Financing Affordable Social Housing in Europe
RECOMMENDATIONS 1. Define adequate housing standards in the context of the social and economic circumstances of a given country 2. Define the purpose of social housing in the context of a given country. 3. If social housing is intended to help households in poverty, examine (a) the alternatives to social housing and (b) the causes of poverty in the context of the given country before looking at the design of a social housing finance system. 4. Consider reforms to property rights and other institutional changes that will enable the private sector to supply housing to low income households. 5. Consider supplying social housing via contracts with private sector suppliers. 6. Establish institutional structures that either promote private sector provision of social housing or allow social housing suppliers to function as secure and efficient nonprofit organisations.
46
7. Consider promoting institutional reforms that will make social sector suppliers attractive customers for private sector financiers. 8. Evaluate the place of supply side subsidies and housing allowances in the light of housing production and affordability targets. 9. Consider public guarantees or underwriting loans to approved social sector suppliers. 10. Establish a rent setting policy in the social sector that relates rents to the relative popularity of the dwellings. 11. Establish a transparent social housing allocation system that gives priority to those in greatest need whilst allowing a degree of individual choice. 12. Ensure that the relationships, at a household level, between incomes, rents and housing allowances promote access to decent housing with, where appropriate, effective work incentives.