TRANSITIONAL HOUSING SYSTEMS ISBN 3-910022-04-9 CIB Publication 169 Lay-out: Saara Sippo, Timo Tanninen Press: Gummerus Kijapaino Oy JyvZskyla 1994, Finland Distribution: Bauhaus Dessau Public Relationship Department Gropiusallt 38 D-06846 Dessau Germany Fax: Int. +49-340-615 222

Copyright O 1994 Bauhaus Dessau, CIB

All rights reserved. No part of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, electronic or mechanical, including photoco- pying, recording or by any information storage and retrieval system without permis- sion from the publisher. TRANSITIONAL HOUSING SYSTEMS East-West Dialogue on the New Roles of Actors in Changing Housing Policies

Editors Timo Tanninen Ivor Arnbrose Ola Siksio

Foundation International Council for Bauhaus Building Research Studies Dessau and Documentation CONTENTS

Preface.. .l

INSTEAD OF A PROLOGUE

Rolf Kuhn..3 The Way of Modernism, the Way of the Bauhaus - a Way into the Millennium?

SE'ITING THE STAGE - THE HOUSING SITUATION IN CENTRAL AND EASTERN EUROPE

Introduction... 11

Timo Tanninen, Regina Bittner & Holger Schmidt...l4 New Problems and Challenges for Housing Policy in East Germany - Lessons to be Learned from the German Case

Inara Marana.29 The Present Housing Situation and Emerging Problems in Latvia

Ewa Kaltenberg-Kwiatkowska ...42 Housing in Poland - "Interregnum" between Poor Socialism and ... ? Dusica Seferagic... 61 Privatization of Housing in Croatia

Agnes Vajda-Babarczy ...72 Price Formation Factors in the Budapest Housing Market

Birgit Schmidt...83 The Case of Zschornewitz - Renovation of a Garden City of 1920's under the New Societal Situation

Barbara Verlic Dekleva... 97 Never-ending Transition of Housing Policy in Slovenia

Stuart G. Iawe...lOS Towards a Social Theory of Housing in Eastern Europe AMELEORATING THE PROBLEMS OF LARGE-SCALE ESTATES - FROM TECHNICAL RENEWAL TO SOCIAL REHABILITION

Introduction ... 121

Michel Bonet ti... 124 Upgrading Housing Estates in a State of Crisis - from Rehabilition to Integrated Urban Management

Iskra Dandolova ... 140 Housing Associations in Bulgaria - A Challenge between Ownership, State and Market

Timo Tanninen...l57 Large-Scale Housing Estates as a Societal Task in Eastern Gemany - A Planning Sociological Overview on the Basis of Scandinavian Experiences

Maria Joao Freitas. ..l75 The Dilemmas of Rehoused Families - A Portuguese Case

Holger Schmidt... 190 Halle-Neustadt - A Case for New Town Renewal in Eastern Gemany

Eva T. van ICempen ...202 Beyond Filtering Down - Housing Decline and the Underlying Mechanisms

TO OBTAIN AND MEASUKE QUALITY IN HOUSING

Introduction ...223

Roderick J. Lawrence...225 Housing Quality - hi Integrated Perspective

Ivor Ambrose ...243 A House of Mirrors - Reflections on Housing Policy and Housing Quality

Dagfinn As...254 Houses, Dwellings and Homes - Attitudes toward One's Own Place of Living TOWARDS AN OBSCURE PUBLIC HOUStNG POLICY?

Introduction ... 267

Satya Brink.369 Working through Partners - Challenge for Housing Policy in Canada

Hamu Ruonavaara...284 Home-Owners in Distress - Financial Deregulation and the Crisis of the Finnish Housing Model

Ola Siksio..300 The Social Construction of Housing Systems - On Institutions, Actors and Actions in Changing Socio-Political Contexts

INSTEAD OF AN EPILOGUE

Ivor Ambrose ...322 Border-Crossing: You Only Live Twice

LIST OF AUTHORS ...326

PREVIOUS PUBLICATIONS OF CIB-W69 ACKNOWLEDGEMENT

In the Europe of Che 1990s we live in a time of internationalism and increasing cooperation. nis book is a good example of this modern trend ne contributing scholars represent 17 different nu - tionalities and, during the editing phase, I have had the opportunity to cooperate with colleagues in five different countries. At many times in this work, as chief editor, I have felt like the happy conductor of an orchestra which is playing perfectly together. It gives me pleasure to thank the following persons and institutions: Miss Saara Sippo, the Na - tional Research and Development Centre for Welfa - re and Health (NAWH/Finland), for lay-out; Mr. Juha Nord (NAWH) for technical support; Elizabeth McNeil, student of the Psychology and Politics of the Built Environment at the University of Virginia, USA, for language correction in some of the arti- cles. Co -editor Mr. Ivor Ambrose, Danish Building Research Institute, has checked the English language throughout. For financial and administrative support, I want to thank Mrs. Helene Maron, Head of the Studio "City Renewal in the Emt" at the Bauhaus Dessau, and Mr. Ola Siksio, Coordinator of the CIB W-69 Housing Sociology, Swedish Institute for Housing Research. Mr. Siksio has contributed many useful comments to the text and actively taken part in the editorial process. Great thahto all of you!

10th August, 1994, Helsinki, Finland

Timo Tanninen PREFACE

Since the beginning of the 1980s, Europe has experienced an epoch of deep changes. Especially in Central and Eastern Europe this has been a time of political, social and economic upheaval, which has fundamentally questioned the existing societal structure. The "Welfare Project" in Western and Northern Europe, burdened by the increasing weight of state finances, or under the pressure of strong conservative or neo-liberal tendencies, has been put on the defensive. This has led to the restructuring of welfare states and has pushed housing policy further down the political agenda. Overall this has led to reduced state involvement in housing questions. Now, in 1994, the consequences of these changes are clearly visible in housing matters, which is reflected in this book. Concurrently pan-national trends have also developed on our continent. The European Union declared 1993 "The year of Europe", emphasising thereby its own geographical identity and its need for further consolidation of purpose. In October 1993 the CIB-W69 Housing Sociology Group met in Dessau, in the east of Germany; a setting which represented in a unique way the current transformation process in Europe. The venue was the renowned Bauhaus, itself an historic institution in the process of renewing its identity, developing new links of cooperation at all levels from the local community to the international networks of learning. At this meeting this book found its inception. CIB, the International Council for Building Research Studies and Documentation, is an international organization of in- dependent building research institutes which also includes associated research dep- artments in other institutions, universities and centres of higher education. The Working Group on Housing Sociology was founded in 1977 and now numbers 50 members from almost 30 countries. Most come from Western and Eastern Europe but there are other members in India, Nigeria, USA, Canada, Brazil and Australia. The Working Group serves an active forum for the exchange of information and experience in sociological research applied to housing questions. A common goal of contructive east-west dialogue unites the interdisciplinary Academy at the Bauhaus and CIB-W69. The theme of the meeting was "The new roles of actors in a changing socio-political context", itself a pertinent subject for discussion at the Bauhaus, which is also seeking to define its role as an imovative actor in a regional context. The presentations at the meeting gave much inspiration to the partici- pants and it was decided that instead of preparing a collection of proceedings, a collective anthology should be published, describing societal developments in States undergoing transformation and, especially, current developments in housing. The articles in this book constitute a comparative perspective, examining housing with regard to its political, ideological, social, cultural, psychological and ecological aspects, not forgetting architectural design and planning. The east European transfor- mation process and its consequences in housing is, naturally, a central theme. From a theoretical, societal development perspective this process is unique: we can observe the developmental logic of western capitalism whilst being wary of the transfer of simple, deterministic develppment patterns from west to east. Tendencies towards crisis in the west indicate the need for reflection over mainstream thinking. For western researchers, the dialogue with east European colleagues forces us to be observe our own societal trends more sensitively. Comparative work of this kind is thus fruitful both conceptually and substantively. This anthology begins with an opening discussion by Bauhaus director, Professor Rolf Kuhn, under the heading, "Instead of a Prologue", focussing on the historical and intellectual path of the Bauhaus and its possible role in influencing the direction of future thought and action. The main body of the book is divided into four sections. The first section begins with a dialogue-opener from the host institution on the East German situation, followed by presentations from other East European countries, including the new democracies Croatia, Latvia and Slovenia. The second section concerns large-scale housing estates and their improvement. Here, consideration is given to the role of these estates both as part of urban structure and, more generally, as housing provision in the broader societal context. The third section considers qualitative aspects of housing, including methods and systems of measurement which take the perspective of housing, as it is experienced by users, into account. The fourth section examines housing policy and housing systems with contributions on new challenges and new models in western countries and a closer analysis of systems of housing, understood as a socially con- structed phenomenon. Lastly, Senior Researcher, Ivor Ambrose closes the anthology with his personal account of leaving Dessau, where a virtual strategy for east-west reconciliation is revealed.

Editors INSTEAD OF A PROLOGUE

The Way of Modernism, the Way of the Bauhaus - a Way into the Millennium?

Rolf Kuhn

Bauhaus? Isn't that the architecture with the immaculate white cubes and glass facades, the perfect ambient for "liberated living" with "light, air, movement, openness," as Siegfried Giedion, one of the spokesmen for Modemism put it? Or is it the rigid frame of rows of box-like blocks, in which the "existence minimum" found its "housing diet", as another of the advocates of the new building of the twenties, Adolf Behne, observed when considering in critical terms the Gropius Dammerstock estate in 1930? In the buildings of the post-Modems, which for the most part regard themselves as being an answer to Modernism (and the Bauhaus in particular), one too encounters the gleam of the chromium-plated steel tubing of the true-to-the-original (and expensive) reproduction Bauhaus furniture and the not-so-true-to-the-original (and cheaper) variants upon which thousands (when not millions) daily seat themselves. Was the Bauhaus only a new style? Or do the original idea and the true tradition lie in something completely different? The establishing of the Bauhaus in 1919 and its further development are closely interwoven with the history of the Weimar Republic. The two enforced changes of location (1925 to Dessau, 1932 to Berlin), both of which were instigated by the considerations of politicians, themselves speak volumes. Walter Gropius and the staff assembled about him (to be deliberately anti-academic they called themselves "Meister" (i.e. master (craftsman)) whilst those studying were known either as "Lehrling" or "Geselle", apprentice and journeyman respectively) sought not just the creation of a new kind of school, which through a new synthesis would negate the division of disciplines as had been cemented institutionally in the 19th century; they wanted nothing less than to sow the seeds of a new society. They were concerned not only with a new type of design but also with the realisation of a new social vision of a community with greater social justice, out of the effects of which was to grow a "new spirituality common to the whole people" (Gropius). The setting of aims by the Bauhaus was, therefore, not limited to the creation of a new style, rather it was simply searching for a way of realising the all-round shaping of society, this being seen as in a deep crisis. Konrad Wunsche saw the central approach of the Bauhaus as consisting of a dual form of pedagogics: it was the location for the development of a new community of designers of the everyday life of mankind (a "lodge in the people's state") and as the producer of a new "logic of living", which via its spatial-objective creations projects itself towards all members of society - Wunsche spoke of architecture as being the "teacher". These efforts, much more strongly directed towards everyday life than, with its tendency to spiritualise, the reformist education of those years, united the approach of all three Bauhaus directors, Walter Gropius (1919-1928), Hannes Meyer (1928-1930) and Ludwig Mies van der Rohe (1930-1933). Seen from the Bauhaus, it was thought that with an accepted equivalence of basic human requirements there would grow a single, almost moral quality of object and space with the avoidance of any form of subjectivity. The year the Bauhaus was founded, the shattering experiences of the First World War were deep-rooted. The orientation towards industry, upon the civilising basis of which a new culture was to emerge (as Gropius had meant in 1914) could no longer be justified. One staked upon a return to the past, towards the handicrafts. From this point, everything, not only the fusion of the design disciplines, underwent renewal. As far as architects were concerned this meant, initially, working with wood. Only in a distant future, "when too the spirit to build has once more seized the whole population as the Gothic cathedral had done" (Gropius), would glass become the preferred material, serving too to symbolize a new spirituality. In 1923 Gropius made the appeal "Art and Technology - a new unity". The world of technology and industry, initially regarded as a threat, was now seen as being the institution's new hope, even its only chance. The "Experimental house Am Horn", the high point of the 1923 Bauhaus Exhibition (which had been demanded by those responsible for the institution), was to serve as the point of departure for a new type of estate, resulting from a turning towards serial production methods and new principles of design. Because of the economic crisis this was to remain a single building. The building, created for the community, and which today is so celebrated, appeared first after the removal of the school to Dessau. The name Bauhaus was seen to apply to the building Figure 1: 2he Bauhaw building in Dessau (destroyed in the Second World War, reconstructed 1976) (Photo: T. Tanninen) as much as the official "High School for Design", dating from 1926. In fact, the Bauhaus building designed by Walter Gropius can be understood as being the design programme of the Bauhaus community, which now set itself in consequent fashion in the direction of rationalisation and constructive clarity: a building for the modem "Bauhauser" who enthusiastically embraces technology and dynamic philosophies of life. The Bauhaus building can only be experienced through movement, there are no main and subsidiary views. Its transparency and the visibility afforded by the construc- tional skeleton lead to one experiencing the building as light, even as being suspended in mid-air. It unifies all the functions of a school (free time too) and brings these to a clear expression. In the middle the "festive level" for the community's "cheerful ceremonials" (Gropius), (the celebrated "Bauhaus festivals".) The glazed workshop wing admits the onlooker a view into the "Laboratory of Industry" (Gropius). The north wing exhibits the stacked class rooms - the Atelierhaus with its cell structure turning away from the rest of the building. It serves for the withdrawal of the individual. With such types of functionalistic, organised standardisation and rationalisation, the socially engaged proponents of the new architecture sought to make a positive influence on modem life, in order to make it possible for man to perceive the world of objects, to be aware of himself. Despite all the heroic self-overestimation of their own capacities, the shaping of modem life was not a question of art for the selected few, rather a problem concerning the whole of society. The danger here of prescribing a new life-style in some quasi social-Darwinist fashion was already clear to the theorists and propagandists of the new architecture themselves. Today there is agreement among all - from opponents to advocates of the "New Architecture" - in the criticising of soulless box architecture", of the misanthropy of the satellite town" and of the "speculative mountain". The crises of house, city (and landscape) lay in the growing degree of abstraction of the functional connection in the permanently accelerating process of modernisation. The glass facades externally similar to the New Architecture do not show what goes on inside - that which really happens (or the picture of which one obtains) must, as it were, be "translated" with the help of media on the surface - surely the greatest contrast imaginable to the New Architecture ideal of congruence between interior and exterior. Instead of transparency, cold reflection (one must compare the glass facades of the Bauhaus building from 1926 with the mirror effect of an office tower block.) The social problem of the twenties, which the Bauhaus in Dessau confronted, was the satisfying and shaping of the needs of the masses, above all the need for home requirements and domestic appliances. This was to be met through the application of new technical and technological potential. Appearance, the new design, had to respond

Figure 2: The Steelhowe in Dessau-Torten built 1927 by Georg Muche and Richard Paulick (reconstructed 1993). (Photo: T. Tanninen) to social principles, to utility, to function, to the then new materials, to construction and to technology. If we add philosophical discussions and comments to this then the arts should be unified and brought together with the crafts or later industry. Sectoral man had to be overcome. However, despite the fantastic achievements in design, the products of design, admired by the world to the present day, in its content this aim remained sectoral to the genius of the period, bound up with Fordist industrialisation. Above all, it provided new impulses for design. For local history, the landscape, nature and energy management there was little room. (This was already recognised by Hubert Hoffmann when a Bauhaus student and in 1946 - 1947 as municipal surveyor of works under Dessau Lord Mayor Fritz Hesse (then restored to office), he included these in his considerations concerning the revival of the Bauhaus). Faced by the world-wide catastrophe of the exclusive method of Fordist producti- on, of product and industrial development including their component for the destruction of nature and culture, of the continuous diminution of the basis of human life, of an euphoristic industrial and technological setting of aims, today there can be no single basis for work in the spirit of the Bauhaus. However, it would be erroneous not to scrutinize these developments, these parts or sectors.

Figure 3: Open-cast coal mining landscape in the "Industrial Garden Realm" - Region Dessau - Wittenberg- Bitterfeld (Photo: T. Tanninen) The Dessau Bauhaus of today, an Institute for Research and Design, with its depart- ments of the Workshop, Collection and Academy, endeavours, through a critical reflection of the process of modernisation, to provide suggestions for a sustainable regional development. In so doing it attempts to support a process of cultural change. The method of working is project-supported and takes the form of models: the projects are concerned with social-ecological problems at precise locations in the "Industrial Garden Regim" - between Dessau, Wittenberg and Bitterfeld, and incorpo- rate these in the aspired to process of cultural development. Because of its own history, the Dessau Bauhaus feels itself obliged to thematicise those industrial cultures which during the course of the century have so ambivalently formed themselves over the living world, over cities and over the landscape. The results of industrial development place some of the basic hopes and visions that this embodied in question. A creative consideration of these experiences requires that research, which is both current and international in scope, in the fields of history and the social sciences, architecture, urban and regional planning as well as the artistic-design disciplines be linked with "on-site projects", in order that design suggestions anchored in sustainability and identity can be brought forward. Since 1990 the Bauhaus has been working in the sphere of international East-West cooperation and early in 1994 the Dessau Bauhaus Foundation was established. It is now necessary to give life to this new legal status. In the process, questions arise concerning the history, current situation and future of this institution. Furthermore, in the pursuit of a fruitful East-West dialogue, the institution endeavours to make use of its particular advantage in being one of the few institutions in the new federal states in which the eastern and western characteristics of the staff can grow together on both a national and international plane. With the foundation of the Dessau Bauhaus Foundation, the varied route of institutional responsibility since re-establishment in 1986 assumes a permanent form: from a state institution of the GDR to a private association (in 1990, the "Year of Change"), this had passed from being an institution subordinate to the new federal state of Saxony-Anhalt to one supported by the state, federal government and municipality. Furthermore, in undertaking this act a practice from the 20s and 30s was being follo- wed. In this period, so important historically, the institutional form changed from being that of a state entity (in Weimar) to a communal establishment (in Dessau) to a private institute (in Berlin). The lack of stability of these bodies responsible for the Bauhaus was not without influence on the instability of its own work and the fragmentary remains of its many approaches to things. To be sure, seen historically, this too provoked continuous newness. Today the old industrial region, the city of Dessau and the Bauhaus stand at the end of a period of industrialisation, faced with fundamental processes of transformation. All three must re-establish their identities. Reflecting on the past and historical work are also elements in the search for a way forward, in the process of orientation. However, the past is not a reservoir fiom which it is possible to acquire directikes as to how to act nor for knowledge concerning orientation in the present, rather it is a source of reference mediating impulses and motives for the manifold possibilities necessary in times of crisis and change. Interest in research therefore concentrates particularly on fundamentally important historical periods of upheaval, out of which, fiom the manifold possibilities for development that existed, the model of the industrial working community that still dominates both culturally and socially today was to prevail, whilst other alternatives, other ways of seeing things and other paradigms, were thrust aside or buried. Such a period of orientation occurred at the end of the 19th and beginning of the 20th centuries, as the experiences if the negative dimensions of indust- rialisation released a broad stream of movements for reform in the way of living and in culture. Since then these have accompanied the process of modemising industrial com- munities in either a compensatory or reformist role. The renewed debate concerning the sense and aims of mechanisation and indust- rialisation released as a result of the experiences of the first industrial war, during which many reform movements became radicalised, was such a phase of new orientati- on. Research, collection and exhibition possibilities in and about the Bauhaus as well as the region, the possibilities "left lying" or thrust aside, rediscovered or reconstructed lines of potential and development, do not serve to provide recipes for solutions of instructions for "correct" actions for dealing with a "false" present. Nevertheless, the Dessau Bauhaus sees itself as being an institution archiving thought models, language and imaging, in order to be able to visualize the extant present "completely differently". Historical work is here bound up with willingness, content-wise a datum plane for the launching of the currently necessary discussion concerning strategies and development aims, perhaps first to stimulate such discussion. The ecological renewal of regions requires normatives, modes of business and industry and functions that are both new and sustainable and with which judgements, experiences and knowledge concerning the causes, interrelationships and effects of social and ecological changes can be transformed into a qualitatively different practice. In recent years, utilising the visionary model of the "Industrial Garden Regim", the Dessau Bauhaus has developed a programmatic conception in which a series of theoretically and practically organised components projects were prepared. The new quality of this vision is to be seen in the fact that its derivation is based on a reflection upon what occurred historically and its aim is formulated as being an "open exit", an "unfinished picture", the development of which is first effected through a social process. The complexity and non-penetrativiness of the current process of social upheaval - seen from an ecological as well as an economic viewpoint - likewise provokes a climate of progressive sectoral differentiation in the field of education. This brings forth directly realizable results relatively quickly, which however are reflected as being largely inadequate. In opposition to this, the Dessau Bauhaus is of the view that "we must first leam what we need to know in the future". Learning adopts the character of a process of searching, without even to know the imagined result; learning detached from the immediacy of turning into a productive process; to "learn one's self"; an education of competence, which can be characterised by self-determination, co-determination and the ability to solidaritise. Directly perceptible experience, "learning by doing", of work in working com- munities - the development and reforms of the Bauhaus of the 20s - the materials wood, glass, metal ... and their functional application, were, because of their complexity, never to be perfectly applied to functional urban and landscape spaces. The Dessau Bauhaus, therefore, is to be understood as a place where the artistic intentions and methods employed undertake enquiries as an element in another social practice, as elementary planning work. In this sense, artistic projects at the Dessau Bauhaus can be said to concentrate on designs which change model-like views of reality into candid reality. The artistic at the same time approximates, to the extent of an existentially necessary change of view, as it catches a glimpse of the reality of other forms and therefore is open to additional opportunities, generally perceived as "non-artistic". Furthermore, The Dessau Bauhaus sees itself as having joint responsibility for the realization of its own concepts and projects. Knowledge concerning ecological ques- tions, to a great extent existent world-wide, is to be applied in an exemplary fashion to the model region of Dessau-Bitterfeld-Wittenberg. These demonstrations of designing and development can in turn serve as a basis for international and interdisciplinary communication and cooperation. If the initial phases of the project work are seen as visionary, then as this progresses it is necessary to introduce a process, which through dialogue and the involvement of all those concerned, will make a gradual approach and, eventually, realization possible. In so doing the institution must not limit itself to expert and conceptual guidance, rather it can range as far as "co-support" for projects, which at any rate are to be institutionalised as regional cooperation. This work has at disposal important approaches for the advising of both those answerable politically and for others who are involved; however this must not expose the institution to being drawn into day to day politics. SEWING THE STAGE - THE HOUSING SITUATION IN CENTRAL AND EASTERN EUROPE

It is possible to question whether there ever really was a single and particular model of housing provision in the whole of Eastern Europe. The socialist housing dogma func- tioned - at best - merely as an umbrella-like construction of thought, which nonethe- less had the status of a powerful idealogical imperative. The housing paradox can be characterized as a growing, insurmountable mass of housing problems which oversha- dowed the promise of official ideology: to solve the housing problem once and for all in socialist society. This discrepancy can be attributed to an overall failure to establish an infrastructure for the necessary housing production in the Eastern European states. The collective ideology of housing also lacked a popular base, as can be illustrated by the extensive - and accepted - "escape in privacy", with the widespread building of summer cottages and second homes, despite the general lack of building materials and economic ressources. So, in spite of a common housing ideology, the housing situation and housing provision developed differently according to conditions in the specific countries and varying historical traditions. This assessment has already been well described in a number of newer texts on comparative housing sociology, including two earlier CIB publications (edited by Ambrose 1992, h 1993). In the following chapter, both the historical contingencies and, especially, the problems of the transformation epoch are dealt with in articles on Eastern Germany, Poland, Latvia, Croatia, Slovenia and Hungary, exemplifying different stages in the transformation process. In the countries of Eastern Europe a re-orientation of ideologies has taken place. Unique social laboratories have been set up, experimenting by trial and error to find a course from planned economies to market economies and political democracy. In many of these countries, former political traditions have been weak. The transitional situation has seen the birth of pluralistic democracies with parliamentary governments: politically responsible, elected representatives; legislatures which enjoy the legitimating will of the populace; and the institutions necessary to apply the laws of the land. This is an enor- mous and time-consuming project, given that some countries have had a much longer road to travel than others and that, in all of them, new institutions must develop as entities in themselves. To change the entire system of production from collective state control and, through privatization, to find a place in world markets, is no easy task. The long period of transformation is plagued by huge production losses, high unemployment and high inflation, reduction in real earnings, etc. Achieving an economic revival after a national economic shock requires many years of hardship, as the example of Poland shows since democratic processes began there in the first half of the 1980s. First during the last two years has Poland's economy begun to stabilize after a long and hard recession. From an historical perspective one can regard the new political situation in Eastern Europe as a stage for the enactment of possibilities, unfulfilled goals and dreams; but there lurks a danger of popular unrest and ethnic conflict, given that economies are weak, democracies are fragile and old structures are resistant to the new democracies' efforts to remove them. The examples of the "old new" democracies, which emerged after the First World War (eg. Finland) show that the process of nation-building takes many years, even 1-2 generations and, furthermore, a sense of "collective patience" must be present in order to shape democratic society. The young democracies would seem, at present, to be undergoing a phase of division and polarization in which ethnic conflicts and political instability are making their impacts on society. The balance between parliamentary blocks can suddenly change drastically, as the recent election results in Poland, Hungary and Lithuania show. Divisions between rich and poor are also becoming larger and more visible - even in terms of housing consumption. Segregation according to ethnic lines and wealth may become more marked in the future. For housing, these tendencies entail that a new philosophy must be developed. Without a new, solid economic base for housing it would seem that the detrimental social aspects of housing policy will be totally eclipsed by the enormity of the problems of simply maintaining and heating the existing housing, not to mention the financing of new housing. With the inherited very low rent levels (about 4-8% of average incomes), there is hardly any basis for a realistic and solid economy for housing in the new democracies, yet the generally weak economic situation offers little chance of bringing in higher rents. Poor infrastructure and costly, ineffective heating systems only ag- gravate the economic burdens of renters who have great difficulties in covering their housing costs. The hardships of daily living in Poland, where the transformation process began earliest, is clearly described in the chapter by Eva Kaltenberg-Kwiatkowska. Whilst privatization programmes have been given high priority, researchers have certain doubts about the possible consequences. Advantages of privatization include, for example, the release of private capital, the active participation of citizens and the devolvement of responsibility to home owners. But the disadvantages are also clear, including the strengthening of tendencies towards housing segregation, marginalization, abolition of public housing, etc. All urbanized societies require, to some degree, a publicly-controlled housing alternative or a flexible, private, rental market offering housing at affordable rent levels. The articles in this section suggest that the exact consequences of the various privatization programmes are difficult to assess in terms of general comparability or specifically on issues such as, repair and maintenance, for example. It seems, however, that there is general agreement among the researchers that the lessons of Western privatization, such as that which took place in Great Britain, have largely been overlooked in the East European countries. In the West, the relaxation of state influence on housing markets has been a gradual process, following the exceptional circumstances of the immediate post-war years. A core problem in the West European countries has been to find a balance between effectiveness (coupled with the belief that free market forces can best facilitate new production), and social justice, which is to say that housing should be distributed according to the needs of different population groups. This problem has been compli- cated by an intensification of both sets of demands at a time when housing policies generally have been losing strength. In the countries of Eastern Europe the entire housing stock has been opened up to the market at a stroke. The big question is, therefore: What will be the future role of the State in housing in the East European countries? In the article which concludes this section, Stuart Lowe develops a social theory of housing relevant for Eastern Europe. Just as we cannot meaningfully speak of a single housing model for the whole of Western Europe, it is not intended that this model should apply to all East European countries. But despite the current political and economic difficulties it is possible to give a socio-political overview which indicates the scope for nationally differentiated policies for housing and systems of provision provision which are different from those of the West. In the long term there would seem to be potential for diverse developments in housing amongst Eastern countries. Hopefully these developments will take place in a peaceful and democratic way. New Problems and Challenges for Housing Policy in East Germany: Lessons to Be Learned from the German Case

Timo Tanninen, Regina Bittner, Holger Schmidt

The Housing Policy of the Former G.D.R.

The housing situation in the East of Germany reflects the precipitate hope of a solution to today's problems by the rapid development of the free housing market on the scale of the state housing policy of the former G.D.R. After the Second World War accommodation resources in the whole of Germany were sharply reduced, about one third of the overall number of flats had been destroyed (Schumam & Marcuse 1991,157). Between 1949 and 1971, a period of reconstruction work can be identified which was initiated by a two year plan in 194911950 by the G.D.R. Regime for the rebuilding of its towns and cities. Under the motto "National Reconstruction Work" new housing estates and towns originated in the fifties and sixties. In the seventies, when investment was made primarily in industrial building, the decay of the old building resources was already obvious and existing flats were in part lacking appropriate sanitary facilities. A housing programme with the determination "to solve the accommodation problem as a social question by 1990" was introduced at the VIII Party Congress of the Socialist Unity Party in 1971 (Documents of the 9th Party Congress, 1986). The rapid erection of new flats on the periphery of the large towns stood in contrast to the decay of the old building resources. Added to the situation was the concentration of the flat building in the district towns and big cities, the consequen- ce of which was that the housing stock in the small and medium sized towns was neglected. The appearance of the newly-built housing estates on the outskirts of the cities had social consequences: the strongly egalitarian housing conditions, in the sense of socially-normative basic requirements, led to the demographic structure of the inhabi- tants being stamped in only one way: long distance to work, lack of infrastructure, shortage of cultural opportunities and spare time activities, and a high housing density. Whilst the newly built flats were given above all to families with children - this being connected to the political and socio-political dominance of this group - the old flats in bad condition in the inner cities were left for old people and poorly qualified workers. The Housing Programme aimed at the quick and mass construction of prefabricated flats on the edges of the cities. Even though the statistics for 1989 registered 197,929 ready- built flats (Statistisches Jahrbuch 1989 der DDR, 168), nothing was said about the size- structure of those appropriate to the sizes of the households or about the condition of the buildings, which often lacked some amenity or other. In addition, the planning of large housing estates on green meadowland led to the decay of the inner areas of the cities consisting of the old stocks of flats, for we must not forget that 42 per cent of all East Geman flats originated from before 1919. Although under the G.D.R. regime a modest quantity in housing, (in comparison with the average European level), was achieved: in 1989 there were 422 dwellings per thousand people and 27 sq.m. housing space per person. (Schumann & Marcuse 1991, 164; Statistische Jahrubuch 1989 der DDR, 171-172.)

