Shomina Russia

Housing policy and housing reforms in Russia: 

Housing policy and housing reforms in Russia Prof.Yelena Shomina, State University-Higher School of Economics

Russian Federation main reforms : 

Russian Federation main reforms Administrative Reform – strengthening of STATE power (vertical) Municipal Reform – strengthening of Local Self Government at the municipal level Housing Reform – shift from paternalistic to market housing policy

Two main housing questions: 

Two main housing questions Housing construction and housing supply Maintenance and management of existing housing stock

Block 1. Housing supply: 

Block 1. Housing supply Total volume of the housing stock in the R F - 2.85 billion m2   About 73 % is in urban areas About 27 % is in rural areas Average dwelling space per inhabitant (m²) about 20

Key figures -2: 

Key figures -2 The waiting list for improving living conditions comprises 4427.7 households or 8.7% of the total number . Over the last year 230 th. or 5.2% of the waitlisted households improved their living conditions. Evident, that if the current tendency is maintained to satisfy the waiting list families will require about 20 years.

Block 2. Quality of the existing housing stock: 

Block 2. Quality of the existing housing stock About 60 % of all housing stock was constructed before 1960 About 20% of housing stock in the cities lacks running water, sewage, etr. 27% of the population - lives in flats without any modern equipment

Quality of the existing housing stock: 

Quality of the existing housing stock Approx. 150,000 flats become uninhabitable every year due to lack of repairs. 87.8 million m2  (3.2% of the total volume) are in dilapidated and damaged housing stock in 2005 (to compare with 37,7 –1,4 % in 1995)

Block 3. Soviet housing policy : 

Block 3. Soviet housing policy State was responsible for for improvement of personal housing conditions of all citizens housing construction for all citizens “free” flats for all waiting list applicants management and maintenance of state (municipal) housing stock

What it was for residents ?: 

What it was for residents ? Rent control Very low running costs, consisting of utility and maintenance charges Rather low quality of maintenance Lack of any respect to residents Lack of residents’ voice in decision-making Very long waiting list for new state flat (about 10-20 years) No housing market – impossible to buy flat, even if you have money

Block 4. Housing Reforms - Shift from paternalistic to market housing policy: 

Block 4. Housing Reforms - Shift from paternalistic to market housing policy Transfer of responsibilities for personal housing conditions from the state to citizens Support only “vulnerable” groups of population Privatization of the housing stock and creation of housing market  

The main strategic goal of the state housing policy: 

The main strategic goal of the state housing policy reforming the housing and municipal services sector boosting the housing market reforms in the social allowance system.

Housing Laws and Programmers: 

Housing Laws and Programmers Law on the Fundamentals of Federal Housing Policy in December 1992 The federal targeted programmer “Dwelling for 2002-2010” and its two subprograms - on reforming and upgrading housing and utilities - on relocating residents from slums and derelict dwellings New Housing Code (2005) + 27 new Federal laws National Housing Project “Affordable and Comfortable Housing for Russian Citizens”.

Block 5. National Housing Project “Affordable and Comfortable Housing for Russian Citizens”.: 

Block 5. National Housing Project “Affordable and Comfortable Housing for Russian Citizens”. is intended for six years Two major highlights of this program Double the housing market Develop the mortgage market by government-financed programs and mortgage insurance

Under the “ Affordable Housing ” project: 

Under the “ Affordable Housing ” project housing construction is projected to double from 40 million square meters in 2004 to 80 million square meters /year by 2010. Mortgages are expected to increase 20-fold from 46,000 mortgages in 2004 to 1 million in 2010. Loans will be more accessible to citizens (in 2010, the interest rate on mortgage loans is to be lowered from the current 15% to 8%.) The waiting list for state housing will drop from twenty to seven years.

Dmitry Medvedev- Russia’s First Deputy Prime Minister : 

Dmitry Medvedev- Russia’s First Deputy Prime Minister “Affordable Housing” - the most difficult national project

  Block 6.  Reform of the maintenance of the housing stock: 

  Block 6.  Reform of the maintenance of the housing stock introduction of private maintenance companies growth of utility and maintenance expenses introduction of the social allowance system

Modern problems: 

Modern problems Deterioration of housing stock as a result of lack of adequate finance for its maintenance and management Low quality of maintenance and management Growth of all housing payments Lack of serious repairing works

Slide18: 

Very tense relationships between residents and “housing maintenance workers” Vandalism of the residents Apathy of the residents  No knowledge of the housing rights  No knowledge how to protect the housing rights

Residents’ voice:: 

Residents’ voice: “Housing reforms” = “greatly increased rents with no tangible benefits, the housing problems of shortage, overcrowding, poor facilities and disrepair”.  

