intervention strategies for renovation of social housing estates

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Social housing renovation Italy: which solutions in Dutch housing management model? Chapter 3 --------------------------------------------------------------------------------------------------------------------- MANAGEMENT: TENURE Rents are restricted by central government regulations. For the major part of the dwellings in the Netherlands (expensive dwellings are excepted) the so-called Housing Valuation System (“Woningwaarderingssysteem” - WWS) is in force. On the basis of this valuation, a maximum eligible rent can be calculated. In principle, rents can only be changed on July 1st of each year. The government decides each year the maximum allowed rent increase. For housing associations, the government also determines each year a maximum rent increase on corporate level. The latter regulation is in force since 1993. Before, the government determined the annual rent increase on individual level and housing associations were not allowed to vary the annual rent increase per dwelling themselves. Housing associations are rather free in the way of allocation, but within certain government restrictions. A national restriction is that relatively cheap homes must be allocated to lowincome households. Sitting tenants, however, cannot be evicted because of (increased) income. Many housing associations work together with the local government to create and manage distribution systems. Common decisions are made on allocation criteria, for example, relating to household income, size, or age (Kullberg, 2002). Housing associations are allowed to sell dwellings. In fact, sales are encouraged, since the promotion of home-ownership is a prominent issue of Dutch housing policy. Since March 2002, only plans to sell dwellings to others than individual households (e.g. to private landlords) and plans for sale which do not fit into performance agreements with the local authorities have to be reported. In principle, housing associations must sell their dwellings against a minimum of 90% of the market value. However, if the buying household makes use of the Purchasing Grant - established as part of the Act on the Promotion of Home- Ownership (“Wet Bevordering Eigen-Woningbezit” - BEW) - associations may give reductions to 20% for new households and 30% for actual tenants. Additional reductions are possible if the development of value of the home after the sale is shared between the buyer and the housing association. The BEW, however, is hardly used in practice, mainly because it can only be applied in a small market of relatively cheap dwellings. STOCK The regulations for the technical quality of the housing stock (including social rented dwellings) have been laid down in the Building Decree (“Bouwbesluit”). This decree states minimum (technical) requirements on, among others, construction, safety, energy consumption and health. The Rent Act for Housing (“Huurprijzenwet Woonruimte” - HPW) mentions several additional technical requirements that, if not met, give tenants the right to pay a substantially lower rent. The BBSH states no specific, additional regulations for the quality of social rented dwellings. In general, the technical quality of the housing association stock is good. SUPERVISION Supervision of housing associations is conducted the basis of retrospective accountability. Their efforts in the interest of housing have to be reported to the Minister of Housing. Their financial position is monitored by the Central Housing Fund (“Centraal Fonds voor de Volkshuisvesting” - CFV). The BBSH contains prescriptions for the annual reports. The government may impose sanctions if an association performs poorly or in conflict with regulations, such as a directive (to undo or to perform a certain activity) or the appointment of a temporary supervisor. Furthermore, housing associations are encouraged to draw up ‘performance agreements’ with the local authorities. In these agreements, they specify their (public) tasks. In addition to the external supervision by the government, associations have developed an internal supervision structure as an additional means to ensure that they will operate within the interest of social housing in a reliable way. Within the social rented sector an ‘audit-system’ has been set up to review the performances of housing associations as well as a Governance Code with ‘rules of conduct’ for the members of the umbrella organization Aedes. Within individual housing associations, management is supervised by a board of ‘supervisors’ or ‘commissioners’. 12. C RENTS ALLOCATION SALES QUALITY SUPERVISION
