basque, spanish and european housing policies

RESPONDER. LINKING SCP AND GROWTH DEBATES

MULTINATIONAL KNOWLEDGE BROKERAGE EVENT IN THE AREA OF SUSTAINABLE

HOUSING. 28-30 MARCH 2012, BARCELONA (ES)

“BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN,

STILL FAR AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”

Javier Burón Cuadrado

Cuatrecasas Gonçalves Pereira Public Law Department

Ex-Vice Counselor for Housing of the Basque Government

Researcher at Ekiten Thinking UPV – EHU

“BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”

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MY APPROACH TO THESES TOPICS:

• I’M NOT A POLITICIAN (ANY MORE). I’M NOT A

(PROFESSIONAL) ACADEMIC. I’M NOT A BUSINESS MAN (BUT I

WORK WITH/FOR THEM).

• MULTIDISCIPLINAR FOCUS: LAW, ECONOMICS, POLITICS,

BUSINESS, SOCIOLOGY, ETC.

• I DON’T HAVE ANY TECHNICAL (ARCHITECTURE,

ENGINEERING, BIOLOGY, ETC) BACKGROUND.

• SUMMARY :

1. SPANISH HOUSING POLICIES IN THE LAST DECADES

2. BASQUE HOUSING POLICIES IN THE LAST DECADES

3. CURRENT EVENTS IN SPANISH HOUSING POLICIES

4. A PROPOSAL FOR FUTURE YEARS.

1.- SPANISH HOUSING POLICIES IN THE LAST DECADES

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FROM THE 60’ TO CURRENT TIMES, IN SPAIN, HOUSING PUBLIC POLICIES ARE MAINLY

DEVOTED TO PROPERTY ACCESS BY THE USE OF TAX DEDUCTIONS AND FINANCIAL

PUBLIC AIDS, WITH ONLY MARGINAL PUBLIC BUDGETS FOR ACTIVE HOUSING POLICIES.

(“TIPOS DE INTERÉS SUBSIDIADOS POR EL ESTADO”, “DEDUCCIONES FISCALES A LA

COMPRA” AND “VPO EN PROPIEDAD DESCALIFICABLE”, ).

THE OBJETIVE TO ACHIVE IS ECONOMIC GROWTH AND EMPLOYMENT, RATHER THAN

TO EASE SOCIO-ECONOMICALY THE ACCESS TO ADEQUATE HOUSING FOR MIDDLE AND

LOW INCOME FAMILIES. SOCIO-SPATIAL BALANCE AND URBAN FOOTPRINT ARE ALMOST

NOT TAKEN INTO ACCOUNT.

IN RECENT YEARS THREE DEBATES HAVE BEING (AT LEAST NOMINALY) INCLUDED IN

THE PUBLIC AGENDA:

• THE EFFECTIVENESS OF THE CONSTITUCIONAL RIGHT TO ADEQUATE HOUSING.

• THE NEED TO CONVERT WITH EUROPEAN HOUSING PUBLIC POLICIES (PUBLIC

INTERVENTION, RENTAL STOCK, SOCIAL HOUSING, REHABILITATION, ETC).

• THE ENVIROMENTAL ISSUES RELATED TO REAL ESTATE ACTIVITY.

DESPITE THESE FACTS, MOST AGENTS IN SPAIN CONSIDER THAT ONLY THE MARKET

(LATELY, REMARKABLY THE FINANTIAL MARKET) HAS THE TASK TO PROVIDE HOUSING TO

THE PEOPLE.

PUBLIC INTERVENTION IS CONSIDERED NECESSARY IN THE “BAD TIMES AND PLACES”

(SOCIALIZATION OF PRIVATE LOSSES) AND INCONVENIENT IN THE “GOOD TIMES AND

PLACES” (PRIVATIZATION OF BENEFITS).


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THESE SET OF VALUES AND POLICIES SUSTAINED DURING SEVERAL DECADES, FIRST IN

RELATIVE AUTARKY (DICTATORSHIP) AND AFTER WITHIN THE EUROPEAN UNION AND

GLOBALIZATION PROCESS HAVE LEAD US TO THE FOLLOWING SITUATION:

1) HYPERPRODUCTION (2.5/20/45 NEW UNITS PER 1000 INHABITANS vs. 2-6 IN MAIN EU

MEMBER STATES).

• 47 MILLIONS OF INHABITANTS; 25.5 MILLONS OF HOUSING UNITS; AROUND 550

UNITS/1000 INHABITANTS (THE HIGHEST AMONG BIG EU MMSS).

• MORE THAN 20% OF VACANT UNITS (2/3/6 MILLIONS, PLUS 15% OF SECOND HOMES).