Table 1: The Forms of House Ownership in the Former G.D.R. (%)

Source: Statistiches Jahrbuch 1989 der DDR.

In accordance with the property conditions in the former G.D.R., the majority of the houses and flats in new production were in the hands of the State: co-operative ownership in workers' co-operatives also existed. For private owners in the old housing stock it was practically impossible to maintain and repair existing buildings because of the low rents. Moreover, the State's practice of sharing out flats functioned according to given regulations, which served more to hinder the satisfaction of individual or group-specific requirements and at the same time made an economically and socially efficient usage of housing space impossible! Despite thousands of urgent applications for flats a large number stood empty. The extremely low rents (0,50 DM per square metre to 0,90 DM per square metre) as well as security of tenure - made possible by strong protection against possibility of being sacked - were looked upon as indicators of social successes. Some Preliminary Conclusions about the Character and the Development of the Housing Situation in Eastern Europe

We will make some historical remarks about, and draw conclusions from, the develop- ment of housing in Eastern Europe. In this way we will attempt to understand the specific situation there in comparison with housing standards in the countries of Western and Northern Europe. This is possible to do by making short comments on three topics: (1) General historical development, (2) economical and technological development and (3) other ideological views on housing. Speaking very generally we can say that from the beginning of this century until the Second World War, the whole of Eastern Europe was late in its modem industrial and urban development. Perhaps only the central part of the former G.D.R. (so-called "Mittel-Deutschland", a region south of the capital Berlin) and the western part of former Czechoslovakia were industrialised to a level equal to that of Western Europe. In Eastern Europe, the economic and social structure was mostly agrarian in nature until the 1950s. Another important historical fact to be remembered is the huge scale of the demolition of housing stocks during the Second World War in this part of Europe. This was especially so in Eastern Germany, Poland and the western part of the Soviet Union (in big cities in Eastern Germany 50 per cent and, for example, in the City of Dessau 85 per cent of dwellings were destroyed). After the war, the initial situation for the so-called socialist countries was bad enough and then came "the era of the Cold War". The U.S.A. and the western block declared a political and business embargo, which meant the complete isolation of the eastern European countries from the economic and - what is most important in our context - technological development in the western industrialised world. The eastern European countries were left under the command of the Soviet Union, which was a backward society, especially in those fields which have been important for improving housing standards and neighbourhood quality1. All this meant that a spread of technical innovations, new ideas about financial and administrative models, experiences of planning and architectural solutions and so on through the "iron curtain" was almost impossible until the late 1970s. This free flow of information and knowledge was one

See for example a relevant discussion in Hegediis, Jozef & Tosics, Ivan "Is there a Hungarian model of housing system?" in Siksio (Ed.11990); by Peter Michalovic "Housing dynamics in Czechoslovakia: What brings the mass housing construction?" and by Dumitru Sandu "Why and how is the urban housing stock changing in Roma- nia?" in Galland (Ed.11991) Housing Evaluotion. of the most important motivating factors in the process of modernisation in Western Europe. The third main factor to be noted is that the state housing provision was an important part (in fact in combination with a new education policy, a key element) of the collective ideology of the communist parties to build "a new communist human being and a better society'". The idea was that housing, like other things needed by people for everyday life (such as basic foodstuffs, clothing, transport charges, education and culture), had to be organised in a manner other than was done in the capitalist countries. These commodities were very cheap in the former socialist countries because of the massive state subsidies. This was based on a strong ideological standpoint but we think it was important to the former Communist regimes for legitimising their position of power within the population. At this point, relevant conclusion needs to be found to the housing situation: during the Communist era in Eastern Europe no realistic view of or experience with housing economics was developed. That is, what the real costs of building new flats - and living in those flats - was for the state. Now that the Com- munist state has been abolished, national economies are bankrupt and the population cannot reconcile itself psychologically to the financial problems of housing under free market economy conditions because the people have no collective experience of it. (See for example Telgarisky & Struyle 1990.) This is a concise explanation - perhaps oversimplified - of the housing situation in Eastern Europe (including the eastern part of Germany), as well as a description of the backround which should be kept in mind, while discussing actual housing problems in these countries, and making comparisons on an international level.

The Unification of Germany and Its Consequences on Housing

The unification of the two German states does mean new social conditions for housing. With the reunification process a set of new basic laws for planning and building went into effect in a country where things had been previously determined by entirely different economic and legal structures. The introduction of the market economy, and resulting immediate confrontation between Eastern and Western levels of productivity,

A relevant comment on this can also be found in Valdimar Music (1992) Multi- family Housing in Slovenia. Between Dogma and Reality.

e.g. Building Statute Book, City Building Planning, Housing Planning, Rent Laws, Building and Loan Financing. caused its economic breakdown in East Germany. The orientation of entire areas towards one branch of industry was now followed by entire regions of unemployment. The loss of social contact, the devaluation of qualifications, the insecurity of social existence after decades of state-proclaimed security of job and flat, today determine the living conditions of a large part of the population in the new federal states4. A break- down in value orientation and ideas about life are the consequence. There are a multitude of ways of dealing with this development, the social differentiation is foreseeable. Any orientation in this situation of change is difficult; behaviour patterns and models get, so to speak, transmitted from outside into living conditions for which they are rather strange. The outbreak of radicalism and terror are signs of the social tensions that exist.

Rent Development and Housing Policy in the New Federal States

The social and cultural developments described above are the causes of the problems in today's housing market in Eastern Germany. After the change - the "Wemie" - at the beginning of 1990 the Modrow government demanded the return of the flats from being the "property of the people" to ownership by the municipalities. City planning and the building of houses were to be shifted from state control and placed in the hands of regional decision makers. The purchase of state-owned single-family and two-family houses by their occupants was allowed. Under the First and Second agreements between the two German states, East German real estate was freed for sale and the return of land, property or the respective compensation payments to former owners was decided upon. For those flats owned privately the compulsory assignment of tenants by local councils was brought to an end. Existing agreements which protected tenants against eviction by the owner requiring the flat for his own use remained valid until December 31st 1992. Under the principle "Restitution rather than Compensation': the transfer of property from the former state-administration estates to the original private owners and the urgently needed reconstruction of the old building stock is little helped because the uncertain situation regarding ownership does not encourage investment. The various rent-related legal aspects of the "UnificationAgreement", according to which the Federal Government has the right to control the amount of rent for the existing building stocks but whereby newly built flat prices are regulated by the market, has led to a division in the housing market. Rent increases are correlated by law to the

4 The former G.D.R. has been divided into five autonomous states of the F.R.G. "Fiinf neuen finder". development of incomes. The first rent increase in October 1991 resulted in an addi- tional 1 DM per square metre and the transfer of the operating costs to the rent. A further increase from January 1993 has been canied through. The relatively low rents are not attractive to investors because as long as the state regulations function tenants will prefer the cheaper flats (see Wohnungspolitik in Deutschland, 1991). In spite of the second rent increase in January 1993 it was not the only raise some tenants had to face: the annual apportionment of 11 per cent of the cost of modernization and repair is also added to the rent. The social consequences of these developments will supposedly be mitigated with the help of a special law providing financial support for housing.

Official Policy and Alternative Conceptional Approaches

The task of privatising the stock of flats fell into the hands of the cities and the municipalities. The newly built panel building housing estates, which already show considerable constructional defects, are deeply in debt, a fact that makes it impossible for the newly founded housing societies to secure loans for their reconstruction (Ulrich et al. 1992). For a large number of the old buildings there are claims for restitution, this hindering the clearing and reconstruction of the inner cities because the clarification process regarding ownership is slow. Apart from factors such as the desolate stock of housing, the decayed inner cities, the lack of home comforts (18 per cent of the flats were in 1989 without bath or shower, 24 per cent have no WC in the flat, 42 per cent are not connected with a sewage drainage plant, 60 per cent have no modem heating system) and high energy waste due to bad insolation (Schumann & Marcuse 1991, 163; German Industrie ... 1991), the inhabitants are confronted with fear and insecurity caused by the massive number of claims for the restitution of properties. As regards the approximation of living standards in East and West there has been an increase in the demands of the occupiers: when Federal Republic citizens in the West have 25 per cent more living area at their disposal than the tenants in the East (Guerra 1991) there is demand for more and more living space for the individual in the new Federal States. The satisfaction of such demands will be accomplished by a rapid rise in rents and will push forward social division in the living areas. The Federal Government is attempting to push the process of privatisation forward with special supportive programmes: for example low interest loans for families for the purchase of building or privately owned houses or flats. The release of land for building is already well under way. The half-hearted promotion of council house building does little to answer the acute need for flats in the new Federal States. Those government promoted programmes already under way show hardly any results because the financial margins of the East German population are limited. The great need for modernisation and repair will not be satisfied in this way.

Alternative Conceptional Approaches

Whilst representatives of the business community are set on rapid privatisation, the sale of privately owned flats and houses, the sale of rented properties to tenant co-operati- ves which either undertake repairs to the buildings themselves or suggest them to investors), town planners and sociologists faced with the economic and social situation in the East of Germany look in another direction. An essential starting point for a change in the current process would be the reversal of the policy of "Redhthn rather than Compensation ",with the former owner being compensated. The extension of the co-operation sector can also prove capable of development, whereby tenant organisation could also possibly represent co-operation (Schumann & Marcuse 1991, 170). Until this point in time only a few outstanding individual projects have shown that such a method of transferring property to tenant organisations uses the self-help potential within the population, something that itself results from a specific G.D.R. form of socialisation. Instead of a demand for the urgent dismantling of subsidies and the inevitable raising of rents, a socially acceptable rent reform should stand in the foreground, along with a not-for-profit one. An alternative housing policy could, in conjunction with another quality of communal democracy and city publicity, lead toward a broad, democratically determined cultural revival of the city. Overall, because of the influence of a multitude of factors, the housing situation in East Germany appears problematical: a general substitution of a state housing policy by a free market for accommodation under such circumstances cannot be justified, neither from a socio-political nor an economic viewpoint.

A Few Sample Cases from Dessau

Dessau North - Old Town Area

Dessau North provides the sole remaining witness to municipal building during the expansion of Dessau in the late 19th and early 20th centuries. The buildings existing from the "Griinderzeit"(1870 - 1890), despite consisting of compact continuous blocks, have a relatively low density and are attractive because of their position by the Schiller Park and the Elbe and Mulde riverscapes, and by their proximity to the city centre. Within the quarter there are different parts which are linked to the building and rebuilding phase. The "bourgeosie northn originated at the turn of the century and boasts larger and technically better equipped flats than the "proletariansouth1', the latter appearing with industrialisation. Like many quarters dating from the Griindeneit in the cities of the erstwhile G.D.R., the area demonstrates a specific population structure, this being connected to the state's policy of allocating flats. Thus, it is mainly young families with children, young single people and senior citizens who live here. The southern part of this area of the city in particular has a negative social image. The high population turnover within the quarter was in part due to the poor standards of instal- lation in the flats, young families grabbing the first opportunity to move to a better area.

Figure 1: An unbuilt site afrer the war damages in Dessau North (Photo: T. Tanninen)

In the southern part of the quarter, the Griindeneit buildings were demolished on the grounds of their poor state of repair, being replaced by panel buildings. Throughout the area there have been great numbers of claims for restitution, so that by the time this handing-back process is complete only 20 per cent of the old building lots will remain in communal hands. For the old owners who are returning, investment in the renovation of the dwellings is not lucrative. A tendency can already be discerned: if renovation is carried out, it is done on a luxury basis, and buildings are being converted predo- minantly for commercial use. This process goes hand-in-hand with the displacement of the less wealthy sections of the community (see Konter 1992). Since 1990 the area has been the subject of planning considerations; however due to limited resources and the unclear situation regarding ownership the renovation efforts of the city administration have, to date, been scarce.

Housing Estates in Dessau

The Wolfen Estate in Dessau was built between 1928 and 1931 for lower-grade white- collar workers in the LG. Farben-Filmfabrik Wolfen, and was equipped with facilities that, for that time, were extraordinary: swimming pools, tennis courts, laundries, parklike open spaces and separate gardens. These flats, which are today in the hands of the ORWO-Filmfabrik-AG in Wolfen are, according to the management plans, to be privatised. To this point, the social character of the estate has been retained - that is to say first and foremost white collar workers in the chemical industry - the only change being that the greater part of these are now either pensioners or in early retirement. The ORWO plan for privatisation had no interest in the social structure of the housing estate when they offered the flats to the tenants in a non-reconstructed state. The repayment of loans was beyond the financial means of individual householders.

Figure 2: Privatization, own initiative and management..., but how? (Photo: T. Tanninen) During a meeting of the inhabitants held in the summer of 1991 which was called by a tenants' organisation and the Dessau Bauhaus, the ORWO management stuck to its strategy, which allowed the sale of flats to other interested parties. As a result of this experience, an Association was formed from the existing Citizens' Action Committee, to demand "socially compatible rented flats" on the estate as well as "air privarisation of flats': tailored socially to the association's members. After many rounds of discussi- on, the Association, which by now was functioning as the representative for the interests of the inhabitants, succeeded in securing a reduction in the purchasing price and the continuance of the rent contracts. At the same time, the Association organised contacts with the municipal authorities, in order to obtain influence in the renovation of the estate and in the designing of the open spaces. The "Regional Housing Estate Renovation" working group founded in the Bauhaus Dessau in September 1991, acted as a mediator in discussion about and of the estate's cultural content, as the initiator of contact between different institutions, bodies and scientific institutions to thereby assist in the process of revival in the region. (Kegler 1992.)

Conclusion: a Difficult Situation without any Easy Solution

Having clarified the dimensions of the task of reconstructing the built environment and improving the housing conditions in Eastern Europe, we will go on to discuss some of the related economic and political aspects of "reconstructionand improvement". The problems, then, are enormous, not least in the econom f. The means of production are outmoded, productivity is low, and the quality of products is such that they have difficulties to compete on the world market. The national economies of Eastern Europe have great problems in selling their products and thus get enough money in order to pay for what they need. Moreover, the new governments have to pay back huge loans made to the former Communist regimes. (e.g. Lang 1990; Andorka 1993.) The new governments are not attempting a "third"or "middle way" of develop- ment. They are trying to undertake a rapid, free, capitalist market form of development

For example, since 1989 the GNP has decreased in Poland 23 per cent, in Czecho-Slovakia by 20 per cent and in Hungary by 17 per cent and in Russia by 45 per cent. First in 1992 the economy stabilized in Poland and in 1993 the GNP increased by 2 per cent. Other East-European countries have until now very unstabilized eco- nomies, big unemployment (excepting the Czech Republic), great idation rates and falling real salaries (Hirsch 1994; Harenberger kderlexikon '94f95). The amount of poor people has doubled in Eastern Europe between 1989 - 1992 (Unicef 1994). without any realistic view of what "the market" or a market economy is, and how it functions. Exascerbating the problem, they lack many of the basics necessary for such a rapid form of capitalist development6. For example, an innovative middle class prepared to take risks is negligible in these societies. There are many factors why economic recovery goes forward at a slow rate. Following the collapse of a monolithic power structure and a one-party political system, new parties, civic movements, free citizen groups and so on have flourished - all with the aim of participating in the development of democratic political practice. We can identify enonnous political enthusiasm in Eastern Europe but we maintain that people have a very idealistic view of democracy, of how and at what speed it functions. People have great difficulty in understanding what the so-called "rules of play" in democracy are. As Kaminski (1993, 179) concludes: "l'?ais cultural infrastructure for democracy and the market is weak" New politicians demonstrate a low capacity for cooperation with other parties. Overall, great rivalry between persons and groups is identifiable (Fehr 1993). The capacity to make decisions, necessary for steering development forward, is limited, decision making requires much time. "Neither the market economy, nor the civil society can be established from one day to anotheri1(Kaminski 1993, 178). People become disillusioned with their politicians and new elections are called after short intervals. The newly elected politicians are expected to find quick solutions to many big problems - which cannot be done - and which results in the citizens becoming tired with democra- cy ... Many countries are in a vicious circle of "development"in terms of the efficiency of political practice. Generally speaking, the political systems of these new democracies will be unable to deal with the enormous social problems these countries will be faced with in the foreseeable future. Political systems are too unstable to be able to drive forward a consistent, long-term policy for the future (e.g. Fehr 1993, Mattusch 1993). As a result of the poor economy, the unclear question of property ownership, an underdeveloped legal system and other factors, the accommodation situation in particular is very problematic. Economically speaking, the new regimes tend first to invest in the modernisation of industry and other infrastructures (communications) rather than in the reproductive sector (housing, servicing, culture).

This was one of the most discussed themes at an international research seminar Urban Planning and Environmental Policy in the Context of Political and Economic Changes in Central Europe arranged by the Institute of Sociology (Prague) and the International Sociological Association, Prague, 9 - 12 January 1992. A seminar document is published by Institute of Sociology, Academy of Science of Czech Republic, Prague 1993. To speak about the priorities of housing policy in different countries is, naturally, a broad topic, and it depends on real problems such as the variation in the shortage of flats between countries and between different regions within one country. We see the situation in East Germany as follows: the repair of old housing stock must be given priority over large investment in new housing production. This is why there are relatively many dwellings per thousand citizens (422) in the former G.D.R. although most of these are not modem. The cost of new production is too high and only a small part of the population is able or willing to pay such high costs or rent for a new flat. Some people are able to use the supply of normal bank loans for the modernisation of their private houses. This system of saving has been stimulated by the state too, but it can only help a small part of the population. To conclude, regarding the actual situation in East Germany: pluralistic democracy at its initial phase is not functioning well there either. After the downfall of old command structures a public administration is unable and, on political principle, unwilling to provide an overall steering capacity (Heise 1992, 147). It is difficult for politicians together with the administration to undertake repairs and make decisions about city renewal, about investment in infrastructure and housing. One explanation is that everything now has to be regulated according to a judicial system and laws which come from the west, which are unable to deal with the complex problems of 'post socialist" reality. On the streets, people feel this legislation to be mostly of an "im- perialist" nature and unable to solve the real and acute problems of the population. (See e.g. Offe 1993, 812-815.) A Communist society was a centralised state. This meant concentration of power, finance, and competence in the central hierarchy of state administration. Large struc- tures and organisations were planned and developed. This is why the capacity for solving problems independently at regional and local level is very low. Huge or- ganisations for former state-owned rented housing blocks are now suffering as a result of this. The question now is how to find administrative and financial models for the housing owned by the municipalities. Many of the latter want to relieve themselves of these problems by privatisation, by selling the flats. In spite of a large flow of capital from the central federal Govemment, the econo- mies of the so-called five new "Under" are not in good shape. It has been calculated that approximately one third of the national product of the former G.D.R. has been transferred into official subsidies from what was referred to as West Germany. The productivity of labour is approximately half that of the West. People are paid 50 - 65 per cent of what their peers receive in the old bder. All this means that housing economics cannot function in the same way as in West Germany. Families are unable to devote as much money to housing as is necessary in a western model, market-based

2 Transitional Housing Systems 25 system of housing economics. Especially urgent is new investment for the modernisati- on and improvement of the old buildings with their insufficient conditions. All of this means that in the near future the economy in the eastern part of Germany will be unable to accumulate the capital required to solve the housing problems there. If this can only be achieved through financial aid from West Germany then we can imagine how great the problems are that face other former socialist countries, where there are fewer opportunities for securing financial support. Our main conclusion is that there is no simple solution to either the housing problem in East Germany or that in the whole of Eastern Europe. Many small-scale solutions, private initiatives but especially new administrative and financial models must be approached. The renewal of the old housing stock and infrastructure is such a huge task that it will require a long time to realise: at least 10 - 15 years, perhaps 20. Where we do see some hope, albeit little, is to support people in building small cooperatives in order to purchase and run the former rented properties. There is some tradition of cooperatively owned housing in Eastern Europe, this however being for the most part large and centralised in nature. This form of collective property finds some support amongst ordinary people. All forms of collective solidarity in the former socialist countries cannot be labelled as negative. Particularly in Gemany, there has been much experience with social housing reform movements, beginning as early as the 1920s. These were based on workers' self organisation and management (Harloe 1992). In the new societal situation in Germany it should be reasonably possible to motivate and assist people to mobilise themselves on the basis of the old settlement projects of the workers and on the foundation of the psychological ability of the former G.D.R. population to come together to solve housing problems through solidarity. People would need a degree of management aid to organise themselves into small housing cooperatives at the local level. But what they need urgently is a modem legislative and legal system which provides full support to this kind of housing. Following Marcuse (1992) new forms of "cooperative private ow- nership" and "non -profit cooperative ownership" will be needed, thereby motivating people to work together with each other on the basis of their real interests and the acute situation in order to improve the quality of their housing. Because housing economics in Eastern Europe have reached crisis point, this kind of mobilisation assumes great importance. Through self-management by the residents and "self-help activities" it is possible to reduce the costs of the modernisation, maintenance and administration of accommodation. We know of many examples on an international scale and with small cooperatives at the local level this is particularly workable. However, the official system of financing which subsidises housing must give priority to this type of housing model. But this is neither the case in East Germany nor any of the other Eastern European countries. The fact is that we do not have fhancial support of this kind at our disposal, something that a rapid development of cooperative housing models presumes. We cannot foresee the conservative government of the Federal Republic of Germany undertaking such reform7. Does the Social Democratic Party have any real alternative housing policy? The real question in Germany is this: is the social democratic movement capable of formulating a new concept for housing policy, one that could better support a cooperative model relevant to East Germany, and can they find a realistic financial model for this? And are they strong enough to win the next election? When yes, then perhaps a new, socially-orientated housing policy will become possible.

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See for example a discussion about a dominant private market led model for housing in the European Community in Harloe, Michael (1992) "fie Social Con- struction of Housing", p. 5. nkse und Soziale Konflikfe im neuen Ewopa, Verhandlungen des 26. Deutschen Soziologentages in Dusseldorf 1992, 174-184. Frankfurt/New York: Campus Verlag. Kegler, Harald (1992). Siedlungen im Gegenwind - der andere "Aufschwung Ost" zwischen Dessau-Bitterfeld-Wittenberg. Ein Beispiel: die Wolfener Siedlung in Dessau. Jahrbuch Stacierneuenmg 1992, Berlin. Konter, Erich (1992). Bestandentwicklung Dessau Nord - Grobkonzept eines Forsch- ungsvorhaben. Dessau 1992. Lang, Istvan (1990). International and National Policy Challanges - East European Experiences. In Britt Aniasson & Uno Svedin (Eds.) Towarh an Ecologically Sustainable Economy, 101-110. Stockholm: Forskningsr3dsniimnden 1990. Lebenrverhaltnisse und Soziale Konflikfe im neuen Europa. Verhandlungen des 26. Deutschen Soziologentages in Dusseldorf 1992. Herausgeben von Bernahrd Schafers. FrankfurtiNew York: Campus Verlag. Marcuse, Peter (1992). Rented Housing in Eastern Europe - Implications East and West. A paper presented at the conference "Rented Housing in Europe: Experien- ces and Prospects", 15-19 August 1992. brebro, Sweden. Marcuse, Peter & Staufenbiel, Fred (Eds/1991). Wohnen und Stadtpolitik im Umbruch. Berlin: Akademie Verlag. Mattusch, Katrin (1993). Demokratisierung in Osteuropa? Die Begre~mngvon Demo- kratisierungschansen durch politische Kulturen am Beispiel des Baltikums in 26. Deutscher Soziologetag in Diisseldorf 1992, Tagungsband 11, 444-447. Opladen: Westdeutscher Verlag. Michalovic, Peter (1991). Housing dynamics in Czechoslovakia: What brings the mass housing construction? In Galland (Ed.) Housing evaluation. CIB Publication 118. Lausame 1991. Music, Valdimar (1992). Multifamily Housing in Slovenia. Between Dogma and Reality. A paper presented at the conference "Rented Housing in Europe: Experiences and Prospects", 15-19 August 1992. brebro, Sweden. Offe, Claus (1993). Die Integration nachkommunistischer Gesellschaften: die ehemalige DDR im Vergleich ihren osteuropaischen Nachbarn. In Lebenrverhaltnkse und Soziale Konflikfe im neuen Europa, Verhandlungen des 26. Deutschen Soziolo- gentages in Diisseldorf 1992, 806-817. Frankfurt/New York: Campus Verlag. Sandu, Dumitru (1991). Why and how is the urban housing stock changing in Romania? In Galland (Ed.) Housing evaluation. CIB Publication 118. Lausanne 1991. Schumam, Wolfgan & Marcuse, Peter (1991). Wohnungsprobleme und widerspruch- liche Wohnungspolitiken. In Peter Marcuse & Fred Staufenbiel (Eds.) Wohnen wrd Stadtpolitik im Umbruch. Berlin: Akademie Verlag. Siksio, Ola (Ed.11990). Housing Sociology in Times of Change. Research Report SB:29. Gavle: The National Swedish Institute for Buildning Research. Statistisches Jahrbuch 1989 der DDR. Berlin 1989. Telgarsky, Jeffery P. & Struyle, Raymond J (1990). Toward a Market Oriented Housing Sector in Eastern Ewope. Urban Institute Report 90-10. Washington: The Urban Institute Press. Ulrich, Hans & Helzer, Tobias & Mundemam, LAhmendes (1992). Erbe. Die &it, No. 19, April 1992. Unicef (1994). Central and Eastern Europe in Transition. Public Policy and Social Conditions. Regional monitoring report 1. Geneva. The Present Housing Situation and Emerging Problems in Latvia*

Inara Marana

In the last three years in Latvia, as in all the former socialist countries, changes have taken place due to the collapse of the centralized administrative system and planned economy. These changes have brought a new orientation towards democratic admini- stration and a market economy. During these years, changes in the state housing policy have been characterized by rent reform, privatization of the state-owned sector, denationalization. The course of carrying out these activities is similar in many countries, but at the same time it is different, determined by the different peculiarities of political, economic and social development of each country as well as by that particular starting position when the course of reforms and changes is carried out. The changes are neither simple, nor painless, because many problems arise during this period. This paper is mainly based on recent statistical data of the State Committee for Statistics, of the Ministry of Environment and Regional Development. Additional data were obtained from interviews with people carried out in 1993 by the Latvian Building Research Institute. The paper will characterize: - the housing stock of Latvia, - the provision and demand for housing (flats), - the changes in the housing policy and some problems that emerge during its fulfillment.

Latvia has been an independent republic since 1991. The surface area is 64,500 sq. km. The country is inhabited by 2.7 million people, of which 52 per cent are Latvians, 34 per cent Russians, 3 per cent Belorussians, and 11 per cent other nationali- ties. 71 per cent of the population lives in urban settlements. Riga, the capital city, has 857,000 inhabitants. The GNP in 1992 was estimated 1,930 US-dollars (in 1991 3,410) per inhabitant. (Harenberg Enderlexikon '94r95. Dortmund 1994.) Characterization of Housing Stock

In the period of 1945 - 1991 a housing policy was carried out that strictly regulated the building and distribution of flats. The housing policy during these years has had a marked influence on the housing stock. In 1992 the housing stock of Latvia was 32.8 million sq.m. total space, the total space of urban housing stock was 21.0 million sq.m. and 11.8 million sq.m. of rural housing stock (Table 1).

Table 1: Statistical Charasteristic of Housing Stock in the Republic of Latvia (01.01.92)

Total space and size of flats Total space and living space

Space (million sq.m.) - in urban area 17.9 11.8 - in rural area 19.5 - in statelmunicipality stock 17.0 - in privately owned houses 26.0

Average Average living space u - in statelmunicipality stock 11.0 - in privately owned (mainly single families) houses 17.0

The average total space of flats is 52.6 sq.m., living space 33.1 5q.m. The majority - 45.2 per cent flats are with 2 rooms, but the number of flats with 1 and 3 and more rooms is approximately equal - correspondingly 25.9 per centB.9 per cent (Figure 1). In Latvia the average total and living space per capita is correspondingly 18.31 12.0 sq.m. In urban areas these figures are smaller - 17.9111.0 sq.m. than in rural areas - 19.5 I 14.0 sq-m. In privately owned stock (mainly single families houses) the average total and living space per capita is bigger - 26.0117.0 sq.m. than in state, municipally, organization owned housing fund (17.0 111.0 sq.m.). If the family is bigger the total and living space per capita is smaller. Single people are better provided with total and living space (total space - 34.0 sq.m., living space - 22.0 sq.m.), especially in rural areas, but it could create a false impression. Therefore it is important to note, that 42 per cent of single people live in old houses, that have been built before World War 11. The main part of these houses is in extremely bad condition and without conveniences. At the beginning of 1992,2.8 million sq.m. or 8.3 per cent of the total space of housing fund of state/municipalities and public organizations and co-operatives was in an extremely bad state of depreciation. Enough detailed and precise information on the real quality of housing stock is not available because until this time our statistics did not want to reflect those parameters that would allow to characterize housing stock as bad in comparison with other states.

Figure 1: The Share of Different Types of Flats in Latvia (01.01.93)

3 rooms or 1 room 26 96 more 29 %

I 2 rooms 45 %

Sources: Statistical yearbook of Latvia 1992; Latvijas dzivojamais fonds 1992 gada.

28 per cent of the population live in houses that were built before 1940s. The quality of this stock is low, firstly because of the unsatisfactory maintenance during the last 50 years and most of the communal flats have been established in this old stock. 2.3 per cent of families live in these "communal" flats occupied by two or more unrelated families. From the 60's until the 90's blocks of flats were usually built in towns and in countryside. About 65 per cent of urban and 49 per cent of rural populations live in houses built from 1961 till 1988. We can expect in the next 10-20 years that the new housing estates may turn physically and morally into slums. Housing stock of state/municipalities and public organizations and housing cooperatives is rather well furnished with conveniences, better in urban than in rural areas (Table 2). Unfortunately, we have no data about how privately owned houses are furnished with conveniences, because we have no data about it in the previous statistics. Table 2: Housing Stock (excluding privately owned housing) Furnished with Conveniences (as percentage of total living spacel01.01.92.)

Sources: Statistical yearbook of Latvia 1992; Latvijas dzivojamais fonds 1992 gada.

