to landlords who lease their property under the Louer abordable scheme, between 15 per cent and 85 per cent of the rent can be tax free. Higher rates of tax incentives are available to landlords who rent to those on the lowest incomes, with less generous tax breaks available if the property is rented to those on medium incomes. The geographic location of the property is also considered, with higher tax relief in higher-demand areas. The rent that can be charged is fixed by law and varies depending on factors such as size and location of dwelling. It is also important to note that in the French system, tax breaks only apply in instances where rent is treated as “property income” and not as “industrial or commercial profits”.[3] In this way, the Louer abordable scheme is attractive for small scale individual investors rather than large corporate investment vehicles. The Louer abordable scheme also has an important environmental element. Should a property need to undergo renovation works, the owner can benefit from various financial supports provided by ANAH, including a lower VAT rate on works and tax credits. To qualify, the renovated dwelling must meet specified minimum-energy standards. In any case, landlords in France must now offer minimum standards of thermal comfort to legally rent their dwelling.

Authors:

LIFE REUSING POSIDONIA/ 14 social dwellings in Sant Ferran, Formentera

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LIFE REUSING POSIDONIA/ 14 social dwellings in Sant Ferran, Formentera

Mismatches Climate change

Urban Design Quality

Main objectives of the project

Life Reusing Posidonia is a Climate Change Adaptation Project funded by the European LIFE + program. It integrates Heritage, Architecture, and Climate Change to explore sustainable solutions using local resources. The project focuses on reusing Posidonia, a type of seaweed, as a key material throughout the building.

Date

2017: Construcción

Stakeholders

Arquitecto: Joaquín Torrebella Nadal
Arquitecto:  Alberto Rubido Piñón
Promotor: Institut Balear de l’Habitatge (IBAVI)

Location

Continent: Europe
City: Formentera
Country/Region:

Description

Life Reusing Posidonia is a Climate Change Adaptation Project financed by the European LIFE + program for nature conservation projects. The project links Heritage, Architecture and Climate Change with the aim to recover the local resources as a cultural approach in the contemporary research for sustainable solutions. Traditional architecture has been a constant reference, not for its forms, but as a way of working. By doing so, we look for the available local resources: the juniper trees are now fortunately protected and the sandstone quarries (marès) have been depleted. Therefore, we only have what arrives by sea: Posidonia. So we propose a shift in approach which has been applied to every single part of the building: “Instead of investing in a chemical plant located 1,500 km away, we could invest the same amount in local labor, who should lay out the Posidonia to dry under the sun and compact it by hand. Sea salt acts as natural biocide and is completely environmentally friendly.” The use of dry Posidonia as thermal insulation reminds us that we do not live in a house but an ecosystem. 1. TO DEMONSTRATE: The viability of constructing the prototype with an additional cost of 5% over the usual price of the IBAVI social housing buildings. 2. TO REDUCE: 63% of CO2 emissions during the construction of the building. 775,354.6 kg/CO2 have been saved. Calculation performed through the TCQ program of ITEC. 75% of useful energy during the lifetime of the building. Nearly Zero Energy Building (nZEB), with maximum consumption of 15 kWh/m²/year (17,226.30 kWh/year). The average thermal comfort measured in situ is 21ºC in winter and 26ºC in summer. 60% water consumption. Maximum limit 88 l/person and day. Average consumption based on the tenants’ bills. 50% waste production during the construction phase 36.98 tones have been saved due to in-site reusing measures. 3. ORGANIZATION & PROGRAM The two street facades facing main sea breezes (North & East) to cool in summer allow dividing the volume into two separate blocks with different orientations. The entrance to all homes is directly on to the street. All the dwellings face two directions and cross ventilation thanks to the layout of the living room in a Z shape and a bedroom at each corner. All the materials have been selected through a market study based on their embodied energy and the transport cost to Formentera. We tested solutions based on the recovery of eco-friendly local artisan industries with KM 0 raw materials, which are in danger of extinction. Usually these are small family companies that do not have eco-labels, but they can easily be inspected in person. The combined use of these available local materials with those imported that do have environmental labels is a replicable model that makes it possible to reduce more than 60% of CO2 emissions during the works. For instance, load-bearing walls with non-reinforced lime foundations, laminated wood slabs, white lime plaster on facades, sandstone cistern vaults, handmade glazed tiles, bricks baked in biomass mortar kilns, etc. All indoor carpentry and the shutters on the ground floor were made of reused second hand doors and wood from the ‘Deixalles’ waste-management plant in Mallorca. The organization of spaces and formal decisions have been the result of knowing the advantages and limitations of natural materials, which are more fragile. This fragility has become a design opportunity.