2) SEVERE LAND CONSUMPTION: 0.4 MILLIONS OF HECTARES OF ARTIFICIALIZED LAND (1987-

2010); IN THE PREVIOUS 12.000 YEARS 0.8.

• LAND ACQUIRED FOR 2.8 MILLION HOUSING UNITS WAITING TO BE PROCESSED. HALF

OF IT, ALMOST IMPOSIBLE TO DEVELOP IN THE COMING YEARS.

• “URBANIZED DESERTS “, INFRASTRUCTURES WITH NO USE AND SOCIO-SPATIAL

SEGMENTATION.

3) SOCIO-ECONOMIC INACCESSIBILITY TO HOUSING:

• 1997-2007: HOUSING PRICES RISE MORE THAN 200% ON AVERAGE. LAND MORE THAN

500%.

• 2007-2012: HOUSING PRICES DECLINE 20% ON AVERAGE. LAND 80%

• 7-9 ANNUAL SALARIES NECESSARY TO BUY A HOUSE, EVEN NOW IN CRISIS TIMES;

MAIN EU MMSS 3-4.

.


6 JULIO RODRIGUEZ LOPEZ CYT 161-162 - 2009

HYPERPRODUCTION


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SOCIO-ECONOMIC INACCESSIBILITY TO HOUSING

JULIO RODRIGUEZ LOPEZ CYT 161-162 - 2009

15 RAQUEL ROLNIK (UN)

MILOON KOTHARI (UN) MARGRETE AUKEN (EP)

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STATE OVER PROTECTION OF THE REAL ESTATE AND FINANCIAL

COMPLEX, REVOLVING DOOR AND THE CAPTURE OF THE REGULATOR


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URBANIZED DESERTS

“CITY” OF VALDELUZ (GUADALAJARA – CASTILLA LA MANCHA)


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URBANIZED DESERTS

“CITY” OF SESEÑA (TOLEDO – CASTILLA LA MANCHA)


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URBANIZED DESERTS

“MARINA” (LAREDO - CANTABRIA)


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URBANIZED DESERTS

“AIRPORT” (CASTELLON - VALENCIA)


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URBANIZED DESERTS

THE CITY OF CULTURE (SANTIAGO DE COMPOSTELA – GALICIA)


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URBANIZED DESERTS

“HIGHWAY” (RADIALES MADRID)


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THESE SET OF VALUES AND POLICIES SUSTAIN DURING SEVERAL DECADES, FIRST IN RELATIVE AUTARKY

AND AFTER WITHIN THE EUROPEAN UNION AND GOLBALIZATION PROCCESS HAVE LEAD US TO THE

FOLLOWING SITUATION:

4) RISE OF UNEMPLOYMENT: FROM 10% IN THE LAST DECADE TO MORE THAN 20% IN CRISIS,

PARTIALLY DUE TO REAL ESTATE DINAMICS.

5) OWNERSHIP IMPOSED CULTURE:

• MORE THAN 80% OF OWNERS; NO MORE THAN 10% OF TENANTS; ONLY 125.000

SOCIAL RENTAL UNITS (LESS THAN 0.5%).

• IN THE 60’s MORE THAN HALF OF THE POPULATION LIVED ON RENTAL.

• “TO RENT IS A WASTE OF MONEY” (“ALQUILAR ES TIRAR EL DINERO”) + MARKET AND

STATE PROMOTION OF OWNERSHIP.

6) FAMILY HYPERLEVERAGE AND RESIDENTIAL EMERGENCY:

• MILLIONS OF OVERMORTGAGED FAMILIES.

• MILLIONS OF UNDER WATER MORTGAGES.

• 300.000 FORCE EVICTIONS (MORTGAGES), PLUS EVITED TENANTS. HEADING TO 6

MILLIONS OF UNAPLOYED PEOPLE AND 0.5 MILLIION EVITED FAMILIES.

7) SYSTEMIC ECONOMIC RISK DUE TO FINANCIAL IRRESPONSABILITY: 150.000 MILLIONS (1.5

BILLION - short scale - 109 ) IN REAL ESTATE “DOMESTIC” TOXIC ASSETS (15% SPANISH DGP).

8) STILL DEPENDANT ON REAL ESTATE SOCIO-ECONOMIC “COLLECTIVE DRUG”: 60% OF

BANK CREDIT FOR PRODUCTIVE ACTIVITIES GOES TO REAL ESTATE; TODAY REFINANCING,

RATHER THAN FINANCING NEW URBAN DEVELOPMENTS OR OTHER PRODUCTIVE

ACTIVITIES.