The Housing Provision and Demand

During the later years the goal of housing policy in Latvia as well as in other former soviet republics was to provide every family with a separate flat or house. In the 80's the communist party promised to reach that goal in the go's, in the 90's it was to promised to reach the goal in 2000. So socialist countries wanted to show once more to all the world that they were able to solve the housing problem and it would be one positive statement of the advantages of socialist system. To reach this housing policy goal the construction of houses had to be increased continuously. The multi-storied houses were better suited for this purpose, and they were also copied from standardized projects both in cities and in the countryside. At the same time the demand for housing increased constantly (who would not want to get a flat without payment?) though the state made restrictions to join the queue for improved housing conditions (for example less than 5 sq.m. total space per capita was necessary for a family to join the queue, etc.). The housing programs of that time were not realistic because the possibilities of the state were not taken into consideration. It was not possible to satisfy the demand for housing even at a quicker pace of constructi- on. And very soon the state exhausted its abilities. In the previous period the housing construction financed by state, local government and statutory companies reached its peak in 1987, when 1.162 total space thou. sq.mJ 23.0 thou. flats were built (see Table 5 in Appendix). The highest volume of privately- built, subsidized housing was achieved in 198711988, when 1.80011.700 flatshouses were built. The volume of construction had already started to decrease before the restoration the independence of Latvia and in the 90's when new construction decreased even moreof as a result of the economic crisis. In the first part of 1993 the construction was still decreasing. In 1993 127 thou. sq.m. or 1.600 flats1 houses were built. In 1992 and in first part of 1993 the people have built less at their own expense and also state, local government and statutory companies offered less flats. In 1989, 7 times more total space was built at state and local government expense than at people's own expense and using state credit, but in 1993 this proportion changed considerably - the same total space was built at state and local government and at the population's own expense, but the number of govemment built flats was still two times bigger than that built at the population's own expense. In recent years the average total space of flats built on state and local government resources has not changed essentially, but the average total space of houses built at the people's own expense has increased considerably? As said before, the number of builders has decreased, but newly-built houses have become bigger (more rooms, auxiliary premises, storeys etc.), more comfortable and greater and richer variety of building materials has been used. In Latvia one group of people who build at their own expense are called - "new rich people ". They can satisfy their housing needs that are higher than housing needs of people from middle or lower stratum of the society and increase their income correspondingly. A decrease in housing provision started already in 1987, but at the same time the demand for housing (the number of people who are in line to improve their housing conditions) increased and reached its peak in 1991 when in Latvia more than 155 thousand families were in line to improve their housing conditions, including about 87 thousand families in Riga, about 55 thousand in other cities and 13 thousand in the countryside. Of course, these data show the situation of a planned economy when flats could be assigned without payment, producing unreasonably great demand for flats which does not reflect the real demand for housing in the period of change to market economy and the corresponding housing market. Why do I take up these data that reflect the previous situation? It is because, we have no other data that would allow us to talk even approximately about the populati- on's demand for housing and its changes. When the law State and Municipality ass^- tance in the Solution of Homing Problem was passed, the registration that fixed the number of families who needed improvement of their housing conditions was eli- minated. A new registration was started based on the new law. And maybe it will take a long time before we will know, how big and diverse the housing shortage is. Nevertheless we can say that the demand for housing has decreased, which could be connected with the following:

- - In Latvia the average space of houses has increased by 106 sq.m. in 1989 to 149 sq.m. in 1993, in urban areas by 107 sq.m. to 146 sq.m., in nual areas by 106 sq.m. to 124 sq.m., but in the capital of Latvia Riga more - by 109 sq.m. to 182 sq.m. - the decrease in the total numbers of the population, - the lowering of the living standard of the main part of the society in a situation of economic crisis, - the essential increase in rent costs.

The changes in the population's demand for housing could be due to changes in denationalized dwelling-houses, when the former owners want to live in their regained houses. The changes in demand could also be due to exchange of flats. All objective circumstances show that housing demand has decreased, but at the same time it has been varying referring to the size and quality of flat. The data obtained from our own interviews and observations carried out at the beginning of 1993 show that a lot of people live in very bad conditions and they cannot improve their housing condition without government and local government support.

Rent Reform

In the period from 1940 to 1991 the state granted rent subsidies. Tenants' payment was approximately 6 per cent of the necessary financial resources for repairing and reconst- ructing the buildings. In 1991 the first steps towards rent reform were made in Latvia and rent increased 5 - 6 times. In May 1993 the government passed the law, which also provided rent allowance to families with low income (State and Municipality Assistance in the Solution of the Housing Problem). After that, in the first part of 1993, local governments worked out the income declaration that allowed them to exclude certain families among all the families that have the right to get government support for rent and communal payment allowance. The financial resources allocated by the government are not sufficient for all the families with low incomes and who need support to get it. The amount of this support covers about 25 - 50 per cent of rental costs of one part of population with low incomes. In July 1993 the next step towards rent reform was carried out. It states that either the owner or housing manager, when fixing rent levels, can take into consideration different factors that allow him either to increase or decrease the rent - e.g. lay-out, comfort of the flat, location of the flat in the city etc. The government has fixed a certain minimum and maximum of rent limit that is 2 to 6 times higher than the previous one. The rent costs in privately owned houses are not allowed to exceed that fixed by the government. At the same time this decision demands that the rent costs and maintenance expenses must be in balance. So there is a contradiction between the demand of the government to cover housing maintenance expenses and the real calculation that shows that maintenance expenditure for all types of houses is higher than the maximum rent costs fixed by the government. No refom can be carried out painlessly for some part of the society. The same can be said about the rent reform, as the fixing of higher rent costs influences directly the people and more painfully those families with low income. How does a rent reform proceed? In the heating season of 199211993, 40 per cent of rent payers were in arrears. Different factors influence the formation of this situation, the most essential among them is the very low level of people's income. The data about rent costs in the summer season show that 45 per cent of tenants pay the rent regularly, 42 per cent do it irregularly, but 13 per cent do not pay at all (State Committee for Statistics). The data that were collected in September 1993 in one of the districts of Riga (Latgales priekspilseta) show that 22 - 30 percentage of tenants do not pay flat rent and for communal services (such was the situation when the heating season had not started). At the same time the other published data show that payment for rent, communal services, maintenance of privately owned houses are only 6.1 per cent of total family expenditure (Latvia in Figures 1993). We have to draw the conclusion that these data do not reflect the situation completely. We must not forget that at present the polarization of people according to their income progresses quicker and quicker - the standard of living of people with high incomes increases more, the standard of living of people from middle stratum decreases, but the standard of living of the lower stratum decreases drastically. The data obtained from separate sources show that for one part of the population payment for rent, communal services is 50, 60 and even 100 per cent of a family's income. Even during soviet rule a certain part of tenants - approximately 10 per cent - did not pay the rent, but now they are joined by other tenants who are not able to pay rent because their income is too low. The government passed a decision on sanctions against debtors - turning them out from the flats. Nobody expected, that the situation would be so difficult, that this number of debtors would be so great. And therefore a new decision on different sanctions involving warnings are sent to tenants and in some cases gas and electric light have been cut off. So there are now sanctions against all debtors - these do not want to pay rent and these who cannot do it. That create a situation of psychological discom- fort and social tensions. Rather often tenants are advised to exchange their flats to improve their solvency, but it is not so easy to do. On the one hand there are different restrictions that obstruct the exchange process: - the tenants are not allowed to exchange flats that are of different ownership forms, - there are not special services that would help the tenants to exchange flats, - there are not enough vacant flats in the government and the municipality owned housing stock, - the tenants have no money to pay for expenses caused by flat exchange.

On the other hand, especially aged tenants are psychologically unable to come to a decision to exchange the flat. Both subjective and objective factors influence this process.

Privatization and Denationalization

The privatization of housing is one of the most important problems in Latvia in the period of transition. In Latvia a law about general privatization has not been passed, but separate laws and acts are functi~ning.~ It is characteristic for Latvia that a large part of the housing stock is in the state/municipalities rental sector (58.9 per cent of all housing on 01.01.93.) and a small part in private sector (27.8 per cent), that is typical for centrally planned economies (Table 3). The proportion of privately owned houses in Latvia differs greatly from the situation in other former East European socialist countries. The situation in Latvia during 1993 has changed, but at the present moment we have no official and precise data about changes in ownership form within the housing stock. The working data of the Ministry of Environment and Regional Development show that the privately owned housing stock has increased. In the middle of September 1993, 40 per cent of all housing stock was privately owned, in urban areas - 12 per cent - 25 per cent, in rural areas - 46 per cent - 70 per cent. The experts think that privatization of the housing stock will be one of the most difficult forms of privatization. Until now the government has not answered the

Legislation Act about Returning the Real Estates to their Legal Owners, Legis- lation Act of Denationalization of Real Estates in the Republic of Latvia, Legislation Act about Privatization of Co-operative Flats, Legislation Act about Selling of Single family Houses. Table 3: Housing Stock by Ownership Form in some East European Countries (%)(data of 1990 - 1993)

opera- tive 4.9 - 5.6 - 18.7 - 24.3 Other 8.4 - 8.5 - - - - Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Sources: Gentcher 1992; The link between housing policy ... 1992; Latvijas dzivojamais fonds 1992 gada. question - who will be the ones to privatize? It is not to easy to get the answer, because in Latvia only 52 per cent of the population are native Latvians and maybe this problem cannot be solved as in Estonia and Lithuania, where the native nationality is correspondingly 62.4 per cent and 79.6 per cent. The former parliament has put off this problem, because the citizenship problem was not solved. Until now the question has not been answered - what to privatize with? There were several versions worked out, one of them that privatization would be done with privatization cheques (1 sq. m. of space would cost 2 - 3 privatization cheques). In this case the people who have worked all their lives will not be able to privatize their own flats. So the question is still unanswered. At present the government is working out the law of using privatization cheques in privatization of housing. A very important problem is - what to do with multi-storey residential houses? Frankly, little attention is paid to this problem, maybe partly because we have no experience in this problem. The housing stock in new multi-storey residential houses is very big and it makes the solution of this problem difficult. Before passing a decision on plivatization of this stock it would be logical to know: - how many people want and are ready to privatize flats in this part of the housing stock, - how many people living in these houses will have citizenship and will they be able to privatize their flats (for example in Riga about 20 per cent Latvians and 80 per cent people of other nationalities live in new residential areas)? In West European countries the problem of the return of property to the former owners has never existed. This is a new problem that has arisen in former socialist countries. In Latvia 14.958 applicants have been submitted from former owners (Table 4). Now the property has been returned to 2112 or 14 per cent of owners. A little more than 213 of applicants live in Latvia, the other applicants live outside Latvia, mostly in the United States (13.1 per cent), Israel (3.6 per cent), Australia (3.2 per cent), Germany (2.2 per cent), England (2.1 per cent) etc. Houses built before World War II were mainly denationalized.

Table 4: The Denationalization Course in Latvia

Including houses in - state owned fund

Sources: Narnipasumu denacionalizacijas gaita Latvija 1992 gada.

In the process of getting back property rights problems arise for all - the government, former owners, tenants. The government is confronted with the demand of the former owners to get their property back in its former condition which the government cannot guarantee. Neither the former, nor the present government is responsible for the property that was destroyed during World War II. In this case the former owners can get the compensation for the plot of land. If property was damaged after the war the former owners can get the compensation. Rather often the former owners have financial problems where to get the money, to improve and preserve the houses. The credits are difficult to get, rent costs are low and cannot exceed the price stated by the government and it does not cover maintenance expenses. Tenants are also confronted with problems - regardless of the law - that grants them the same flats for 7 years and does not allow the owners to increase flat rent and to turn them out etc., the tenants are depressed by uncertainty and worried about the future. Conclusions

The housing policy of any country has its important place in the program going over fiom planned economy to a fiee housing market. At present a lot of laws and decisions connected with the principles of the market economy have been passed in Latvia, but most of them are not effective. Now, when carrying out the rent reform, privatization etc. there are laws and decisions aimed to put our housing in order, but on the other hand there are not mechanisms and resources to carry out these laws and decisions. At the same time we do not take into consideration the housing processes: the demand, need and financial ability of population to solve the housing problems, the attitude of the people to the privatization, denationalization etc. Seeking the solution to housing problems is more difficult because we cannot afford to invest the necessary resources. It is desirable for the authorities to get a deeper understanding of the people in need. Literature and Statistical Sources

1989, gada tautas skuitisanas rezultati Latvija. Statistisks Biletens, LI dala. Riga 1991. Gentcher, Z. (1992). me lihbetween Housing Policy and Local Forecasting Needs. Seminar on Housing Forecasting and Programming at Regional and Local Levels. 23-27 November, 1992. Strasbourg, France. me housingfwrd of Latvia SSR for 1988. The main Computing Center, Goskomstat for Latvian SSR. Riga 1988. me housing fund of Latvia SSR for 1989. The main Computing Center, Goskomstat for Latvian SSR. Riga 1989. Individualo dzivojamo maju celtnieciba Latvijas Republika. Latvijas Republikas Valsts Statistikas komiteja. Riga 1990. Individualo dzivojamo maju celtnieciba Latvijas Republika. Latvijas Republikas Valsts Statistikas Komiteja. Riga 1991. Individualo dzivojamo maju celtnieciba Latvijas Republika. Latvijas Republikas Valsts Statistikas Komiteja. Riga 1992. Individualo dn'vojamo maju celtnieciba Latvijas Republika. Latvijas Republikas Valsts Statistikas Komiteja. Riga 1993. Latvia in Figures 1992. Riga 1993. Latvian Statistics in Brief: Baltika. Riga 1993. Latvijas dzivojamais fonds 1992, gada. LR Valsts Statistikas komiteja. Riga 1992. me link between Housing Policy and locally Estimated Needs. Report by the delegation of France. Seminar on Housing Forecasting and Programming at Regional and Local Levels. 23-27 November, 1992. Strasbourg, France. Namipaswnu denacionalizacijas gaita Latvijas Republika 1992 gada. Republikas Valsts Statistikas Komitejas galvenais skaitlosanas centrs. Riga 1993. Statistical yearbook of Latvia. State Committee for Statistics of the Republic of Latvia. Riga, 1992. APPENDM: Production of new buildings in Latvia 1987 - 1993

Table 5: Completed New Buildings (total space thou. sq.m.), Number of Flats and Average Total Space (thou. sq.m.)

1st part of 1993 127 55 17 55 Number of flats in thousands 1987 23 .O 21.2 21.2 1.8 1988 18.4 16.7 16.7 1.7 1989 17.4 15.8 15.8 1.6 1990 13.3 9.1 3.0 1.2 1991 7.1 5.1 1.2 0.8 1992 4.5 2.8 0.8 0.9 1st part of 1993 1.6 0.8 0.4 0.4 Average total space (sq.m.) (* No data) 1987 50.5 * * 77.8 1988 61.9 * t 109.4 1989 61.3 * z 105.8 1990 60.8 51.1 73 .O 106.8 1991 64.1 55.1 65.8 118.7 1992 71.1 55.8 66.0 124.5 1st part of 1993 79.4 68.8 42.5 144.8

Sources: The housing fund of Latvia for 1988, 1989; Individual0 dzivojamo maju celtnieciba 1991, 1992, 1993; Latvian Statistics in Brief 1993; Latvia in Figures 1993.

41 Housing in Poland - "Interregnum" between Poor Socialism and ... ?

Ewa Kaltenberg-Kwiatkowska

Housing Conditions in Poland against a Comparative Background

The housing situation in Poland in the nineties is largely determined - quantitatively and qualitatively - by the condition inherited in 1989. This condition in turn was the outcome of specific Polish economic and political events, including the devastation caused by World War 11, and the Polish version of socialism, which I call "poor socialism". Added to all of this was the economic recession after 1989. During the entire postwar period in Poland the number of dwellings has been smaller than the number of households. According to the last national census, there are 100 dwellings for each 112 households. Until 1978 the number of newly built dwellings increased rapidly, but since that time there has been a steady decline in the number of new units (see Table 3). However, even in previous years fewer units were built in Poland than in comparable countries. We see this from the figures presented in Table 1.

Table 1: Number of Newly-built Dwellings per 100 Inhabitants in Four European Countries in 1980 - 1991

Source: Concise Statistical Yearbook of Poland 1991. As a result, the amount of dwellings per 1000 inhabitants in Poland is low'. Besides this, in comparison with the dwellings built in other countries, the Polish ones had less space and fewer (and smaller) rooms. It must also be remembered that in Poland there are more people per dwelling than in comparable countries. In 1988 there were 3.45 persons per dwelling (3.18 in cities and 3.95 in the countryside). The combination of these factors -small flats and a large number of persons per flat - has caused over- crowding that is evident both in the number of persons per room and in the number of meters per person.

Table 2: Indicators of the Housing Situation in Various Countries (end of 1980s)

Source: Report on the World Social Situation 1992; Concise Statistical Yearbook of Poland 1991.

Table 2 contains a comparison of the housing situation in some countries2, while Table 8 (see Appendix) contains a list of indicators of the housing quality in several countries. Despite these inadequate comparative data, it is apparent that housing in Poland has low standards both quantitatively and qualitatively. Space standards in Poland were set by the state, by norms (see Table 9 in Appendix) which established the upper space of dwellings of individual categories in the successive years in which these norms were

In 1992 the amount of dwellings per 1000 inhabitants in the post-communist countries was in Bulgaria 390, Estonia 412, Hungary 382, Latvia 369, Poland 293. For selected western countries the figures were: Canada 373, Denmark 462, Finland 450, Germany 426, Norway 416 and Sweden 471. (Housing and Building Statistics for Europe and North America 1992.)

It is very hard to gather comparable data for the countries that interest us. None of the publications referred to contain complete and analogous data for all the countries compared. Moreover, many of the lists contain different figures. instituted. The housing categories fued the number of persons for which dwellings were intended, since the number of persons in a family was the main criterion that deter- mined the size of the dwelling to which a family was entitled. The size of single-family homes was also restricted, but this was even more evident with respect to newly-built multi-family housing, none of which was privately owned. Here are the normative spaces of flats according to which dwellings were designed and settled. The problem of norms has now returned with unexpected vengeance with respect to two social situations: For what size of a dwelling are families in need entitled to a housing subsidy? What kind of dwellings should be built by municipalities for families that cannot afford other housing? This is the problem of the so-called "minimum" dwelling.

Housing and the Material Situation of Families after 1989

The Decline in Housing

Since 1978 the number of newly built dwellings has been constantly falling, with an especially sharp decline noted in the recent period. "In 1979-1992 the average annual rate of decline was 5.3 per cent, but in 1993 it came to 34.5 per cent and was the highest on record," stated Gospodarka Narodowa 1994 No. 2.

Table 3: Newly-built dwellings in Poland in 1970-1992 (in thou.)

Source: Gospodarka mieszkaniowa 1992; Statistical Bulletin, 211994.

Table 3 gives us a better picture of this problem. The decline in the number of dwel- lings built in the entire country is even deeper in the countryside, where single-family homes often built with their owners' own money and their own efforts dominate. The decline in the number of dwellings built also affects the chances of newly married couples. While in the best year - 1978 - there were 867 new dwellings per 1000 newlyweds, in 1990 there were only 526. The somewhat better situation in recent years is due to the smaller number of marriages, which has been caused by a decline in the population entering the "marrying age." However, after 1995 this group of the populati- on will begin to increase, and will expect not only housing but also jobs. Meanwhile, fewer and fewer dwellings are being built. In 1992 and 1993 it took an average of two years to build multi-family dwellings and as long as five years for single-family homes. Table 10 (see Appendix) shows these important trends over the last two years.

Increase of Costs and Reduced Payment Potential of Families

Prices have increased for housing on the £tee market, for flats built by cooperatives (due mainly to higher interest rates on loans), and for rent and utilities. In 1991 1. Bondarczuk made simulated calculations of what size flats families with average and higher incomes could afford at various rents and loan and subsidy schemes. I referred to these analyses in a previous paper (Kaltenberg-Kwiatkowska 1993). Unfortunately, these interesting simulations were not repeated in subsequent years. To their pessimistic conclusions one may only add that they were made for a situation in which the purchase price of 1 square meter was 1.3 average salaries. At the end of 1992 this price rose to two average per month salaries.

Table 4: Price Indices of Selected Consumer Commodities and Sewices (corresponding period of previous year = 100)

Source: Statistical Bulletin, March 1994.

Table 4 shows the increase in maintenance costs for flats in comparison with the previous year. As one can see, the greatest increase has been in the prices of utilities supplied by monopolies. In Poland, in the vast majority of multi-family dwellings, there is no individual intake and control of heat and hot water; central heating dominates. So the tenant has no possibility of economizing on these costs. This substantial increase of costs is changing the structure of outlays for housing in family budgets. Table 11 (in Appendix) contains data on the proportion of expendi- tures for food and housing, for these two categories determine families' economic possibilities. These are data for only two social categories (employees' households and pensioners' households). It is obvious that all refom schemes and the formulation of a new housing policy must take into consideration this structure of household expenses. If 40 per cent or more of family income goes to food, this shows how low salaries are and how little families can afford to pay for housing. Housing expenses may exceed 25 per cent only if a similar amount is spent on food, as is the case in many European countries (Przeciszewski 1993). Given our structure of expenses, which is characteristic of low incomes, outlays for rent and utilities should not exceed 10 per cent of total expenses. That is why so many families become angered when they hear that "rents are too low" or when another rise in electricity and central heating prices is announced. For this reason many families are in arrears with their rent. According to Gospodarka Miesz- hniowa 1992,37.5 per cent of tenants of cooperatives were behind in paying their rent, 6.5 per cent of them for more than 3 months. In communal buildings the figure is 33.5 per cent, with 12.1 per cent being more than 3 months behind. These data are confirmed by information gathered during two surveys taken by CBOS in 1993 (January and May) on the money management of Polish families3. To sum up, after 1989 the number of newly built dwellings fell sharply, and this tendency will continue because the number of housing starts has also declined. Prices of dwellings both in new construction and on the free market have increased. The relation between the price of one square meter and wages has worsened; utility rates have gone up, especially for heat and electricity. The structure of average family expenditures in Poland is typical for low wages and does not allow for saving money to buy a home, meeting high monthly payments for interest and principal; some families even find it hard to pay their maintenance and utility bills. Moreover, one cannot leave out rising unemployment, which exceeds 15 per cent nationally but is unimaginably high in some regions and localities. Thus it is a constant real and not diminishing threat. In addition, more than 50 per cent of unemployed persons have already lost their unemployment benefits. Thus while in the first part of this paper I argued that socialism was "poor," what can we call the present situation? Now let us look at how these problems and processes are reflected in the thinking of Polish society.

Around one-fourth of the respondents admitted that they often or sometimes find it difficult to meet bills for rent (28 per cent and 25 per cent respectively), while 34 per cent (in January) and 25 per cent (in May) said they find it hard to pay for electri- city. 11 per cent and 6 per cent said they often find it hard to pay for electricity, 10 per cent and 7 per cent - for the rent. People's Assessment of their Own Housing Conditions

According to the comparative statistics on housing, flats in Poland are smaller than in many neighboring countries. These units are also overcrowded, with less floor space per resident. This situation is reflected in the opinions of the adult population on their own housing conditions. According to the results of a 1992 survey taken on a national representative sample (Sierzputowska 1993), only 2 per cent of the respondents stated that their dwelling "exceeds their needs," 33 per cent that it is "entirely satisfactory," 32 per cent "somewhat satisfactory," 19 per cent "somewhat unsatisfactory" and 13 per cent "entirely unsatisfactory." An analysis of the average space of the dwellings and the space per person for each evaluation category (Table 5) shows both the realism of these judgments and the rather modest aspirations of Poles, which earlier studies also revealed (see Dobrowolska in Kaltenberg-Kwiatkowska 1982).

Table 5: Evaluation of Dwellings in Relation to Their Space

We find a similar structure of opinions showing modest aspirations in the GFK surveys, in which a total of 67 per cent of "heads of households" evaluated the size of their dwellings positively and only 27 per cent negatively. Insufficient size is the most frequently stated reason for wishing to change dwellings, as mentioned by 55 per cent of those who would like to make a change (one-third of those polled). The second reason is the inadequate standard of dwellings. Only 5 per cent of this group wishes to make a change because the maintenance fees are too high. In addition to a comparitive list of evaluations and real conditions, we find something else of interest in Table 5, namely, the emergence of certain "threshold values" below which people cease to evaluate their dwelling as adequate. fiis is a space of 50 m2 for a flat and 20 m2 per person To be sure, features other than space also play a role in the evaluation of a dwelling. In the entire survey 12 per cent of the respondents evaluated their housing conditions as very burdensome, 17 per cent as rather burdensome, 32 per cent as rather not burdensome, and 32 per cent as not burdensome at all. However, in cities these judgements ore much worse. There, a total of 42 per cent of those polled evaluate their housing conditions as rather burdensome or very burdensome. Furthermore, 16 per cent of the residents of cities are afraid of a worsening of their housing conditions in comparison with 9 per cent of the total sample of respondents.

People's Assessment of How Much They Can Afford for Housing

More than half (52 per cent) of those surveyed by GFK-Polonia in the middle of 1992 ("heads of households") estimated that they could allot no more than 15 per cent of their monthly income to rent, loan and utilities (Figure 1).

Figure 1: What Part of Your Income Are You Willing to Spend for Housing?

To 40 % More than 40% No answer

The same persons declare that in fact they often have to pay more: 60 per cent of them estimated that more than 20 per cent of their monthly income goes for housing. An interesting methodological experiment was conducted in this study: calculations made by the interviewer were added to those of the respondent. However, even the inter- viewers calculated that more than 57 per cent of the respondents pay more than 20 per cent of their income for housing. Figure 2: What Part of Your Income Do You Currently Spend for All Housing Costs?

.x More than 50 % 10 4.6 No answer I 0 5 10 15 20 % Declaration of respondent Estimated by researcher

Figure 2 lists the calculations made by the respondents and the estimates made by the interviewers. It is noteworthy that according to both calculations, more than 21 per cent of the respondents have to allocate more than 40 per cent of their monthly income to housing costs. This is yet another piece of evidence of the financial banier that exists to improvement of the housing situation (GFK-Polonia 1992). In this situation it is no surprise that 20 per cent of families fear and expect that in the near future they will not have enough money to pay the bills for their flat. Such worries are also expressed by persons who evaluate their current material situation positively. In addition, 11 per cent of all those surveyed are afraid of losing chances for a flat in the future; 28 per cent of those who do not yet have a flat but have been waiting for a cooperative flat express such a fear (Sierzputowska 1993). However, concerns about one's own housing situation cannot be separated from the increasing sense of lack of social security. Here it is worth quoting the authoress of the above study: ''In the face of the wide-spread fears about price increases and lack of money ... the percentage of persons expressing concerns about payments for rent and utilities is extremely low. It is even below the percentage of personr who are behind in their rent and utilities. It is aho disproportionate to the financial scale of the phenomenon. Ihe insignificant percentage of persons who fear exchanging theirflats, i.e., moving into a cheaper but worse flat, confirm the supposition that the society still does not think about housing in market categories" (Sierzputowska 1993). Poverty and the Feeling of Being Threatened

Professor Adam Kurzynowski, an expert on social policy, has estimated that at the turn of 1992 around 40 per cent of Polish families were living at or below the social minimum (Panstwo i kultu ra... 1994). During this time 27 per cent of families evaluated their economic situation as poor or rather poor, 31 per cent stated that their standard of living was below average, 37 per cent average and 15 per cent above average.

Figure 3: Statements Describing How Money is Managed in Households

We are very poor - we don't even have enough for necessities We live modestly - we have to be care- ful about what we spend every day & We have an average standard of living - enough for daily expenses, but we have to save on major purchases We live well - we can afford a lot without worrying about economizing 0 10 20 30 40 % Figure 3 shows that respondents in May 1993 described their money management also pessimistically. Their evaluations of their material situation are a little more conservati- ve than those of specialists. Unfortunately, a sizable number of respondents feel that their situation has deteriorated considerably during the last few years.

Figure 4: Comparison of Present Standard of Living with the Standards of One Year ago and Five Years ago

Improved considerably Five years ago Improved somewhat Remained the same Declined somewhat Declined considerably Hard to say Figure 4 illustrates how respondents evaluate their situation during the past year and in comparison with their situation 5 years ago. As many as 76 per cent believe their situation is worse than it was 5 years ago. So it is hardly surprising that around one- third of families admit to having difficulties in meeting house payments. In the lowest category of incomes 55 per cent of families are in this situation (CBOS 1993a). The studies conducted by various institutions contain the same information about the problems and concerns being felt by many persons.

Figure 5: The Most Important Problems of Daily Life

Lack of money, low income Unemployment Lack of flat, bad 28,2 housing conditions Threatened with unemployment Political problems, lack o political stabilisation Family budget Problems with ecodurllic activities Others Inflation, price increases Bad economic conditions in farming Family problems

No answer N = 973

0 10 20 30 40 50 60 % W For respondent For the most people

Figure 5 shows the structure of responses of "heads of households" in June 1992 to the question about the main problems of everyday life. In spontaneous answers to this question, as many as 54 per cent mentioned lack of money as their problem, and 57 per cent said that this was the main problem for most people in poland4. Unemployment

In OBOP studies a different method was used. On a 4-point scale respondents were asked to estimate how burdensome 20 matters are in their daily lives. The following were evaluated as very burdensome: rising prices 66 per cent of the respon- or the threat of unemployment was mentioned by 20 per cent as their main problem, and by 42 per cent as a general problem. Not having a flat or the money for one was mentioned by 11 per cent and 14 per cent respectively (GFK-Polonia 1992). Such evaluations by people of their current situation and the changes that have taken place in it during the past few years also create fear of the future. The attitude toward the future has been gradually worsening since the optimism expressed in 1989. Ever fewer persons expect their situation to improve, ever more expect it to worsens.

Table 6: People's Expectations Concerning Their Economic Situation in 2-3 Years (per cent of responses)

dents, lack of money 50 per cent, unemployment or fear of losing one's job 32 per cent, a difficult housing situation 12 per cent (but as high as 25 per cent in cities), fear of worsening housing conditions 9 per cent (16 per cent in cities). It is interesting that in this study as many as 48 per cent (62 per cent in cities) mention the lack of political stability as burdensome. (Sierzputowska 1993.)

