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Section 2<br />

Context<br />

Context Section 2<br />

2.4 Bulgaria<br />

2.4.1 Policy Mak<strong>in</strong>g and<br />

Implementation<br />

A national <strong>hous<strong>in</strong>g</strong> strategy for Bulgaria was adopted<br />

by government <strong>in</strong> 2004. Accord<strong>in</strong>g to this document<br />

the key aim <strong>of</strong> Bulgarian <strong>hous<strong>in</strong>g</strong> policy is to achieve<br />

the follow<strong>in</strong>g:<br />

■ halt the process <strong>of</strong> deterioration <strong>in</strong> the quality <strong>of</strong><br />

the exist<strong>in</strong>g <strong>hous<strong>in</strong>g</strong> stock, and<br />

■ <strong>in</strong>troduce an operational mechanism for the<br />

provision <strong>of</strong> new accessible dwell<strong>in</strong>gs (owned and<br />

rented).<br />

The national <strong>hous<strong>in</strong>g</strong> strategy also addresses the<br />

priorities and actions for the implementation <strong>of</strong> the<br />

strategic goals <strong>of</strong> <strong>hous<strong>in</strong>g</strong> policy and identifies the most<br />

urgent reforms and <strong>hous<strong>in</strong>g</strong> needs, tak<strong>in</strong>g <strong>in</strong>to account<br />

the acute f<strong>in</strong>ancial deficits <strong>of</strong> the State, municipalities<br />

and households.<br />

Accord<strong>in</strong>g to the strategy, three strategic goals will be<br />

implemented <strong>in</strong> three operational directions. These are:<br />

■ operational direction A: Draw<strong>in</strong>g up a framework<br />

for the National Hous<strong>in</strong>g System;<br />

■ operational direction B: Solv<strong>in</strong>g priority issues <strong>of</strong><br />

<strong>hous<strong>in</strong>g</strong> consumption and<br />

■ operational direction C: Carry<strong>in</strong>g out an<br />

<strong>in</strong>formational and educational campaign.<br />

Two programmes have been <strong>in</strong>itiated for the purposes<br />

<strong>of</strong> achiev<strong>in</strong>g operational direction A. These address the<br />

draw<strong>in</strong>g up <strong>of</strong> an <strong>in</strong>stitutional framework and the<br />

improvement <strong>of</strong> the f<strong>in</strong>ancial-credit and tax system <strong>in</strong><br />

the <strong>hous<strong>in</strong>g</strong> sector. These programmes <strong>in</strong>clude:<br />

■ enhanc<strong>in</strong>g the capacity <strong>of</strong> the <strong>in</strong>stitutions which<br />

have to implement the <strong>hous<strong>in</strong>g</strong> policy and apply the<br />

strategy (on national and municipal level);<br />

■ regulat<strong>in</strong>g legislation <strong>in</strong> relation to the commitments<br />

<strong>of</strong> the State and municipalities to the <strong>hous<strong>in</strong>g</strong><br />

system (f<strong>in</strong>ancial and organisational), and<br />

■ creat<strong>in</strong>g conditions for the accumulation <strong>of</strong> <strong>hous<strong>in</strong>g</strong><br />

capital for the renovation and construction <strong>of</strong><br />

accessible dwell<strong>in</strong>gs (subsidised/guaranteed credits,<br />

tax relief, etc.).<br />

Under the auspices <strong>of</strong> operational direction B the<br />

follow<strong>in</strong>g set <strong>of</strong> specialised programmes will be<br />

implemented:<br />

■ management and ma<strong>in</strong>tenance <strong>of</strong> the exist<strong>in</strong>g<br />

<strong>hous<strong>in</strong>g</strong> stock (improvement <strong>of</strong> the management <strong>of</strong><br />

apartment blocks, <strong>in</strong>troduction <strong>of</strong> a technical<br />

passport and energy certificate for build<strong>in</strong>gs);<br />

■ restructur<strong>in</strong>g and renovation <strong>of</strong> <strong>hous<strong>in</strong>g</strong> complexes<br />

(def<strong>in</strong>ition <strong>of</strong> boundaries and obta<strong>in</strong><strong>in</strong>g <strong>of</strong> legal<br />

status with respect to landed property, def<strong>in</strong>ition <strong>of</strong><br />

the right <strong>of</strong> ownership over the land);<br />

■ renovation <strong>of</strong> pre-fabricated <strong>hous<strong>in</strong>g</strong> build<strong>in</strong>gs<br />

