Lack of financial sustainability
Created on 19-10-2023
A particular challenge for housing affordability in post-socialist countries, in circumstances of housing financialisation, is to secure funding for supply-side and demand-side subsidies that could impact on housing affordability and sustainability. It is important to focus on the impact of such investments and to ensure the financial sustainability of these programmes, not only to strengthen public confidence and increase economic competitiveness, but also to reduce poverty, improve health and well-being and strengthen community resilience. In other words, there is a growing need for a “business model” that simultaneously allows for lower rents for tenants and for a payment system that allows for the payback of the investment through rents, even if the payback period is much longer than in the private sector. One example would be to set up a national revolving housing fund to implement such investment activities. The actors that should lead this action are public institutions, trade unions, expert groups and policy makers that could facilitate a transdisciplinary approach, bringing together knowledge from the industry and practice in financing housing projects and in promoting social entrepreneurship.
System knowledge
Actors
Public banks
Financial institutions that extend loans and credit to various entities such as social housing providers and governments to support their initiatives, projects, or operations in the public interest.
Experts
By experts, I mean individuals with specialized knowledge and experience in areas such as housing policy, urban planning, and affordable housing management. For example, housing policy researchers at a think tank, or city planners with expertise in sustainable housing development can be considered experts in this field.
Public institutions
Public institutions working on housing are government entities, agencies, or departments responsible for formulating, implementing, and regulating policies, programs, and initiatives related to housing within a specific region or jurisdiction. These institutions aim to ensure access to safe, affordable, and quality housing for their constituents, often through mechanisms like housing subsidies, zoning regulations, and public housing projects.
Method
Financial sustainability
Financial sustainability of social or public rental housing projects refers to the capacity of these initiatives to maintain their operational and maintenance costs without over-reliance on external subsidies or resources, ensuring their long-term viability and ability to provide affordable housing.
Tools
Social enterpreneurship
Social entrepreneurship in affordable housing involves innovative, mission-driven initiatives and businesses that aim to address housing challenges by creating sustainable, socially beneficial models that provide affordable and inclusive housing solutions to underserved communities. These endeavors often prioritize social impact alongside financial sustainability, using innovative approaches to bridge the gap between market-driven real estate and the need for accessible, quality housing.
Target knowledge
Topic
Housing policy
Housing policy refers to a set of rules, regulations, and government initiatives designed to address various aspects of housing, including affordability, accessibility, quality, and housing market stability. These policies are developed to guide and influence the housing sector to meet the housing needs of a specific population or region, and they can encompass a wide range of measures, from subsidies and zoning regulations to support for affordable housing and addressing homelessness.
Housing finance
This means inancial mechanisms and strategies employed to support the development, acquisition, or renovation of housing units that are priced within the means of lower- and moderate-income individuals or families. This typically involves a combination of public and private funding sources, subsidies, tax incentives, and innovative financing models aimed at making affordable housing projects economically viable while maintaining affordability for those in need.
Dimension
Institutional
The structure of government institutions that have the responsibility and power to create building regulation and monitor compliance with them
Governance
This involves networks, systems and processes that steer decision-making, service delivery and policy implementation.
Economic
Level
Municipal
This level refers to the local administrative or governmental unit, typically a city or town, responsible for local governance, services, and decision-making within a defined geographic area.
Transformational knowledge
No references