2.- BASQUE HOUSING POLICIES IN THE LAST DECADES

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IN THE LAST TWO DECADES THE BASQUE COUNTRY HAS DEVELOPED ITS OWN PUBLIC

HOUSING POLICY MODEL BASED ON THE FOLLOWING PRINCIPLES:

1) STRONG PUBLIC INTERVENTION

2) AIMED TO SOCIO-ECONOMIC ACCESIBILITY TO HOUSING

3) UNDENIABLE PRODUCTIVIST DRIVE. IN THE PUBLIC SECTOR = BUILDING NEW HOUSING

UNITS, MOST OF THEM DEDICATED TO PUBLIC RENTAL (ORUBIDE, VISESA AND

ALOKABIDE).

• BUT, DIFFERENT MARKET BEHAVIOR IN RELATION TO THE REST OF SPAIN: 7 NEW

HOUSING UNITS PER 1000 HABITANTS AND YEAR (20-40).

• LEGAL LAND RESERVES FOR PUBLIC HOUSING = DEFENSE WALL AGAINST HOUSE

PRODUCTIVISIM, LAND CONSUMPTION, SPECULATION AND MARKET CYCLES.

4) THE FIRST REGION TO SET A PUBLIC PROGRAMME FOR VACANT HOUSING STOCK:

BIZIGUNE (MOVILIZE VACANT STOCK TO SOCIAL RENTAL).

5) URBAN RENEWAL: MODERATE EFFORTS, VERY MUCH CONCENTRATED IN SEVERAL

PROBLEMATIC SPOTS (BILBAO LA VIEJA, SESTAOBERRI, PASAJES, ETC).

6) NEW PUBLIC TENURE FORMS: RIGHT OF SURFACE AND RENTAL, BESIDES OWNERSHIP.

LACKI OF CO-HOUSING AND COOPERATIVE METHODOLOGIES.

7) FIGHT AGAINST PUBLIC HOUSING FRAUD: PUBLIC CONTROL OF A DEMANDED AND LIMITED

SOCIAL HOUSING STOCK.


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NEW HOUSING UNITS PER YEAR (2000-2011)

0-100% … 50%-50%


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NEW PUBLIC HOUSING UNITS PER YEAR (2000-2011)

0 - 65.000 (25.000)


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NEW PUBLIC RENTAL HOUSING UNITS PER YEAR (1982-2011)

0 - 20.000 (40.0000)


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MOVILIZED VACANT HOUSING UNITS (2003-2010)

0 - 5.000


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THESE GUIDE LINES AND MEANS WERE DIRECTED TO SEVERAL FUNDAMENTAL PUBLIC

OBJETIVES:

1. HOUSING AS A RIGHT AND NOT ONLY AS AN INVESTMENT.

2. KEY ROLE OF PUBLIC RENTAL STOCK (FROM ALMOST ZERO TO 20.000 / 40.000 RENTAL

UNITS IN LESS THAN A DECADE).

3. MULTIFUNTIONAL PUBLIC HOUSING STOCK. FIRST STEEPS TO A HOUSING PUBLIC SERVICE

• 65.000 FAMILIES WITH 30-50% AVERAGES HOUSING EXPENDITURE

• BUILDING OF A PUBLIC HOUSING STOCK

• ANTICYCLE INFLUENCE OF PUBLIC HOUSING STOCK IN PRIVATE MARKET HOSUING

PRICES.

4. INSUFICIENT EFFORT IN SUSTAINABILITY

• PRODUTIVIST DRIVE, RATHER THAN “RE” APPROACH (REHABILITATION,

REGENERATION, RENEWAL, ETC).

• BIZIGUNE

• INDIVIDUAL REHABILITATION PUBLIC AIDS.

• HIRIBER (BASQUE GOVERNMENT AIDS TO URBAN REGENERATION PLANS).

• ERAIKUNE AND INDUSTRALIZATION OF THE BUILDING AND REHABILITATION PROCESS.


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THE SEVERE CRISIS IS CHANGING BASQUE HOUSING POLICIES VERY MUCH IN A SHORT

PERIOD OF TIME:

1. THE SEARCH FOR BUYERS, REGARDLESS SOCIAL CONSIDERATIONS, EVEN WITHIN THE

PUBLIC SECTOR.

2. INTERRUPTION OF PRODUCTIVE ACTIONS, DUE TO PUBLIC BUDGETARY CUTS.

3. DENIAL OF THE VACANT HOUSING PROBLEM IN THE BASQUE COUNTRY.

4. SELLING PUBLIC HOUSING ASSETS: LAND, HOUSING UNITS, BUILDINGS, PUBLIC COMPANIES,

ETC.

5. FROM BIZIGUNE (SOCIAL RENTAL OF PRIVATE VACANT HOUSING UNITS) TO PROGRAMA DE

INTERMEDIACION INMOBILIARIA (PUBLIC INSURANCE FOR RENTAL OF PRIVATE HOUSING

UNITS AT MARKET PRICES).

