CECODHAS Housing Europe
Madrid, 13/06/2014
About Us
The Federation of cooperative, public, social housing
Network of national and regional housing-provider federations
• 4,500 public, voluntary housing organisations
• 28,000 cooperative housing organisations
41 members in 19 EU Member States
Manage 25 million dwellings
Vision: Access to decent and affordable housing for all in communities which
are socially, economically and environmentally sustainable and where all
are enabled to reach their full potential.
The cost of housing
EU citizens are confronted with the “scissors effect”: they spend more and
more on housing while governments fail to support the affordable housing
sector despite the growing demand.
Source: CECODHAS Housing Europe 2013, Rethinking investment in homes
The impact of the crisis
• Changing housing demand
• Decrease in public budget allocated to social housing
• Reduced access to credit
• Restructuring of social housing providers and sale of the
housing stock
Financing social housing
Market price
DEMAND SIDE
Rent
SUPPLY SIDE
Affordable price
Total cost
Equity/ own capital
Households
expenditure
Rent/share paid by
tenants
Loan/bond
Social/protection
policies counted as
social expenditure
Housing benefits
Land /Share…
Subsidies
Public
support/expenditures
It depends on history of
affordable housing
supplier
Better conditions if:
• Public guarantee
• risk sharing
mechanisms
• Good financial track
records ….
• Land at preferential price
(or not)
• Community land trust,….
• Or shared ownership…
• Public grants generally
decreasing
• tax advantages
Public support as guarantee, preferential
price…
Our finance related proposals
Unlocking the access to the financial market for social
infrastructure should be seen as a long-term investment
• Adapt the offer of financial products to the existing demand
• Long-term affordable contractual conditions as a
prerequisite to stabilize the housing market
• Attract private financing through PPP models with societal
added value
Some existing practices
• Austria: Long-term public loans.
• France, Finland and Germany: Loans with low subsidized interest rates.
• The Netherlands, Finland and some German Länder: State’s endorsement.
• England, the Netherlands: some operators have themselves graded by the
rating agencies, assuring loans at better conditions.
• Austria and England: Mechanisms to share risks.
• Fiscal advantages to social housing providers in most countries.
• The existence of intermediary/dedicated sources of funding (such as
“Livret A” in France) is proving particularly effective in shielding the social
housing sector from the current turmoil.
Unlocking of EU funds
European Structural and Investment Funds
1.
Impose obligatory minimum percentages in the ERDF that must
be invested in sustainable energy, including energy efficiency
(from 12% for less developed regions to 20% for more developed
regions).
2.
More than double the funding allocation for Sustainable Energy
and Energy Efficiency, to an estimated €23bn, under Thematic
Objective n°4 “Transition to a Low-Carbon Economy”.
3.
Expand the scope of eligibility for investments in energy
efficiency in buildings beyond the ERDF to encourage investments
also from the Cohesion Fund (where the housing sector was
previously excluded) and the European Social Fund (supporting
the up skilling of the labour force for green jobs).
4.
Give the possibility to use Funds to set up Renovation Loans.
ERDF - European Regional Development Fund
• Ex: UNITED KINGDOM: The Housing Finance
Corporation Limited (THFC) was allocated £12m
from the London Green Fund (supported by the
ERDF) in March 2013.
– Loans to registered social housing providers
– Up to now: 3 housing associations have secured overall
£50 million loan
– Environmental requirement: level 4 of the Code for
Sustainable Homes
European Funding
Structural Funds, H2020, EaSI, ERASMUS +, LIFE +
Visit our webpage on EU Funds at www.housingeurope.eu
Looking forward
Financial Stability and Housing: 5th November at the European Parliament,
Housing Europe Finance Watch joint conference
•
The incentive structure within much of the banking sector has made ever
increasing returns on investment the objective regardless of its effect in the
real world. The financial system should serve the needs of the real
economy. New regulation are all about protection of financial stability of
banks.
•
The role of the public sector in putting the basis for a balanced housing
sector is justified as long as the supply and the demand sides do not meet.
•
Purchasing power, reduced inequalities, and full participation in education
and labour markets are politically desirable and can only be achieved if
there is enough affordable quality housing to go around with the right mix
of rental, owned, cooperative and shared ownership housing.
Our team
SORCHA EDWARD
JULIEN DIJIOL
Secretary General
Policy Coordinator
ALICE PITTINI
ALESSANDRO CESALE
Research Coordination
Project Officer
MICHALIS GOUDIS
Communication Officer
FRANCESCA ZAGANELLI
Project Assistant
ALICIA GOMES CAMPOS
Membership Outreach and
Event Organiser
EDUARD CABRÉ ROMANS
Research Assistant
Upcoming event
The City of Tomorrow:
The role of affordable & social housing providers
3-4 July 2014, Versailles, France
More information on www.solardecathlon2014.fr