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intervention strategies for renovation of social housing estates

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Conclusions and recommendations. Chapter 9<br />

-------------------------------------------------------------------------------------------------<br />

It has to be mentioned here that the indicators from the first group, the management model,<br />

constitutes a precondition <strong>for</strong> implementation <strong>of</strong> those in the second one, the implementation<br />

<strong>of</strong> <strong>renovation</strong> <strong>strategies</strong>. In the specific case <strong>of</strong> ATER Roma, however, differences in the two<br />

contexts, Italy and the Netherlands, also make it clear that a simple transfer <strong>of</strong> Dutch<br />

solutions to ATER are not feasible. Nevertheless, taking into account the differences in the<br />

context, the suggested directions necessarily are not restricted to ATER itself, but also have<br />

consequences <strong>for</strong> the external regulations and regional <strong>housing</strong> policies as well. Since they<br />

all lead to introducing a much more market-oriented <strong>housing</strong> policy in the <strong>social</strong> rented<br />

sector <strong>of</strong> the Regione Lazio, politicians need to balance an additional financial support <strong>of</strong><br />

ATER against the potential danger <strong>of</strong> introducing market principles in ATER’s operations.<br />

THE MANAGEMENT MODEL<br />

Introduce a less restrictive rent policy and more market con<strong>for</strong>mity <strong>of</strong> selling prices<br />

Distinguish a core <strong>social</strong> <strong>housing</strong> stock, <strong>for</strong> which rents need to be restricted, and a<br />

liberalized <strong>housing</strong> stock, <strong>for</strong> which ATER can follow a more market-oriented rental<br />

policy.<br />

Set up limits to the increase <strong>of</strong> the total rent sum <strong>of</strong> ATER <strong>for</strong> the <strong>social</strong> <strong>housing</strong><br />

stock part, while ATER has the opportunity to differentiate rent levels to achieve<br />

more market-oriented rent levels (Chapter 3, Section 3.3).<br />

Set the selling prices much closer to market levels (see the Netherlands, were<br />

<strong>social</strong> dwellings are sold at 90% <strong>of</strong> their market value. Additional reductions can<br />

come from the Purchasing Grant (BEW): 20% additional discount <strong>for</strong> new<br />

households and 30% <strong>for</strong> actual tenants). (Chapter 8, Section 8.2.1).<br />

Introduction <strong>of</strong> a pr<strong>of</strong>essional (re)development department within ATER<br />

Set up a new pr<strong>of</strong>essional department to carry out restructuring policies <strong>for</strong> its<br />

<strong>housing</strong> stock, with a particular emphasis on pr<strong>of</strong>itable opportunities.<br />

The department has to analyze the <strong>housing</strong> stock and land properties <strong>of</strong> ATER from<br />

a market perspective (Chapter 3, Section 3.3). The main questions would be:<br />

o Which <strong>estates</strong> can be sold and/or redeveloped into the commercial<br />

segments <strong>of</strong> the <strong>housing</strong> market?;<br />

o Which locations where ATER owns land can be exploited to generate<br />

pr<strong>of</strong>its?<br />

o Where in the Lazio region do opportunities exist to develop<br />

commercial dwellings and other real estate?<br />

Divide ATER into two bodies: a <strong>social</strong> <strong>housing</strong> organization and commercial<br />

enterprise<br />

The <strong>social</strong> <strong>housing</strong> organization manages and maintains the core <strong>social</strong> <strong>housing</strong><br />

stock.<br />

The commercial enterprise, set up as a daughter organization to the <strong>social</strong> mother<br />

(by means <strong>of</strong> stock transfer partly financed by private loans), manages and<br />

maintains the more expensive stock and locations that are more popular on the<br />

<strong>housing</strong> market. It undertakes also (re)development activities within and outside<br />

the <strong>housing</strong> stock <strong>of</strong> the ATER.<br />

The commercial enterprise has to generate positive financial returns <strong>for</strong> its mother<br />

shareholder. It should have a separate board, be exempted from restrictive rent<br />

policies and selling price regulations and be independent from the political context<br />

<strong>of</strong> the mother organizations. (Chapter 3, Section 3.3)<br />

IMPLEMENTATION OF RENOVATION (PHYSICAL SOLUTIONS)<br />

To define indicators to facilitate implementation <strong>of</strong> physical solutions, the Dutch examples<br />

(see Chapter 4, 5 and 6), the actual context <strong>of</strong> Rome (Chapter 7), the theoretical<br />

background (Chapter 2) and the strengths and the weaknesses described in matrix <strong>of</strong><br />

physical measures are considered (Chapter 8, Section 8.1.3).<br />

Ad-hoc regulations <strong>for</strong> trans<strong>for</strong>mation <strong>of</strong> existing <strong>housing</strong> blocks.<br />

2. I<br />

MANAGEMENT<br />

MODEL<br />

IMPLEMENTATION<br />

OF RENOVATION

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