6. UDALEKIN (BASQUE GOVERNMENT AIDS TO TOWNS FOR THE DEVELOPMENT OF VACANT

PRIVATE LAND PLOTS … IN ORTHER TO RESUME PRODUCTION OF NEW HOUSING PRIVATE

PROJETS).

7. LEGISLATIVE OBJETIVE: TO REDUCE THE COSTS OF PRIVATE LAND DEVELOPERS AND TO

DECREASE THE LEGAL RESERVES OF LAND FOR PUBLIC HOUSING (75%-40%)

+ PERMANENT LEGAL PUBLIC REGIME.

8. POLITICAL LOGIC: THE PUBLIC INTERVENTION IS THE PROBLEM AND THE MARKET THE

SOLUTION.

3.- CURRENT EVENTS IN SPANISH HOUSING POLICIES

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PROFOUND URBANISTIC AUTISM

THE DECLARE OBJETIVE OF THE NEW SPANISH CABINET IS, ONCE “FINANCIAL REFORM” IS

COMPLETED (SOCIALIZATION OF THE REAL ESTATE LOSSES OF THE PRIVATE BANKS), TO

RESUME HOUSING PRODUCTION (MONOPRODUCTION OF NEW HOUSING UNITS FOR

PRIVATE OWNERSHIP) AS A CORE SECTOR OF OUR ECONOMY AND A HEALTHY SOURCE OF

EMPLOYMENT.

• RECENT APELATIONS OF SENIOR OFFICIALS TO THE RETURN TO THE “SPANISH

MIRACLE” TIMES.

• THE NEED TO FLEXIBILIZE OUR “HARD” COSTS LEGISLATION IN ORDER TO PROMOTE

“DEVELOPMENT”

• THE CONVINIENCE TO AVOID SUSTAINABLE DEVELOMENT EFFORTS, SINCE THIS IS A

“FALSE” CONCEPT.

• THE ABUSE OF TAX DEDUCTIONS FOR OWNERSHIP AND THE ALMOST NONEXISTENCE

FISCAL AIDS FOR RENTAL OR RENEWAL.

• THE “SOCIEDAD PUBLICA DE ALQUILER” AND THE “RENTA BASICA DE EMANCIPACION”

HAVE BEEN CANCELLED, BECAUSE PUBLIC RENTAL STOCKS OR AIDS TO MODERATE

PRIVATE RENTS ARE “RUINOUS” BUSINESS AND PUBLIC POLICIES.


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4.- A PROPOSAL FOR THE FUTURE YEARS

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3.- PERSPECTIVAS DE FUTURO: SI TODO PERMANECE IGUAL, VOLVERA A PASAR LO MISMO … PERO ES POSIBLE NO CAER DE NUEVO EN LA MISMA PIEDRA

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VACANT HOUSING

MOVILIZATION

RENEWAL RENTAL

MORATORIUM - CEASEFIRE: SUSPEND NEW HOUSING

DEVELOPMENTS, UNTIL VACANT STOCK IS ALLOCATED AND RENEWAL NEEDS ARE

FULFILLED. WITH ONLY A FEW LOCALLY JUSTIFIED EXCEPTIONS.

SPANISH URBANISM NEED NEW STATEHOLDERS WILLING TO MAKE POSSIBLE:

PPP ON VACANT STOCK:

MARKET - MODERATE –SOCIAL RENTAL PROGRAMMES MANAGED BY BANKS,

ADMINISTRATION, PROFESIONAL MANAGERS AND LOCAL COMMUNITIES.


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RE CO

MEANWHILE … ADAPTATIVE URBANISM

SPANISH URBANISM NEED NEW STATEHOLDERS WILLING TO MAKE POSSIBLE:

• URBAN HARDWARE (PHYSICAL ARTIFACTS) vs. (KNOWLEDGE AND

RELATIONS) SOCIAL SOFTWARE.

• RENTAL + REHABILITACION + REGENERATION + RENEWAL + RETHINK +

REUSE + ETC.

• NON FINANCIAL OR ADMINSTRATIVE URBANISM:

THE NEED OF A NEW INVOLVEMENT OF CITIZENS, COMMUNITIES, NGOs,

ADMINISTRATION AND BUSINESS PEOPLE.


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ALL OF THIS IS OBVIOUS (SELF-EVIDENT FOR A LONG TERM

AND GENERAL INTEREST PERSPECTIVE)

BUT, I’M AFFRAID, THAT IT

WON’T BE DONE (DUE TO CULTURAL, MARKET, POLITICAL

AND SOCIAL CURRENT BALANCE)

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