(THIS ARTICLE IS MACHINE TRANSLATED by Google from Norwegian)
The UN's Sustainable Development Goal 11, "Make cities and human settlements inclusive, safe, resilient and sustainable", stipulates the following in its first sub-goal: "By 2030, everyone must be ensured access to adequate, safe and affordable housing as well as basic services and upgraded slum areas". UN's The urban agenda (2016) predicted that the world's urban population would double by 2050, with huge sustainability challenges in terms of housing as a result. On this basis, UN member states committed themselves to "not leaving anyone out" by "providing equal access for all to physical and social infrastructure and basic services, as well as adequate and affordable housing".
McKinsey Global Institute published in 2014 A blueprint for addressing the global affordable housing challenge. The report identified four main instruments that can meet the challenge with affordable residentialare: land, plot development, operation and maintenance as well as financing. By analyzing URBED Trusts International examples of Affordable Housing, I will hereby explore how successful housing development relates to these four measures to produce affordable housing and reduce stigma as well as identify key actors for housing supply.
Access to land
Land is usually the most expensive component of a construction project. Access to land has become scarcer in urban areas due to the cities' growth, land speculation and underutilisation. Instead of taking advantage of vacant land or increasing density, many cities are choosing to look outside their borders to find affordable land. This often results in extensive commuting and environmental damage.
In Vienna, local and central authorities are working to set aside urban land for municipal housing. It effectively reduces costs. The approach prevents land speculation and significantly reduces housing costs. Today, a large amount of housing is publicly owned and subject to regulated rental prices. This forces private investors to keep rental and selling prices down and thus expands the supply of affordable housing.
Private land can be made available for development through incentives such as density bonuses. These increase the permitted building mass on a plot of land and thus the value. As compensation, the developer must set aside land for affordable housing units. Punitive measures can be used against speculation and force property owners to develop their plots or give them to local authorities. IN København, taxation helps mobilize underutilized land, and public asset management companies are successfully used to aggregate publicly owned but privately managed land. It is cost-effective and time-saving. Moreover, the increased value of land resulting from such development can be used to finance infrastructure. This concept is also promoted by the UN's settlement program through measures for land readjustment.
When access to land in cities is scarce and housing must be built on the outskirts, the focus should be on adequate transport. IN Freiburg in Germany, adaptation of transport infrastructure to the growth of society is prioritized at an early stage. High-quality transport systems ensure communication and make new development areas viable from day one. At the same time, the environment is protected against pollution from commuting with fossil-fueled cars.
In many places, homes are still being built as they were 50 years ago.
Reduction of construction costs
While the industry has steadily increased productivity in recent decades, construction industryn's productivity remained unchanged or decreased in many countries. In many places, homes are still being built as they were 50 years ago. Project costs can be reduced by approximately 30 percent, and the completion time shortened by approximately 40 percent if the developers use methods for cost-conscious value creation and interaction. For example, standardization of design and industrial approaches such as assembling buildings from pre-fabricated components off-site. Effective procurement methods and other process improvements will also help (McKinsey).
Reduction of construction costs for housing should not go beyond resident standards. They should be set at a high level to ensure that there is no stigma attached to living in social housing or public housing – and so as not to drive down operating and maintenance costs.
In Freiburg, it is important for the quality of life to offer child-friendly surroundings with family homes, play areas and schools within walking or cycling distance. Cost reduction can also promote diversity and resilience, and can be achieved by offering adapted plots to small entrepreneurs and cooperative groups. Climate change makes it crucial to take the environment into account and allow it to be effectively included in all urban development. Keeping the spotlight on environmental measures throughout the development process to ensure innovative design has been successfully demonstrated in Freiburg.
Improved operation and maintenance
20–30 per cent of housing costs are operating and maintenance costs. Energy-
effective modernization, such as insulation and new windows, can reduce such costs. Maintenance costs can be reduced by owners receiving assistance in finding qualified suppliers (through registration and certification) and by coordinated bulk purchases. For example, purchasing consortia in the UK have saved 15-30 per cent on some maintenance elements of social housing.
I Vienna public housing is built according to the highest quality standards without skimping on materials. It ensures high performance and minimal need for maintenance and replacement of materials as the units age. The burden on the tenant is also reduced. Prohibitive operating costs for heating are avoided, for example.
Cheaper financing
improved creditassessment will help banks safely offer more mortgages to low-income borrowers. Governments can help reduce financing costs for developers by making affordable housing projects less risky. For example, by giving buyers or tenants guarantees on completion.
Subsidization of demand only occurs in the case of the lowest income families.
I Montpellier in France, public-private special purpose vehicles (Special Purpose Vehicles) are used to maximize values and returns with regard to economic and social benefits. IN Amersfoort (NL) in the Netherlands, the risk is spread through public-private joint investment projects. It enables cost-effective delivery and safe innovation. A Housing Corporation Revolving Fund uses rental income and proceeds from sales to develop new affordable housing, carry out refurbishments and enhance community investment. They do not receive direct grants, but benefit from the social guarantee fund housing construction which provide state-supported loans with interest rates well below the market rate. It ensures viability.
In Denmark, for example, the national building fund offers a long-term loan that is repaid over 30–40 years. The interest rate is set at 3 percent.
I Østerrike has focused on subsidizing the supply side, kept the costs of social housing low. Subsidization of demand only occurs in the case of low-income families. Zurichs city policy requires that a third of the housing must be affordable or at 'cost price'. Funded by the federal Department of Urban Development, America's Housing Choice Voucher Program is a demand-side subsidy that helps low-income families and people with disabilities find safe and affordable housing in the private market. Local public housing offices issue vouchers to eligible families.
The needs of different income groups are taken care of so that stigmatization or ghettoization is avoided.
I Vancouver in Canada, an additional property tax of 20 per cent has been imposed on foreign home buyers to protect against rising house prices. In this way, inflation in housing prices can be handled by reinvesting as a housing subsidy.
I Singapore the government introduced 'measures to cool the property market' in response to the global financial crisis in 2008. These measures successfully moderated demand for housing while increasing supply by limiting speculative purchases, preventing over-lending and freeing up land for development.
In Vienna, public housing is available to 80–90 percent of the population. The needs of different income groups are taken care of so that stigmatization or ghettoization is avoided. In Singapore, there is little stigma associated with living in high-rise, public apartment blocks. This may partly be due to the focus on encouraging a land use that ensures socially composed neighbourhoods, varied local service offerings and good public transport links. Each block is immaculately maintained, and the residential areas benefit from landscape upgrades for the benefit of everyone, regardless of age.
Actors for housing development
Specialized housing actors are effective when it comes to working with social challenges. For example, the city-owned development company Wohnsfond Wien offers strategic land pooling and quality control of development projects. That housing policyone is decentralized to the municipalities, provides flexibility and control over the market and helps to maintain reasonable prices.
In Austria, a separate piece of legislation ensures tenants' participation and consequently a sense of ownership of their own local areas, unique local environments and more cost-effective maintenance. In Copenhagen, benefits for the public space are achieved when tenants are involved in housing management, for example through cooperatives. In Freiburg, public involvement is used in all phases of development to create diverse and successful neighbourhoods. Switzerland has a historical culture of cooperation, and housing cooperatives promote the benefits of a wider social composition of residents chosen by the community.
The examples in this article have tried to show various factors that can be considered when policy and practice are to be developed – so that affordable housing can be offered to everyone.