(identification and classification <strong>of</strong> the exist<strong>in</strong>g prefabricated<br />

dwell<strong>in</strong>gs, provision <strong>of</strong> projects for<br />

renovation <strong>of</strong> <strong>hous<strong>in</strong>g</strong> build<strong>in</strong>gs, regulation <strong>of</strong><br />

obligations <strong>of</strong> participants <strong>in</strong> renovation);<br />

■ provision <strong>of</strong> access to dwell<strong>in</strong>gs for families with<br />

low <strong>in</strong>come (<strong>in</strong>creas<strong>in</strong>g the public rented <strong>hous<strong>in</strong>g</strong><br />

stock, allocat<strong>in</strong>g terra<strong>in</strong>s for construction freely or<br />

at favourable prices), and<br />

■ improvement <strong>of</strong> <strong>hous<strong>in</strong>g</strong> conditions <strong>of</strong> the Roma<br />

population.<br />

The follow<strong>in</strong>g programmes have been <strong>in</strong>itiated under<br />

the auspices <strong>of</strong> operational direction C:<br />

■ <strong>in</strong>formational and educational campaign among<br />

citizens (reach<strong>in</strong>g public agreement on the new<br />

<strong>hous<strong>in</strong>g</strong> policy) and<br />

■ and, tra<strong>in</strong><strong>in</strong>g for district and municipal adm<strong>in</strong>istrations<br />

<strong>in</strong> order to implement the new <strong>hous<strong>in</strong>g</strong><br />

policies and programmes.<br />

The National Hous<strong>in</strong>g Strategy also <strong>in</strong>volves an Action<br />

Plan cover<strong>in</strong>g the period 2004-2006. This specifies the<br />

tasks necessary for the implementation <strong>of</strong> the various<br />

programmes, the <strong>in</strong>dividuals <strong>in</strong> charge <strong>of</strong> the<br />

implementation and the necessary f<strong>in</strong>ancial resources<br />

for realis<strong>in</strong>g the strategy.<br />

Table<br />

2.4.1<br />

2.4.2 Stock<br />

Characteristics <strong>of</strong> the Hous<strong>in</strong>g Stock<br />

<strong>in</strong> Bulgaria, 2002<br />

Tenure %<br />

State and municipal 3.0<br />

Owner-occupied 96.5<br />

Other 0.5<br />

The M<strong>in</strong>istry <strong>of</strong> Regional Development and Public<br />

Works will play a lead<strong>in</strong>g and co-ord<strong>in</strong>at<strong>in</strong>g role <strong>in</strong> the<br />

implementation <strong>of</strong> the Action Plan. In addition, the<br />

follow<strong>in</strong>g are also responsible for the implementation<br />

<strong>of</strong> the <strong>hous<strong>in</strong>g</strong> policy: the M<strong>in</strong>istry <strong>of</strong> F<strong>in</strong>ance, the<br />

M<strong>in</strong>istry <strong>of</strong> Economy, the M<strong>in</strong>istry <strong>of</strong> Labour and<br />

Social Policy, the M<strong>in</strong>istry <strong>of</strong> Energy and Energy<br />

Resources, along with the Agency for Energy Efficiency<br />

and the local authorities.<br />

In 2002, the total stock <strong>of</strong> dwell<strong>in</strong>gs <strong>in</strong> Bulgaria stood<br />

at 3,691,787. TABLE 2.4.1 above <strong>in</strong>dicates that 96.5%<br />

<strong>of</strong> these dwell<strong>in</strong>gs were owner-occupied, which is the<br />

second highest rate <strong>of</strong> owner occupation among the<br />

28 <strong>countries</strong> exam<strong>in</strong>ed <strong>in</strong> this review. 3% <strong>of</strong> Bulgarian<br />

dwell<strong>in</strong>gs were owned by the State or municipalities.<br />

State dwell<strong>in</strong>gs are rented by State employees, while<br />

municipal dwell<strong>in</strong>gs are effectively social rented.<br />

These are allocated to households <strong>in</strong> need <strong>of</strong> <strong>hous<strong>in</strong>g</strong><br />

who meet specified tenure and social requirements.<br />

The ‘other’ category <strong>in</strong> the table refers to dwell<strong>in</strong>gs<br />

owned by commercial enterprises, public organisations<br />

or co-operative organisations, which are used by their<br />

employees.<br />

The number <strong>of</strong> dwell<strong>in</strong>gs per 1,000 persons<br />

