Zsuzsanna Pósfai, Csaba Jelinek, Mara Ferreri & others
Radical Housing Journal
2024
The document titled "Rethinking needs and financing for affordable rental and cooperative housing in Central and South-Eastern Europe" features a conversation among Zsuzsanna Pósfai, Csaba Jelinek, and Mara Ferreri, published in the Radical Housing Journal in January 2024. This discussion arises from a 2022 research project examining the role of catalytic capital investment in facilitating affordable housing solutions across eight countries in Central and South-Eastern Europe (CSEE). 🏠 Contextual Challenges The housing landscape in CSEE is dominated by a 'super' homeownership model, with over 90% of the housing stock being owner-occupied. This predominance restricts flexibility and fails to cater to the housing needs of many households, particularly those who cannot afford to buy homes. Surveys from four capital cities—Budapest, Belgrade, Ljubljana, and Zagreb—indicate that more than half of the population is seeking changes in their housing situations, with 13% to 26% expressing interest in affordable rental and cooperative housing options. 💰 Financial Barriers The research highlights significant financial barriers that hinder access to alternative housing solutions. Existing housing finance products mainly focus on individual mortgages, which are often inaccessible to various social groups. The need for new financial instruments tailored for nonprofit affordable housing providers is emphasized as critical for supporting alternative housing models. 🌍 MOBA's Innovative Approach MOBA Housing SCE proposes a bottom-up quasi-revolving fund intended to support local projects during their initial phases. This fund aims to provide catalytic capital, bridging financial gaps until traditional lenders can offer appropriate financial products. MOBA advocates for international collaboration, drawing inspiration from state socialist traditions of cooperativism and promoting collective ownership models that prioritize affordability and are anti-speculative. 🔍 Challenges and Opportunities The main challenges identified include inadequate access to financing, insufficient regulatory frameworks, and limited organizational capacities. MOBA is pushing for the legal recognition of nonprofit affordable housing providers to facilitate public support. Future initiatives include the "MOBA Accelerator," a transnational revolving fund designed to offer bridge loans for project development while seeking solidarity and resources from larger cooperative networks. 📈 Conclusion Conducted amidst increasing housing inequalities and crises, exacerbated by energy shortages and high inflation in 2022, the study underscores the necessity for diverse housing tenure forms beyond individual homeownership. It advocates for the inclusion of rental and cooperative models to address systemic challenges in the region's housing markets.
The document titled "Rethinking needs and financing for affordable rental and cooperative housing in Central and South-Eastern Europe" is a conversation between Zsuzsanna Pósfai and Csaba Jelinek from the Periféria Policy and Research Center, MOBA Housing SCE, and Mara Ferreri from the Polytechnic University of Turin, published in the Radical Housing Journal in January 2024. The discussion centers around a research project conducted in 2022 across eight Central and South-Eastern European (CSEE) countries, focusing on how catalytic capital investment can facilitate affordable rental and cooperative housing in the region.
Key Findings
- Housing Market Challenges: The CSEE region is characterized by a 'super' homeownership model, with over 90% of housing stock being owner-occupied. This model limits flexibility and fails to meet the needs of many households, particularly those unable to afford homeownership.
- Demand for Alternative Housing: Surveys conducted in four capital cities (Budapest, Belgrade, Ljubljana, Zagreb) revealed that more than half of the population desires changes in their housing situation. Between 13% and 26% expressed openness to affordable rental and cooperative housing models.
- Financial Barriers: Current housing finance products are inadequate for supporting alternative housing models. They predominantly focus on individual mortgages, which are inaccessible to many social groups. There is a need for new financial instruments tailored for nonprofit affordable housing providers.
- MOBA's Approach: MOBA Housing SCE aims to address these issues by creating a bottom-up quasi-revolving fund to support local projects in their early phases. This fund would act as catalytic capital to bridge the gap until traditional lenders can provide more suitable financial products.
- Internationalism and Cooperativism: MOBA emphasizes international collaboration and draws from state socialist traditions of cooperativism while adapting them to contemporary contexts. It promotes collective ownership models that are anti-speculative and prioritize affordability.
- Challenges and Opportunities: The main challenges identified include lack of access to adequate financing, insufficient regulatory frameworks, and limited organizational capacities. MOBA advocates for legal recognition of nonprofit affordable housing providers to facilitate public support.
- Future Directions: MOBA is developing the "MOBA Accelerator," a transnational revolving fund designed to provide bridge loans for project development. This initiative seeks to attract international solidarity and resources from larger cooperative networks.
Context
The research was conducted against the backdrop of increasing housing inequalities and crises in the CSEE region, exacerbated by an energy crisis and high inflation rates in 2022. The study highlights the need for diversification of housing tenure forms beyond individual homeownership to include rental and cooperative models.
Authors
- Zsuzsanna Pósfai: An initiator of Periféria Center and MOBA, with a background in housing activism, urban policy making, and academia.
- Csaba Jelinek: An urban sociologist focused on urban regeneration and housing policy, currently researching the historical sociology of housing cooperatives in Hungary.
- Mara Ferreri: A member of the Radical Housing Journal team from the Polytechnic University of Turin.
Overall, the document presents a comprehensive analysis of the potential for alternative housing models in Central and South-Eastern Europe, emphasizing the need for innovative financial solutions and international cooperation to address systemic challenges in the region's housing markets.