EUROPEAN INVESTMENT BANK RISC Consortium and the UNU-CRIS Summer - - PowerPoint PPT Presentation

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European Investment Bank

EUROPEAN INVESTMENT BANK

RISC Consortium and the UNU-CRIS Summer School/ Students Research Symposium, 3rd July 2012, Luxembourg

Promoting social housing policies in the EU –the experience of the EIB

Mariana Ruiz Alvarado Urban Economist

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European Investment Bank

Contributing to EU Policy – EIB on social housing

• Art. 31 of the Revised European Social Charter: the right to
• housing. All signatory governments are required to take measures

designed to:

promote access to housing of an adequate standard; prevent and reduce homelessness; and make the price of housing accessible

The principles of the “Leipzig Charter on Sustainable European Cities” (as agreed by the EU Member States Ministers in charge of urban development in 2007); Goals of the Europe 2020 and the Territorial Agenda:

SMART: employment (labour intensive activities, SMEs), SUSTAINABLE: EE and CC target (both adaptation & mitigation), INCLUSIVE: employment + targeting social and/or economically disadvantaged households;

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Contributing to EU Policy – EIB on social housing In the Final Communiqué of the 18th Informal Meeting of Housing Ministers of the European Union (Toledo, 21st June 2010), the Ministers have asked and encouraged the European Investment Bank (EIB) to:

“Promote the (EIB) renovation,reconstruction/upgrading and energy efficiency of the housing stock in Member States of the EU, and to inculcate more considered maintenance strategies (EIB), by suggesting new formulas and financial instruments, including financial engineering (EIB), to improve the opportunities to channel funding to the main agents in the field”.

Other EU social and regional policies

Inclusion of Roma population, Reconstruction following extreme natural phenomena and disaster risk reduction, development cooperation programmes.

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Contributing to European Regional Cooperation

Following the Technical Regional Operational Guidelines, cooperation outside the EU aims to:

Promote sustainable economic and social development Fight against CC Foster the private sector, especially SMEs

MDG no. 7, target 11: by 2020, to have achieved a significant improvement in the lives of at least 100 million slum dwellers; ACP countries under Art. 25.f of the Cotonou Agreement: improving the availability of affordable and adequate shelter […] supporting low cost and low income housing programs; In RSA, focus on private sector support and expansion of infrastructure and social services, including housing.

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EIB projects

Privately owned dwellings only to increase energy efficiency and use of renewable energy; Social/affordable housing for rent and residential units for vulnerable groups, fulfilling the following criteria:

Considered urban renewal strategy for the area in question and/or a housing plan; A well-defined regulatory framework/legislation (defining beneficiaries, monthly rents and prices, etc…); Long-term tenure; Long term operation & maintenance contracts; Regular comprehensive and effective inspection and control mechanisms in place.

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Value Added

EIB ensures that: Selection criteria and process are:

Transparent & understandable Non discriminatory Reflecting clear needs

Dwellings compliance with the principles of adequacy of Human Rights (Special Rapporteur on Right to Adequate Housing) mainly:

Legal security of tenure, Availability of services, materials, facilities and infrastructure, Affordability, Habitability, Accessibility, Location, Cultural adequacy;

A considered financial analysis for the whole life cycle has been done

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Housing and the role of the EIB: the activity 2007-2011

The EIB has signed loans for social housing projects for a total value of EUR 2850 m, of which 95% refer to EU-27 and 5% in South Africa.

250 152 391 196 200 105 246 610 305 245 150 100 200 300 400 500 600 700 2007 2008 2009 2010 2011 Amount Signed EUR m Framewk loan

• Investm. Loan

Multi BI Loan

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Case: Vivienda Catalunya II (EUR 125 m) SPAIN

Intermediated loan to social housing developers for the construction of some 3 250 social housing units for rent throughout Catalonia Limited to municipalities with a local housing plan For each housing development, a positive report from the Regional Government on the adequacy to demand has been granted Beneficiary households are selected from social housing waiting lists in line with social and financial requirements set by the former Spanish Ministry of Housing Housing developers are:

“social developers” as defined by regional housing law experienced or accompanied by an experience operator

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THANK YOU

Mariana Ruiz Alvarado Urban Economist Projects Directorate Environment and Regional Development Department Regional and Urban Development Division m.ruizalvarado@eib.org