Transcript Title

Cooperative housing in Europe: current
situation and future perspectives
Luciano Caffini
President Legacoop Abitanti and CECODHAS Cooperative Section
Valencia, 5 March 2012
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What is CECODHAS Housing Europe?
CECODHAS Housing Europe is the
European federation of public,
cooperative & social housing, a network
of national and regional federations
gathering 44 members in 19 EU
members States + Norway and
Switzerland.
Altogether they manage over 27
millions dwellings, about 12% of
existing dwellings in the EU.
In 2009, our members have built about
332 000 new dwellings and renovated
about 234 000.
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Who do we represent?
 In absolute terms housing cooperatives (34867) are the most
numerous local housing providers within our membership, followed by
housing associations (3929), publicly owned housing companies (1657)
and privately owned (not-for profit or limited-profit) housing companies
(632).
 almost 35 thousand housing cooperatives which vary significantly in
size
1657
632
269
3929
Housing cooperatives
Housing associations
Publicly owned companies
Privately owned companies
Other
34867
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Housing Cooperatives within CECODHAS
Through the national federations, CECODHAS Housing Europe represents
about 35 000 housing coops, providing over 10 million dwellings,
and accounting for over 11 million members co-operators.
Direct members: Cooperatives in 15 EU member states
+
Associate members: Cooperatives in Norway and Switzerland
CECODHAS Cooperative Section:
= Housing sector of Cooperatives Europe
= ‘European region’ of ICA Housing
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Size of cooperative housing sector in Europe
Size of housing cooperative sector (number of dwellings, 2009)
4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000
Note: figures only refer to CECODHAS members
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Po
la
nd
an
y
er
m
G
Sp
ai
n
ep
R
ze
ch
ed
en
Ita
ly
C
Source: CECODHAS Survey 2011.
Sw
Au
st
ria
Es
to
ni
a
D
en
m
ar
k
H
un
ga
ry
Fr
an
ce
Be
lg
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0
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Cooperative housing sector share of the housing market
Share of dwellings in housing cooperatives out of total national
housing stock
Poland
Czech Republic
Sw eden
Norw ay
Austria
Denmark
Estonia
Hungary
Germany
Spain
Italy
Belgium
France
0%
5%
10%
Note: figures only refer to CECODHAS members
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15%
20%
25%
30%
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Cooperative housing in a nutshell
 A housing cooperative is a housing business in the form of a
consumer cooperative mutually owned by its members, which
operates in accordance with the Cooperative Principles and
Values.
 The cooperative housing movement has a long history. The first
housing cooperatives were formed in the mid-19th century, when Viktor
Aimé Huber initiated the construction of several dwellings in Berlin.
Today, housing cooperatives are increasingly widespread in Europe and
beyond.
 There are different cooperative housing models in the different
countries, but what characterises housing cooperatives compared to
other housing providers is that they are jointly owned and
democratically controlled by their members, according to the
principle of “one person, one vote”. This has clear implications for
the way they operate compared to other actors on the housing market
and benefits not only their members but also the public interest.
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Different models of cooperative housing
Two main ownership models:
 Most common is the equity model (or coop home ownership): the
member has some kind of ownership stake in his or her unit, or holds
shares in the cooperative as a whole. Typical of Scandinavian countries
(Sweden, Norway) but also Spain, Portugal, Ireland. It can be: Individual
ownership = the resident member holding full (most common in Eastern
Europe), or partial title to the housing unit.
Or collective ownership= the cooperative owns units and common parts
and members receive a contract, right to occupy the individual housing
unit on a permanent basis.
 Non-equity model (or rental coop): the member has no ownership
stake, he pays a rent and has to surrender the housing unit back to the
cooperative if he leaves. Non-equity cooperatives are usually non-profit.
In many parts of Canada and the United States, Germany, also Austria,
Danmark, Belgium, Switzerland
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Current issues specific for housing cooperatives
 In Sweden, Norway and Germany, co-operative housing development
was enhanced by the establishment of savings and loan schemes
for members wishing to save a deposit towards their co-op
membership shares.
 Still changes in the legal framework for coops in Eastern European
countries, which may change the statutes of cooperatives (Estonia for
example concerted into association of homeowners, Poland...)
 ‘Dilemma’ of scale: small scale better link with neighbourhoods and
democratic governance, but need to increase efficiency by merging into
bigger organisations
 In many countries housing cooperatives participate in the provision of
social housing as they are entitled to access dedicated public funding
schemes (Austria, Italy, Spain…), but this type of financing is
decreasing
 In general as a consequence of the crisis more difficult to access
credit from banks and at same time less demand for housing for
sale: cooperatives are adapting to these trends by reducing production
(Italy, Spain..)
