The new housing strategy for Russia

Содержание

Слайд 2

The Key Achievements of the Housing Policy in 1991 – 2014

The Key Achievements of the Housing Policy in 1991 – 2014


Key structural elements of the housing market developed
Housing affordability increased threefold from 2004 - 27% households can afford market purchase of housing in 2014
Mortgage lending development (1 mln mortgages in 2014)
Soviet record of housing construction volume surpassed (84 mln sq. m in 2014)
Слайд 3

Key Challenges and Threats in the Housing Sector Structure of expenditures

Key Challenges and Threats in the Housing Sector
Structure of expenditures for

production of housing goods - growing economic imbalances
Housing provision of households with different incomes and housing needs - restricted opportunities
Evolution of consumer preferences and expectations concerning both housing and urban environment
Housing construction market - insufficient competition
Management of multi-apartment buildings - institutional trap
Слайд 4

Dynamics of Multi-Apartment (White) and Individual (Black) Housing Construction (mln sq.

Dynamics of Multi-Apartment (White) and Individual (Black) Housing Construction (mln sq.

m)

Source: authors’ calculations based on Rosstat data

Слайд 5

Investment in Restorative (Black) and Additional (White) Production of the Housing

Investment in Restorative (Black) and Additional (White) Production of the Housing

Stock (Bln Rub.), Share of Restorative Investment (Blue Line), %

Source: authors’ calculations based on Rosstat data

Слайд 6

The Structure of Expenditures in the Housing Sector Sources of Finance

The Structure of Expenditures in the Housing Sector Sources of Finance

in %

Source: authors’ calculations based on Rosstat data

Слайд 7

The New Housing Strategy: Objective and Priorities Main Objective – improvement

The New Housing Strategy: Objective and Priorities
Main Objective – improvement

of quality of housing provision for citizens with different incomes and housing needs
Strategic Priorities:
Institutional opportunities for improving housing conditions for all groups of citizens, amplification and differentiation of instruments for meeting housing needs
Upgrading the quality of urban environment for better livability environment, meeting housing needs and improving quality of life
Слайд 8

Strategic Priorities Fostering developments of housing rental and cooperative sectors Fostering

Strategic Priorities

Fostering developments of housing rental and cooperative sectors
Fostering competition

in housing construction
Redevelopment and beautification of built-up areas (elimination of not only dilapidated housing, but obsolete housing as well, redevelopment of industrial areas etc.)
Massive capital repairs of housing built in 1960s–1980s
Increasing quality of multi-apartment building management
Regional differentiation and decentralization of the housing policy
Increasing efficiency of both private and public expenditures in housing and utility sectors
Слайд 9

Fostering Developments of Housing Rental and Cooperative sectors, First Home Buyers

Fostering Developments of Housing Rental and Cooperative sectors, First Home Buyers

Support

Enhance legislative regulation with the aim of legalizing the existing residential rental market, protecting the rights of landlords and tenants, developing the legal framework in respect of housing cooperatives and other not-for-profit associations of individuals set up for the purpose of housing construction
Administrative support in establishment and performance of not-for-profit landlords and housing cooperatives on the part of the bodies of state and municipal governments
Preferential access to land plots for housing construction to developers of social rental buildings, coops and other non-profit associations, access to long-term housing construction finance
Up-front subsidies to first home buyers

Слайд 10

Fostering competition in housing construction Liquidating excessive administrative barriers in the

Fostering competition in housing construction

Liquidating excessive administrative barriers in the housing

construction market
Reducing basic developers’ costs, primarily those related to connection of the utilities infrastructure and construction of new social facilities
Introducing various models of implementation of PPP projects in the housing construction market for both greenfield and brownfield development projects
Developing project financing through the issuance of loans against the pledge of land (against a leasehold estate), under-construction property and other assets of project companies
Legislative regulation of the processes relating to organization of construction and management of low-rise housing estates
Слайд 11

Redevelopment and beautification of built-up areas Potential for housing construction under

Redevelopment and beautification of built-up areas


Potential for housing construction

under redevelopment of built-up areas projects – up to 262 million sq. m in 73 cities with population over 250 thousand
Liquidation of both dilapidated and obsolete housing (high-rise and low-rise) under redevelopment projects
Redevelopment of industrial areas and other urban areas with inefficient modes of use
Attraction of private investment in utility infrastructure modernization through PPP mechanisms
Слайд 12

Capital repairs of housing Mass capital repair of multi-apartment buildings built

Capital repairs of housing

Mass capital repair of multi-apartment buildings built in

1960s-1980s (about 50% of urban housing stock), including modernization and energy efficiency increase
Development of bank lending products for capital repair and modernization of multi-apartment buildings, with priority role of banks keeping special savings accounts of regional capital repair funds
Слайд 13

Regional differentiation and decentralization of the housing policy Increase financial resources

Regional differentiation and decentralization of the housing policy

Increase financial resources

and powers of local government:
in pursuing local urban and land development, utility tariff and housing policies
In development of municipal non-commercial housing stock, cooperative housing stock, granting allowances to tenants in private rental housing, implementation of alternative forms housing provision regarding low and moderate income households
Use of urban planning regulation as a real instrument influencing land use and development
Upgrading quality of urban planning and urban zoning
Слайд 14

Financial Support for the New Housing Strategy: Radical Change in the Structure of Financial Sources

Financial Support for the New Housing Strategy: Radical Change in the

Structure of Financial Sources
Слайд 15

Financial Support for the New Housing Strategy: The Need for Radical

Financial Support for the New Housing Strategy: The Need for Radical

Change in the Structure of Expenditures
Слайд 16

Optimization of public expenditures (in 2012 prices)

Optimization of public expenditures (in 2012 prices)