Block 7. Privatisation of flats in municipal buildings and its consequences: 

Block 7. Privatisation of flats in municipal buildings and its consequences Cost-free privatization since 1990 - the most significant development which led to a change in ownership structure by allowing individual tenants to claim ownership over their housing units Russian privatization was in practice the process of transformation of rental dwellings into owner occupied ones

Slide21: 

Private housing stock 1990 - about 33% of the total volume 2003 68% 2006 75% In one building everywhere were neighboring housing owners and tenants. Serious changes in tenure structure, particularly in the cities

Slide22: 

Mixed-tenure public housing exists as a fact. The end of privatization – in 2010

Flat-owners: 

Flat-owners New owners of flats had no experience of being owners, does not know their rights or duties. Creation of home-owners association (HOA) is very slow and difficult process Only 5-10% of all multy-flats buildings were converted into HOA since mid 90-s

New words: 

New words homeowners’ associations (TSG-in Russian) mortgage lending, housing allowances condominium joint property

Housing payments: 

Housing payments Owners pay property taxes –very modest Tenants pay rent (Nayem) – very modest Owners and tenants pay the similar running costs, consisting of utility and maintenance charges Now – property tax is about 1-3 USD/3 rooms Soon – it will be 1-2 thousands USD/ 3 rooms

Housing subsidies: 

Housing subsidies Housing expenditures should not be more then 22% of total family income (federal standard) 10 % - Moscow Standard 15-20 % in many Russian regions Social norm of housing (33 m2 +18 m2 + 18 m2

Block 8. New Russian housing Code: 

Block 8. New Russian housing Code Owner of the flat – the key figure Introduction of social housing and social tenant Restriction of the municipal tenants’ rights by permitting eviction from municipal flats for the non-payment of rent and utilities. Stops free privatisation of flats in 2010 Stops deprivatisation of flats

Social housing: 

Social housing Flats only for ‘low-income families’ Rental agreement for 5 years (and revision) Without right of privatizing the flat Though now the notion of ‘low-income families’ is in use, the income benchmarks have not been specified in many Russian regions

Housing code said:: 

Housing code said: The residents-owners of the flats MUST make their own decision about pattern of management of their building (3 models) before 01/01/2007 Model 1: create Home-Owners’ Association as management company Model 2. Invite management company(municipal or private) Model 3. Each resident will have personal contracts with all maintenance and utilities companies

Slide30: 

Russian residents are not ready for this choice it is much better and easier, if they create housing committee (with representatives of all staircase-associations) – NGO at the building level.

Block 9.Housing reform – my vision: 

Block 9.Housing reform – my vision Housing reform – is not only increase of housing payments.   It is change of residents’ role!

Slide32: 

  The share of residents in the building running costs changed – from 5-10% to 100 %

residents now: 

residents now Real partners They pay almost all housing expenditures NOW – their voice in decision-making should be stronger Home-owners and management companies must take it into account

They have the right : 

They have the right To create different NGOs To defend their housing rights To participate in decision-making process in housing and community field

Housing protests before 2005 г: 

Housing protests before 2005 г Almost no large protests Very seldom, no street protests Organizers: “Apple” (“Protect your housing rights!”) (Youth “Apple”) Communist party Mainly PR- character

Housing NGOs in Moscow : 

Housing NGOs in Moscow   ·       Moscow Union of Housing coops (1990) ·       Moscow Union of Flat-owners (1994) ·       Trade Union Muscovites (1991) –waiting list applicants ·       Moscow Housing Association (1994) ·       The Public Council on Housing Policy 1994 ·       Moscow Housing Chamber –2000 ·       Moscow Hostels Association -2005

New!: 

New! Real homelessness and public discussion about it Problems of institutional (private companies) hostels and mass protests in different cities Consumer societies in the housing field Housing education – as main task for housing NGOs – Housing Lessons

Housing protests: Izevsk Hostels: 

Housing protests: Izevsk Hostels

Useful sites: 

Useful sites http://www.unece.org/hlm/prgm/cph/countries/russia/welcome.htm

Thank you. : 

Thank you. Yelena Shomina – yeshm@online.ru