Table 6 presents information on this subject from studies conducted in three periods: October 1989, June 1991, and March 1992. The hrst two studies were conduc- ted on a representative sample of the urban population (cities with more than 20 thou. residents), while the 1992 study contains data from a national sample and a subgroup - residents of cities. In all of these studies conducted under the supervision of professor L. Beskid (1993) the respondents were asked to estimate what their situation would be like in 2-3 years. In the last study (1992) they were also asked to estimate their situation in two years, in 1994 but in comparison with their situation two years ago, that is, the changes they expected over a 4-year period. One should remember that the retrospective evaluation of changes made in February 1993 and shown in Figure 4 was even more pessimistic (last line of Table 6). One might say, sarcastically, that during the first 3-4 years of systemic changes, in each successive year ever more people feared a worsening of their situation and were proven right. Pessimism about the future is strongly correlated with a low evaluation (on a 10- point scale) of the respondents' own material situation (correlation coefficient Pearson= 0.71.) Among persons who regarded themselves as poor, 17 per cent in 1989, 67 per cent in 1991, and 77 per cent in 1992 did not expect an improvement in their material situation. '!4 total of 17 per cent of adult Poles in 1992 believed that in 1992-1994 they would live in permanent poverty, from which they had no chance of getting out" (Beskid 1993). Using a multifactor analysis the same authoress elaborated a typology of 9 categories of attitudes toward the future. The typology takes into consideration the overall evaluation by the respondent of his material situation, the situation expected in the future, and attitudes of hopelessness or confidence in being able to cope with an eventual threat. By combining these 9 categories one can distinguish the following types of feeling and attitudes:

1. A strong or weak but constant feeling of deprivation or expected poverty accompanied by a feeling of hopelessness 23 %

2. A strong or weak but constant feeling of deprivation or expected poverty accompanied by a resourceful attitude ("somehow we'll get by') 31 %

3. A feeling of being moderately well off, expecting changes to go in various directions but retaining an average standard of living, feeling of safety or active attitude 40 %

4. High subjective evaluation of one's own amuence, complete feeling of security 2 %

No response 4 %

To accentuate the positive, we can say that in 1992 a total of 16 per cent of the respon- dents said "lam not concerned about my material welfare, which is more than in June 1991, when this number was only 11 per cent (Beskid 1993). However, the same authoress writes: "Ihe attitude still typical in 1991 of the worried moderately well-off Pole actively defending himself against a decline in hL standard of living &teriorated severely in 1992, changing into a feeling of being threatened with poverty" (Beskid 1993).

So when in the GFK study (1992) the respondents were asked, "How do you see your housing needs? Are they ,the most important among other needs or are they seconda- ry?, " 30 per cent of "heads of households" answered: "I limit other needs in order to improve my housing situation" and 28 per cent said "I do not have the means either to improve my housing situation or to sahfr other needs on a satisfactory level. " Only 11 per cent said: "I don't have to limit myself; I can afford to satisfr all of my needs. " Although, meanwhile, society is offered the prospect of making housing subject to market forces.

Attitudes toward Subjecting Housing to Market Forces

For several years now it has been proposed to subject housing to market forces in more or less radical forms. The matter is debatable. I have already put forward the arguments for and against treating housing like a commodity (Kaltenberg-Kwiatkowska 1993). In Poland the introduction of market mechanisms to housing has been taking place in several processes with various degrees of advancement:

1. A free market for housing has emerged in which prices are determined by supply and demand. Every newspaper is filled with advertisements and on the walls of cities one can see large posters of real estate brokers.

2. Privatization of the existing housing stock is taking place through the buying up of former company or communal flats and flats in tenants' cooperatives. These processes are moving forward with varying degrees of intensity in different regions of the country, but encounter the barrier of the financial means of families. New problems arise connected with the fact that different types of ownership exist in individual buildings, and new "owners" are not always aware of the obligations they are assuming.

3. Putting rents and charges on a paying basis, that is, reaching a situation in which rents will cover at least the full current maintenance costs of buildings, is a postulate put forward long ago, even before 1989. This means the necessity of raising rents in communal buildings. This postulate has not yet been implemented, chiefly because of the fear of social protests and also because of lack of money for housing supplements for families that will not be able to afford the increased rents. At the same time, during the entire last 5-year period there have been constant increases in the cost of electricity and central heating. Successive increases also have sparked social protests, but the increases continue and take up an ever larger proportion of family budgets, which I showed in Table 11 (see Appendix).

4. The suggestion to make the possession of a dwelling, its size and standard dependent on a person's "purchasing power." In my personal opinion, in the common thinking there is no consent to the real consequences of such a position. Neither does Polish society have a clear idea of what is meant by subjecting housing to market forces.

Table 7: The Attitude toward Subjecting Housing to Market Forces - Arguments for and against it

1. Everyone will have the kind of 1. People who until now could afford a dwelling he can afford, there will cooperative flat will not be able to be no privileges and connections. afford any housing at all.

After such an explanation, 10 per cent of the respondents expressed themselves "definitely in favor of subjecting housing to market forces, " "rather in favor" 26 per cent, "rather against" 29 per cent, and "definitelyagainst" 19 per cent. 16 per cent had no opinion. The type of answer is dependent on the respondents' own material situation. The higher it is, the more they are in favor of "market forces;" the worse it is, the more opponents there are of market forces. In the group against market forces ("definitely" and "rather") are 37 per cent of respondents who evaluate their material situation as "above average," 46 per cent - as average, and 54 per cent - as "below average." (Sierzputowska 1993.) The respondents were also asked if they are interested in owning their flat. The answers: - I would like to own my flat 61 % - I don't care about owning my flat 34 % - I don't care, but I don't have a chance for any other kind" 3 % - No answer 2 %

I call attention to the category "... but I don't have a chance for any other kind." Among the persons who don't have a flat, as many as 95 per cent give this answer. Perhaps this is a sign of awareness that they are already living in an era of "market forces"? This is also a contribution to the problem of privatization. And among those who would like to own their flat, only 17 per cent really plan to invest in their own home. To want to does not mean that one can. This shows that a privatization of flats is a complex problem and requires a separate analysis.

Expectations from the State

Apart from the frequently expressed pessimistic evaluation of their own material situation (which was discussed earlier), many people believe that there are now more poor people in Poland than there were 5 years ago (CBOS 1993b). In December 1992 as many as 76 per cent thought there were "many more" poor people and 15 per cent "somewhat more." The changes are perceived as a polarization of affluence, since as many as 67 per cent of the respondents think there are more rich people (together - "many more" and "somewhat more"). In addition, as many as 80 per cent of the respondents believe that poverty is to be blamed on poor conditions, external circumstances, while only 8 per cent think that people themselves are to blame for their poverty on account of abuse of alcohol, financial mismanagement, unwillingness to work. Respondents in nearly all of the social and occupational catego- ries see the cause of poverty in structural factors. Only the managerial cadre and private businessmen express this view less often (66 per cent and 75 per cent). On the other hand nearly all unemployed persons (91 per cent) attribute the reasons for poverty to external factors. So it is no surprise that 72 per cent of the respondents believe that the state should be mainly responsible for assisting poor people. Figure 7: Who Should Mainly Assist Poor People?

State wid 1 organizations Church

Family

Neighburs Nobody - 0 20 60 %

As revealed in the analysis of responses to the previous question, so also in this case is such a view expressed most often by unemployed persons (82 per cent), least often by the managerial cadre (58 per cent). As regards assistance in satisfying housing needs, the main addressee of expecta- tions is the state. A specific feature of Poland, about which I already wrote, is the problem of many families which for many years saved money for a flat and expected to receive one from a so-called cooperative. Unfortunately, the waiting time became ever longer, while the savings were ravaged by inflation, which reached three digits after 1989. The interest rate on loans taken out to finance the purchase of housing also soared to unprecedented levels. The previous system led people to believe that their savings were insured by the state. What is important from the point of view of the shaping of attitudes is that this system was in place for many years (starting from the sixties). So among persons surveyed by GFK in June 1992, only 13 per cent of "heads of households" believe that the state should not assist those who saved for a flat, 24 per cent think that the state should only help the poorest persons, while 62 per cent are of the opinion that the assistance should be extended to all former savers. The state is attempting to meet these expectations, despite successive changes of governments, despite holes in the budget, and despite the difficulty of finding rational solutions for an irrational reality.

3 Transitional Housing Systems Literature

Beskid, Lidia (1993). Oczekiwania zmiany w sytuacji materialnej (Expected Changes in the Material Situation). In Kolarska-Bobinska, Lena (Ed.). Ekonomicmy wymiar gcia codziennego meEconomic Dimension of Everyday Life). Warsaw. CBOS (Public Opinion Research Center)(l993a). Ekonomiczna samoocena spoleczenst- wa polskiego u progu nowego roku (Economic Self-Evaluation of the Polish Society on the Threshold of the New Year). Warsaw, II 1993. CBOS (1993b). Spoleczna defnicja biedy w Polsce (Social Definition of Poverty in Poland). Warsaw, IV 1993. CBOS (1993~). Sposob gmpodarownia pieniedzmi w Polskich rodzinach (Money Management in Polish Families). Warsaw, VI 1993. GFK-Polonia (1992). Mieszkania w Polsce: sytuacja, zamiary, mzczedzunie. (Housing in Poland: situation, intentions, saving). Warsaw, VII 1992. Kaltenberg-Kwiatkowska, Ewa (1993). Housing in the Period of Transformation in Poland. In Urban Planning and Environmental Policy in the Context of Political and Economic Changes in Central Europe. Prague: Institute of Sociology, Academy of Science 1993. Kaltenberg-Kwiatkowska, Ewa (Ed.11982). Mieszkania. Analyza socjologiczna (Hou sing. A Sociological Analysis). Warsaw. Kulesza, Hanna (1993). Ceny mieszkan a dochody ludnosci w Polsce (Prices of Homes and Incomes of the Population in Poland). Sprawy Mieszkaniowe, No. 4, 1993. Warsaw. Kulesza, Hanna (1992). Obciazenie wydatkami na mieszkania roznych grup ludnasci (Housing Expenses Incurred by Various Groups of the Population). Warsaw: I.G.M. Panshoo i kultura polityczna (1994). Poliryko spoleczna - stun i perspektywy me State and Political Culture. Social Policy Today and Future Prospects). Warsaw. Przeciszewski, Tadeusz (1993). Mieszkalnictwo w gospodarce narodowej (Housing in the National Economy). Sprawy Mieszkizniowe, No. 4, 1993. Warsaw. Sowinski, Cezary (1993). Sytuacja mieszkaniowa i jej postrzeganie (The Housing Situ- ation and its Perception). In Kolarska-Bobinska, Lena (Ed.). Ekonomicmy wymiar zycia codziennego. Warsaw. Sierzputowska, Ewa (1993). Zaspokojeniwe potzeb mieszkaniowych vswietle badan opinii publicznej (Satisfaction of housing needs in the light of the survey on public opinion). In: Sprawy Mieszkaniowe (Housing Problems), No.111993. Warsaw.

Statistical sources

Biuletyn Statystyczny (Statistical Bulletin), March 1994. Warsaw: GUS. Concise Statistical Yearbook of Poland 1991. Warsaw 1994. Gospodarka Mieszkaniowa w 1992 meHousing Situation). Warsaw: GUS 1993. Gospodarka Narodowa T. 2 (The National Economy. Vol. 2). Warsaw 1994. Housing and Building Statistics for Europe and North America 1992. Geneva 1993. Report on the World Social Situation 1993. New York 1993. Rocznik Statystyki Miedzynarodowej 1991 (Yearbook of International Statistics 1991). Warsaw 1992. APPENDIX: Statistical information

Table 8: Floor Space/Person and Persons/Room in Various Countries in 1990

Source: Report on the World Social Situation 1993

Table 9: Normative Space of Flats in Poland (State Limit)

*) NTP (Norms - Technical for Design). Max. ')NIT. ')Max. ')Only some experimental realizations; suggested for the future. gMax. limit for social subvention of rent

Table 10: Number of Newly-built Dwellings in Poland during the Last Two Years

Source: Statistical Bulletin, March 1994. Table 11: Average Monthly per Capita Expenditure of Households (96)

*) Since 1993, households maintaining from non-income sources, other than retirement and disability pensions, were separeted from households of retired persons and pensioners.

Sources: Kulesza Hanna (1992), Statistical Bulletin, March 1994. Privatization of Housing in Croatia'

The privatization of housing is the main pillar of the new housing reform being undertaken during the transitional period in Croatia. That is why it is being treated as the main subject of this paper and not because of its substantial meaning for the housing problem as such. In 1990, after the collapse of Yugoslavia, Croatia became an independent state. The socialist era finished and the transitional phase started. Many features were similar to those in other ex-socialist contries, many were different. The same goes for the transitional period: some features are common to all societies in transition, others are quite unique. However, the war in Croatia makes the situation very different as opposed to other countries. When analysing the Croatian situation, either the common or the specific one, it is necessary to take into account some internal factors concerning its past, present and future, as well as global and concrete levels. It is also necessary to think of some external factors like the spheres of (dis)interest of the world forces, the position on the European map, etc. Without, at least, a short analysis of the societal level, it is impossi- ble to understand and explain any of the specific fields, and thus also the one concer- ning housing.

The Socialist Heritage

Before the socialist period, Croatia had been an undeveloped capitalist society on the periphery of the Austro Hungarian Empire. Together with its weak capitalistic relations, there co-existed both feudalistic and very straight barter economy elements (Novak 1991). The settlement structure was characterised by a low degree of urbanization, a

Croatia has been an independent republic since 1991. The surface area is 56,538 sq. krn. The country is inhabited by 4.8 million people, of which 75 per cent are Croats, 12 per cent Serbs and 13 per cent other ethnic groups. 51 per cent of the population lives in urban settlements. Zagreb, the capital city, has 931,000 inhabitants. The GNP in 1991 was estimated as 3,223 US-dollars per inhabitant. (Harenberger Lihderlexikon '94195. Dortmund 1994.) large number of small villages and towns, a lack of medium sized towns, and a domination of the capital. Industry was the main urbanizing factor (Bicanic 1962; Bilandzic 1976). Even though Zagreb, the capital of Croatia had reached its urban standard in the 19th century, only in the 20th century did it become a real urban center'. After the I1 WW and with the formation of the socialist Yugoslavia, Croatia underwent the same pattern of changes as the other socialist countries and the other Yugoslav republics. Some specific features were the following: openness to the world (no Iron Curtain), non allied politics and the self management social model. At the beginning, the main goals of the strong communist state were: the preser- vation of the political power of the communist party, quick industrialization, deagra- rianism and a quick urbanization. They were all supported by central planning. I.Sze- lenyi calls "the under-urbanization model" the one, in which mass migrations from villages into cities occur, not accompanied by urban infrastructure. By neglecting the urbanization of villages, and concentrating it in a few larger cities, two kinds of serious housing problems were created, which dominated the whole socialist period: - Housing of a low quality in villages both at the household and settlement level ( no urban infrastructure, like running water, no collective sewage system, no shops, schools, post offices, etc.), - A permanent lack of socially owned houses and their generally low standard of quality (small flats, badly constructed, etc.).

However, the very nature of the socialist state and central planning opposed any private initiative and a market economy, even though they co-existed with the state's property and planning. Actually, the private housing saved the whole society from a total housing collapse. That was also the main housing paradox during the socialist period. Also, private housing was (tacitly) allowed because the State needed it. It is important to say that in spite of the rigidity of the socialist state, the whole society was actually developing and being modernised. The first free elections were the result of it. The same can be said for the housing; in spite of hundreds of wrong decisions, unsuccessful housing reforms, the nightmares of the collective housing system, a lack of land values and very low rents, housing was improving in both a quantitative and qualitative sense. The reasons lay in the slow urbanization of cities, and an increase in the urbanization of villages, better construction and a slow release of the private

It is very important to know the level of development before the socialist period if one wants to talk about "the usable past and return to the good old days". initiative. Similar features of the housing situation and policies could be found in other socialist countries2 (in most of them). To make the picture more complete, we ought to mention some statistical data and some research results. According to the Central Bureau of Statistics of Croatia in 1991 (the census), there were 1,772,345 dwellings, 1,575,644 for permanent residence. As many as 1,182,402 were in private and 393,242 in social ownership (25 per cent?. At the end of 1990, the crude surplus of dwellings was about 225,927, more in villages than in cities. Most of the housing stock is quite new: about 60 per cent has been built since 1960. Most is built of solid, stout materials. An average dwelling is of 65 sqm and occupied by 4 member families in two rooms mostly. In 1958, many buildings were nationalized, together with the city owned land. We can say that the existing housing stock consisted of five main categories: - privately built dwellings occupied by the owner, - publicly built dwellings occupied by the owner, - publicly built and rented dwellings, - previously nationalized dwellings, - privately owned and rented dwellings.

There were also some special state owned categories of dwellings (for government officials, army personnel, etc.) Most of the dwellings were equipped with elementary infrastructure, though only in the cities was it truly urban infrastructure, while in many villages it was only individual infrastructure (not connected to the public one). A separate issue is the quality of such infrastructure, particularly in old buildings. For example, some research in Zagreb has shown that the urban infrastructure in the very heart of the city is close to a collapse. Much other research has shown that the differences in housing between the villages and the cities were considerable. The city population was on the one hand privileged, having socially owned flats and a high quality of urban infrastructure, and on the other hand it was punished because of many specifically urban problems (lack of flats, high prices of flats, a low standard of dwellings, etc.) Most respondents were

Some of authors who have written about it: D.Caplan, I.Szelenyi, J.Hegedus, I.Tosic, J.Musi1, P.Michalovic, A.Mousillova, E.Kaltenberg, C.Pickvance, GAndrus, S.Mandic, B.Verlic, S.Vujovic, KPetovar, G.Bezovan, O.Caldarovic, D.Seferagic.

It is important to know the relation between the private and socially owned housing stock if we want to judge the importance of the privatization of housing and its place in the global situation. not satisfied with many things but, surprisingly enough, they were more satisfied than the objective conditions would suggest. To summarise, the main features and housing problems in the socialist period were:- a housing policy based on central planning, building, distributing and main- taining, yet still a quantitative prevalence of private housing (100 per cent in villages, ca.50 per cent in cities), - large differences (inequalities) between villages and cities, between lower and upper social classes, between tenants and owners, - lack of city owned land rent, - cheap rent, expensive flats to buy, - constant quantitative and qualitative shortage of flats.

Transitional Changes

As in all other ex-socialist countries, the changes started much earlier than when the communist parties lost the elections. More political freedom, some economic market reforms and even the housing privatization were already present in almost all of these countries. Transitional changes at a very general level, are similar or at least comparable in all the ex-socialist societies while at the average level, the differences expand. What makes Croatia so very different from nearly all other countries is the present day war, it being the most cruel way of transition4. The shifts from the expected transitory changes (if the conditions were peaceful), are significant: huge losses in human and material resources, a total collapse of the economy, distribution of investments in favour of the military needs, a necessity of central state control, etc. At the same time, the society is experiencing some transitory changes, like: a pluralistic political system, the establishment of the market, privatizati- on in economy (actually an etatization). When speaking about the spatial changes important for housing, we must say that they are drastic: l/3 to 114 of the Croatian

In this paper there is no intention of talking about the war, its causes and conse- quences. The readers will be informed that Serbia and the Yugoslav Army were the aggressors against Croatia and that the war option was considered as the only way of getting freedom from former Yugoslavia and the way to get national sovereignty, for the politicians in power. However, not all of them thought of it as of the only way of solving the problems. Later, the State's strong propaganda in the mass media constantly produced a war atmosphere instead of a peaceful one among the people. According to the Ministry of Health 27,413 people were wounded (7,103 civilians and 802 children) and 6,934 killed (2,189 civilians and 177 children) during the war. temtory is not under its control, many settlements are destroyed or damaged together with the whole urban infrastructure, there are demographic shifts of refugees and displaced people to some safer parts of the country (mainly cities), contrasts arising between un-populated and overcrowded places ... At the territorial level, the transitional changes can analytically be divided into three different levels: (i) The entire territory of the Republic of Croatia has changed. The meaning of frontiers, as well as the territories close to the frontiers are in a totally different position. These are the most insecure zones and people and capital refuse to be placed there. At the same time, these are the territories which are the most important ones for the country's safety, particularly against the present enemies. The new political division of power and the economic changes have produced a decline of some parts of the country ("the twilight zones") while others are blooming ("sunrise zones"), due to their advantages or thanks to their disadvantageous position as opposed to other regions. International, as well as national capital is more interested in investing in the prosperous and safe zones, sometimes for very different reasons (the homesickness of the dispersed Croats, the help from other countries, even for economic reasons), capital can also flow to the unsafe zones. The main task of the State is to distribute the war consequences on all the parts of the country. (ii) The inter-urban network: many new factors play and will continue to play an important role. New centers of the new geopolitical entities (districts = "zupanije") will gain power to the detriment of some previously more important cities. Some collabora- tion, but also many conflicts arise among them. Strong metropolitanization of the capital is taking place: the city of Zagreb has centralised more political, economic and cultural functions than ever before (most of them used to be in Belgrade, the capital of the former Yugoslav federation). That will produce some new division of labour and also many conflicts between Zagreb and other big cities, as well as among other towns in the metropolitan region (some want more independence, others want to be part of the Zagreb region). (iii) The intraurban scene: many changes, similar to other transitional cities are taking place. In the cities damaged by the war, renewal is the main goal. They will for a long time be some kind of a permanent building site. In others, a new political and economic system (marketization, privatization, commodification ....) play an important role. The urban spatial and social structure has changed over night. Some social groups, both old and new are emerging, gentrification and pauperization are reshaping the urban scene. There is also some "city-ization" of the center, CBD (Central Business District) formation, elitization of contents, heterogenization of different offers. A symbolic capital and a symbolic presentation of power have left their marks on the urban scene. However, some grassroot movements, "luttes urbaines" are quite weak, except for the housing issue.They depend on the development of democracy, public opinion and civil rights, and it takes time for them to develop'.

Privatization of Housing

As already mentioned, the privatization of housing is the main pillar of the new housing reform. (Bezovan 1993, Seferagic 1993). The new housing reform is oriented towards deregulation, marketization, commodification, (re)privatization, denationalization and similar. It is, or should be, a part of the development strategy of a global society. There are some major controversies in it: The first being an unusual combination of neo-liberal (advocating the market and privatization) and the strong state control (central decision making) approaches. The second one is the fact that certain specific fields are very thoroughly elabora- ted, while some global strategy is not present. It can only be recognized through some separate decisions and acts. The third controversy is the fact that the State wishes to deregulate the housing sphere and annul the socially owned housing, causing severe conflicts regarding the housing problems of hundreds of thousands of refugees and displaced people and returnees, who have no home, and no means of solving their problems themselves, as well as the thousands of poor people who need some kind of social protection6. The fourth controversy is that the housing reform by nature, forcing privatization in the first place, does not even touch the tip of the "iceberg" of the actual housing problems (homelessness, low housing standards, ...)

We can mark only the real urban movements, organised and spontaneous in the housing field. That can be explained by the real, vital meaning of housing for the people.

The housing problem of the refugees, displaced and returnees is huge. At the moment most of them live in improvised ammodation like hotels, schools, homes for the elderly, tents, old train carriages, barraks or with their relatives and friends. Those who want to return must first build their homes and it proceeds very slowly because of the costs. The others might stay for many years or for ever in their new surroun- dings. Their housing problems have to be solved in a more appropriate way than now. Recently we have had problems with people in the hotels along the coast because the hotels had to be vacated and renovated for the tourist season, but the refugees do not want to leave and go elsewhere to new unknown places. Apart from the housing problems, there mainly are social and psychological, and moral ones as well. In the near future they might need social housing until they start to live, work and earn normally. Many previously mentioned authors from other societies in transition have analysed the housing reforms in their countries. Most of them, together with the numerous authors who have analysed some western housing reforms, have clearly shown that these reforms were not good enough to solve the housing problems and to help more people to reside at a better standard. In fact, these reforms (if only verbal) were not meant to solve the housing problems at all, but were part of some global reforms towards neo- liberal societies. The unsuccessfulness of these reforms can therefore be judged as such only from the point of view of the people's needs, and not from their own goals. In that light they were partly successful but have produced new housing problems. With a considerable time lag and some specific differences, the housing reform in Croatia has followed the same route, having produced very similar problems, added to by the war. If there was no war, the Croatian housing reform would more or less follow the Slovenian example (see Mandic 1993, Stanovnik 1993, Dekleva 1993). The Croatian Parliament has very recently voted for the "Integral Concept of Housing Reform". The denationalization issue was postponed and public land was not even mentioned. Therefore, we cannot say that it is integral. The paper gives some data about the housing situation, and presents its goals and preconditions for the new law on housing. There are a few pages about the establish- ment of Stimulating Fund Resources and about the organization of the housing reform and its costs. Why has there been no denationalization of buildings and of urban land yet? It is a very hard nut to crack for a few reasons: - if it happens, thousands of tenants with tenant's right would be left at the mercy of the former owners or municipalities. In the "Integral Concept..." a few variants have been suggested, but it is obvious that they cannot be accom- plished, - no one (neither the tenants, the former owners, nor the State) has enough money to solve the tenants' housing problems. Particularly now when there is no construction going on at all..., - the new political elite lives in the previously nationalised dwellings in the best parts of cities and they want to remain ensconced in them.

However, that is only approx. 40,000 dwellings, in comparison with approx. 200,000 that are destroyed by the war! The city-owned land which was "cheappublic gooh" would be very expensive, if the market laws were functioning properly. Tenants, who buy their flats do not want to buy the public land under their buildings, and neither does the political elite in the villas with huge gardens. The rest of the concept has been accepted. Privatization is its main subject, because the main goal of the housing reform is to define the owner's rights (and not to solve the housing problems)! In 1991, the Law on selling the socially owned houses was passed. The deadline to buy all these flats is June 30,1994. Until the end of 1993, 157,098 of all the dwellings were sold for a total of 790 millions DEM. It is, in comparison with the real market prices 5 to 10 times lower the price! Most dwellings were bought for cash, for foreign currency savings, and the rest on long installment plans. In the first two cases there were the largest discounts, and needless to say, it was an advantage for the already rich people7. The total sum of social dwellings is about 400,000, out of which approx. 145,000 dwellingss cannot be sold and out of about 250,000 which can be sold, 100,000 have not been sold yet. It is not difficult to judge the effects and the importance of the housing privatization in Croatia! The housing reform, as the "Integral concept ... " has declared it will occupy numerous bodies at all levels, from different ministeries, fund-raising institutions and firms, to various cooperants. Nothing has been said about the people's organisations. They obviously ought to form their own bodies, and they do so (like various organiza- tions of tenants and owners) in order to fight for their interests. The housing reform has been predicted to last for 10 years. One cannot help asking, why then is the deadline the beginning of 1994?! The goals of the housing reform, even though they are not in the "Integral concept..." (Is it a retreat?) have been reformulated many times. Can they be accom- plished with such a housing reform? The first goal, which was to gain more money for new flats was wrong from the very beginning. Forming the criteria for the allevations of dwellings and tenants has

After many changes, the State has finally defined the criteria for the concessions for dwellings and tenants. For tenants they are: years of work, numbers of children, victims of the war and their families, method of payment (in cash, in foreign currency, on long term installment plans). For the dwellings themselves the prices depended on: dwelling surface, age of the building, position in the building, size of the building, zone of the city, former investments of the tenants into the dwelling .... After complicated calculations (special services were formed to help people calculate the prices), it came out that theoretically the concession could exceed 100 per cent of the book value of the dwelling. In practice it could not exceed 50 per cent in total. Such conditions helped the better-off buyers to buy with the maximum concessions. Many people were interested in buying somebody else's dwellings offering the tenants cash, foreign currency, lifetime support. The most targeted groups were the poor and even more, old people in big central apartments who could not or did not want to buy them.

29,414 of them were nationalized and confiscated, 1,141 are owned by the Yugoslav federation, 38,106 were the Yugoslav army property, 7,810 are the rented ones and another 36,000 are in the occupied zones, 12,000 are destroyed, and there are 20,000 undefined ones. shown that no large sums of money can be expected into the State's treasury. Also, the National Fund for Development is not obliged to spend all the money obtained on housing. The second goal, to improve the maintenance has also proved to be wrong for the time being. The purchasing of dwellings has exhausted private budgets. Also, new institutions for the maintenance as substitution for the old ones have not yet been formed. The negotiations between the new owners and the tenants (who do not want to buy their flats but intend to pay rents) are very difficult. There are always some people who do not want to participate in the expenses related to the building and cultivating the surroundings. The third goal of improving the housing conditions would not be the result of privatization but perhaps of some other actions. The fourth goal, to restore social justice on new grounds has only produced some new social inequalities. Many people say that "theprevious injustice has simply been replaced by a new one". Caplan (1993), referring to the East European countries suggests that the new housing reforms have imitated the so called "dualistic modelNfrom the Anglo Saxon countries instead of "a unitary model" from Sweden, the Netherlands, Germany, Switzerland... The dualistic system distinguishes the private from the public rented housing, forcing the other to serve only the poor. The public sector thus remains residual and not competitive. The unitary model allows for competition and collaborati- on between different sectors and offers more variety for solving the housing problems. Croatia has evidently chosen the dualistic model. It is amazing that urban renewal being a part of the global renewal when the war hnishes, has not yet been incorporated into the Croatian housing reform, as if it were a short term problem, or as if this housing reform is for ever. That is of course not true. Some research has investigated public opinion regarding the housing reform (Sefe- ragic 1992, Caldarovic 1992, Bezovan 1993). It has shown very similar results, based on the inquiries and the content analysis of some newspapers: - public opinion can be divided into two main groups: pro and contra privatiza- tion, - people's attitudes corespond to their tenant status: the owners are for privatiza- tion and denationalization, while tenants are against it (except for the rich tenants who were only happy to be able to buy their dwellings), - in spite of such opinions, most tenants are in the process of buying, intend to buy in the future or have already bought their dwellings, explaining that they have been "forced" to do it, - almost nobody is interested in buying the land under, and around their dwel- lings, mainly for financial reasons. The analysis of the letters to the editor shows that an open "war" is going on among tenants of the previously nationalised dwellings and their former owners. The housing privatization is really a very contradictory process and it seems that it cannot be realised in favour of everybody. The question is, what the price will the losers have to pay?! The winners will be the rich who could buy their dwellings for very low prices, and those who then sold them for five to ten times higher prices, and different groups of state officials who again have the right to live in state owned places. The losers are all the poor, former tenants of the denationalized dwellings and of course thousands of refugees and returnees, whose housing problems will not be solved satisfactorily for a very long time.