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Trend in housing production in Europe
House building
Construction production index (quarterly, 2007-2009)
2.00
1.00
0.00
2009Q4
2009Q3
2009Q2
2009Q1
2008Q4
2008Q3
2008Q2
2008Q1
2007Q4
2007Q3
2007Q2
-1.00
-2.00
-3.00
-4.00
-5.00
European Union (27 countries)
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European Union (15 countries)
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Challenges: construction costs
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Challenges: decrease of public funding
Average governemnt expenditure on public services in Europe
7.4
European Union (27
countries)
7.2
7.0
European Union (15
countries)
6.8
Euro area
6.6
6.4
6.2
6.0
5.8
5.6
5.4
2002
2003
2004
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2005
2006
2007
2008
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Lack of affordable housing, new forms of vulnerability
 The deep economic downturn and austerity measures have led to the
increase of the levels of poverty and housing exclusion
 Especially hard hit are the young adults, the low-skilled and
migrants, and single parents
 Lack of affordable
housing: people spend
on average 22% of their
income on housing,
41% in case of the poor
 Emerging demand for
affordable,
intermediate housing
solutions even from
middle class
households who don’t
qualify for social
housing: potential for
cooperatives?
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Average housing costs as % of disposable income by household type for total population and those
at risk of poverty in EU, 2009
Below at risk of poverty threshold
Total
60.0
49.8
50.0
47.4
42.9
41.0
40.4
39.7
39.1
40.0
33.8
33.5
31.2
30.0
22.9
21.8
22.7
22.6
22.1
23.2
20.0
10.0
0.0
Total
Source: Eurostat
Single person
One adult older
than 65 years
Two adults
Two adults
Two adults with
younger than 65 one dependent
years
child
Two adults with
two dependent
children
Two adults with
three or more
dependent
children
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Challenges: socio-demographic change
 Ageing: EU population oldest in the world. 17% of the population
is over 65 (Germany, Italy, Greece). Number of >65 set to
increase by 44% by 2050, and number of those >80 by 180%
 Migration: in most EU MS international migration plays a major
role in population growth. In 2003-2007 net migration between
11.64 and 2.04 million: 84% of total EU population growth.
 Youth: approximately 46% of young adults aged 18-34 in the
European Union still lived with at least one of their parents (44%
cannot afford to move out)
 Households: shrinking households’ size since 1960. Between
2005 and 2009 the average number of people per household in
Europe decreased from 2.5 to 2.4
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Challenges: environmental sustainability
 Fuel poverty: Europeans dissatisfied with the affordability of
energy (-2.2). 9% of respondent to the EQLS 2007 declared they
cannot afford to properly heat their home, 17% in New MS.
 Climate change: In 2006 residential sector account for 10,38 %
of the emissions of greenhouse gasses (EEA), while the whole
construction industry is responsible for 40%. Potential CO2
reduction in the sector trough renovation existing dwellings is
about 75% (ILO)
 Quality of the environment: 59% respondents to EQLS report
two or more environmental problems in their neighbourhood (air
pollution, lack of green areas…)
 Regulation: efficiency standards, all new buildings to be ‘nearly
zero energy’ by 2020
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…Cooperative solutions?
 Affordability & stability: in many cases housing cooperatives manage
to offer housing at price/rent below market levels. More cost-stability
(since not subject to shareholder interests) and security of tenure. Many
examples of long term sustainability of co-operatives: for instance Co-op
L’Aurora in Italy recently celebrated its centenary.
 Response to changes in housing demand (increase in provision of
rental housing/intermediate tenures, housing for elderly people, for
students, young couples…)
 Response to residents’ needs in terms of services (from care
services to cultural and sports clubs…)
 Solidarity & cooperation with other social economy actors (from
services providers to cooperative banks)
 Flexibility in structure (mergers, creation of ‘satellite’ enterprises such
as insurance, saving institutions..)
 Attention for sustainability and innovation in the energy field
(renovation of housing stock, SHE, Power House Europe..)
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3 MAIN EUROPEAN UNION POLICIES
SOCIAL
ECONOMIC
ENVIRONMENTAL
• COHESION
• ANTI-POVERTY
• SOCIAL PROTECTION
• SSGIs
• LEGISLATION
• EU FUNDS
• OPEN METHOD OF COORDINATION (OMC)
• BEST PRACTICES
HOUSING POLICY
« FRIENDLY »
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• ENERGY
• ENVIRONMENT
• WATER
• LAND protection…
• EU STANDARTS
• EU LEGISLATION
• RESEARCH
• EU FUNDS ?
• GREEN VAT ?
HOUSING POLICY
« COSTLY »
• INTERNAL MARKET
• COMPETITION
• STATE AIDS
• VAT RULES
• LEGISLATION
• CONTROL
• NOTIFICATION
• DISPUTE – ECJ RULING
HOUSING POLICY
« FRAMELY »
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Opportunities and recent success
 Cohesion policy: 8 billion Euros available to finance energy
refurbishment in buildings (up to 4% of ERDF) + more money for
housing renovation/construction for marginalized communities (up to 2%
of ERDF): not all cooperatives are eligible. Currently enlarged scope in
the proposal for next period (2014-2020): including coops
 New opportunities for projects on energy efficiency in buildings: IEE
2012 call, ICT call for energy efficiency in social housing
 New energy production cooperatives: tenants as co-operators
 New energy efficiency services companies: also developed by housing
cooperatives
 New partnership with cooperatives banks: access to finance at better
condition to deliver affordable homes and special services to cooperators
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… Thank you for you attention!
Contacts:
[email protected]
[email protected]
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