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Section 3 Policies Policies Section 3 further developments of this type in the future. In Malta and the Czech Republic the issue of second meeting part of the cost of erecting their houses. By 2003 a total of 13,259 refugee families were housed under the auspices of this programme. 3.3 Recent Developments in Housing Legislation and social rented housing, have necessitated a plethora of new laws and regulations. Unlike most other longstanding EU member countries, there has been a homes is of particular concern to government. As a comprehensive overhaul of housing legislation in result the Maltese Government has obtained the right, through pre-accession negotiations, to retain its current laws restricting the purchase of housing by foreigners for use as a second residence on a permanent basis. Foreigners purchasing housing in Malta are required to obtain a permit which is only granted for one property and is subject to qualifications such as the value of the property. Similarly, for a period of five years after the The scheme to accommodate refugees on State land is augmented by the Self-Help Housing Scheme on Private Land. This scheme provides grant-in-aid to eligible refugees to cover part of the building costs of their houses on their own land. Between 1974 and 2003, a total of 32,431 displaced families benefited under this scheme. The Purchase of a House/ Apartment Scheme was introduced in 1981 and In the vast majority of the 28 countries under examination in this report, the housing policy developments, outlined above, have necessitated associated legislative reform. However, the type of legislative developments in question are not uniform across Europe. In this regard the countries under examination can be divided into two categories. Luxembourg in recent years. Full details of this legislation, and of the legislation introduced by the other European countries under examination in this report, are provided in TABLE 3.3.1 below. In terms of type of legislation introduced in recent years, TABLE 3.3.1 also reveals that the new EU member States and applicant countries in Central and Czech Republic joins the EU, foreigners will not be able to acquire real estate unless they establish residence or have long-term employment in the Czech Republic. In Cyprus, the Government has introduced a large number of measures to address the housing situation of those families who are refugees as a result of the partition of the island in 1974. One such measure is the Low-Cost Government Housing Scheme. Under the auspices of this scheme, low-cost houses are provided free of charge to low-income families. 16,120 refugee families benefited from this scheme between 1974 and provides grant-in-aid for purchasing a house/apartment from the private sector. Under the auspices of this scheme, the housing needs of 14,529 households have been met to date. The first category includes countries where new housing legislation, like the housing policies mentioned above, has been introduced in an incremental manner. In most cases, the amending legislation has sought to reaffirm existing legislation, close loopholes or address inconsistencies. The countries in this category include the long-standing EU member States, together with the new member States of Malta and Cyprus. Indeed in some of these countries, the comprehensive level of legislative development necessitated few significant further extensions of the legal framework for housing in recent years. Eastern Europe differ significantly from the majority of the long-standing member States. As was mentioned in Section 3.2 above, the majority of CEE countries have devised detailed medium and long-term housing strategies that set out a template for housing policy development over the coming years. These strategies were deemed appropriate by policy makers in view of the relatively embryonic State of the housing systems in these countries. Furthermore, in many cases they were recommended in the various Country Profiles on the Housing Sector prepared by the UNECE. The implementation of the various new housing policy 2003. All housing estates are comprehensively planned to include basic services such as shopping centres, community centres, open spaces, schools, play grounds, medical centres and homes for older people. The Government bears the yearly costs of management, maintenance and repairs of the estates. Since 1990, the funds allocated for this purpose have increased from C£500,000 to C£5,000,000 per annum. In addition, the Government has recently formulated a five-year plan for the renewal and revitalisation of the refugee social housing estates. This plan includes the rebuilding of housing units, the physical condition of which is beyond repair and the restoration and improvement of the rest, at a total cost of C£60 million. Belgium, Luxembourg and Denmark are an exception to this rule, however, because in all three there has been extensive legislative reform in recent years – albeit driven by very different stimuli. As was explained in Section 2 of this report, Belgian housing policy is devised and implemented on a regional basis – by the Brussels Capital, Flanders and Wallonia Regional Governments. This arrangement has effected an abundance of new housing laws and regulations. The key Housing Acts for Flanders and Wallonia were passed in 1997 and 1998 respectively and the Wallonia Housing Act was reformed in 2003. Preliminary legislation, codified in the Housing Act of 2003, will facilitate the establishment of a Housing Act for the Brussels Capital Region and the adoption of measures provided for in these strategies necessitated significant amounts of new legislation. In addition, these strategies also provide for the introduction or amendment of fundamental legislation necessary to underpin the effective operation of the various elements of the housing system, such as land use planning, construction, the provision of social housing, and the regulation of the housing market. Some legislative developments of this type were also required in order to meet the requirements for accession to the EU. Further details of developments in this category are provided in Section 3.5 below. The Self-Help Housing Programme on Government Land is another important element of the wider longterm programme to accommodate refugees. Under this scheme, the serviced house building sites are allocated to refugees, accompanied by financial aid towards regulations enabling the Housing Acts to be applied. In addition the three Regional Governments have introduced numerous new housing regulations in recent years. In Denmark, by contrast, a series of radical reforms to policy, particularly in relation to government supports for the construction of private 106 European Union Report Regular National Report on Housing Developments in European Countries 107