Concluding Remarks

It has not been possible to cover all the aspects of the housing situation and its reform in Croatia. One reason is that the housing situation and the reform itself are changing from day to day. The data about the housing stock, new buildings, destroyed and damaged homes is also approximate. Also, not much research has been done on the issue. The author hopes to have given a general picture of what is going on. This picture cannot be as comprehensive and detailed as it is in other countries, even in Slovenia which used to be part of former Yugoslavia. In summary, the housing reform in Croatia has not yet finished. What has been done so far shows that the results are not as were expected. Some problems have been solved, but others have appeared. If anything can be said in favour of the housing reform and the privatization in general, it is that it has started a new frame of reference, a new way of thinking and acting. Private initiatives were suppressed for almost half a century, and now they have been freed and will be even greater in times to come. That has awakened some people from hibernation in believing that somebody else will take care of their needs, and will even define them. Others, inclined to initiatives, will have some opportunities to realize them. It will also, hopefully, develop the public awareness and self confidence in some individuals, so that they will oppose the State's decisions, if they do not satisfy their needs. They may become capable of formulating their own programmes and of fighting for them. Literature

Bezovan, Gojko (1993). Privatization of Housing. Paper for Conference "Housing Policy in Central and Eastern Europe: Transformation in the East, Transference from the West". Budapest: Metropolitan Research Institute. Bicanic, Rudolf (1962). Economic Policy in Yugoslavia Birozavod. Zagreb 1962. Bilandzic, Dusan (1976). Social Development of Socialist Yugoslavia. Zagreb: CDD. Caplan, David (1993). Privatization and the East European Housing Model. Paper for Conference "Housing Policy in Europe in 1990". Budapest 1993. Dekleva Verlic, Barbara (1993 .Economic and Social Consequences of Housing Priva - tliation in Slovenia. In A, "Housing policies and housing programs - orienta- tions, strategies and evaluationf! CIB Publication 158, 163-171. Lisbon: LNEC 1993. "Integral Concept of Housing Reform" (1994). Government of the Republic of Croatia, Sabor Republike Hrvatske (Parliament of the Republic of Croatia): Zagreb, March 1994. Mandic, Srna (1994). Tenures in Times of Change: Conversion Debates in Slovenia. Housing Studies, Vol. 9 (I), Jan. 1994. Carfax Publishing Company. Novak, Mojca (1991). Late Cornming Patterns of Development. Znanstveno in publicis- ticno sredisce, Ljubljana 1991. Seferagic, Dusica (1993). Housing Privatization in Croatia. Paper for Conference "Housing Policy in Central and Eastern Europe: Transformation in the East, Transference from the West". Budapest: Metropolitan Research Institute. Seferagic, Dusica (1992). New Housing Policy and Quality of Housing Conditions in Croatia. Paper for CIB W 69 Conference "Housing Policies and Housing Prog- rammes". Lisabon: Laboratorio Nacional de Engenharia Civil. Stanovnik, Tine (1993). l%e Sale of the Social Housing Stock in Slovenia: What Hap pened and Why? Paper for Conference "Housing Policy in Central and Eastern Europe: Transformation in the East, Transference from the West". Budapest: Metropolitan Research Institute. Price Formation Factors in the Budapest Housing Market

Agnes Vqjda-Babaruy

The purpose of this article is to call attention to the unexpected development of flat and house prices in the Budapest (capital of Hungary) on the second-hand housing market in the last years, after the change of regime. The analysis is not a statistical one in its real meaning, but an experiment to sum up the important factors in a transitional economy which influence price formation in housing. The emphasis will be placed on the "non-market" or "semi-market" (transitional?) factors. They are probably more or less familiar to the researchers (and citizens) of the Central European countries, but the author aims to give some new pieces of information and approaches as well. In a market economy real estate price is mainly influenced by the quality of the real estate, such as the size and level of convenience of the dwelling, by the condition of the building, the locality in which the dwelling is situated, by the year of constructi- on and by environmental factors, such as noise, air pollution, neighbourhood, etc. (Miller 1982). In this paper the "normal" price formation factors, which are present in the Budapest housing market as well, will not be analyzed.

The Structure of Residential Real Estates and Tendences in the Housing Market in 1988 - 1993

The housing stock consisted of 807,000 dwellings on the 1 of January 1993. Out of that 506,000 units were in private ownership (Lakkstatisztikai ~vkonyv1992). Early in 1990 there were 794,000 dwellings, 350,000 in private ownership (1990. Cvi Nkpszh- lilk 23). The number of dwellings in private ownership increased very rapidly, partly due to the fact that practically only private housing units were built during that period, but mainly because of the process of privatization, i.e. selling the units to the sitting tenants. More than 47,000 units were sold to the tenants in 1992 (Lakkstatisztikai ~vkiinyv1992). It means of course that as the pool of private residential real estate broadened, the supply on the market could increase as well. The two-room dwelling is typical in Budapest, (41 per cent in 1990), but the share of three (and more)-room apartments and houses is increasing, in 1990 it amounted to the 35 per cent of the housing stock. The majority of the dwellings is equipped with kitchen, bathroom and toilet (86 per cent in 1990) (1990 Cvi NCpszimldk 23). A special submarket is constituted by the apartments situated in high-rise, prefabricated buildings where several thousand families live in a relatively small area. As far as we know that phenomenon is not a particular, special feature of the countries in transition. The slow transformation of the social composition of the inhabitants of the high rise housing estate, as a process, relates to the transition in the economy and the society. Because of the bad quality of these apartments and buildings and the unfa- vourable environmental situation, features well known by the public, the prices of apartments in that submarket are the lowest, this fact increases the segregation process observed in the housing estates, and the vicious circle must be continued. The privately owned dwellings are mainly owner-occupied ones; the other typical form of tenure is to rent a flat hom the local government. Private rented housing is spreading nowadays, but no direct data are available about that phenomenon. One source of information is the data on private income tax return, in the last years1. According to this 82,000 in 1988,89,000 in 1989,104,000 in 1990 and 114,000 in 1991 persons respectively received incomes hom letting their real estate in the country (TCnyek konyve '93). The figures can provide a rough estimation as to the increasing volume of the private rental sector. We intend to turn back to this phenomenon later, and analyze it hom another point of view as well. According to the same source (personal income tax returns) 7536 in 1988, 7106 in 1989, 8103 in 1990 and 8934 persons in 1991 received income hom selling real estate in the whole country. The dataZ show an increasing tendency, but the actual figures probably underestimate the real number of transactions in the field of real estate. In recent years a project has been carried out in the Central Statistical Office on residential real estate prices. For calculation of price index numbers a register was taken over from the authority imposing duties on the transfer of real estates. The authority does not register all the transactions, only the typical cases hom various aspects, (they have a large representative sample in every year) but in spite of this fact, in that register we could find in every year more than five thousand transactions for Budapest alone and only for residential real estates.

We do not have data about the number of persons who are letting flats and houses only, these figures give the numbers of all the persons who declared income deriving horn letting any type of real estate; only one room in their flat or house, a second home, a garage, etc.

The data contain not only residential ones, but every kind of real estate, such as sites, second homes, garages, etc. The data of the Tax Office do not contain all the persons, who had income horn selling real estate. It contains only those persons, who declared that activity. To sum up the results of the calculation carried out in HCSO on price indices of residential real estates very briefly, we have to emphasize that they contradicted the general view: the price indices of the residential real estates did not reach in any year the levels of the consumer price inde$.

Unmeasurable Factors Effecting Real Estate Prices

In the following we try to present factors that can play an important role in the price development and are typical in the Budapest housing market but they were not involved in calculating price index numbers. They are missing from the calculation because they can not be measured. We focus on the so-called "transition" phenomena, representing special issues. Our considerations are founded mainly on the pieces of information of the biweekly of the largest real estate agency, ("Ingatlanpiac"), the private adver- tisements of the most popular daily advertisement newspaper ("Expressz") and our personal impressions coming from everyday experiences, which hardly can be proved by statistical facts.

Publicity

In the spring of 1993 there were almost 74,000 agencies in Budapest in the real estate business (Business register 1993). Mostly they are dealing with maintenance, and there are a lot of private persons among them, who are registered as a self-employed, dealing with letting only one property, but this huge number (compared to the number of dwelling units) indicates that real estate business is a popular branch of economic activity. Not too much capital is required, an apartment and computer is enough to establish a real estate agency. They are advertising their services: helping private persons in selling and buying (and/or renting and letting) houses and apartments, and providing an important service: to estimate the value of any real estate. The experience, however, shows that private persons do not trust the agencies. No data are available on the share of real estate transactions transacted by agencies. According to the estimation of the largest real estate companies it amounts only to the 10 per cent of the total yearly transactions. The popular and largest advertisement newspaper is full of private advertisements, where you can frequently find phrases such

In the case of houses, the price index numbers were between 16 in 1991 and 21 per cent in 1992, in case of apartments between 9 in 1991 and 23 per cent in 1992. The consumer price index numbers in the same years rose from 23 to 35 per cent. as "I offer this and this... I am no agency!" It sounds like a clause in a marriage advertisement: "Adventurersshould keep away!" Is it conservatism or a well-founded lack of confidence? Both, probably. This conservatism comes from the previous regime where there were no agencies, everybody had to manage by him or herself. And it is not far from the truth that a lot of agencies are not really reliable. The newly established enterprises (not only in real estate business) want to make as much profit and as quickly as possible. Goodwill is not the most important element in their activity. In addition the well-trained, skilled experts in real estate business are mainly involved in non-residential real estate business which is more profitable. The small agencies have limited clientele, limited supply, therefore they are not very effective. Their clients are often disappointed, they withdraw their order; a vicious circle. It must be attributed to the lack of skill that even the estimation of value of a real estate is uncertain. Clients often experience that various agencies give very different estimates. Organizations of the real estate agencies have been started; a chamber and association have been established to help to control the activity of their members, but membership is not compulsory and these organizations are dominated by a couple of large companies. The members of the association are mainly smaller companies and private persons, (160 altogether), the larger 81 firms joined the chamber. A real estate bourse is working as well, dominated by the demand and supply of non-residential real estates. Through the description of the main characteristics of the situation of real estate agencies we intended to present the lack of "institutional"market publicity in dwelling prices. We suppose that this phenomenon also could be considered as a price-formation factor. The bargaining between an individual seller and purchaser on the price of the real estate must be influenced to a considerable degree by mere chance.

Real Estate as a Field of Investment

In the last regime the most secure way to invest was to purchase a residential real estate. For decades, the investors took no risks. Recently the entrepreneurial aspirants can find more attractive and profitable fields in which to invest, therefore those who bought or built residential units only in order to increase the value of their capital or to make profit, want to withdraw their capital from the housing sector. It can be observed even in the advertisement newspaper that in the more recent years the former market of demand transformed into a market of supply. The real estate agencies also state the fact. The second macro-economic phenomenon influencing the housing prices is the high (but decreasing) inflation. The consumer price index numbers were presented above, it was 35 per cent in 1991 and 23 per cent in 1992. The dwelling price index is about 9, 23 per cent for the same period in Budapest. That means that housing, as a whole, is not the proper field for speculative capital anymore. It is an unexpected and after so many decades almost unbelievable phenomenon in Hungary. This factor, partly economic, partly psychological, in itself has an effect on the "transitional"real estate prices.

Privatization

The process of privatization in housing has been mentioned above. The effects of selling the formerly state-, later local government owned houses and apartments to the tenants in price development can be called market conformity, at the same time they are not typical in a settled market economy. Before analyzing the effect of privatization of rental housing on housing prices, we try to give a short description of the main characteristics of the Hungarian practice of "privatization1! The legal regulation of privatization of rental housing is relatively old in Hungary. The tenants have had the right to buy their flat since 1969, but the privatization process started in fact only in the late 1980s. Before 1988 only some thousand units were sold to the tenants. Even if the tenants were aware of their rights and wanted to purchase their flat, the process was hard and regulated by different strict regulations; such as only flats in buildings with not more than 10 dwellings were allowed to be sold to the tenant, but only if more than a certain proportion (but not less than the half) of the tenants wanted to buy their flats at the same time. The result of these kind of regula- tions was that only some thousand dwellings were privatized between 1969 and 1988, namely the best part of the housing stock in Budapest, the large one-family houses in the green area. The legal rules were changed since 1969 several times. The latest regulation was accepted by the Parliament this spring in 1994, in the frame of the Housing Act. The last but one form of the rule declared that the tenants may ask the local governments (the owners of the flats, in Budapest there are 22 of them, every district has its own local govemment), previously the state (before 1990 the owner of the residential buildings was the state) for selling their flats to them, but the local governments could decide whether they wanted to sell the flat or not. That means that it was not compul- sory for the local governments to accept the tenant's request. According to the new act all the tenants have the right to buy the flat they live in. The tenant can buy it for himself or for his or her descendants. The tenants have a time limit to declare whether they want to buy the flat or not: one year, beginning with 31st March, 1994, ending with the same date in 1995. After that time tenants will lose their right to decide. If the tenant does not want to purchase the dwelling, the local govern- ment can begin to sell it. But the Housing Act defends the tenant for a further five years period: the local governments are obliged to offer the dwelling to the tenant first. The number of dwellings sold to the tenants in Budapest was growing rapidly during recent years (before the Housing Act).

Figure 1: Amount of Local Government-owned Dwellings Sold to the Tenants in Budapest in 1988 - 1992

According to estimations only one third of the tenants cannot afford or do not want for different reasons to buy the dwelling they live in. That means that in Budapest 100,000 -150,000 apartments will remain the property of the local governments. We do not have experiences about the effect of the new regulation, but most of the present local governments in Budapest declare that they do not want to change the former practice in the financial conditions. It means that they want to continue the practice as follows: the market value of the flat was fixed by the local governments. The price was fixed at a level that was considered to be a common market value per square meter in the given neighbourhood. According to the experiences, the tenants accepted the financial offer because they wanted to buy their flat - actually their security - and because it was really favourable compared to the free market price (About the tenants' motivations for purchasing their flat see: Vajda-Babarczy 1992.) The tenant did not have to pay the total amount of the estimated value fixed by the local government, only a certain share of it, depending mainly on the condition of the building in which the flat was situated. The share could be a range from 15 per cent to 40 per cent of the market value. In practice the average proportion of it was about 30 per cent in recent years. The tenants had different solutions with regard to payment. They had to pay at least the 10 per cent of the price in cash, (except if they were pensioners with a very low pension, in that case they could pay the total sum in installments) and the rest could be paid in installments for 35 years (actually it is a state loan) with a very advantageous interest rate (3 per cent). If the tenant paid the total selling price in cash, helshe received a further support: He had to pay only 50-60 per cent of the price. The new law changed the conditions of the state loan: it will be given for 25 years, and the new owner does not have to pay interest during the first six years, but from the seventh year helshe has to pay the market interest rate, which is nowadays about 30 per cent. The Hungarian Parliament did not accept any proposals concerning reprivaritation. The essence of argumentation against the concept of reprivatization (i.e. to give back the property to the original owner) was that the original state of any type of property has been changed during the last decades, and any type of reprivatization would cause serious difficulties in property relations and property rights. The former owners (private persons) were compensated for their nationalized property by the so-called restitution vouchers. In the privatization of the rental housing, restitution vouchers were (and are and will be) accepted as a form of cash by the local governments. Unfortunately no data is available on the number of persons, who paid by restitution vouchers. According to different estimations vouchers do not have an important effect on the privatization process in housing, they are mainly used to buy agricultural lands and shares of joint- stock companies. The present regulation of privatization of rental housing stock restricts the property rights of the local governments, because they do not have a free hand any more in deciding on the future of their housing property. Even spending the returns coming from selling of the rental housing stock are regulated by the Housing Act: half of the amount must be handed to the local government of the capital, the rest must be used for renovating the old housing stock and/or constructing new residential buildings. On the other hand, in the present situation, it is difficult to find better investors, than the tenants themselves. That is why the housing sector is not very profitable nowadays. If we look only at the selling price and conditions of payment -low amount in cash, low interest rate, etc- of the privatized dwellings, it is the purchaser who is favoured. However, considering the further consequences (cost of maintenance, renewal, etc.) the new owners have to face serious difficulties. If we compare the free market prices with the price of "privatized" apartments, a large gap can be noticed between them. The estimated value of the privatized apart- ments in 1992 was 1,164 thousand HUF, the actual selling price was 221 thousand HUF (Lakktatisztikai ~vkon~v1992). The selling price of a house on the free market in the same year was 2,994,6 HUF, the price of an apartment was 2,129,8 HUF (Lakhsta- tisztikai 1994). Table 1: Dwelling Prices in the Free Market and Selling Prices of the Privati- zed Dwellings in Budapest (In thousand HUF per m2)

The new owner often wants to sell hisher flat for various reasons, (mainly because heishe is not really satisfied with it and wants to buy another one) and it means that the supply on the market is broadening. This phenomenon in itself might have a price- decreasing effect. The stock of privatized dwellings at the same time represents a special supply. Most of these dwellings are located in the inner parts of the city, in large, old buildings that are in bad repair. That is why these kind of apartments attracted offices, small companies, lawyers, physicians etc. for a long time. They were often sold for office purposes, this fact leading to a price-raising effect. The condition of the buildings, on the other hand, reduced the price. The dynamism of the process of establishing offices in old apartments is declining nowadays. The demand is much smaller than the supply, because new buildings are being built by large - mainly foreign - companies for small firms to let a space in them. The new supply might lead to a relative decline of prices in that submarket.

Sellers and Purchasers

In the following we present the typical actors in the housing market in Budapest. Their behaviour influences the prices of the residential real estates in a market-conforming way. Why it is worth presenting them is the fact that the contrast in the social compo- sition of the actors' "transitionalfeatures" can be observed in the recent period. There are two facts which all (dominant) real estate agencies accept. (1) Apart- ments in housing estates are in a very bad market position. (2) Two types of dwellings can be sold relatively easily: small, one or one-and-a-half -room flats and the large houses with five or more rooms, with large garden, garage, terrace, sauna, swimming pool etc. on the hilly part of the city. That means that the first type of purchasers are mainly young couples trying to obtain a shelter in which they can start their life independently from their parents. They can not afford to buy a larger apartment, even to purchase a small one is supported by their relatives financially. This is an old phenomenon in the housing market, whereas the boom of rich families, who are not restricted by financial sources and have a very precise idea about the Western upper-middle class life style, even in housing, is a relatively new element of the Hungarian social processes. The description of the causes leading to a sudden increase in the Hungarian elite would lead too far. It will suffice to mention that a new political and economic elite was born in the new regime and even foreign investors move to Hungary. The sudden increase of upper and upper-middle class families must be a transitional phenomenon. The two decisive actors in the purchasers' market influence the price of the smallest and the largest residential units in Budapest. At the same time the sellers are offering mainly middle-size dwellings (two-room, from 60 to 80 square meter), that is the typical dwelling size in Budapest. Demand and supply rarely meet.

Shortage in Loans

In Hungary the bank system is developing very slowly and the general characteristics of the loan market are the great demand and short supply. It is almost impossible to get loans in order to buy an apartment in the free market, purchasers therefore need cash. If we compare the average price of residential real estates and the average monthly wages and salaries in Hungary (gross 22.500, net 15.607 HUF in 1992Magyar Statisz- tikai Zsebkonyv '92) we can hardly imagine how a family is able to collect such a large amount of money in cash as the price of an apartment or house. Another figure, an estimation, can also be quoted to compare the households' yearly income and the value of dwellings in Budapest: this proportion is about 500-600 per cent (Helyi lakhpiaci indikhtorok... 1993.) The latest income survey carried out by T- (Social Research Informatics Center) show that the average yearly family inco- me in 1992 was about 370,000 HUF (Egy iv uth...Magyar Hkhrth Panel Milhely- tanulmhyok 3.) Focusing only on the effect of loan shortages on real estate prices it is worth mentioning that this factor might have a relative price-decreasing result. But the question has not been answered: how can a common family, with its very low income, compared to the dwelling price, buy real estate? The answer is relatively simple: the typical process of purchasing a residential unit is to sell another one. (If there is any. Young couples are in a bad position in this respect as well.) It is not difficult to imagine the resulting long chain of dwellings and families in which most of the actors are sellers and buyers at the same time. And the chain or line is moving very slowly. Everybody has to keep the price or everybody has to reduce it. The result depends on the dominant actors' behaviour. A new tendency can be observed: more and more sellers are inclined to give an allowance of paying a smaller or larger proportion of the price in installments.

The Functioning of a Private Rental Sector

We have to mention that the question of measuring income is one of the most difficult tasks in Hungary. According to different estimations the income of households returned officially is 30-50 per cent lower, than the actual income. The Hungarian population has long practiced the earning of money by different activities which are beyond the view of the measured economy. The discussion of secondary or parallel economy4 is of multiple importance for the question of privatization. It is important to know and to understand events that occurred in this sphere. Several definitions of the bygone parallel economy were in use in the Hungarian literature. The sense of the term "second economy" has changed, and it is more adequate nowadays to use the term of "non-registered economy". But the skills of knowing how to earn money outside the registered economy derive from the old regime. It was mentioned above that the private rental sector is increasing in size nowa- days in Budapest, but no reliable data are available about this phenomenon. This sphere is typically a part of the non registered economy. Landlord and tenant have a common interest not to declare to the authorities the fact of renting: landlords do not have to pay tax and therefore the tenant pays a lower rent. Whether it is a transitional phenomenon or a long-lasting one is difficult to predict. According to the estimations of the large real estate agencies, private rent is ten- fifty times higher than rents of dwellings of the same quality in the local governrnent- owned sector. This fact also influences the dwelling prices: it might have an effect of increasing the prices in special submarkets, where the demand of private rented flats is higher than the supply. In general the supply seems to be larger than demand in that sphere as well, but exact information is not available in that field.

Today the term, in an economy under privatization, gradually loses its meaning, as does whatever description the scholars had given concerning this concept, however, one feature was equally emphasized by all of them: the economy that operated outside the dominating socialist sector. Closing Lines

The reader must have the impression after reading over several so called facts about the Hungarian (more precisely of Budapest) housing market that only one thing is certain: the unstable, unsettled transitional character of it. That is the fact which I wanted to emphasize. The researcher has the feeling that countries of transition are the best field to investigate, concerning how a so-called market economy is springing up. The only problem is the lack of adequate methods.

Literature

Business register (1993). March, 1993, CSO. Egy 6v ut &I...( 1993). Magyar Hktarth Panel Mtihelytanulmihyok 3. (Ed. by E. Sik and I. GY. T6th). Budapest: T%JUU and BKE Szociologiai Tanszek. Helyi lakkpiaci indikitorok Magyarorsdgon (1993) Vfiroskutatis Kft, Budapest. Lakisstatisztikai ~vkon~v(1992). KSH, Budapest, 1993. Laklsitstatisztika (1994). KSH, Budapest, 1994 (Under press). Magyar Statisztikai Zsebkonyv '92, KSH, Budapest, 1993. Miller, Norman G. (1982). Residential Property Hedonic Pricing Models: A Review Research in Real Estate, Volume 2, 31 -56. T6nyek konyve '93. (Book of Facts '93) (Ed. by Gy. Bal6 and I. Lipovecz). 1990. 6vi N6pszhlilh 23. Budapest adatai. Vajda-Babarczy, Agnes (1992). Who is eager to buy a flat and why? The Hungarian Case. In Socio-Environmental Metamorphoses, Proceedings: Volume V. IAPS 12 International Conference. 11-14 July 1992. Marmaras, Chalkidiki, Greece. The Case of Zschornewitz - Renovation of a Garden City of the 1920's under the New Societal Situation

Birgit Schmidt

The subject of this article is housing estates dating from the hrst half of the 20th century which are located in the region of Dessau. Housing estates can, in the first analysis, be defined as being civic constructions, living areas that are coherent and, for the most part, built following unified planning and having complementary facilities that meet the community's requirements. The roots of the estate movement in Germany at the beginning of the century are to be found in: - the paternalistic building of accommodation by factories; - the self-help and co-operative or mutual benefit association movement; - the garden city and land reform movement.

The different roots of the estates themselves suffice to show that a housing estate is more than just a large number of dwellings. I will enlarge upon this using as examples the numerous works' housing estates to be found in the region. These estates, put up either by large scale industrial undertakings or by housing associations, served initially to accommodate the workers and staff members necessary for new industrial plants. Most of the sites, laid out according to the requirements of the civic garden city ideal, consisted of various types of houses, differing in size and amenities. The apartment blocks and detached houses were integrated within gardens, whilst the streets were themselves grouped around centralized institutions such as activities centrelrestaurant, church, kindergarten, school and shops. As a result a quality of living was achieved which showed itself to be both very flexible and durable. The fact that the structure of the utilization and design of most housing estates has been little changed up to the present day speaks for this claim to the same extent as do the often mature and stable social structures. As a result of initial experiences with estate renovation in this area during the past three years, I would characterize housing estates as being an amalgam of: - civic architectural design, - social milieu and, - economic-legal relationships. These three basic structures present a specific equilibrium in each estate. When one of these structures is changed, then Mher change occurs thereafter. For instance, structu- ral modernisation leads to increased rents. As a result, a section of the residents is motivated to search for new, budget-priced accommodation. Modernisation means, at the very least, more financial outlay. If modernisation concerns the facades of the houses, then in most instances the architectural configuration and the historical worth of the estate is involved. When accommodation that previously belonged to a housing association or a factory is privatised, this normally leads to the displacement of certain groups amongst the residents. The functional provisions of an estate will themselves then meet the requirements of a new group of residents and therefore tend to displace further accustomed residents from other social groups.

Zschornewitz as a Housing Estate

Using the example of the "Kolonie" at Zschornewitz, a factory estate in one of the region's small communities, I should now like to put forward the grounds for and the approaches to the revivavrestoration of a housing estate. Zschornewitz is a community of 3,700 and consists of the nucleus provided by the old village, the Kolonie to the west of this, a works' estate from the 1930s in the north east and some post-war additions. Since the beginning of the century, brown (or soft) coal has been mined in the surroun- ding area. Since 1890, the area to the south around Bitterfeld has been developed into a centre of the coal mining and chemical industries. In 1915, a power station utilising brown coal was erected to the west of the old village of Zschornewitz, an undertaking that was representative of a new generation of technology. In 1915 too, work started on the Zschornewitz Kolonie, which was to house the personnel from the power station as well as from the expanding Golpa open-cast mine. Corresponding to the spasmodic development (First World War, post-war period, the 1920s) the Kolonie was built in several stages up to 1930. The master plan drawn up in 1919 was, however, realised only to some extent. Up to the present day there have been additions and changes to the power station. The mining operations for brown coal encircled the site so that today Zschornewitz is like an island in the middle of surrounding dumps, residual pits and tips. Today approximately 1,500 people live in the detached houses and apartment blocks of the Kolonie. The brown coal workings have been closed down and the power station ceased operations on July 1st 1992. In its place, the power station owners and both the communal and district authorities want to see a centre for waste disposal, an undertaking that will include an incinerator installation. Figure 1: The City Plan of ZFchornewitz

The two largest companies each own about 40 per cent of the accommodation in the Kolonie, whilst the local authority has about 5 per cent. The rest were sold during the course of the year to the residents. School, kindergarten and church serve the whole community. The large activities centre was sold by MIBRAG, (the coal company) to a firm in the field of re-training and its use is now denied the residents. The stores have achieved the customary adoption of western standards. The structural condition of the houses varies. Some were renovated in the 70s and 80s. Nevertheless a fundamental renovation of the whole Kolonie is clearly required. Many residents have installed bath and WC on their own initiative and undertaking the necessary maintenance work. Garden city conceptions of architecture and streets are still to be found in large measure in the Kolonie but are in a poor state of repair. This still extant appearance of the Kolonie and the particularly close spatial, functional, social and design connexion between it and the power station was the reason for designating the whole of the former and part of the latter together as a '$reservation area" in 1991. By far the majority of the residents of the Kolonie worked in the power station, the coal field or the chemical industry centred on Bitterfeld. The economic collapse of the region has led to a loss of jobs on a massive scale in Zschornewitz. Exact figures are available neither from the municipality itself nor the labour exchange responsible for the area. The age structure of the Kolonie residents is that of the regional average, whilst the suggested tendency towards a rise in the ratio of old people to total populati- on has not been confirmed. Overall, it presents the picture of an estate in a location which finds itself in an economical, ecological and cultural crisis. And when nothing is done, it will in all probability slowly die. The Strategy

Why then, in this situation, preserve this estate and even renovate it? First of all there are the Kolonie's residents. For the most part they have lived the whole of their lives in the Kolonie, grew up there or went there as a result of their work in the power station. For these the Kolonie provides their accommodation, their place of domicile, their home. It provides the framework for neighbourliness, social contact and ties. Social connexions in the Kolonie have increased in importance with the disappearance of other factors such as work, social and personal value systems and the social position and recognition linked to these. In a society that has broken apart, with the crisis of upheaval and following the loss of work, for many the home provides a

'pnal security 'I. The preservation of the residential area, value for money as it is, is a key object for housing policy at a time when the privatisation of municipally and factory-owned accommodation provides the sole concept for the transforming of East German housing into the market economy. Above all, the high rates of unemployment and early retirement plus the substantially lower incomes of GDR citizens, make it appear expedient to apply new methods as far as housing policy is concerned. The placing of the Kolonie and the power station under a preservation order has brought their cultural and historical value into the open. The value of the Kolonie from the viewpoint of the history of architecture and its importance architecturally as bearing testament to industrial culture speak out on behalf of the estate's preservation. Such preservation is necessarily bound up with structural renovation and reconstruction. The Kolonie, as an example of the everyday history of the industrialised region and its inhabitants, represents an important pillar of the cultural identity of the residents. This will be true above all when the power station to a large extent would have been demolished and when the chimneys, the symbol of Zschornewitz, would have disap- peared. All the old industrial areas in Europe have had the experience that the history of a region and its inhabitants and the sense of identity that is based on this are indispensable for restructuring and for a new beginning. The evidence of architecture, as the bearer of the collective memory, and individual histories, hereby play a central role. The preservation order is an instrument whereby this thought process can be initiated and provoked further. The renovation of the Kolonie also involves an economic aspect. It can create jobs and study places and can provide a positive stimulus for new economic develop- ment in the community. It raises the value of the Kolonie as a place to live. When one takes all these aspects together, so can the revival of the Kolonie provide the starting point for a new development of the community as a whole. But in particular the conflict as to how and why. Since 1915 the history of both the Kolonie and the village has been dominated by the power station. Social, economic and juridicial dependency has characterised the residents up to the present day. The Kolonie also bears witness to this dependency. The priority of economidindustrial development brought the community to the extremity of a form of industrial development, a form which is hallmarked by economic, ecological, social and cultural crisis. A new begin- ning is possible only through a turn around in strategy. Coming to terms with one's own history is the first precondition and discussion concerning renovation of the Kolonie the initial impetus for this.

