Socially Excluded Localities: RPG Real Estate Approach

Residential Portfolio of RPG Real Estate > apartments in buildings Locations in 27 towns (Moravian-Silesian Region) Average age of buildings: 54 years Occupancy rate: 98 percents > tenants

Socially Excluded Localities Approx RPG RE flats in socially excluded localities Problems with assets value destruction, bad debts, no returnable investments, high vacancy rate – not attractive to newcomers, antisocial /criminal behaviour (drugs), bad neighbourhood reputation, security problems

Pilot Project Liščina

Pilot Project Liščina: Fact Sheet 123 flats: 84 flats rented; 39 flats empty; appr. 250 tenants (appr. 90% Romanies*, all socially and economically excluded) 45 % households delayed in rent payment! Average rent in 2010: CZK 46,05 per m 2 Civic association Vzájemné soužití actively involved as of 1997 Main problems: high unemployment (appr. 70 %*), low level of education, grey economy, criminal behaviour, drugs, debts, loans, untidiness Test site for all RPG RE revitalization/social inclusion projects (Self- Help, housekeepers, tenant-funded repair program) * Popis sociálně vyloučených romských lokalit v regionu Ostravska, Agentura pro sociální začleňování, 2010

Pilot Project Liščina: Local Partnership established in 2008 Municipality: Slezská Ostrava NGO: Vzájemné soužití Owner of the houses: RPG Real Estate School: Elementary School ZŠ Škrobálkova State: Agency for Social Inclusion, Office of the Government of the Czech Republic Police of the Czech Republic OKD Foundation

Pilot Project Liščina: Time Management 2009 – 2010 Definition of the partners of the project, 1st meeting with tenants - discussion Cleaning of the houses and public spaces (Self-Help) Building of the playground for children (OKD Foundation + Self- Help) Sewage system repairs (RPG Real Estate) Repairs and painting of the windows (Self-Help, material: RPG RE) LISCINA!!! photo exhibition (Ostrava Municipal Hall) Repairs of front doors and of interlocking (Self- Help, material: RPG RE) Pilot project of Tenant-funded repair program(Self-Help + RPG RE) Change of windows, repairs of facades (RPG Real Estate) Demolition of substandard house (RPG Real Estate) Building of benches (Self-Help, material: RPG Real Estate) Final building approval (tenants + partners of the project)

Pilot Project Liščina: Self-Help Program

Pilot Project Liščina: Tenant-Funded Repair Program May 2010 August 2010

Pilot Project Liščina: Building Community Working togetherPlaying together Celebrating together

Pilot Project Liščina April 2009 August 2010

Revitalization of 8 socially excluded localities Orlová – Poruba Slezská Ostrava – Liščina Slezská Ostrava – Kunčičky Horní Suchá Ostrava – Radvanice Karviná 6 – Nové Město Havířov – Šumbark Prostřední Suchá Total investments: CZK Activization of Community CleaningDemolitions Self-Help Program Investments

Slezská Ostrava – Kunčičky Number of flats: 493 Investments: CZK 76 mil.

Havířov – Šumbark Number of flats: 520 Investments: CZK 64 mil. Foto opravené

Karviná 6 - Nové Město Number of flats: Investments: CZK 176 mil. Foto opravené

Eliminate antisocial / criminal behaviour Create platforms for integration Build positive ethnic identity Change of neighbourhood reputation SecurityInvestments Key Challenges

Re-applicable Tools Community policing & Security Agency Door-keepers Control and eviction of illegal tenants (Zero tolerance) Fixation and repairs/self-help repairs of free flats (and common spaces) – new tenants Repairs of front doors, functional lighting Security Strong NGO partners with good knowledge of the locality & residents Fieldworkers & police assistants Leisure clubs for children and youth Public service for unemployed people Social Services & Community Active engagement of the tenants Investments into revitalization of houses Self-help cleaning of public spaces Self-help repairs of houses Self-help repairs of flats Housing

Sustainability? Identified Threats Crime and fear as a consequence of the drug business Passivity of police partially due to restricted budget – no or low police presence in the localities; excuses like we are monitoring situation, we are waiting for a big fish No newcomers due to negative reputation of the excluded areas Property devastation – no further investments = no future Budget cuts in state social support – increasing debts leading to evictions

Ongoing Partnership – Condition of Success GovernmentRegionMunicipalities SchoolsRESIDENTS RPG Real Estate NGOsPolice OKD Foundation

RPG Real Estate Stanislav Svoboda Government Affairs Director