<strong>in</strong> Bulgaria stood at 471 <strong>in</strong> 2002, which is<br />

among the highest <strong>of</strong> the <strong>countries</strong> under<br />

exam<strong>in</strong>ation. Indeed the number <strong>of</strong><br />

dwell<strong>in</strong>gs <strong>in</strong> Bulgaria exceeds the number<br />

<strong>of</strong> households. However, the geographical<br />

distribution <strong>of</strong> dwell<strong>in</strong>gs <strong>in</strong> the country<br />

does not reflect the distribution <strong>of</strong> the<br />

population. As a result, 14.4% <strong>of</strong> all<br />

dwell<strong>in</strong>gs <strong>in</strong> the country are vacant. Most<br />

Table<br />

2.4.2<br />

Category<br />

<strong>of</strong> these are located <strong>in</strong> decl<strong>in</strong><strong>in</strong>g areas and many are<br />

abandoned or semi-demolished, or lack basic facilities<br />

such as central heat<strong>in</strong>g and electricity, gas and water<br />

supply. Conversely, only 69.3% <strong>of</strong> the dwell<strong>in</strong>gs are<br />

occupied by only 1 household; 130,000 dwell<strong>in</strong>gs<br />

accommodate 3 or more persons per room, while a<br />

further 55,000 accommodate 4 or more persons per<br />

room.<br />

In 2002, 88,610 dwell<strong>in</strong>gs (or 2.4% <strong>of</strong> total) lacked all<br />

basic facilities and although the vast majority <strong>of</strong> the<br />

rema<strong>in</strong><strong>in</strong>g population has access to a water and<br />

electricity supply, the quality and reliability <strong>of</strong> both<br />

services is problematic. Over 82% <strong>of</strong> dwell<strong>in</strong>gs are<br />

equipped with an <strong>in</strong>ternal water supply and toilet, but<br />

only 40% are connected to a sewage treatment system.<br />

12.7% <strong>of</strong> dwell<strong>in</strong>gs have central heat<strong>in</strong>g, all <strong>of</strong> which<br />

are located <strong>in</strong> urban areas. As a result <strong>of</strong> poor heat<strong>in</strong>g<br />

systems, coupled with the fact that 80% <strong>of</strong> basements<br />

and attic floors <strong>in</strong> the exist<strong>in</strong>g <strong>hous<strong>in</strong>g</strong> stock are<br />

without thermal <strong>in</strong>sulation, 70% <strong>of</strong> the domestic<br />

energy consumption <strong>in</strong> the country is for heat<strong>in</strong>g.<br />

2.4.3 Economy<br />

TABLE 2.4.2 illustrates the key economic trends <strong>in</strong><br />

Bulgaria between 2000 and 2002. It reveals that the<br />

rate <strong>of</strong> <strong>in</strong>crease <strong>in</strong> GDP (measured <strong>in</strong> current prices)<br />

fell slightly between 2000 and 2002, from 5.4% to<br />

4.8%. However, GDP rates <strong>in</strong> the latter year are still<br />

relatively high when compared to many other <strong>countries</strong><br />

exam<strong>in</strong>ed <strong>in</strong> this review. Inflation <strong>in</strong> Bulgaria has also<br />

fallen significantly <strong>in</strong> recent years, from 10.3% <strong>in</strong> 2000<br />

to 5.8% <strong>in</strong> 2002. However, unemployment rates are<br />

comparatively high – they stood at 16.8% <strong>in</strong> 2002.<br />

Economic Trends <strong>in</strong> Bulgaria, 2000-2002<br />

Year<br />

2000 2001 2002<br />

% % %<br />

Real <strong>in</strong>crease <strong>in</strong> GDP (<strong>in</strong> current prices) 5.4 4.1 4.8<br />

Average annual <strong>in</strong>flation 10.3 7.4 5.8<br />

Unemployment (at year end) 16.4 19.5 16.8<br />

24 European Union Report<br />

Regular National Report on Hous<strong>in</strong>g Developments <strong>in</strong> European Countries<br />

25

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