Social housing renovation Italy: which solutions in Dutch housing management model? Chapter 3 --------------------------------------------------------------------------------------------------------------------- FINANCIAL SUPPORT As stated above, direct financial support for housing associations has been diminished. During the 1990s, brick-and-mortar subsidies, exploitation grants and central government loans have been abolished. Indirect financial support still exists through: - some tax benefits, although these have been partly abolished since 2006; - housing grants to individual households; - the backing up of a guarantee structure for the social rented sector (see below). In principle, the Dutch social rented sector is expected to act as a ‘revolving fund’ in which financial returns are reinvested in the interest of housing. Furthermore, a financial guarantee structure has been established which provides associations with good access to the capital market. Associations’ loans can be guaranteed by the national Social Housing Guarantee Fund (“Waarborgfonds Sociale Woningbouw” - WSW), which is filled by fees from the associations and backed up by the government. Associations that are no longer able to secure their financial viability can apply for financial support from the Central Housing Fund (see e.g. Boelhouwer, 1997). As part of the revolving fund, ‘rich’ associations with few tasks at hand are expected to help ‘poor’ associations with many tasks in their locality, for example by providing loans against low interest rates. However, this ‘matching’ of means and tasks has been a marginal phenomenon until now. On average, Dutch housing associations are in a relatively good financial position, although there are considerable differences between individual landlords. 3.2.1) ASSET MANAGEMENT IN THE NETHERLANDS The asset management of social landlords is considerably influenced by the political and economic context in which they operate. After decades of strong central government intervention in the housing market, the Dutch national government policy has embraced the reinforcement of market principles in social housing. As part of this policy, housing associations have gained much more administrative freedom. At the same time, direct financial support for social housing management has been completely withdrawn. This is unique, even within Western Europe (e.g. Boelhouwer, 1997, 1999). The new policy context has set considerable challenges for the asset management of Dutch social landlords. Being transformed from operational, task-oriented organizations towards ‘social entrepreneurs’, they have to operate in a more strategic, market-oriented way. As a result, there has been wide interest among associations in methods and instruments to support asset management in a more systematic and business-like manner. Despite their financial independence, housing associations have been able to remain solvent and even to improve their financial situation. This can be explained from the following factors (Priemus, 2001; Gruis and Nieboer, 2007): - Existing financial reserves. Most housing associations emerged from the 1990s in a relatively prosperous state, due to the moderate interest rate since 1995 and their ‘hidden’ resources due to undervaluation of their properties in their financial accounts; - Rental income. In the beginning of the 1990s, the national government decided to set the average yearly rent-increase for social landlords at least at 1% above the inflation rate. This real rent-increase was intended to promote cost-covering rents and thus to reduce the need for property subsidy. These real rent-increases have helped housing associations to build up their financial reserves. - Property development. Many associations have become active in the more lucrative development of expensive rental dwellings and owner-occupied dwellings, which generated surplus means to invest in social housing or to strengthen the financial reserves. - Sales have increased substantially during the nineties. The number of dwellings sold by housing associations has increased from 2,000 in 1990 to over 20,000 in the late nineties. The proceedings from the sales have been much higher 13. C FINANCIAL SUPPORT IMPROVEMENT OF FINANCIAL SITUATION
Page 1: INTERVENTION STRATEGIES FOR RENOVAT
Page 4 and 5: TABLE OF CONTENTS ACKNOWLEDGEMENTS
Page 7 and 8: The research set up Chapter 1 -----
Page 17 and 18: Theoretical background Chapter 2 --
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Page 45 and 46: Approaches to renovation interventi
Page 75 and 76: A Dutch case study. The Bijlmermeer
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A Dutch case study. The Bijlmermeer
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Florijn Noord. An example of renova
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Laurentino38. Example of deprived s
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Physical measures for renovation of
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PHYSICAL ASPECTS (technical-functio
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Directed to PHYSICAL ASPECTS (funct
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Directed to the APPEARANCE FACADE 2
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Directed to the APPEARANCE STAIRWEL
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Directed to SOCIAL ASPECTS PHYSICAL
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Conclusions and recommendations. Ch
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A.A.V.V. (1997). The new Bijlmermee
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Leupen, B. (2006). Frame and generi
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Van Kempen, R., Murie, A., Tosics,
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intervention strategies for renovation of social housing estates

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