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intervention strategies for renovation of social housing estates

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Social <strong>housing</strong> <strong>renovation</strong> Italy: which solutions in Dutch <strong>housing</strong> management model? Chapter 3<br />

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working to build up a digital database including both an update <strong>of</strong> the available<br />

administrative in<strong>for</strong>mation and a registration <strong>of</strong> the physical and technical data. Yet, the<br />

procedure seems to be slow and will require much time. The lack <strong>of</strong> basic in<strong>for</strong>mation about<br />

the stock is an obstacle even in the development <strong>of</strong> short term maintenance <strong>strategies</strong>.<br />

The pre-war and the early post- war <strong>housing</strong> stock is built using traditional technologies and<br />

is in quite good physical conditions, whereas the late post-war, is facing technical problems<br />

due to the prefabricated technologies. Most <strong>of</strong> this part <strong>of</strong> the stock is facing technical<br />

defects especially on the external envelope. The insulating system is <strong>of</strong> low quality and<br />

deteriorated or even non-existent and, due to the structural adjustments; junctions between<br />

the façade and the bearing structure are <strong>of</strong>ten damaged. The lack <strong>of</strong> protective details and<br />

decorations abandoned by the modern architecture ‘style’ exposes the facades to a more<br />

direct deterioration process caused by atmospheric agents.<br />

As mentioned, parameters to fix the monthly rent are based on the regional national law. An<br />

average monthly rent per dwelling is 80 euros against a yearly expense <strong>for</strong> basic<br />

maintenance to be paid by ATER estimated around 400 euros per dwelling. Additional rates<br />

paid by the tenants are in average 470 euros per year <strong>for</strong> heating, elevators, water and<br />

electricity <strong>for</strong> the common spaces and cleanings.<br />

The dwellings are sold to the tenant at reduced price (1/10 <strong>of</strong> the market price!!), regulated<br />

by both government and regional laws.<br />

The Eu-Kos (a department within ATER), established on February 2006, is charged with the<br />

management <strong>of</strong> the sale <strong>of</strong> the stock and works in cooperation with other specialized bodies<br />

to implement the program approved by the board <strong>of</strong> directors. The most recent program<br />

established the sale <strong>of</strong> 1000 dwellings, but the real quality conditions <strong>of</strong> the stock makes<br />

only the sale <strong>of</strong> just 50 per year possible. However, this strategy does not give a decisive<br />

contribution to the restructuring <strong>of</strong> the financial situation.<br />

FINANCIAL SUPPORT<br />

The greatest amount <strong>of</strong> financial income <strong>of</strong> ATERt is represented by revenues from the rents,<br />

the sale <strong>of</strong> the stock, refunds <strong>for</strong> technical expenses regarding <strong>social</strong> <strong>housing</strong> programs<br />

(calculated by the region), further income gained <strong>for</strong>m the mentioned additional activities to<br />

support other public or private bodies and bequests or donations. Additional funds<br />

specifically related to <strong>social</strong> <strong>housing</strong> can come from the State, the region and the local<br />

authority; and further integrative contributions can be given by the region and the<br />

municipality in the case <strong>of</strong> <strong>housing</strong> or <strong>social</strong> emergency. (Regione Lazio, 2002).<br />

The mentioned financial streams <strong>of</strong> income are not enough to let the institute be<br />

economically independent; the result reflects on investments in maintenance and<br />

improvement <strong>of</strong> the stock. In 2002, ATER Roma built just 243 new dwellings and<br />

investments in <strong>renovation</strong> were zero. The most active institute in new construction was the<br />

one in Genova with 1.083 new dwellings and ATER <strong>of</strong> Milano with 3.153 <strong>renovation</strong>s.<br />

Considering expenses in maintenance and investments, ATER Roma is in the worst economic<br />

conditions across the whole country (Pozzo, 2005).<br />

The current financial situation is alarming. The institute has a founded debit <strong>of</strong> 750 million<br />

euros and an indebtedness <strong>of</strong> 4 million euros per month. The unpaid Local Housing Rates<br />

accumulated till now accounts <strong>for</strong> 50% <strong>of</strong> the founded debit whereas fees, other debits,<br />

arrears and sanctions, <strong>for</strong> the remaining 50%. The total debt increases <strong>of</strong> 11.5 million euros<br />

per year.<br />

It has been calculated that, even if ATER can draw on a credit <strong>of</strong> 20 million euros that will be<br />

used up to pay personnel and service companies, it will be able to financially survive only till<br />

December 2007. If no structural changes will be activated, the company will collapse.<br />

The structure and the stock <strong>of</strong> ATER Roma are comparable to ATER Milano. Since the last is<br />

enabled to rent dwellings at 240 euros per month, the budget is in credit and the institute<br />

can reinvest in new construction and <strong>renovation</strong>. This case demonstrates that the model can<br />

work if regional regulations allow a number <strong>of</strong> structural changes in the asset management.<br />

According to the described context, the financial emergency and the inefficient structure <strong>of</strong><br />

the company, whose in<strong>for</strong>mation has been integrated as a result <strong>of</strong> an interview with the<br />

10. C<br />

RENT<br />

FINANCIAL<br />

SUPPORT<br />

FINANCIAL<br />

SITUATION

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