Section 3 Policies Policies Section 3 Table 3.3.1 Recent Developments in Housing Legislation in European Countries Table 3.3.1 continued Country Title or Focus of the Legislation Function of the legislation Bulgaria Territorial Development Act All of these items of legislation are concerned with the implementation of the National Austria Law on tenancy Liberalisation of regulations on renting single-family and two-family homes and refurbished lofts, etc. and related secondary legislation Cadastre and Property Register Act Housing Strategy. Law on co-operative apartments Administration of a condominium, extending joint property rights to same sex couples, Geodesy and Cartography Act and proprietary leases also preventing of so-called ‘mixed objects’ (i.e. partly condominium, partly rented housing developments) and the recognition of reserved parking and garage places as independently owned objects. Amendments to regulations Liberalisation of the subsequent sale of non-profit apartments and transfer to private on limited profit housing ownership, as regards business premises, and in the field of financing, and also restrictions as regards the appropriation of capital funds in favour of social housing construction. Belgium Various housing regulations These address: home quality standards and awarding of a compliance certificate; the introduced by the recognition of entities with a social purpose; renewal zones, including the definition of Flanders Regional Government zones that may be eligible for construction and renewal permits; regional tax on vacant Amends to the State Property Act Amends to the Municipal Property Act Saving-for-Housing Banks Act Act on approval and enforcement of the Urban Development Plan of Sofia Regional Development Act Czech Republic Various recent items of legislation Subsidies to municipalities for construction of rental housing for households and individuals with limited income. apartment blocks; subsidisation of social housing projects regarding the creation of allotments, constructing social housing and reconstruction of buildings; the rental of social housing, including enabling social housing associations to increase the upper income limits for access to this housing; construction renewal permits – these are now refocused on the 13 towns of the region in order to combat urban sprawl and redensify the urban centres; social rental for accommodation let or sub-let by the Flemish Housing Assistance for the acquisition of privately owned housing. Assistance for construction of co-operative housing. Rent-setting procedures. Provision of mortgage subsidies intended to facilitate acquisition of privately-owned housing. Various housing regulations introduced by the Brussels Capital Regional Government Various housing regulations introduced by the Wallonia Regional Government Amendments to the Wallonia Association or by a social housing association under title VII of the Flemish Housing Act; conditions under which the social housing credits associations are approved by the Flemish Government; subsidies for the construction of new housing or the renovation or extension of existing dwellings; the conditions under which the associations for social credit can be approved by the Flemish Government and housing insurance guarantees. These address: the implementation of aspects of the first ‘Housing Act’ for this region including defining housing quality criteria and legislating for the public management right; the extension of the duration of regulations on social housing relating to evictions – these compel the public service property companies (SISP) to adopt a procedure and to establish an intervention template in cases of eviction; amendments to regulations regarding the registrations of applicants for social housing – these end the obligation for the social housing applicants to submit their application to several local associations simultaneously and established a single register of applications; the holding of elections for the creation of consultative boards of tenants within social housing associations and the inclusion of tenant representatives on the board of directors of these associations; mortgage loans granted on the initiative of the Housing Fund – these enable all households (subject to the maximum income conditions) to benefit from these loans whether they have children or not and the establishment of a Regional Habitat Observatory. These address: the definition of the minimum criteria of fitness of housing; changes to aid to individuals and to corporations (aid increased in some geographical areas or districts); combating housing vacancy; provision of loans to enable young households (maximum 35 years old) access to home ownership; a multi-annual action plan aimed at reducing permanent habitat in tourist accommodation such as camp sites or other temporary structures and the establishment of a special programme (costing €1 billion ) aimed at making the Walloon housing stock fit and safe. These address: the restructuring of institutional arrangements for housing policy Denmark Private rented housing This legislation provides for tax relief for the provision of private rental housing; allows the use of pension funds for the construction of mixed tenure buildings (incorporating rented and private owned dwellings) and enables private owners of existing buildings to establish rental dwellings on their roof space which can be let at a market rent. Urban renewal and renovation Non-profit housing and subsidised private co-operative housing New housing options This legislation simplifies the terms of the public urban renewal programme, reduces public resources for urban renewal and provides for the better targeting to those most in need, along with measures to encourage private investment. In addition it removes the right of tenants to veto a decision by the owner of a building containing private rented dwellings to refurbish the building and charge a higher rent, and provides that rents for dwellings after urban renewal will hence be regulated by the law on rental dwellings without urban renewal, as well as for a reduction in the urban renewal subsidies available for co-operative dwellings. This legislation reduces the capital grant required by local authorities when building nonprofit dwellings – from 14 to 7% of the construction costs. The government will bear the additional costs during the period 2002-2005. In addition, legislation currently being drafted will offer tenants in co-operative dwellings the option to mortgage their share of the co-operative. Recent legalisation enables the conversions of dockland areas and former business areas for residential use. In addition, the houseboat regulation is under scrutiny in the interests of improving the residential environment at waterfront locations. Estonia Legislation to implement the Estonian This legislation addresses: supports for reconstruction of apartment buildings and securing Housing Development Plan 2003-2008 mortgage loans; legislation regarding the ‘Target groups for State guaranteed settlement loans’; regulation by the Minister of Economic Affairs and Communications regarding the ‘Rules of procedure of subsidies dividing commission on supporting the enlargement of rental housing stock measures’ and the application terms for the municipal rental housing stock measures for 2004. Housing Act (2003) implementation around three agencies: the Walloon Social Credit Association (social mortgage credit), the Walloon Housing Association (average priced and social housing) and the Fund for Housing Large families in Wallonia (social integration for housing and pursuing the activity of mortgage loans intended for large families); reform of housing aid; pursuing the policy of local anchoring of the housing policy; technical amendments made to the enactments of the housing quality policy and broadening the remit of the French High Council on Housing with science expertise. Finland Various recent items of legislation These laws: increase the entry income limits for access to social housing and abolish these limits altogether outside growth centres; provide for shared-ownership housing financed by an interest-subsidised commercial loan (from April 2002); provide State grants for the financing of municipal infrastructure investments for the years 2002 to 2005 to boost housing construction in Helsinki; provide for the expansion of these grants to other growth areas between 2005 and 2009 and for the introduction of free-market right-ofoccupancy dwellings from 2003. 108 European Union Report Regular National Report on Housing Developments in European Countries 109
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Section 1 Introduction and Summary
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