The "Actors" and Their Strategies

The Planners

We, and here I refer to our planning bureau, are trying to deal with the complexities of the estate and its renovation and revival process impartially. Our purpose here, was to supplement the classic planning task through additional activities. This was, on the one hand, in order to promote the discussion process in the Kolonie dealing with questions concerning renovation and development, and, on the other, to ensure preparations for and execution of, a process of renovation that would do justice to the complexity of the problem. Taking into consideration that the economic basis of the Kolonie and the village had broken apart, as an initial starting point for a renewal of the estate there remained the extant architectural inventory and the social milieu of the estate, its residents. Therefore, as the first stage towards creating a new equilibrium in the Kolonie (economic, architectural, social), we examined a revival and renovation orientated towards the residents and the housing stocks. Translated into Zschornewitz terms, this meant a renovation of the Kolonie that was acceptable both socially and from the aspect of the preservation order and at the same time a search for approaches towards a new economic definition for the location. The fact that the majority of dwellings still remained in the hands of the firms, offered a good chance of success. The first step was to make a concept for a housing policy in which the establishment of an estate association involving the different owners was suggested, thus providing the basis for developing a complex renovation process. This was rejected by the property owners. It was also the intention to view renovation against the background of the existing situation: - securing of right of habitation for the existing occupants, - renovation of the Kolonie compatible with the preservation order, - active involvement of the residents in the renovation processi - consideration of the economic possibilities of owners and tenants, - socially acceptable rents even after the completion of renovation.

As a result of the discussion that followed, the community's representatives decided upon these aims as a declaration of intent and the three largest property owners, WAG, MIBRAG' and the municipality formed a joint working group in which together with ourselves, the Bauhaus Dessau and the authorities responsible for the preservation of monuments a jointly agreed renovation concept would be prepared. We employed other work methods in addition to this working group. These took the form of publicity work, planning, scientific research and institutions. Amongst the latter there was, apart from the working group, an on-site office, where we offered advice to residents and owners on a regular basis and where small exhibitions and discussions were held.

Assessing Our Role

According to the task we were given by the municipality and defined in a classical planning sense, our role was unequivocally that of agent or authorised representative of that body. Because of the municipality's lack of a concept and its disinterest in a strategy for revival in the sense outlined earlier, we found ourselves having extensive room for manouevre. We made use of this for the strategy already described, which next to planning, rests above all on activities in the fields of negotiation and mediation, advice and moderation as well as cultural and publicity work. Therein lay a fundamental problem. This role, which we had assumed as a result of our activities in Zschornewitz, required independence from other participants. In spite of the freedom of manouevre given us by the municipality we remained their agent. Furthermore, our role was used as being that "betweentwo stools1',sometimes in order to make us answerable to the "other side1! We found ourselves as representing the preservation authorities in place of the appropriate officials, the residents made us answerable for the decisions of the owners, as these were not present and so on. The intermediary role that we had intended for ourselves in the process was not accepted as such by others taking part, rather we were downgraded as being deputies as compared to the other partners. Only in certain situations, e.g. between officials and the municipa- lity or between the preservation authorities, municipality and residents was it possible to achieve positive results.

' WAG: Vereinigte Energiewerke AG = the local energy producer MIBRAG: Mitteldeutsche Braunkohlewerke AG = lignite coal mining firm. As a consequence it must be said that those necessarily mediating between those participating in the renovation process required an independent position, one that would be accepted by all involved. Our dual role as planner and moderator set this aim within limits. This problem was exacerbated by the lack of independent partners for part or the whole of the mediation work and of representatives of the interests of the residents and the municipality. Nevertheless, we do have some initial findings and some ideas for approaching a complex and comprehensive renewal process. The planning results are to hand and above all have furthered discussion concerning technical details concerning building and financing. The preservation order and the positive stop in privatisation by the owners' working group have opened the possibility of and conditions for a socially bearable renovation of the Kolonie, one that would be acceptable environmentally. The discussions are continuing.

The Owners and Their Interests

The outlook regarding the two large owners, VEAG and MIBRAG, will be determined by the structural crisis of the region and the situation in the East German states as a whole. Both are "Treuhand" hs2and in essence have ceased production operations in Zschornewitz. Both will therefore pull out of the village in the near future. All that will remain will be their works' housing stocks, these being of historical importance. Corresponding to the Federal policy on housing, both companies have decided upon the privatisation of their detached and semi-detached houses. The Zschornewitz Kolonie is for both but a small part of their overall stocks of accommodation. The need to renovate the Kolonie houses has to be seen in the context of this overall situation, especially in the form of the enormous congestion in the undertaking of maintenance work during the last year. Part of the framework of requirements are rent increases made according to the regulating of basic rents, which on average are lower in the new Federal states than those in the old but which when the condition of the house or individual apartment is taken into consideration and more particularly when one considers East German incomes are undifferentiated and without relation. As in the past there is a wide disparity between the financial requirements for the renovati- on of the housing, income from rents to achieve this and the residents' ability to pay.

The MIBRAG was sold by the "Treuhand" at the end of 1993 to an English- American consortium. The Treuhand is a central FRG-state office in Berlin to privatize the former GDR-state owned property. The housing association of the MIBRAG is still the agent for the housing stock which is now owned by an estate company of the Treuhand. In this situation, the owners of the Kolonie, the municipality too, see a growing contradiction between what is possible financially and economically vis-a-vis the requirements of maintenance and modernisation in the estate. The growth in demands caused by preservation status appear to exacerbate this discrepancy. For the firms there are, in addition, the Treuhand's ongoing privatisation negotiations. Both the £inns and the municipality attempt to keep the conflict in check, inasmuch as they sell more properties and real estate. Private funding and initiative is to assume responsibility for renovating the houses from the large owners. This intention to privatise was put into practice in varying degrees. MIBRAG initially concentrated on the modernisation of its properties and a gradual selling off of suitable units. MIBRAG's negotiations regarding a sale to an international consortium are at present almost concluded. The housing stock will then be handed over to the Treuhand's real estate company whose task is to privatise the dwellings. The MIBRAG housing company reacted to this development by quickly selling the detached houses in the Kolonie to the residents. The still unresolved problem of the financing of renovation by the residents and the future of the residents of the blocks of apartments played no role in MIBRAG's actions, although we had offered our assistance on this question. The VEAG initially favoured quick privatisation to the resident and on the initial ascertaining of reactions there was a high rate of interest in purchasing. Our offer of discussions concerning a housing policy concept led to discussion within VEAG with

Figure 2: Housing near the factory in Zrchornewitz (Photo: B. Schmidt)

90 the offer being made to MIBRAG and the municipality to agree on a moratorium on privatisation, using the time gained to prepare a joint concept for the renovation of the Kolonie. The offer was taken up and the basis for a concept prepared. VEAG now considered how they should proceed further with their properties. Here the difficulty lay in constructional and funding questions. Until now a socially acceptable and comprehensive renovation process had been secured only verbally. A situation of stalemate. The VEAG proposal to prepare a joint renovation concept determined the future course of the discussions. Thereby existed a good chance for alternative developments towards achieving "normal" ownership policies. MIBRAG and the municipality have not used the opportunity offered. The still awaited decision of VEAG will have a decisive influence on future developments in the Kolonie.

The Municipality and Its Strategy

As a community they do little regarding a strategy towards solving the catastrophic situation of the village. Seen in basic terms, the municipality's actions can be best described as following: to place as few barriers as possible in the path of investors. When investors come, the community will have work and receive income from taxes; then everything will be 0.k. The municipality's actions correspond accordingly. For the planned incinierator installation on the power station site, the Kolonie will be declared a mixed area, statutes for the preservation of its buildings and caring for its inhabitants will be rejected on grounds of being a barrier to investment, there is no individual consideration of policies for the social, housing or economic problems. The municipality's own lack of concepts will only be exacerbated by its depen- dency upon stereotype state policies, state finances and the power station in its role as "squire" or "Lord of the Manor". Nevertheless, Zschornewitz is not an exception amongst East German communities in regard to this question. The clinging to apparent- ly simple solutions such as the incinerator providing new jobs and the privatisation of the houses blocks efforts at and help for alternative development. Allusions to socio- political and financial consequences for the community when the right of tenure of the residents is not secured through active policies are rejected with the arguments that only the "anti-social" elements would be so threatened, and the municipality would gladly see the back of these anyway. With this passive attitude and subservient actions that are to the benefit of the "economically stronger1', we lack partners with whom we could work towards a comprehensive revival strategy that would be to the good of and for the benefit of the community as a whole. Our activities were conceived as representing fictitious interests, which the municipal authorities regarded as unwanted ''disturbing of the peace". The quintessence of the municipality's attitude with regard to the KDlonie ran as follows: if we could only rescind this preservation order then we would not have any more problems. The municipality was unable to grasp the fact that the preservation provided the community with an opportunity of finding alternatives to extinction, including the financial means that could be reaped from it.

The Residents and Their Interests

In order to understand the interests of the residents one must be familiar with the situation in which they find themselves. The village has grown with the coal and energy provision industries into an industrial community, life as a whole being characterised by a close connexion between company, work and home, today this being expressed in the form of a judicial, economic and spiritual-cultural dependency on the firms. With the closing down of the works, employment has disappeared, but the hnns still own the housing. With the upheaval in the community, the legal position of the residents has deteriorated, the uncertainty as to whether one can and may remain in the accommoda- tion stands, in consideration of the upheaval all around, in flagrant condradiction to the enormously important psychologicial need of a secure "roof over one's headff.On top of this, the majority of residents have undertaken maintenance work on the houses on their own initiative, in GDR times having had a quasi owner-like right to usage. In this situation the owners prepared and initiated privatisation, thereby corresponding to official policies concerning housing. The residents would like to purchase their houses, above all in order to ensure their right of tenure, so as to own property, as well as to secure unlimited right of usage of the accommodation and the form it takes. Speaking in favour of this, apart from the legal and psychological arguments, are the very low purchasing prices being asked for the non-renovated houses and for real estate (ca. 20.000 DM for a detached house with 77 square metres living area and 500 square metres ground). The desire to purchase the house is also an act of "ma~~l.ify".The residents hope that as a result of puchasing their homes they will break free of their dependency upon the firms. Following the owner's moratorium on privatisation, residents collected signatures supporting the selling of the houses, 80 per cent of the residents adding their names. Speaking on behalf of the initiative were residents who had already purchased their properties and those of the "third generation" (40-60 years old). Here a mixture of social anxiety, the desire to acquire property as a form of investment and the securing of tenure made attempts at discussion of alternative legal models of social security a non-starter. Figure 3: One typical house type in Zschornewitz (Photo: T. Tanninen)

However, this "majority" interest of the residents has to be differentiated. Interest in purchase does not automatically mean that one is able to do so. Following the expe- riences of other estates, one third purchase with secure hnances, one third with anxiety concerning loss of the house whilst the other third cannot buy. For the two latter groups in particular, legal and financial alternatives have to be ensured, in order to prevent social displacement. Discussions with and between the residents were, however, dominated by the representatives of the first group. The residents with the most problems are the most insecure, uninformed and inactive. Offers over discussions with the citizens' action commitee and representatives of the municipality to try to find solutions for these groups were not taken up. The interests of the residents were thus exhibited, which for the majority were neither realistic nor hnancially secure. Overall, one has the impression that the particular interest of the immediate participants (residents, owners, municipality) in Zschornewitz meet at the point of individual privatisation of the houses. This consensus of interests, however, does not correspond with the complexity of the problems in the Kolonie. It does not take into consideration important factors such as: - the social security of every resident, - the securing of finances for renovation work, - renewal of the preservation order, - the securing of social relationships and the social net, - preservation of the estate as a unit with the power station and the revival of the "culture" of the estate, - the use of historical potential for new on-site development as well as economic and ecological revival.

Emerging from this is the danger that the social and economic disintegration of the Kblonie has merely been postponed. On the other side, as owners of their houses, the residents are more consciously aware of their interests, become more active and are more aware of what the discussion over the future development of the KDlonie and the village as a whole can bring forth. Decisive for future developments will be VEAG's decision as to their next move and the question of whether if (and then how) to involve complex, overlapping interests in the decision making process.

What Steps are Possible and Desirable in the Future?

The attempt to develop a comprehensive joint model for a socially acceptable renovati- on policy (and one compatible with the preservation order) was without success. The result was the holding of discussions to decide on the fundamentals of the form of renovation corresponding to the preservation order and agreement, either by house or by family, over the legal and financial details. The privatisation schemes carried out by MIBRAG and the municipality clearly contradict this model. Here it has to be esta- blished that it is above all the social problems which remain unresolved. Therefore, the next step must be consultation with and support for the tenants, with the aim of finding together with them new models whereby the right of tenure and a new, fundamental renovation of the houses is secured on a socially acceptable basis. One possible way is to use individual "kitchen table" discussions in order to ascertain the social situation, the differentiated maintenance and modernisation requirements, as well as self-help and funding potential. In addition, an attempt must be made to find tenants willing to become engaged in new communal, supportive models, e.g. a residents' association or a tenants' administrative association. If this were to be ac- hieved, then new concepts for solutions to the problems could be developed. Another idea is the formation of a renovation association by the individual property owners, in order to promote a form of renovation that relates to the estate as a whole, to advise individual owners and to make both the preparation and execution of renovation more effective. This could also lead to financial advantages. This renovation association would provide a new instrument whereby the social relationships and the community aspect of the Kblonie residents could be strengthened. Both methods require a fresh, independent moderating influence and advisor for the residents who can act as mediator between them and the owners, firms, authorities and so on. Now that our planning task has expired there is no one to undertake this work on-site. This is a task that the Bauhaus Dessau could assume. Other alternatives do not as yet exist in the region and they too would be dependent upon client and financer.

New Participants in Urban Renewal - Who Shall Support New Concepts?

As yet there are no bodies responsible for the safeguarding of overlapping interests. Our experiences indicate that a classic planning task collides with the neutrality necessary in such an activity. On the other hand a new role could develop out of our work to date if those involved in the renovation process (residents, property owners, municipality) would accept this intermediary work and legitimise our role in such. On top of this there is no acceptance of this development task as an expanded and fresh insight into planning. The question remains as to who should and who could take over this mediating role "between two stools" under existing circumstances and thus introduce a compre- hensive method of looking at things concerning the revival process. To my mind any such new participants would have the following tasks: - moderation, advising, mediation between those involved the process; - support for advising weaker interest groups in order to ensure the equality of the partners; - formulating of overlapping, comprehensive methods for looking at things and in so doing involve communal interest in the process; - development and realisation of new work methods which will correspond to the aims of the renovation process; - community work, cultural and publicity work; - ensuring the transparency of the process for all involved.

It will not be possible to realise all of these tasks in every project. Probably they will be realised on more than one level or through a network of different new participants and intermediary institutions. Intermediary activities, consultations and moderation, as well as the development of projects, represent a self-contained activity for which there are already examples in the old Federal states and in Western Europe. These institutions, which can be charac- terised as intermediary organsiations, do not yet exist here. The Bauhaus exhibits features of such an organsiation but one that works on a regional level. For the revival and renovation of housing estates and in other areas of urban renewal such support in the sense of intermediary organsations or persons is, according to our experiences, necessary. Their tasks would involve work connected with the estate or city quarter and through consensus of interests the searching for solutions to develop- ment problems of the particular location. Those currently involved - community, residents and the owners - are, for different reasons, either not prepared or not able to safeguard these overlapping interests. In normal instances in a market economy the economically stronger interests come out on top. As a result, the social, economic, cultural and ecological consequences are off-loaded into the weakest or pushed aside and in the final analysis it is the community that has to bear them. This must be countered by development that corresponds to the complexity of every civic building resource, orientated towards the extant social, constructional, economic and cultural circumstances. This must also correspond to a fresh understan- ding of planning. Thereby, planning must be prepared to take on more strongly the functions of an intermediary organisation. A training of planners that corresponds to this is also necessary. The second essential problem is the acceptance of such a work task as being a necessary and meaningful activity between the state, residents and the market. Part of this acceptance is also the recognition financially of such work, as well as the corres- ponding placing of contracts through residents and their 'institutions, communities and companies. One can quote successful examples in Western Europe. In East Germany there are the first indications, fainthearted though they may be, of such activities. It is necessary that their efforts and their experiences be quickly seized upon and that their findings be given the widest possible publicity in order to create the basis for future projects and encourage the involvement of other participants. The Bauhaus Dessau can play an essential role here. Never-ending Transition of Housing Policy in Slovenia*

Barbara Verlic Dekleva

Strategic and Professional Constraints on the Housing Policy in a Transitional Society - the Case of Slovenia

In most of the former socialist countries housing policy faces similar difficulties, with radical reforms moving toward market- and democracy-oriented organizational structures. In short, one can point to the main problem of the transitional phase, that of the dissolution of a compact system and its replacement with new forms (Telgarsky et al. 1991). These countries are dealing with similar problems, although there are differences among them. Common issues are denationalization of the properties and privatization of the former "state regulated or socially owned" housing funds through the right to buy option offered to the tenants (Baross et al. 1993). Where do we start? The latter issue reveals housing which has been financed, distributed and managed through a process of social verification and standardized regulation. Its main impact has been that it was quite impossible to determine ow- nership, or better, the '>property rights" that indicate responsibility. Normative deter- minants were used to establish the use value of such housing, rather than market allocation. The entire socially owned housing sector has been dominated by state regulation and intervention, from the building sector to management (both inefficient). That domination is supposed to be overcome during the transitional period by the ffconversionof properties" or the right to buy - which is the main form of housing privatization and decentralization of the system in former socialist countries (Renaud 1991). What are we aiming for? Transformation will be achieved when market forces, property rights and tenants' rights are functioning in a plain and proper manner.

Slovenia has been an independent republic since 1991. The surface area is 20,251 sq. km. The country is inhabited by 2.0 million people of which 90 per cent are Slovenians, 3 per cent Croats, 2 per cent Serbs and 5 per cent other ethnic groups. 49 per cent of the population lives in urban settlements. Ljubljana, the capital city, has 323,000 inhabitants. The GNP in 1992 was estimated as 6,330 US-dollar per inhabitant. (Harenberger Lbderlexikon '94P5. Dortmund 1994.) Housing is then seen as an important part of the economy, where entrepreneurship initiatives come into play along with other, more social-policy oriented factors. Only market values (for rents and housing prices) will determine the real situation for households: what the real value of the unit they are using is (Bajt 1992). Therefore, in order to increase mobility and eliminate irrationalities, the ktstep is a process of market redistribution of housing allocation (it is wise to do that first by simulation). What can the market do? Such a shift towards a market economy is highly insufficient and imperfect for resolving the overall problems concerning the availability of housing, thus government interventions are needed and new bases for social housing policy have to be determined. The aim of the reforms is not to frustrate or even punish the inhabitants, but to estimate the extent of some structural problems and find better solutions, rather than to insist on more spending for new housing with few predictable results. As an illustration, there is excessive pressure for new construction due to the lack of available larger housing units. Those living in such a unit are not paying the real cost for it (no tax on property or low rents) or have no other adequate housing to move to - so the mobility of that population remains low.

Old and New Persistent Housing "Irrationalities"

There is much evidence and logical assumption that the real extent of new construction would be diminished and become more qualitative, i.e. selective of the type of housing and its location, if market values were respected (Bajt 1992, Dekleva, B.V. 1991). Blejec (1984) pointed to the need for housing renewal as a means of enabling greater mobility, keeping the use value of housing stock permanent and decreasing spending on new contruction. The next actual problem is a lack of available data and analyses of local markets. There is ever more limited interest on the part of the government in stimulating such a professional aproach before proposing alternatives. The decisions continue to be politically and socially grounded, and have limited rational bases (Bajt 1992). These are driving housing policy at present toward a "new ideology", therefore creating problems, not solutions. For example, the rising demand for social housing is not on the ministry's agenda and there are almost no resources available for such families. The most devastating is the tacit "argument" that there is no lack of housing in Slovenia, due to statistical evidence showing the number of housing units being greater than the number of households according to the 1991 census. Firstly, there are structural shortages of different kinds (type of unit, location, price, tenure), preventing access to adequate housing (Dekleva, B.V. 1993). There are no regular resources for upgrading and renewal of housing, which increases the lack of available housing by reducing its use value and adaptability. Moreover, the number of households is still growing, regardless of the fact that the mobility, immigration and number of the population is remaining constant. Demographic estimates show that we will need ca 8000 new units per year in the coming period (National Housing Program (SNP), Jakos 1991). The impact of economic restructuring is going to increase local structural housing shortages, since the labour market is changing. The lack of available rental housing will restrict the necessary mobility of the population. A statistical surplus is therefore not acceptable as an indicator of limited housing needs. State housing resources during the last decades have been manipulated as goals of social policy, rather than economic efficiency. Nevertheless state housing has cer- tainly been the main sector providing housing for the demand of the labor market as well. This statement is even more true concerning the amount of capital available to the latter in comparison to private housing, as well as the organizational energy invested, and therefore implies that this sector is not the most efficient in producing adequate housing at an acceptable price. In Slovenia, the "sock1 production of housing" has never reached the extent of that in the former Soviet Union, Czechoslovakia or even Hungary, since the first privatization programs appeared as early as the 60's. At first, building construction cooperatives were launched, in which the housing remained in private hands as a personal asset. Even flats in high rise buildings have been sold extensively to homeowners from the 70's on, supported by loans and commercial credits. As a result, capital given to individual and cooperative constructors has been used more efficiently, resulting in a productive sector for new housing and increasing the share of individual homeowners from the 70's up to the majority share of 67 per cent in 1991 (Dekleva, B.V. 1993). The fact that such forms still had a social, rather than just an economic function (adding extra personal savings invested in housing to the social capital) is emphasized by the closed circle present within the sector as a whole: by redistribution of resources (individual housing taxes and income of firms) through para-state housing agencies to the construction sector, which is under the monopoly of the former. Direct and indirect subventions have been extensive in the production and selling of new housing. Alloca- tion of housing to the tenants (or buyers) has been determined on the basis of social need or of privilege, but not on economic efficiency. It was difficult and illegal to make a profit by selling off one's private house, so high taxes have been implemented. The private homeowner sector was large, but its functions have been limited and property rights restricted. As a rule, rents have been kept extremely low in all former socialist countries: until recently rents in the Czech Republic had not been raised since 1964, in Russia since 1928 (in Moscow in 1992 rents amounted to 3.5 per cent of the full cost for housing) and even though thay were raised several times in Slovenia during last decades, rents still do not cover all the costs (Cities 1993, 185; Sykora 1993). The consequences are poor maintenance, a low level of mobility and badly used building value and potentials, provoking too much demolition. The times and the present problems reveal the overall inefficiency of the social production of housing regarding cost, quality and social justice in the process of distribution (Vahcic 1987; Dekleva, B.V. 1993; Gantar & Mandi and B.V.Dekleva in J.Simrnie & J.Dekleva 1991).

Never-ending Transition and no Transformation on the Horizon

The era of privatization has been present in European countries as well during the last decades, with quite different effects: from more positive ones in Germany to those in the U.K. (Oslo ENHR conference 1991). It is a fact that during periods of transfor- mation all governments emphasize the role of the market and the new function of the state in the housing sector (Lundqvist 1992). In dissolving the welfare state, we return more or less to residual models, pointing to market integration or the family enabling citizens to house themselves, rather than the state providing housing for them (Titmuss 1973). Since housing is a particular social and individual need (like education and health), complex instruments for interventions by the state into both residual segments are used. But it is also true that in that regard few effective results have been achieved and it is not yet clear how to realize the goal of better housing for every family and moreover, the right of everyone to be properly housed. Market integration is limited due to increasing unemployment, while the family seems to be able to provide only for a few generations (on average). This is logical, since market exclusion increasingly effects the family. Never in this century have there been so many displaced or homeless people living on the streets. Housing for the poor, social housing or new forms of solidarity in these fields are ever more present subjects of professional analyses. The revelation that we share common problems and that there are no adequate answers and solutions is making the situation in former socialist countries even more difficult and acute than elsewhere. There is not only the need for transition, but the additional process of transformation: changing the system as a whole, which involves more problems and a lack of historical experience. What is ,the Position of Slovenia?

For Slovenia, the period of change is at present in slow motion: there is an inability to go beyond the transitional period. Housing reform is just another "social normative design" and not a project to be completed within some perspective. The unique example of market induction by planning is historically a very new experience and is as such in contradiction with its own genesis, the very laws of market principles. The imbroglio is occuring precisely at the moment when the old organization is being dissolved (which was "a heroic act", realized with enthusiasm and optimism), new rules and organiza- tions are not functioning (mostly they exist on paper or not even there): the very time allows any behavior and anything to happen and there is no prevention, control or sanctions1. One has to invent them first, but usually with a delay. The laws have been accepted, but not implemented, except for privatization. Denationalization is in delay and the solutions proposed are contradictory. Finally, the market and entrepreneurship in the housing sector (or elsewhere) cannot be planned, but must be allowed, stimulated and given space with limited interventions in order to develop. Very little or almost nothing has been done from that perspective on housing. Furthermore, in avoiding the responsibilities for the consequen- ces of market allocation of housing value and rent, the ministry has rather prevented its functioning. Why do we have only "para-markets" operating? At present, 88 per cent of housing stock is in the hands of individual homeow- ners, most of it for family needs. To increase the mobility within this sector taxes on sales have been finally reduced from 15-35 per cent to 2 per cent, which is one of the very few positive instruments implemented in the transition toward market allocation. The impact of reduced sales taxes has had, on the other hand, insufficient effects, since this instrument has not been followed by another necessary one: taxes on property, especially in the case of luxurious single family units, central locations and larger apartments being used by small households. In short, the households, having a surplus or "overconsumption"according to the housing standards, are still not paying the real costs and consequently are not stimulated to move or make any other changes. Generally, in the private homeowner sector, there are not enough free housing units to increase mobility and market exchange is more similar to the exchange of

This is not to say that we should not have done it: It is not a criticism from the perspective of socialist nostalgia. On the contrary, there are still arguments that there was no other choice. I argue that the reforms are being delayed and there is too much ideological arguing about how to realize them. Let's allow the market to function and indicate the problems. When we are able to allocate and structure the problems, adequate interventions and instruments could be proposed for a housing policy. goods: those selling are also buying at the same time. "Chains of sellers and buyers" are therefore created (Dekleva, B.V. 1988). The demand and supply side are not in balance, since their structures do not fit each other (Cernic-Mali 1993). There is a lack of liquid capital, therefore purchasing power is not adequate. New construction is then promoted excessively: through long term private home construction in the suburbs and countryside - replacing by work the lack of capital. In the cities, new construction is supported by lobbying among local governments, firms, banks (new housing funds?) and the construction industry. There is much evidence from real-estate agencies on how difficult the relocation of homeowners is.

All Quiet on the Eastern Front

New legislation from 1991 in Slovenia promoted the privatization of social housing and about 64 per cent of the stock has been sold to the tenants. In 1991 the tenure structure of households was 67 per cent homeowners and 33 per cent tenants in the socially owned housing sector. After the implementation of privatization (which lasted from October 1991 to October 1993), according to an unofficial account in Delo on 15.1.94, during the last two years, more than half of that 33 per cent has been sold to the tenants. The remaining rental sector of ca 12 per cent is at present still under state rent control, even though ownership has been returned to the investors (firms, communities etc). This is in contradiction with the property rights of such "new owners" (Dekleva, B.V. 1991; Bajt 1992). State regulation gives the tenants "strong" tenure rights (difficult to change the tenant), rents do not yet cover the real costs and are not market based. The methodology used by the ministry to determine the level of so called "non-profit" rents is hardly selective enough according to the quality, location and use value of the housing units. Non-profit rent is determined as 2.9 per cent of the house value, the "value"being much lower than the actual market value. This suggests that scores given for the "age" and heating arrangements of housing units and those for location and area or for the difference between flats and house. do not result in an adequate evaluation of the use value, comfort and potential market price. Estimates are that the state regulated value of housing represents only 116 or even 1/10 of the market value. During privatization such a methodology resulted in the underestimating of the high-quality housing units with respect to the older flats in high-rise buildings equipped with central heating, for example. The argument that "selling off was justified but the prices have not been adequate", seems to hold from these above perspectives for rents as well, both in absolute and relative terms (Bajt 1992; Dekleva B.V. 1991; Stanovnik 1993). It is nevertheless predicted and planned by the government that the nonprofit sector is going to be promoted through loans and a national program. But there is much indication that there is very little entrepreneurship initiative and more parastate or- ganizations are trying to dominate that sector. And since the government is holding back on strong intervention into the private homeowner sector, preventing the market mechanisms from establishing the value and rent of former social housing, it is very likely going to do the same with non-profit housing, in spite of the "transition"being over, as A. Bajt predicted: "After the sale of housing at severely undervalued prices, there will be no moral justification for increasing the rents to a market level for the rest of the socially owned housing where financially weak householak are living; this goes for the new housing as well. The irrationalitiesfiom the previous system will be endless and persistent. The socialist (not the social) privatization was once allowed on a monthly basis and in an economic sense, the new system has made it permanent and final, affirming the legislative sanctions on it" (Bajt 1992, 36).

The new National Housing Fund was created in order to enable families without housing to buy a home and stimulate the non-profit sector. As a start, 20 per cent of the money from privatization was allocated to the Fund, which is hardly sufficient for the needs. Three public announcements attracted about ten times more applicants than there were resources. The Fund started to increase its capital through financial transac- tions and allocated loans2 only to those who are capable of repaying. Thus socially and financially deprived families are not eligible, nor is there a subsidy fund available to pay the rents in the "real private" rental sector3. It could be argued that the Housing Fund actually replaced the former housing bank, only with fewer resources, since there is no guarantee (and little hope) for the constant flow of fresh capital into housing. Thus the privatization and reform of the housing sector has, according to the problems mentioned above, quite different strategies in each country and different effects as well. There seem to be few disagreements about the general goals, such as

The loan is a "highly competitive one", with 3 per cent interest compared to commercial loans of 12 - 15 per cent, but both are increased by the "big R" - a monthly inflation rate of about 2 per cent during 1993.

