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S ocial rental programmes in Slovak ia E lena Szolgayová

Options for Social Rental Housing in the Central and East European Region CEE Workshop on Social Housing, Budapest, October 6-7, 2008. S ocial rental programmes in Slovak ia E lena Szolgayová Ministry of Construction and Regional Development of the Slovak Republic

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S ocial rental programmes in Slovak ia E lena Szolgayová

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  1. Options for Social Rental Housing in the Central and East European RegionCEE Workshop on Social Housing, Budapest, October 6-7, 2008 Social rental programmes in Slovakia Elena Szolgayová Ministry of Construction and Regional Development of the Slovak Republic www.build.gov.sk

  2. Transformation processin the housing sector after 1990 • Conditions for housing development – searching for a new model • Legal changes during the transition period: - Restitution law (1991) - Law on privatisation of cooperatives (1992) - Law on ownership of residential and non- residential premises (1993)

  3. Changes in tenure structure(Slovak Republic)

  4. State Housing Policy • global basis for housing policy – UN documents, experience of EU countries • discussion on the role of State in housing sector in transition

  5. State housing policy documents • Concept of housing policy and housing development 1994 – 2000 (June 1994) • Concept of the State housing policy to 2000 (November 1995) • Concept of the State housing policy to 2005 with the perspective to 2010 (July 2000) • Concept of the State housing policy to 2010 (August 2005) • Long term housing strategy for marginalised groups of inhabitants (September 2006)

  6. Responsibilities shared among different actors private sector public sector households Principles of State Housing Policy(approved by the Government of the Slovak Republic in August 2005)

  7. Responsibilities of State: • Consider the housing development as one of the priorities in state strategies • Establish a system of economic instruments in the field of subsidy, loan and tax policy • Establish a legal framework stimulating the housing development • Allocate annually a relevant amount of funds to housing in the state budget, etc.

  8. Responsibilities of Municipalities: • Provide for acquisition, approval and updating of the land-use planning documents • Co-ordinate the acquisition of land and development of technical infrastructure • Construction, management and improvement of the municipal housing stock • Preparation and adoption of municipal housing development programmes • Maintain a database on the housing situation, etc.

  9. Priorities • New construction of public (municipal) rental housing • Modernisation of existing housing stock

  10. New instruments supporting housing development • Economic • Building saving (1992) • Mortgage banking (1994) • State housing development fund (1996) • Programme of housing development (subsidies, 1999) • Legislative • Rent setting and rent liberalisation • Reduced tenant protection • Housing allowance law

  11. Instruments of state support for housing development

  12. Stipulated by law Specific purposes – construction of an appartment in residential/one-fam. house – purchase of appartment – renewal of residential building – construction of municip. rental housing – construction of welfare service facility Loans: Granted up to 30 years Interest rate 1 % p.a. Max. up to 80 % of acquisition costs Max. 1.2 mill. / dwell. Target group – persons with lower income State Housing Development Fund

  13. Public (municipal, social) rental sector • Financing: combination of subsidies (20-30%) and long term low interest loan from the SHDF (30 years, 1% interest rate); • Eligibility: municipalities, non-profits; • Target group: lower income families, young people, vulnerable groups (up to 3 times living minimum); • Rent: regulated, up to 5% of the construction costs, contract for limited period; • Standard: normal, lower; • Limits: 80 sq.m., construction costs/sq.m.; • Output: 2 000-3 500 h.u./year (15-25%).

  14. State budget on housing(2.0-2.8% of total budget/0.5-0.75% of GDP, 1 EUR=30.126 Sk)

  15. Budget of SHDF 2008 • 2,1 bil. State budget, 2 bil. own resources • new construction (owner-occupation): 1,25 bil. • municipal rental construction: 2,1 bil. • modernisation: 0,75 bil. (estimated need 400 bil.)

  16. Housing construction according to tenure, 1948 - 2006

  17. Housing construction 1994 - 2006

  18. Housing construction 2000 - 2006

  19. Types of accomodation of households in Slovakia– 2001

  20. Rental housing - lower standard Challenges: • 620 Roma settlements • 15 016 dwellings • 4611 shelters • 139 560 inhabitants • 24 342 households Response: • Subsidy for new construction up to 80% of construction costs • 20% own labour of the future tenant

  21. Housing construction according to regions 2000 - 2006

  22. Šaľa – VečaResidential house in Fraňa Kráľa street, 96 rental flats Šaľa Veča photo 1

  23. Zvolenská Slatina photo 1 Zvolenská Slatina2 x 6 municipal rental flats

  24. Thank you for your attention. www.build.gov.sk

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