Authors:

Affordable Housing Supply Programme of Scotland

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Affordable Housing Supply Programme of Scotland

Mismatches

Policies and regulations

Promotion and production

Ownership and tenure

Main objectives of the project

Date

2021: Construcción

Stakeholders

Promotor: Department of Social Justice, Housing and Local Government
Promotor: Government of Scotland

Location

Country/Region: United Kingdom

Description

The Scottish Government in the United Kingdom has developed strong capabilities in needs-based strategic planning for housing grant allocation and delivery. It has established an Affordable Housing Supply Programme to deliver 50,000 affordable homes, including 35,000 for social rent, between 2016 and 2021. It recently published an updated “Housing to 2040” policy statement, which aims to deliver an additional 100,000 affordable homes, including 70,00 social rental homes, by the first half of 2032. By working with local authorities, the Scottish Government has channelled increased capital investment to address well-evidenced and locally established housing needs. It has also created a dedicated Housing Infrastructure Fund to address development blockages. Furthermore, the Government continued to employ funds to renovate vacant dwellings and established a new fund to increase affordable housing in rural and remote island areas.

Authors:

Cooperation through the “Urban Agenda for the EU” Housing Partnership Action Plan

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Cooperation through the “Urban Agenda for the EU” Housing Partnership Action Plan

Mismatches

Policies and regulations

Financing

Urban Design

Promotion and production

Ownership and tenure

Main objectives of the project

Date

2018:

Stakeholders

Promotor: City of Vienna
Promotor: City of Lisbon
Promotor: City of Riga
Promotor: Scottish Cities Alliance
Promotor: City of Poznan
Promotor: Government of Slovakia
Promotor: EUROCITIES
Promotor: Government of Latvia
Promotor: Government of Luxembourg
Promotor: Government of the Netherlands
Promotor: Government of Slovenia
Promotor: European Commission (DG REGIO and contributions from DG NEAR and DG EMPL)
Promotor: International Union of Tenants
Promotor: European Investment Bank
Promotor: Faculty for Urban Studies, Science Po – Paris Institute of Political Sciences
Promotor: Housing Europe

Location

Continent: Europe
Country/Region:

Description

The Housing Partnership of the Urban Agenda for the EU used an evidence-based and consultative process, enhancing knowledge and promoting action to improve legal and financial conditions for EU cities to invest in new or renovated affordable housing. The Partnership involved representatives of EU Member States, cities, housing providers and tenants, as well as EU institutions and programmes. The partners prepared papers on ten selected themes and consulted extensively with the public, as well as with the European Commission and Parliament. The EU Housing Partnership Action Plan proposed several key actions. These included improving support and policy guidance to develop European affordable housing, EU-level dialogue on housing matters, reformed funding structures or state aid rules, and improved housing issue monitoring through the European Semester process.

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Soft urban renewal in Vienna, Austria

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Soft urban renewal in Vienna, Austria

Mismatches

Policies and regulations

Urban Design

Promotion and production

Main objectives of the project

Date

2010: Rehabilitación

Stakeholders

Promotor: Vienna Housing Rehabilitation

Location

Continent: Europe
City: Vienna
Country/Region: Austria, Vienna

Description

Soft urban renewal, implemented under the 1984 Vienna Housing Rehabilitation Act, is a non-disruptive approach that avoids demolishing historic buildings or displacing residents. It focuses on financial incentives for private homeowners and follows a decentralized and participatory method for building and neighborhood improvements. The emphasis is on improving housing standards without causing social segregation or gentrification. The scheme has successfully reduced substandard housing from 320,000 to less than 125,000 units through rehabilitation efforts. It has created affordable rehabilitated housing without changing ownership, resulting in over 715,000 fully equipped apartments. The approach prioritizes affordability, social inclusion, and the needs of vulnerable households. Redevelopment is managed by district offices, supported by private architects or non-profit building associations and funded by the city. These offices collaborate with tenants and owners to enhance housing stock, including green courtyards and communal facilities, while promoting connections to public transport. There are currently 13 district offices that actively involve vulnerable and socially marginalized households with the support of city funds. It is considered “soft” or ”gentle” as it does not involve the demolition of historic buildings or the construction of entirely new urban areas, nor does it displace and compulsorily rehouse residents living in renewal areas. Legislated under the 1984 Vienna Housing Rehabilitation Act, the soft urban renewal created financial renovation incentives for private homeowners and was implemented through a decentralized and participatory approach to building and neighbourhood improvement. Much effort has since gone towards improving housing standards, while avoiding social segregation and gentrification. The urban renewal has involved strategic subsidization of private housing rehabilitation, rather than the demolition of historic buildings. Public authorities first look at bringing empty flats into use and developing communal areas and then later address whole blocks of flats and creating new urban areas.[3] An evaluation of this scheme in 2010 found that soft renewal had made substantial improvements to living conditions in Vienna. From 1984 to 2001, through rehabilitation, houses that were categorised as substandard were substantially reduced – from approximately 320,000 (39 per cent of the total stock) to less than 125,000. The renewal activities produced a large stock of affordable rehabilitated housing with avoiding a forced change of ownership or occupancy. One important result was the avoidance of social segregation and gentrification. A total of 2,160 buildings with 142,000 apartments were improved as part of the process of soft renewal and the number of fully equipped apartments rose from about 328,000 to more than 715,000.[1] Notably, limited profit affordable housing is in relatively good condition, in part due to the business model which funds it that requires regular maintenance and periodic renovation. Chapter II on funding and financing affordable and inclusive housing has extensively elaborated on this matter. The soft renewal approach, which is both decentralized and interdisciplinary, prioritises affordability and social inclusion objectives, avoids forced change of ownership and enables rehabilitated housing to remain affordable to existing occupants. Particular attention is given to the needs of vulnerable households (the elderly and new migrants). The redevelopment is managed by offices in each city district. These are run by either private architects or non-profit building associations and are financed by the city. They work with both tenants and owners to improve the housing stock; for example, by enhancing green courtyards, and making proposals for communal facilities and connections to public transport. There are now 13 district offices (Gebietsbetreuungen) which can also apply for city funds to involve vulnerable or socially marginalised households more actively.