Some homeowners own extra flats which they rent, and the sector of mostly financially deprived tenants, who pay a real market price for each unit, is poorly controlled, without holding any protection from the government. Separate analyses will present this phenomena. democratization, decentralization, market oriented strategies, the new role of govern- ment. There is a common agreement that the housing market needs interventions, and that government has to care for marginal citizens as well; but it is not clear whom to blame for disorientation about the solutions proposed (everybody disagrees with everybody else), and lack of decisions - where and when to apply each particular instrument. What the moral or financial obligations of the national government, ministerial and parliamentary decisions are and which should be addressed to the local communities, firms (employers) or even left to the burden of a Eamily, has not been determined at present. Finally, how to evaluate the outcome of market mechanisms, comparing positive and negative effects, without supporting research analyses, is a mystery within the "new ideology" of the present government. The exchange of legislation and norms does not seem to be a problem, at least not in the case of Slovenia (a new law came into effect as early as October of 1991), but there is much delay in its implementation. Ironically, there are more cases in which the new law is not adhered to, the viewpoint is rather that it only promoted, not created, positive change. Local communities, for example, tend to take the role of "a good landlord': thus they invest into profit housing and try to attract "desirablepolitical and managerial staf" through new housing arrangements (selling through leasing arrangements, for example). Nobody is providing (and do not feel that they should), adequate housing for young families without regular incomes, or socially deprived ones. The share of the rental sector is definitely too small and unstructured to enable mobility or access to adequate housing for generations to come. The impact of selling off has been in many cases similar in different countries: good quality housing stock in developed regions has been sold quickly, mostly for down payments (in Slovenia to 56 per cent of buyers, since they were given a 60 per cent discount on the "value"), for about 116 of the market value (Stanovnik 1993; Bajt 1992). There is much debate over whether the sudden flow of over 1.2 billion DEM provoked a monetary shock. Those tenants in depressed areas living in poor quality housing stock did not want or more specifically could not afford to buy. Even though such housing is, according to the law, given to the original owners and is therefore the property of communities, firms etc., the property rights have remained limited. On the one hand, there is hardly any legitimate and moral reason to charge market rents to those who could not afford to buy, and were not able to realize implicitly recognized potential ownership. On the other, what is the point of being a landlord, without being able to realize property rights or the value of investment? What is the possible impact of such a policy on the potential investors in the rental sector? Some of those who had been given back such properties under denationalization are selling them back to the communities at similar discounts! The ministry, for the time being, decided (by law and directions to owners!) to promote in that sector non-profit rents and permanent tenancy, transferable to those living in the same households. Such decisions have the social and moral legitimization of the government, which was not able and did not want to promote some more effective models proposed for privatization (Bajt 1992). What has happened during the transition so far could be seen as a clear step away from the reforms proposed at the beginning (1988-1990); property rights are denied, market functions are not able to perform and former irrationalities persist. The newly passed law is not respected, even constitutional rights are denied (Bajt 1992). Further- more, since the money tiom privatization has not been used to in some way overcome this conflicting situation, the ministry has no will to apply for any money at all tiom parliament. Finally, there had been wamings that this might happen, so there is not even the excuse that the decisions were made in good faith.

Obstacles to Reform and Transformation - Becoming Impatient

I argue, firstly, that the instruments used in the transitional period are not the same that we need to run the already transformed housing sector. Transition is, as short as possible, the way to get tiom the socialist system to the modem capitalist one. The instruments in the first step are oriented toward changing the previous items and relations - in housing that is socially owned housing and long term state planning. Secondly, the market will function and government (local, volunteer, and humanitarian associations) will create parallel social networks or interventions into the first. We are at the point where only privatization has been proceeding, the market is limited to only certain segments, creating a "para-murket" sector, and is not working properly - all the rest is in delay or even at a standstill. The government has no resources for interven- tions, and thus is limited to normative acting. It prevents the (market allocation) shock by limiting the market impacts only for those who had always been protected, instead of creating a selective social policy network. Those who have no housing status (in many cases no permanent residence) or are not tenants of ex-socially owned housing, are left to the caprice of the market and have no social protection in the case of need. This refers to most marginal groups, temporary inhabitants, students etc., who rent housing tiom individual homeowners. There is no statistical data on this segment, no control (or surveys ordered) of these rents, and no subsidies available. The Law determines "usurious" rents to be sanctioned, but there is no analysis of what market rents are and no case reports. In a way, we are returning to and persisting in the socialist contradictions, under new slogans. Many analysts of former socialist countries are warning that there are no instru- ments for pushing the transformation of housing reform forward and no signs of any coordinated national housing policy. Not one case has been documented of a national parliament which has allocated part of the budget to the housing sector (Baross & Struyk 1993; ENHR Conference Budapest 1993). At least some of these reasons explain this situation: (i) A lack of knowledge and resources needed to prevent undesirable impacts of market allocation, regardless of possible positive results that the market might resusci- tate. (ii) The political reasoning of the governments, that cannot open so many problematic frontiers at the same time: increasing unemployment, decreasing wages, increasing cost of living, lack of investments in new production, persisting social and political destabilization due to the lack of social security and so on. (iii) The fight over property, which will determine the "new elite" in the future, is forcing the parties involved to "make coalitions", dividing the wealth. There is a strong need to make compromises, priorities, to prevent destabilization from becoming unbearable, and housing seems to be the first convenient item on the agenda of the retreat. Despite the fact that housing production is at its lowest point since WW II, while social pressures are mounting, the government has spent almost no time on housing. (iv) Finally, to end the transition and confront the transformation of the housing system means to face immediate insecurity and the cries and protests of those who are overconsuming in housing on account of subsidies. Only a select number would be eligible for new forms of social assistance, while others face frustrations. Housing is then - from that perspective - seen as socially and politically "explosive", since it reflects the impact on the living standards of every household. Most prone to irrational eruption are formerly powerful social groups, when something is taken away that has been considered a right or a promise. One part is then comforted by "the right to buy" for almost no money, the other is left with non-profit rents, probably for the rest of these generations. Runciman's (1966) relative deprivation theory is given full acknowledgement: the powerful position of the elite allows them to keep their privileges in this process of accumulation of wealth; those who had got nothing or a minimum are left to hope for future market integration, since few promises were made to them; those facing new situations are already prepared and advised by new legislation: they have to fend for themselves. Literature and references

Bajt, Aleksander (1992). Gospodarski vidiki zasebljenja stanovanj. Gospodarska gibanja St. 224, Ekonomski institut pravne fakultete. Ljubljana. Baross P. et al. (1993). Housing Reform in Eastern Europe. Cities, Vol. 10, (No. 3). UK, Australia, USA. Blejec, Meta (1984). Methocis for evaluatiom of long-term housing neecis in local communities of RS to the year 2000. Urban institute RS. Ljubljana. Cernic-Mali, Barbara (1993). Moje sanje- majhno stanovanje? Urbani izziv st. 23-25. UIRS. Ljubljana. Dekleva, Barbara, V. (1991). Housing policy in a post-socialist state. Referat 23-27 junija. Oslo, Norwegen. Dekleva, Barbara, V. (1991). Nemosna lahkost nove stanovanjske perspektive. Teorija in Praksa 8-9. Ljubljana. Dekleva, Barbara, V. (1993). Urban mobility and housing shortages. Referat 5-9 junija. Umd, Sweden. Lundqvist, Lennart J. (1992). Dislodging the welfare state. Delf: Delft University Press. National Housing Program (preliminary analyses) (1991). Authors: AJakos, S.Mandic, T.Kraigher, B.V.Dekleva et al. Ministry of Housing and Environment. Ljubljana. Renaud, Bertrand (1991). Housing Reform in Socialist Economies. The World Bank Discussion Papers 125. Washington. Rented Housing in Europe: Experiences and Prospects, Research Conference at Univer- sity of ihebro, August 1992. Runciman W.G. (1966). Relative Deprivation and Social Jdce. London: Routledge & Kegan, P. Sykora, Ludek (1993). City in Transition: The Role of Rent Gap in Prague's Revitali- zation. Journal of economic and social geography, Vol. 84 (No 4). KNAG, The Netherlands. Telgarsky, Jeffrey P. and Struyk, Raymond J. (1990). Toward a Market-Oriented Housing Sector in Eastern Europe. Urban Institute report 90 - 10. Washington D.C.:Urb.Inst.Press. Simmie, James & Dekleva, Joze (Eds.) (1991). Yugoslavia in Turmoil. London: Pinter. Stanovnik, Tine (1992). Obletnica stanov.zakona: Kaj se je zgodilo in zakaj? Informa- tivni Bilten 6-7. Ljubljana. Titmuss, Richard M. (1973). Social Policy. London: Allen & Unwin. Weesep, J. van & Musterd S. (1991W.). Urban Housing for the Better-Off: Gentrifi- cation in Europe. University of Utrecht: Stedelijke Netwerken. Towards a Social Theory of Housing in Eastern Europe

Stuart G. Lowe

The purpose of this article is to challenge a number of ideas that have appeared in the comparative housing literature concerning the existence of a so called "East European model" of housing. The model is said to be a means of charactensing the housing systems of the former communist societies (Hegedus and Tosics 1992) and by extension attempts to explain the recent privatisation of the state rental housing stock in those countries as a "transitionalphaseN in the convergence of all these housing systems towards a more or less undifferentiated private market based on the institutions common in "Westerncountries" (Clapham 1993). If all these countries shared a common heritage it follows that they will share a common future. It is argued here, however, that the experience of Eastern Europe and the expla- nation of the rapid privatisation of state housing cannot so easily be explained away. I suggest that there are two implicit aspects of this model which lead it to fail as a convincing and useful explanation. Firstly, it suffers from the "unilinealism"which is characteristic of much of the comparative welfare state literature; that in essence all industrial societies are converging, albeit at different rates, towards some common type of social formation (Kemeny 1992). This I suggest is simply not congruent with the experience of the former Eastern Bloc societies either during the communist era or subsequently. Secondly, the notion of an East European model of housing is essentially non- statist; that is to say it allows a very low level of autonomy for the actions and influence of the individual state systems in each of the societies. Actually there were and will be considerable variations, even divergences, and that these are accounted for by the different histories and specific actions of the state bureaucracies. In that sense I argue for a heightened focus on the role of the state and the forces that shape the actions of both the central and local state organisations. The starting point of this thesis is that it is patently obvious that much of the former "Eastern Bloc" is not becoming Westernized. If anything the events in the Balkans, all over the former USSR and elsewhere point to a return to pre-communist nationalism, ethnic divisions and religious and cultural divergences and there are very few places where settled liberal democratic structures are securely established. Accounts of the housing systems which argue for a ubiquitous process of integration into a Western style housing market, via a transitional phase of privatisation, are equally misleading. The so called East European model of housing is, I argue, tautological because it can neither be proved nor disproved, and, more important, it inhibits the development of more nuanced explanations which are necessarily more country specific and theoretically rooted.

Comparative Theory and the "East European Model of Housing"

As Kemeny (1992) has pointed out, the comparative housing literature has been dominated by developmental models in which through unspecified evolutionary processes all societies are said basically to be moving in the same direction albeit "unevenly"'. Moreover, in this literaturez the treatment of East European housing is cursory and the recent spate of books and chapters on this subject are very theoretically unrooted. Peter Emm's (1990) book about the Soviet Union is entirely descriptive and, as the papers of the new generation of Russian housing sociologists show, is inaccurate and incredibly bland in its characterisation of Soviet housing (Bessanova 1992; Kalinina 1992). Even avowedly Marxist social theory is less then helpful and is often bound up with trying to explain away Stalinism or simply ignores facing the issues. Castells, for example, who in other respects is a major contributor to the development of housing theory, has barely anything to say about Eastern Europe in either of his major texts (Castells 1977; 1983). He is reported by Harloe to argue that urban inequalities in Eastern Europe are, "..due to the persistence of elements of the capitalist mode of development in the socialist states" (Harloe 1981, 186). It is not surprising, therefore, when such major contributors seem unable to shed light on Eastern Europe that the theoretical underpinning of the more recent studies is so weakly developed. At the conclusion to the best of the recent books meReform of Housing in Eastern Europe and the Soviet Union) Hegedus and Tosics, however, have advanced a very interesting theoretical approach to East European housing during the communist period. The book consists of a series of chapters written by both East and

- ' Jim Kemeny: Housing and Social Theory. Routledge 1992. The Urban Institute book Towarak a Market-Oriented Housing Sector in Eastern Europe (by Telgarsky and Struyk) is basically a description of the housing Gnance system of the satellite nations and has the specific agenda of assessing the openings for Western capital to stimulate the "marketparadigm". West European researchers. In attempting to pull together what are again mostly (very good) descriptive accounts Hegedus and Tosics argue for the existence of a distinctive East European "model" of housing. They point to centralized planning as the key to what happened to the housing systems in all the countries: The general feature of East European housing war that resources spent on homing were controlled by the "planningsystem", a power structure based on the dominance of one political party elite. Here a great variety of solutions can be founti, but the logic of the system war the same across all East European count- ries: key decisions were made by the centralized planning system. (Turner et al. 1992,320)

Furthermore, Hegedus and Tosics argue that shortages of housing could be ascribed to the control of housing consumption by "..strictly regulated wage policies. " Finally, although recogaizing the existence of significant differences between the countries, they claim that these differences can be, "..considered ar insignificant model vaktions which did not alter the dominance of the state over all aspects of the housing system" (emphasis added). Hegedus and Tosics thus advance a theory of the development of housing policy in state socialist societies. They claim 1) that there is an East European "model" based on the central planning apparatus, 2) that shortages of housing were due to wage policies, and 3) that the differences between the societies are insignificant. Most of the chapter takes the form of an extended critique of these ideas. I focus attention on the Hungarian case because there is to some extent an element of Hungarian ethnocentri- cism in the Hegedus & Tosics position and Hungary is a very good example of how the central state apparatus failed to dominate the housing system. Later, I briefly compare Hungary to Romania and Bulgaria to question the notion of "insignificant model variations" across the countries. These examples are only indicative and there is clearly a need for a more comprehensive nation-by-nation evaluation.

The East European Model of Housing - a Critique

A major. problem with the Hegedus & Tosics approach is the very low level of autonomy which they ascribed to the individual states. There is according to them a monolithic planning machine which overrides all else and differences between the societies are merely variations. Such a view is essentially non-statist because we are asked to believe that all the socialist states were pursuing broadly similar strategies with very low levels of autonomy. However, by looking at particular examples of the development of housing policy it is clear that such a view is unsustainable. The differences are no mere insignificant variations but are in fact in some cases funda- mentally opposing forms of policy. The Stalin model of state organization and of economic and social development was undeniably a powerful ideological imperative but the case of Hungary itself illustrates the limited extent of its power, notably in this example its inability to control the development of housing markets, even within the state rental sector, which was against the state socialist ideal.

Owner Occupation and the Hungarian "Deep Subsidy"

The establishment in Hungary of a "deep subsidy" system of housing finance in the 1960s and '70s is well-documented. Housing forced itself onto the political agenda following the Revolution of 1956 and subsequently it was decided to establish a network of factories for the production of concrete slabs and it was proposed to build 1 million flats between 1960 and 1975. Towards the end of the 1960s it was apparent that this target could not be met by the state system alone and as part of a short-lived reform drive in 1971 state built flats were sold to applicants on a separate owner occupier waiting list. This required a large cash deposit and a long mortgage taken from the state bank (OTP) and repayable over 35 years at a subsidised interest rate (3 per cent). This method of finance was also extended to self-buildersf of common houses in urban areas. Both measures clearly had the intention of pulling in large amounts of private capital to stimulate the building programme. The growth of OTP owner occupation was very symptomatic of the growing reform movement in Hungarian politics, following the economic upswing of 1968. But the creation of this new financial form created discrepancies in the costs to families of access to identical accommodation. As a result council rents had to be increased for the first time since 1946. The 1971 reform attempt in Hungarian housing is a key moment for the housing system and the state's response. It was an acknowledgement that the previous subsidy system had created major imbalances limited the alternatives for families and that these had underpinned large-scale market exchanges of rental flats and private solutions which were completely outside the state system. It was now officially recognised that council flats were changing hands in sales and this practice was legalised. The central planning apparatus did not strictly accept these reforms as a positive step. Moreover, very intense corporate pressure was exerted against the reform by the combined influence of the powerful construction companies and the large state enter-

The question of the self-build owner occupiers is dealt with below (because the manner in which self-building was dealt with is also very indicative of the limits of state power). prises with housing interests. Companies which had control over the financing and distribution of state-built flats vigorously opposed the recognition of housing markets inside the rental sector. The construction companies had a vested interest in the continuation of the state building programme based on prefabricated technology and was extremely monopolistic. As a result construction of the most deeply subsidised forms continued and, indeed, reached a peak towards the end of the 1970s. In the latter years of the '70s state built flats attracted 95 per cent of the subsidies but accounted for only 42 per cent on new building, the balance deriving from the high level of self building with no or very limited subsidies. The reform attempt of 1971 was, therefore, largely overridden by corporate and political interests. The point is that market forces and the scale of self building were severely straining the state planning system and large sections of the state were openly advocating market-led reforms. The sheer quantity of flats built in the 1970s did bring some benefit in assisting a relatively more equitable distribution of flats - to people with no positional advantages - than previously. Despite this evidence the inequalities and imbalances in the housing system were becoming chronic by the mid-1970s. The continuation of the deep-subsidy through the 1970s in the end led to a crisis and a new and successful reform in 1983, when an openly market-led housing policy was adopted. This crisis was fuelled by rampant inflation both in the private sector including the market for state rental flats. For example, a council flat could be bought via the OTP for some HUF 20-30,000 but offered on the open market could realise 6 - 8 times the "official" price. Under the impact of these conditions the basic housing forms began to split into an uncoordinated market which intensified the social disparities. The affordability crisis for families on average incomes became desperate. Meanwhile the very low housing costs for households established in the state rental sector facilitated access for them to other forms of consumption which were in effect a leakage (or rather a haemorrhage) of state finance. One form of this was the large scale construction of second homes on the outskirts of Budapest, along the banks of the Danube and in the resort areas around Lake Balaton. The continuation of the deep-subsidy and the expansion of state building in the 1970s was only possible through borrowing large amounts of Western credit. Re- payments of these loans and the interest payments on them further exacerbated the pressures on the state budget and together with the chaos in the housing system it was clear that new policy initiatives were necessary. This situation provided the opportunity for the market reform interests at both national and local levels to reassert themselves against the corporate powers and the central planning machine. After several years of "negotiation" a new housing reform was introduced in 1983. This was an openly market-oriented strategy which was intended to be demand-led and to decrease the financial differentials between families. The deep-subsidy was finally abolished and in order to reduce the on-going (and massive) subsidy to the state renters rents were increased by 130 per cent between 1983 and 1988. The point of recounting in detail the development of housing policy in Hungary over the last few decades is to illustrate the way in which the state planning system gradually lost control of the state rental sector. The success of the central apparatus in overthrowing the 1971 housing reform illustrates not its overwhelming power but its temporary strength. The power struggle in the Hungarian state was very finely balanced even as early as the 1970s and the continuation of the deep-subsidy housing strategy is evidence of the side on which the struggle was at that time resolved. But within the state rental sector an enormous crisis was brewing which was intensified by the continuation of the state building programme. Even within the tens of thousands of state flats built during the 1970s the market was operating quite independently and un- checked. Eventually the inability of the state to control its own creation led to the adoption of overtly market-led policy in the housing reform of 1983. In state socialist Hungary housing markets were endemic, largely uncontrolled by the planning system and eventually their reality and vigour defeated the central planners. The claim by Hegedus and Tosics that there was a totally dominant and centralised state planning system which commanded the direction of policy simply is not a valid explanation even of Hungary itself. The inflationary dynamic of this elementary, face-to-face market, and other factors described above, eventually caused the state system to implode. Hegedus and Tosicst view is non-statist because of the total autonomy that seems to flow from the central planning system. It explains everything and nothing.

"Insignificant Model Variants"?

The second claim of Hegedus and Tosics, that the East European model was a ubiqui- tous feature of all the state socialist societies, is equally implausible. The differences in the housing policies between these states were not mere "model variants" but were often based on completely different forms of state organisation. The non-statist approach which Hegedus and Tosics adopt leads to a low degree of analysis of the individual states and the character of the state apparatus in each case. Their approach appears to leave us unable to explain apparently vast differences in the objectives and consequences of housing policies in different countries. Two examples of polar opposites can be cited to illustrate this point. Romania - the Systematization of a Working Class

During the mid-1980s, at the time when the Hungarians were in the throes of the marketization of their housing, a very different set of events was unfolding in Romania. Here the officially sanctioned sale of state rental flats was common during the 1970s, more so than in Hungary. The reasons for this were not dissimilar; that the property rights afforded to renters were so strong that the difference between owning and renting property was insignificant, and, secondly, the state needed to unlock private capital and savings in order to finance debts and the continuation of the building programme. But in Romania, rather than this leading to the collapse of state housing policy, the Ceausescu regime intensified the control of the state over housing as part of the wider "systematization" programme (Lowe 1992). Control of housing markets was mounted as an ideological assault on individualism and the market principle. The Ceausescu government was deeply corrupt and nepotistic4. Housing policy was an instrument for the homogenization of the Romanian people. Thus from 1985 until the end of the regime all aspects of the market, whether formal or informal were obliterated by the ruthless policing and surveillance of the Securitate. This bizarrely deformed version of Stalinism was very far removed from the free-market direction which was already rapidly changing the face of Hungary. The contrast between the ruthlessly enslaving state machine of Ceausescu and Kadar's Hungary, where the state nomencla- ture was busily converting its positional advantages into capital and private ownership, could hardly be more different, indeed it is impossible to find examples in which West European nations could be so extremely differentiated. Although this is only one rather extreme case it does show the considerable "autonomy"that existed in the state systems of Eastern Europe. One rather less dramatic case can be seen in the different approach to housing subsidies adopted in the case of Bulgaria, again compared to Hungary.

Bulgarian versus Hungarian Housing Subsidies

In the discussion of Hungarian policy earlier in the paper it was shown that the state subsidy system until it was reformed in 1983 was a highly expensive and targeted deep

- For example 40 persons of his closest relatives held key posts in the military and civilian apparatus. A hard-core of the Securitate militia were orphans whose education had been personally supervised by the Ceausescu family. It is probable that one in ten of the population were either members of the Secuitate or were their paid informants. subsidy and which had a very socially regressive character. The periodisation of events in Bulgaria was, however, different and the subsidy system, when it was implemented, had a very different social impact and had a much less targeted structure. This compa- rison is useful because Hungary and Bulgaria were both mainly owner occupied societies before the collapse of communism in the late 1980s. Bulgaria was essentially a poor agricultural nation before 1945 and in common with many European and other world nations underwent very rapid post-war indust- rialisation. Unlike Hungary, however, private sector builders continued to be active in a completely mixed construction economy well into the 1960s. Migration due to the collectivization of agriculture caused great pressures on the urban areas and it was not until the 1970s that Zivkov adopted the Soviet style of high-rise construction. This programme developed rapidly in the '70s and was at its peak during the 1980s. The programme was designed to put in place large quantities of low quality flats and the logic of the distribution system was completely different to the Hungarian case of "merit" access through positional advantage. The aim was to meet the needs of the largely rural migrants and, partly in keeping with the rural origins of the inhabitants, the decision was taken to create these flats for owner-occupation rather then renting. State built owner-occupation had distinct advantages for the state because it enabled them to build very quickly large quantities of flats while minimising their financial responsibilities. Applicants on the waiting lists had to deposit large amounts of savings in the state bank at very low interest rates before being allocated a flat. It was then purchased at a subsidised price on long mortgages with higher rates of interest than the depositors. The state thus acquired the difference in the interest rates between borrowers and investors. It also minimised responsibilities for repair, maintenance and management costs. The quality of the flats was very poor and they were sold to applicants in a semi-finished condition. Plastering, the installation of kitchen cupboards etc had to be done by the purchasers. In the Bulgarian case there was, therefore, a kind of self-build activity within the shell of the state built blocks. The ideological preference for renting was overridden in this case because of the low level of economic development in Bulgaria. Large scale housing in the collective mode became necessary but the commitment of the state to it was minimal. This system was very different from the Hungarian case and is not merely an insignificant variation. In Hungary the state committed very large resources to a deep-subsidy to achieve a state rental sector. The financial gains to be enjoyed in the system were very considera- ble indeed. Its social consequences were regressive. In Bulgaria the state built system began at a different time and for different reasons. The nature of the subsidy was completely different taking the form of a much shallower commitment and having a much lower degree of targeting, socially. These examples are very much "thumb-nail sketches", but their purpose is to suggest the need for a much more theoretically rooted analysis of the experience of Eastern European housing and indeed society as a whole if we are to be able to account for what is happening in the transition from communism and to speculate about what lies ahead. The examples above generally reflect considerable differences between the societies and point us not to a unilinear East European model which has a very low level of explanatory value, but much more to considering these as diverging societies. And it should be added that in the case of Hungary and Bulgaria these are societies where owner-occupation was very high. Thus it is clear that the social meaning and economic logic attached to home ownership is not ubiquitous but is itself very diverse in structure and social impact. This finding may be significant as the post-communist era unfolds in each of these nations. At the very least it is clear that the East European model is of dubious theoretical value. It would on the contrary appear to be necessary to adopt a much more statist view in explaining what happened in these societies, a view which leads us to focus on the divergencies of policy. In this reading the state was not dominating "..all aspects of the housing system" but had very specific areas of autonomy in decision-making which varied from country to country and were certainly as different as any two West European nations. The problem with the "model" is that ultimately it does not explain anything.

The East European Model and the Privatisation of State Housing

Implicit within the logic of the East European model of housing is that there is a close connection between the existence of the model and the rapid privatisation of state rental housing following the collapse of the communist governments. The fact of this priva- tisation is not in doubt. All over the old Eastern Bloc, and now including the former Soviet Union itself, there has been a more or less rapid sell-off of the state rental or state built housing sectors. The explanation for this arising fiom the East European model thesis is that this process is simply a logical outcome of the collapse of state control, as Clapham argues,

'I... it is likely that the housing system of Eastern European countries will not be fundamentally different from those in current Western countries as they will be dominated by market processes and will not hove unique imticutiom" (Clapham 1993). There are several problems with such a view. Firstly, that the transformation from East European model to Western housing systems is an assertion that is not explained, except that the privatisation process is assumed to be a step towards a Western market model. A second problem with this view is the assumption that there is a single and ubiquitous "Western" housing system. This is once again a deduction based on the implicit unilinealism within the East European "model". In fact there are grounds for supposing that there are several theoretically dktinguishable types of housing systems in "Western"societies; Kemeny (1992), for example, distinguishes two basic systems in Europe based either on a "unitary" or a "dual" rental market. The point here is that the privatisation of East European state rental housing has to be explained and not assumed. First of all it is obvious that housing markets were familiar features of all the East European societies during the communist period. Indeed millions of households across these nations were both state renters and owner-occupiers (of second homes). It also seems clear that there were important characteristics of the state socialist housing regimes that generated the conditions in which the post-communist privatisati- on occurred. This is not to argue in favour of an explanatory "model" but that there were specific features of communist ideology which help explain privatisation. These features derive from Communist Party ideology and had the specific intention of underpinning the socialist industrial economy with a suitably collectivist mode of housing consumption. The mode (that is to say "collective", rather than individual) and the sector (public rental) were to be coterminous. It was clear that the collective as opposed to the individual form of residence was to be a distinguishing feature of the socialist city. In practice neither of these ideological prescriptions was easy to achieve and the state planners frequently compromised on some aspects of these two elements of socialist housing. The issue of the mode of housing residence is well illustrated in the development of Hungarian housing, particularly through the gradually evolving attitude to subsidy distribution and the regulation of self-building activity. In short, there was a gradual opening up of the subsidy system to enhance the contribution of the private sphere to the building programme but strongly favouring self-build activity which was collective. Initially self-build was banned but subsequently was given limited encouragement to urban self-builders of multi-family dwellings which retained an ideological logic (urban and collective), these subsidies were then increased and finally, when the market developed more strongly, individual self-build was also subsidised. The point here is to show the gradual breaking down of the ideologically "pure" form - state built, rental and collective flats - as the market grew in impetus, leading to privately built and individualised owner-occupation. The collective as against the individualised mode of residence was to have been a distinguishing feature in the creation of the socialist society. The low level of physical standards achieved in state built housing in some cases, notably in the societies considered here in Romania and Bulgaria, severely strained the collectivist ideology. Indeed one of the key reasons for the development in the 1980s of a large amount of second home building around Sofia is due to the poverty of the urban built environment. About one-third of households in Sofia have second homes which the state was unable or unwilling to control. The escape from a collective mode of living is not the only explanation for the huge amount of self-building of second homes in Bulgaria but it seems clear that poverty of the urban environment was an important aspect of this phenomenon. There may therefore be a link between the collective mode of residence and the large scale of individualised self-building of houses in the countryside around Sofia. A second feature of the ideological package of "socialist" housing concerned the conditions of the state rental tenancy. Having gained access to the state rental sector tenants were offered almost total security of tenure and a package of entitlements which were not dissimilar to outright ownership of the property. It is clear that under these circumstances the division between owning and renting in terms of property rights became very blurred. The development of face-to-face housing markets within the state rental sectors flowed from the high degree of security of tenure built into the collective rights of tenants in the state sector. Because of the inability of governments to stop it happening rental flats were relatively easy to sell because the rights inherent in the tenancy agreement in effect made the flats into "private property". As we saw earlier the growth of a large scale market within the state rental sector is a principle reason for the Hungarian government adopting an overtly market-led housing policy in the early 1980s. This was, of course, not the case in other countries and many people were constrained from trading their rental flats due to the shortages of alternative housing and the very low rents which were also a key feature of the socialist housing ideology. It seems clear, therefore, that the collective mode of residence and the security of tenure in the socialist housing ideology were themselves the harbingers of the market system they purported to oppose and supersede. As a result of this the privatisation of state housing following the collapse of communism should not be read as some kind of conversion to the market system but rather is a consequence of the exkting market processes which were endemic in East European housing under communism. In practice the loss of a guaranteed low rent and possibly some degree of security compelled rental households to seek ownership. Under the post-communist market economy the balance of advantages between owning and renting changed dramatically. Rent increases and threatened rent increases, although not unknown in the communist period, compounded the new sense of being in a "market" society. There are a number of other reasons for the rapid privatisation programme which vary from country to country. One of the most important and common features of the collapse of the communist regimes was the devolution of powers from the central to local government. State housing was taken over by local governments which had a number of incentives to privatise this housing stock; firstly, they could not afford the repair and maintenance responsibilities and, secondly, they needed to generate capital receipts from the sale of the housing stock to support their very fragile financial position. Huge discounts were offered, at least temporarily, on the real market values of the properties in order to divest themselves of the stock and to generate short-term capital. In some cases it is clear that the privatisation of state housing was offered to the populace as a social reward for the overthrow of communism, and there is particularly evidence of a link between the existence of powerful natiodist movements and the rapid privatisation programme. In a rather similar vein the restitution of property natio- nalised by the state was also very widespread but varied considerably from country to country in its terms and the scale of property involved. It is clear that the reasons for the rapid privatisation of state rental flats were embedded in the dynamics and structure of the previous housing regimes and that there are continuities between the old and the new systems. This is not, however, to support an unexplicated "model" but rather illustrates the limits of control operated by the state planners and the inequities inside the distributional system.

