The Vienna Model 2 – Housing for the City of the 21st Century

RESULT MANAGEMENT / ECONOMICS
PPP RESPONSIBILITY DIVISION
CONST. PROCESS
CONTRACTING OUT
1 2 3 4
Service Contract / Management Contracts
SOCIAL HOUSING
Design/Build
PUBLIC RESPONSIBILITY
Land
Labor
Capital
Insurance
Procedural
Concession
R.G.I.
IDEALIZED
Fig. 2 Conceptual framework for affordable housing partnerships
Design / Build / Operate / Maintain
FOR-PROFIT
Public
Private
Nonprofit
Adapted from: Sasha Tsenkova, “Together We Stand: Collaborative
Resilience of Social Housing Systems,” presented at the international
conference Co-Constructing Knowledge for Urban Resilience
Implementation, Montreal, October 2–4, 2017.
REDUCE EFFECTIVE
CAPITAL COST
3. Operations Concessions — According to the World
Bank Group (2008), a concession gives a concessionaire
the long-term right to use and therefore be
res ponsible for a public asset. The asset ownership
remains with the public authority, but revenue is
generated by third-party use of the asset for the private
sector entity involved.
4. Design-Build-Operate-Maintain — Construction,
operation, and maintenance risks are assumed by the
private sector entity. Public sector involvement is
typically limited to financing and characterizing the
typology of the project.
5. Design-Build-Finance-Operate — Private sector entity
designs, builds, and finances associated construction
costs. In addition to being heavily involved in the
construction of the project, the private sector is also
Design / Build / Finance / Operate
Design / Own / Operate / Transfer
PRIVATE RESPONSIBILITY
Build / Own / Operate
DIVESTURE / FULL PRIVATIZATION
responsible for the deliverance of associated services
through long-term concession agreements.
6. Build-Own-Operate Transfer — Infrastructure is
trans ferred to a public sector entity at the end of the
arrangement with the private sector entity that constructs
and owns the property.
7. Build-Own Operate — Continued assumption of
risk of ownerships extends beyond the term of the
arrange ment for the private sector entity.
Affordable Housing Partnerships
The designing, building, financing, and operation of affordable
housing through PPPs is further complicated with the inclusion
of a third entity; the non-profit sector. The above definition is
rendered incomplete when viewing partnerships directly referencing
affordable housing because of the strong role nonprofits
have in catalyzing investment (Moskalyk, 2008). To compensate
for the lack of nonprofit inclusion in the CCPPP definition
cited above, CMHC offers the following adapted definition:
PPPs are defined to included agreements where development
is undertaken with a combination of not-forprofit,
private, and public participants of programs,
however, PPPs are not undertaken within the context
of a single mainstream program. They represent a more
dynamic involvement of the public sector, and not-forprofit
interests in which each contributes and shares
some sort of the risk (Wallace et. al., 1998, 2).
Path to Affordability. A PPP with the goal of the construction
and operation of affordable rental housing is typically
de pendent on the inclusion of the three sectors listed above
(public, private, and nonprofit). The following will detail
the different types of agencies that represent of each of the
three sectors and the responsibilities that they may have in
the partnership.
Public Sector. No level of government accepts full responsibility
for developing affordable housing (Falvo, 2015).
Aspects of housing, especially from a financial standpoint, are
federally regulated (i.e., the CMHC and the National Housing
Act enables mortgage insurance), but there lacks a unilateral
agreement between provinces to mandate housing as a fundamental
service. This creates a diversity of partnership types,
with fundamental characteristics differing from province to
province, and in cases between municipalities.
Federal Government — The Federal government’s involvement
in affordable housing is through national funding
strategies. Historically, these have fluctuated in value and are
heavily dependent on the political party in power. Since 2011,
funding for affordable housing has been provided through the
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