Authors:

Housing Fund of the Republic of Slovenia

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Housing Fund of the Republic of Slovenia

Mismatches New family structures

Financing

Promotion and production

Main objectives of the project

Date

1991:

Stakeholders

Promotor: Housing Fund of Republic of Slovenia (SSRS)

Location

Continent: Europe
City: Cerknica
Country/Region: Slovenia

Description

The objectives and specific targets of the Fund have evolved, but remain focused on the construction, renovation and maintenance of apartments and residential buildings, targeted at groups with particular needs such as families, young people, the elderly, and Roma populations. The main instruments used to achieve this have involved co-financing with long-term favourable loans and interest rate subsidies, and investments in new innovations and international research. The Housing Fund is a public authority and actively invests directly in housing and also co-invests in local community housing programmes, complementing the efforts of municipalities and non-government organizations. It also purchases land and houses directly on the market. Since 2006, non-profit dwellings regulated under the Housing Act have been let at relatively regulated low rents. Consequently, they are in high demand among prospective tenants, but have proven less attractive to investors. With its own construction and purchase projects on the market, the Fund provides an additional quota of publicly available rental housing, tying rent calculation to the real estate investment or purchase value. It offers eligible tenants a stable rental relationship under pre-known conditions for an indefinite period. In 2019 CEIB (also discussed in this chapter) provided the Fund with a long-term loan of EUR 50 million. Issues tackled Currently the Fund directly owns 3,042 non-profit rental-housing units and a further 787 dwellings which are let at cost-based rents. Two companies owned by the fund own another 2,056 apartments, which they rent out at non-profit rent. These dwellings are located throughout Slovenia. The Fund is intensively building affordable rental apartments throughout Slovenia, and by 2023 it will provide 2,194 new public rental apartments. The Fund is now focusing on effective administration for public rental dwellings. Thus, between 2017 and 2020, its activities have included: Co-investment in new public rental housing units, including residential units, under a co-financing programme Establishment and operation of the Public Service for Rental Management and Records system Management of mixed portfolio of formerly non-profit, commercial, and sheltered housing Providing new public rental housing units for young people, young families and the elderly, the utilization of rental buying-in and shared ownership instruments Development of new projects on land owned by the Fund Financial incentives for housing in the form of soft loans Sustainable construction and complete renovation of the housing stock for all products and programmes of the Fund Technical standards for the home-building industry Cooperation in development projects in housing construction Strengthening and implementing the Fund’s development role in housing Efforts to obtain funding from EU funds Acquiring assets for and in the framework of partner projects.

Authors:

Mikrofond EAD and Habitat for Humanity in Bulgaria

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Mikrofond EAD and Habitat for Humanity in Bulgaria

Mismatches

Financing

Promotion and production

Main objectives of the project

Date

2008: Construcción

Stakeholders

Promotor: Mikrofond EAD
Promotor: Habitat for Humanity

Location

Continent: Europe
City: Bulgaria
Country/Region: Bulgaria

Description

In 2008, the Habitat for Humanity International established a partnership with Mikrofond EAD, a microfinance organization in Bulgaria that focuses on underserved regions and communities. They have run a project together to deliver housing microfinance services to clients in housing poverty throughout Bulgaria.[1] Before the partnership, Mikrofond offered only business loans, but it saw an opportunity to introduce consumer loans for home improvements. The size of the loans provided was EUR 1,750 (USD 2,365) and the average payment duration is 31 months. Habitat for Humanity Bulgaria (http://hfh.bg/bg/) and Mikrofond also jointly provide financial education programmes to their clients. These cover budgeting, saving, debt management and financial planning, along with raising clients’ awareness about the benefits and risks of using credit. [1] Habitat for Humanity, “Shelter Report 2014” (see sect. Microfinance for self-building and modernising housing, footnote 175).

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