Affordable rental housing allows for regular urban development
Amann, Wolfgang
Powerpoint presentation.
The Vienna based consulting company IIBW, Institute for Real Estate, Construction and Housing, has developed a new approach to go for affordable rental housing in Countries in Transition. Even two decades after transition, new construction of affordable rental housing has not reestablished in non of these countries. Housing policy relies on market developments. But commercial housing almost entirely addresses upscale markets of owner occupied housing in prosperous regions. Urgent need for affordable housing in the 1990s was satisfied with mass privatization of formerly social housing stocks. Today, the lack of such housing supply results in extremely low housing mobility, barriers in migration to the economic centers and strong pressure towards informal housing. The IIBW approach consists of three pillars. a) a legal basis for the introduction of a PPP housing sector. A PPP Housing Law has been designed for Romania. b) a structured financing model that allows for net rents of some 2 /mm. And c) to eholds for capacity building, e.g. as social partnership models with public authorities, trade unions and/or employers as shareholders. With such a model, in Montenegro already some 300 affordable rental dwellings could be realized. Provision of affordable multi-apartment housing is an important contribution to allow for urban development in a necessary density. Urban density is a precondition for provision of urban services, such as public transport or social infrastructure. Last but not least, availability of affordable multi-apartment housing is an indispensible precondition for restructuring informal settlements. Poor owners of informal houses cannot just be thrown out of their homes. But they may be convinced to change an insufficient own house with a sufficiently equipped rental apartment.
Event: International Land Management Symposium
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