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

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 The impact of the crisis

Financing social housing Social/protection policies counted as social expenditure It depends on history of affordable housing supplier Better conditions if: Public guarantee risk sharing mechanisms Good financial track records …. Public grants generally decreasing tax advantages Land at preferential price (or not) Community land trust,…. Or shared ownership… DEMAND SIDESUPPLY SIDE Total cost Households expenditure Affordable price Market price Rent/share paid by tenants Housing benefits Equity/ own capital Loan/bond Subsidies Land /Share… Rent Public support/expenditures Public support as guarantee, preferential price…

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 Our finance related proposals

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. Some existing practices

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 – 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

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. Looking forward

Our team SORCHA EDWARD Secretary General JULIEN DIJIOL Policy Coordinator ALICE PITTINI Research Coordination ALESSANDRO CESALE Project Officer MICHALIS GOUDIS Communication Officer ALICIA GOMES CAMPOS Membership Outreach and Event Organiser FRANCESCA ZAGANELLI Project Assistant 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