Conclusion

A theory which characterises East European housing under the communist period as basically a single model dominated by the central state apparatus is misleading and the evidence suggests that we should move away from an unexplicated model. I have shown that these states operated very different policy regimes at different times and in some cases were pursing highly divergent policies. The Stalin model of industrial and economic development generated an ideologically specified "socialist" housing system - collective built forms, state owned, (low) rental - but that many people for much of the time were outside this system and, moreover, that private markets were endemic within the state rental sectors. I have argued that there is no one unilinear process which underpins the rapid privatisation of state housing in the post-communist era. A more nuanced approach suggests that privatisation was rooted in the market exchanges which were common in the socialist period and were underpinned by the terms of the tenancy entitlements. More specific circumstances co~ectedwith central-local government relations, the growth of nationalist movements and restitution policies all indicate that far from being a single process of transition from state to market there are considerable divergences in what has taken place and that this is accounted for by the policy regimes of the individual state systems. The idea that there is currently a transition from an East European model to a Western societies model based on market institutions is factually and theoretically unsustainable the more so given that much of the former Eastern bloc is clearly not becoming "Westernized".

References

Bessanova, 0. (1992). The reform of the Soviet housing model: the search for a concept. In B. Turner et al. (Eds.) Zhe Reform of Housing in Eastern Ewope and the Soviet Union. London: Routledge. Castells, M. (1977). Zhe Urban Question Edward Arnold. Castells, M. (1983). Zhe City and the Grassroots. Edward Arnold. Clapham, D. (1993). Privatisation and the East Ewopean Housing M&l. Mimeo. Conference on Housing Policy in Europe in the 1990s. September, Budapest. Emms, P. (1990). Social Housing: A Ewopean Dilemma? University of Bristol: School for Advanced Urban Studies. Harloe, M. (1981). Notes on Comparative Urban Research. In M. Dear and AJ. Scott (Eds.) Urbanization and Urban Planning in Capitalist Society. Methuen. Hegedus, J. and Tosics, I. (1992). Past tendencies and recent problems of the East European housing model. In B. Turner, J. Hegedus and I. Tosics (Eds.) Zhe Reform of Housing in Eastern Eweand the Soviet Union London: Routledge. Kalinina, N. (1992). Housing and Housing Policy in the USSR. In B. Turner et al. (Eds.) Zhe Reform of Housing in Eastern Europe and the USSR London: Rout- ledge. Kemeny, J. (1992). Housing and Social Zheory. London: Routledge. Lowe. S.G. (1992). Housing in Romania. In B. Turner et al. (Eds.) Zhe Reform of Housing in Eastern Ewope and the Soviet Union London: Routledge. Telgarsky, J.P. and Struyk, RJ. (1991). Toward A Market-Oriented Housing Sector in Eastern Europe. Washington D.C.: Urban Institute Press. AMELEORATING THE PROBLEMS OF LARGE-SCALE ESTATES - FROM TECHNICAL RENEWAL TO SOCIAL REHABILITION

Large-scale housing estates account for a considerable proportion of housing provision, particularly in those societies which have undergone urbanization relatively recently. Most of these estates were built during the 1960's and 1970's with the help of new, industrial building technologies: almost "instant" urban settlements based on artificial social constructions. Critics have questioned whether they are at all suitable for human society. The estates are characterized not only by their huge scale, but also by high densities and a complete lack of neighbourhood and community facilities in many cases, (although neighbourhood ideals were a rhetorical fundament of the earliest high-rise concepts). It seems, with hindsight, that a "technological imperative" drove the design and production of the large-scale housing estates beyond human limits; providing many houses - but no homes - for a generation of new industrial workers, who left the coun- tryside to live as refugees in so many anonymous, satellite towns. Only 10-15 years after their completion, many of these housing areas have been struck by rapid physical decay and a concentration of social problems coupled with economic and organizational weaknesses in the housing corporations. High resident turnover rates, where up to a third of the residents move out in the space of one year, indicate that the problems are chronic and multiple. In the worst cases solutions have been drastic, with demolition of housing blocks being the ultimate answer. But does this response not ignore the real problem? Not all large estates built by industrialized methods are problem areas. Their viability is also dependent on their place in the urban structure, building and environmental quality and, most importantly, the structure and characteristics of the regional and local housing markets, which influence the status of the larger estates. Perhaps surprisingly, it would seem that these observations can be applied equally well to housing estates in the West and in the East. Until now, however, there has been a somewhat greater outcry and response to the problems in the West than in the East.

i Transitional Housing Systems 121 Developments in society at large are likely to have a crucial influence on the future status of these housing areas. Specifically, the estates must function effectively and economically in the housing market and new demands for ecologically sound running and maintenance must be met. Societal conditions have changed since the building workers put the last, finishing touches to these estates. Instead of functioning simply as dormitories they must now offer many possibilities for urban life throughout the day. Innovative solutions are required. And perhaps such solutions can be found through international cooperation. In Eastern Europe, in contrast to the West, the degree of social malaise (segrega- tion, exclusion, crime and fear of crime, etc.) in the estates is not so extensive. The most pressing question is whether the economic pressure and wave of privatization which is affecting the large-scale estates of the East will hinder initiatives to rescue them from their growing problems. Regardless of their precarious position, these housing areas are an important quantitative asset to housing provision in their respective countries and it is therefore necessary to learn to live with the undeniable problems of urban structure. Urban renewal in the East takes place under material and societal conditions which are quite different from those in the West. This makes the immediate transfer of experience from West to East impractible. Design, planning and evaluation of the housing models of the West can, at best, provide innovative ideas, rather than models applicable to the East, due to the discrepancy between their respective material, structural and cultural starting points. In her article on housing management in Bulgaria, Iskra Dandolova clarifies this very well. Evaluation research indicates that urban renewal also faces the more subtle but highly damaging influence of technocratic and physical determinist thought which has shaped solutions in certain places. In research terms, focus on large-scale housing estates as a technical problem is giving way to a broader perspective, whereby the estates are seen in a socio-cultural context. The value of this view is clearly shown in the chapter by Maria Joao Freitas who explains, in an example from Portugal, how the actions of well-meaning politicians and knowledgable professionals have led to results which are directly in conflict with the expressed wishes of the residents. Traditional housing quality indicators can show improvement but what has happened to the resid- ents' quality of life? Michel Bonetti, discussing French experience, suggests that social rehabilitation alone is an insufficient objective if the goal is to achieve lasting improvement in large- scale estates. He targets organizational and management problems, discussing the mechanisms which can be brought to bear on them, so as to generate new approaches to local problem definition and solutions. Several of the articles in this section consider the improvement of these estates in a larger urban context. The concluding article by Eva van Kempen offers a general view of the functional parameters of housing markets. Using the framework of the so-called "filtering theory" of housing decline she develops a case for the consideration of aspects other than simply the age of the housing, which have relevance to market prices and the status of residential estates. The analysis gives a coherent overview of the complex processes in which large-scale estates are bound up, and the mechanisms in housing markets which lead to segregation, marginalization and - slums. Where improvement programmes have been put into effect it may be seen that much can be done to raise the quality of the housing environment by technical and architectural means. Where appropriate subsidies have been made available from central government agencies it has been possible to develop local services and activities for residents without prohibitive increases in housing costs. But experience also shows that it is much harder to carry out "social rehabilitation" in large-scale estates. Here there are no clear-cut models or general methods which can be applied. This observation leads to the obvious need for future sociological research in this area. An overall view of the problem would suggest that urban renewal processes must be opened up to citizens, so that technical remedies and other efforts can be used as vehicles for further- ing communication and cooperation, with the ultimate goal of building strong, local communities. Upgrading Housing Estates in a State of Crisis - from Rehabilitation to Integrated Urban Management

Michel Bonetti

Changing the Relations which Exist between Housing Corporations and the Inhabitants: a Vital Issue

This article presents a critical analysis of the policy for upgrading low income housing estates implemented in France some twenty years ago. While this policy was limited to the technical rehabilitation of buildings in the 1970s, considerable progress was made in the 1980s with the instigation of Social Development Programmes for Housing Estates. These programmes were aimed at linking up rehabilitation, urban development and the improvement of public services (social, cultural, educational) in order to deal with the social problems caused by the economic crisis, in a global development perspective. However, this policy completely ignored any possible change in the relations which exist between the housing corporations responsible for managing these estates and their inhabitants. Efforts were focussed on investments in the field of rehabilitation and the creation of facilities and services whereas the real issue is the way in which the housing corporations view their relations with the inhabitants in an integrated urban management perspective.

Public Housing in France

It should be remembered that, out of a total 22 million main homes, France has 3 million state-owned flats and houses, accounting for nearly 15 per cent of all housing. Since 55 per cent of French people own their homes, this means that one third of the country's total number of tenants live in public housing, mainly in estates on the outskirts of towns, each accommodating 5,000 to 20,000 inhabitants. Although the percentage of public housing is less than 10 per cent in certain towns, it can climb to more than 40 per cent in cities such as Reims or some of the towns in the outlying suburbs of Lyons, Paris and Lille. Most of these estates were built between 1955 and 1975 and consist of uniform buildings, with a mixture of apartment buildings 10 to 20 stories high and blocks up to 300 meters long such as the Haut du Li&vre estate in Nancy, the architect of which boasted for many years was the longest in Europe, but his record has now been beaten. These estates are mostly managed by housing authorities directed by town or county councillors, but independent of the local council with which they are in frequent conflict, although they are generally chaired by the Mayor of the town concerned. The housing authorities mostly manage from 1,000 to 10,000 flats. Private corporations also exist which are subject to all the French regulations on building and management, allocation of housing, rent, maintenance and service charges which apply to housing authorities and corporations. These "private" corporations are generally created by banks and insurance companies and usually manage between 20,000 and 50,000 flats. One of them, the SCIC, created by the French Deposit and Consignment Ofice (a state-owned bank which manages National Savings Bank funds) owns more than 150,000 flats. There are also companies created by consortiums, financed by a compulsory 0.9 per cent salary tax, by which firms in France contribute financially to public housing. In return, they obtain special allocation rights for their own employees.

Figure 1: Public housing in France, as ekewhere? Urban development and ground maintenance, on the other hand, are the responsibility of the local council which often owns the land and roads. It should be kept in mind that these low-income housing estates were originally the result of a State policy by which the municipalities were forced to build them, despite their sometimes fierce hostility. In 1981, a decentralization law substantially increased the powers of the local authorities in the field of town planning and social services, encouraging them to demand control of the housing estates in their constituency, particularly with regard to the allocation of housing, which is still shared by the State, the local authorities, the local fms (as a result of the salary tax) and the corporations which own the housing. However, many municipalities continue to take no interest in the fate of these estates, particularly when there is a large foreign population, which can sometimes account for 40 to 80 per cent of the inhabitants. The average rate of foreigners in public housing is in the order of 20 per cent (as compared with an average of 7 per cent for the whole of France).

Social Development Programmes for Housing Estates

The rehabilitation of public housing built after the war began as early as 1970. Some of the buildings already needed renovating only 10 or 15 years after completion, because of the poor quality of the installations and materials used. These operations mainly applied to apartment buildings and very rarely to the improvement of urban facilities or public services. However, in 1975, a certain number of well-informed civil servants, aware of the deficiencies of these operations, set up a programme entitled Housing and Community Living aimed, as its name indicates, at improving community living by encouraging the creation of social and cultural facili- ties, backing the development of tenants' associations and advocating the participation of users in making decisions concerning their living environment. But this programme was still marked by a gap between decisions relating to the rehabilitation of buildings, which was mainly aimed at improving thermal insulation and heating because of the energy crisis, and actions concerning community living and the development of public facilities. The inhabitants were rarely involved in choices concerning rehabilitation as these were jealously controlled by the technical service departments of the corporations which owned the housing. It will become apparent that there was to be little change in the gap between the improvement of buildings and the other management aspects of these estates, or in the feeble participation of the inhabitants in decisions concerning their living conditions, and that the policy for upgrading low-income housing estates would continue to be based on this situation. In 1981, after the Socialist Party came to power in alliance with the Communist Party, and under the impetus of the former Mayor of Grenoble, Hubert Dubedout, who had developed numerous innovations in the field of local democracy and urban development in his constituency, the government implemented a new policy aimed at encouraging the Social Development of Housing Estates. This policy, initially tested in 15 estates which were high on the priority list due to the degradation of the environment and the social situation of their inhabitants, and subsequently extended to 150 estates in 1986 and 400 in 1990, was included, in 1986, in a new 5-year plan for State investments based on "plan contracts" between the State, the regions and the towns concerned, with financing of projects broken down among the different public authorities. The aim was to enlarge the Geld of intervention of the public authorities to cover all the different problems which can arise in a housing estate: employment, social integration of young people, education, culture, health, the fight against delinquency and insecurity, urban development, the rehabilitation of apartment buildings, etc. by integrating these different actions into a truly global development programme based on a sound diagnosis and specific objectives. The development and implementation of these programmes are the responsibility of a task force coordinated by a project manager, who chairs a local development commission consisting of all the partners involved in the management of the estates concerned (town councillors, housing authorities and corporations, tenants' associations, etc.) It means engaging a dialogue with these various bodies in order to define the aims and the actions to be carried out and to develop cooperation among them in order to ensure implementation of the ensuing projects. This "integrated development" approach was aimed at breaking with the incoherence caused by the compartmentalization of sectorial intervention which meant that each department (education, housing, town planning, culture, etc.) acted separately according to its own form of logic, without taking into account the problems caused in other fields by its decisions and practices. It was based on the supposition, which we share, that the problems posed in a housing estate require structuring of the various actions undertaken simultaneously in the different fields concerned as well as close cooperation between the housing corporations and the professional categories working in the field. It was also aimed at taking into account the demands of the inhabitants and closely involving them in the decisions to be made and implementation of the ensuing actions and projects so they would not remain passive and dependent, but would acquire a capacity for autonomy and regain their real status of citizens fully participating in the life of their estate. These development programmes have undeniably had many positive effects. They have not solved the problems posed in these estates in any depth, but they have considerably lessened the catastrophic effects of the ongoing economic crisis which are particularly acute in these estates.

The Limits and Deficiencies of the Actions Undertaken

However, it should be pointed out that the politicians, both on a State level and in the towns concerned, currently consider that the results achieved by these programmes are not in keeping with the investment made nor to the expectations they aroused. They now have a tendency to believe that changing the urban environment through major development projects will be more effective. In our opinion, this is a major step backwards and heralds the return, in a barely concealed form, of the old myth according to which the urban environment only needs to be changed and re-defined for the problems of the people who live there to be solved. It is rather ironical that this myth was at the height of its glory in the 1960s and formed the very basis of the way in which these estates were conceived, with the disastrous results that we know only too well. It is somewhat pathetic that it is now making a come-back and is expected to solve the problems it actually caused! This type of belief makes reference to the old functionalist ideas that organization of the urban environment is at the basis of social relations, pretending to forget that the relationship between these phenomena is not purely mechanistic and that the reality is a little more complicated, since the relationship is dialectical. The relative failure of social development programmes is due, not to their underlying principles, but to the way in which they are implemented. Their rejection on the part of certain officials is like throwing the baby out with the bath water. It is striking to see that it is often the very people who hindered their implementation who are now playing the public prosecutor and putting them down. Criticism of these programmes is particularly strong because of the disproportionate expectations they aroused. For some, this new type of social action, which clashed with the administrati- on's traditional type of intervention and the inertia of the professional categories working in the field, was expected to magically solve all the problems inherent in the way the social system functions. Their deception and their criticisms are on a par with their expectations. Not to mention those who consistently sniggered or champed at the bit before these somewhat desperate attempts to check increasingly strained social relations in problem areas by patiently reconstructing the social fabric, and thought it would be better to simply raze the buildings to the ground. This may seem something of a caricature, but certain politicians have no hesitation in claiming that they have solved these social problems by ridding the flats of their occupants and destroying the buildings! This is certainly a radical way of eliminating problems. -- Figure 2: An example of the physical renovation

For our part, we believe that the limited results of this policy are due to the fact that it has not actually been applied according to its principles and that the means needed to make it work have not really been made available. In our opinion, the heart of the problem lies in the status conferred upon the inhabitants in these programmes and in the weakness of the reflections and actions aimed at changing the relations which exist between the housing corporations and authorities and the inhabitants. Before going into further detail in this respect, it is important to mention a number of other factors which have considerably attenuated the effects of the efforts made. However, no attempt will be made to analyze them here. Ihe first factor that needs to be emphasized is the political vacuum which exists with regard to these estates, entirely neglected by the politicians, some of whom are even afraid to support openly actions which would benefit a population with a high rate of foreigners, in case the French population in other parts of their constituency should take umbrage. This weak political support means that the inhabitants of these problem areas do not really feel they are part of the local community, and the weakness of this feeling of "belonging" can only exacerbate deviant behaviour and social tension, since the political authorities can no longer play their role of social regulation. It is difficult to adopt as one's own and respect the laws of a local authority to which one does not feel one belongs and which regularly proves that it does not consider one worthy of being a part of it. The feeble investment of politicians in these estates can also be seen in the absence of a credible political project concerning their future, in the sense of projects proposing medium term development prospects, compatible with economic and social constraints. They often get no further than intentions, generous certainly, but which have no connection with reality, which results in programmes which often resemble catalogues, giving long lists of projects without any linkup between them, even if they are of interest on an individual basis. We will not go into the reams of red tape, the conflicts which exist between the various corporations concerned, the need to wade through a multitude of forms for even the most modest project or the long financing delays, all of which end up absorbing most of the energy of those involved who have to grapple with the everyday problems of the inhabitants. We should also mention the pitiful means devoted to training the operational teams responsible for these programmes, whose agents have had to "make do" from one day to the next, without any real backing on the part of the politicians and who have found themselves face to face with the heads of the various housing corporations involved in these estates without any real capacity for negotiation. Certain development agents without any real experience have been thrown into a situation of repeated failure, leading to rapid exhaustion.

The Question of Relations between Housing Corporations and the Inhabitants

We could mention numerous factors which have prevented the different plans of action from being effective, but we prefer to come back to the main question that we wish to discuss in this article, concerning the status of the inhabitants and their relationship with the housing corporations. One of the main problems lies in the vagueness and ambiguities of the ideas behind the social development programmes. Numerous decision-makers claim to adhere to and use these processes, but the notion of social development continues to be multifarious. Its meaning is rarely clarified so that in a given estate, the people who participate in these programmes rarely share the same aims and conceptions, even those who are supposed to be cooperating on the same project. The end purpose is generally to improve housing conditions, which mean rehabili- tating buildings and creating new services, while, in our opinion, there can only really be social development, that is, the development of society, $ there is an attempt to develop the capacities of the inhabitants. If these estates have serious problems, it is not only because of the decrepit environment and the appalling living conditions of the inhabitants, but also because they have limited capacities on both a professional and relational level and are unable to express themselves or take advantage of their rights.

Upgrading the Status of the Inhabitant

The major issue involved in upgrading problem estates is that of the existing relations between the corporations and authorities which run them and the inhabitants. These include not only the housing corporations, which generally own the estates, and the municipal services responsible for managing, developing and maintaining the urban environment, but also the various public and private corporations (social, sanitary, cultural, commercial, etc.) which play an active role in the estates and run them with varying degrees of efficiency. Upgrading them means first of all upgrading the status and the capacities of the inhabitants. This is based on the supposition that doing this is one of the concerns of the corporations that are responsible for managing the estates, as it requires a profound change in the type of relationship which exists between them and the occupants and in the way in which they listen to their requests and deal with their claims. This in turn means a radical change in the way they operate and how their employees act. However, this aim is usually of secondary importance in social development programmes which are focussed on making investments and creating new services rather than trying to change the existing corporations, which is a much more perilous task. It is in fact much easier to develop new activities to occupy children than to change the operating structure of a sports centre reserved for an elite, which refuses to take youngsters who won't respect the rules and are rejected by the centre's usual occupants. Similarly, preference is given to rehabilitating buildings rather than questioning the effectiveness of a maintenance service which deliberately ignores the inhabitants' claims or answers them several months later, which also means that recently rehabilitated buildings are soon dilapidated. The issue lies, first and foremost, in the relations which exist between the housing corporations and the inhabitants. It is often noted that the people employed by these corporations despise the inhabitants, since they find it demeaning to have to work for people who are socially destitute. The inhabitant can even be considered an enemy, since he does not conform to the housing corporation's operating codes, because he does not master them and does not have the capacity to negotiate. For urban maintenance services, the user is the person who harms the environment, who won't keep off the grass, who is always complaining, who could even report an employee if he does not do his work properly. The user of a public service does not have the choice of going to another service provider and if he complains too vehemently, he can always expect retaliation - his requests might be refused or he could have to pay dearly for his audacity. Other agents are afraid of being overwhelmed by special requests from the inhabi- tants. So they hide behind administrative rules and regulations or avoid coming into direct contact with them in order to protect themselves, only accepting written requests which they put off answering and have a high chance of being lost or else they give replies which stall for time. It is frequently the case that the people who work for these corporations are actually afraid of the inhabitants, if their behaviour is not entirely within the norm. The slightest incident nourishes their hallucination of anguish, because it is also a means of self-actualization, of weaving mythical tales which break with the routine of everyday tasks, of imagining that they work in a dangerous, disturbing place. It sometimes happens that these employees are actually attacked but this is also due to a lack of training in the management of human relations. In the face of aggressiveness on the

Figure 3: "Interplay"with inhabitants, a weak point of the housing organizations in France part of certain inhabitants, particularly young people, they meet with them head-on, instead of trying to understand this type of attitude and ward it off with a patient ear.

How the Housing Corporations View Their Role

However, the main problem lies in how the housing corporations view their role and their ensuing action, which their employees are only faithfully applying, under pain of being sanctioned. The housing corporations consider that their basic role is to nm their estates, maintain the urban environment, or provide a service whose form and content are carefully defined and codified. The inhabitants are considered of secondary importance and when they are taken into account, it is on an individual basis. What really causes the trouble in these estates eludes the housing corporations because it goes outside their mission and their field of intervention. The main problem lies in the relations which exist among the inhabitants. What this really means is managing the social situation or, to be more exact, the "people situation". Since there is no one to take neighbourhood conflicts into account, they continue to develop until serious tensions arise. Nothing is done to construct rules for community living, apart from administrative regulations which do not correspond to the lifestyles of the inhabitants. Many housing corporations remain highly centralized. They allocate very few employees to the estates concerned, so that the inhabitants have difficulty in contacting them when they come up against administrative or maintenance problems. They are rarely consulted when the housing corporations intend to change the way they operate or carry out repairs, nor are they even informed of the decisions made. For their part, the employees have their own idea of reality, based on the admini- strative files they process. They rarely meet the inhabitants and cannot acquire any understanding of the problems they pose so that they react too late and only step in when the problems have become so acute that it is impossible to solve them. When these corporations are decentralized and set up offices on the actual estates, it is often no more than a change of location. Since decentralization is rarely accom- panied by any change in the working structure or training of the staff, the latter simply reproduce the professional practices and procedures to which they are accustomed and which have become second nature to them. Since these decentralized offices do not always have real autonomy, particularly on a budgetary level, if a special problem arises, they have to consult their hierarchical superiors who are still back at head office, and then wait for instructions, which sometimes prolongs the time required for an answer even further. When the employees have not been prepared for decentralization, they are temfied at the idea of having to move to a problem-ridden estate which they imagine to be a jungle full of wild animals and their major concern is to protect themselves from the inhabitants by putting bars on the windows and security locks on the reinforced front doors of their offices and reducing the time they are open to the public to a few hours a week. The inhabitants are very shocked by this. They do not understand why they cannot have free access to the office when they have an urgent problem and feel even more rejected than before when they had to go to the head office several kilometers away. Some of the employees in these estates use the opportunities now offered by com- munication technologies, taking refuge behind their computer screens and only accep- ting requests which correspond to the codes used by their particular software for entering the claims made by the inhabitants, rejecting anything which the computer cannot handle directly. When the inhabitants contact the office for a specific problem, they refuse to take it into consideration if it is not part of their strictly defined attributions and tell them to go to another office, but without indicating which one. After several hitless attempts, certain inhabitants are still looking for the right person to provide them with even the beginning of an answer.

A Fragmented, Compartmentalized Organization

The job organization of these corporations remains strongly marked by Taylorism and the specialization of tasks which means that each person jealously defends his field of action, making sure that no other service encroaches upon his territory and, in turn, not allowing himself to venture into the area covered by his colleagues. Since the problems facing the inhabitants are often complex and require the coordinated intervention of several services, it is easy to imagine the disastrous effects of this division of labour and compartmentalization of tasks. The more destitute the inhabitants, the more vague is their idea of how the management offices in their estate function and what are the respective competences of each service. Their difficulties in expressing themselves make it impossible to formulate their requests clearly, which only adds to the confusion and increases the probability of having their requests rejected. Added to this is their low social status which means they do not have the rela- tional capital and know-how needed to insist on their rights being respected or move higher up the hierarchy when an employee rejects their request. Yet in these estates, people with very different practices, cultures and lifestyles find themselves living together without having really chosen to do so. Nothing is done to adjust these diffe- rences, to look for a compromise, or try to regulate social relations. The only solution is to go to the police when tension runs too high and is a threat to law and order, but it is often too late.

The Housing Corporations are also Responsible for Creating "People Situations"

The housing corporations actually contribute to creating these "people situations" since it is through their policies and rules for allocating housing that these populations have been thrown together and this type of cohabitation produced. Their operating methods also contribute to the organization of community living, or rather to reinforcing the isolation of people who are forced to mix together and increasing social tensions. When these estates are not maintained, when public services are deficient, it can be seen that this only aggravates social tension, since the inhabitants hold each other mutually responsible for the deterioration of their estate, finding scapegoats who are accused of everything that goes wrong, with young people and immigrants being the most convenient targets and classic victims of retribution.

The Joint Production of Social Relations by the Inhabitants and the Housing Corporations

It can thus be seen that the housing corporations participate in the aggravation and even emergence of social problems. These problems are produced jointly by the social situations to which the inhabitants are subjected and the corporations which manage the estates. Yet the housing corporations consider that these problems have nothing to do with them and that they are mainly the result of the economic crisis. The people in charge of them do not consider that their role is to manage these social situations and the problems which ensue for the inhabitants. Quite the contrary, they believe that these problems interfere with the way they operate, just as many architects and engineers, emulators of Le Corbusier without always realizing it, consider that the inhabitants don't use their flats the way they intended them to and don't know how to live in them! It wouldn't occur to them that their actual role is to adapt the housing conditions to the diversity of lifestyles, to design spaces whose plasticity would enable them to be used in a variety of ways, for different purposes and to offer "potential spaces" to accommodate various lifestyles. Referring unknowingly to Stalin's motto, "ifthepeople aren't happy, then you have to change the people", the managers and staff of these corporations dream of ideal inhabitants who won't cause any problems, proper in every respect, house-trained and undemanding, preferably French (since things would really be much better if we could only keep to ourselves), paying their rent without protest, while in fact, these offices were created to cater to people who do not have access to the private market. Their mission and their reason for being are to deal with the problems with which these people are confronted. This is so true that certain managers confess that "a good tenant is one you never hear about1', which is indicative of an attitude and a way of thinking which unknowin- gly directs everything they do and leads to solving problems by simply evacuating them. It is this way of thinking which leads to the destruction of buildings so as to eliminate the problems posed by the inhabitants!

The Rejection of Collective Forms of Expression

The people in charge of these corporations worry about the increasing social isolation, insecurity, conflicts between neighbours and lack of solidarity. They cannot admit they are contributing to this deterioration of community living because of their fears and hostility with regard to the expression of collective demands. They generally deplore the fact that there is no one to represent the inhabitants in order to negotiate certain projects, while they have done everything they can to reduce the power of tenants' associations and prevent them from developing. One simply needs to witness the anxiety shown by corporation managers during meetings when tenants heckle them - an anxiety sometimes bordering on panic - in order to understand their hostility. This analysis shows that social ties are not spontaneous. Relations between individuals are generally constructed in reference to outside elements which act as mediators. Whether it is the reference to God for believers or the contract which binds the worker to his employer for the working class, in Marxist theory, there is always a "symbolic go-between" who acts as a catalyst and "social organizer". Thus, the living space shared by the inhabitants and the corporations which manage it contribute to the construction of social ties. Through the way they are organized, the functions they fulfill, their rules, their codes, the status they confer upon the inhabitants, the differen- tial treatment of their requests (although all users are equal in the eyes of the law, this is rarely so in practice), they separate, select or bring together, include, exclude or discriminate. They fashion and shape social ties. In certain estates inhabited by very poor populations, it has been seen that listening to the inhabitants, backing their initiatives, paying attention to them, supporting their solidarity and negotiating with conflicting groups, has led to relatively harmonious community living, and enabled the inhabitants to deal with their difficulties. At the same time, other similar populations have been locked into appalling situations due to the contempt in which they are held, the absence of any response to their requests and the refusal of collective negotiation, since the housing corporations which managed these estates refused to "interfere" in their community life even though their position of retreat was contributing to its disintegration.

The Response to Requests Affects People's Expectations

Even the expectations of the inhabitants are deeply modified by the response they get from the housing corporations. When their offices are far away and inaccessible and there is no response to their requests, the inhabitants no longer expect anything, and have no hope of improving their situation, which only nourishes the generally feeling of hopelessness caused by the economic crisis. Paradoxically, a survey of the inhabitants of ten housing estates showed that satisfaction was related to how much people could expect from the housing authorities, this being dependant on the capacity of the housing authorities to listen to them, give information and welcome them, negotiate with them and respond to their requests. The managers of the housing authorities were surprised to see that, in certain estates, where relations were sometimes rather strained due to very demanding associations - but in which there were always on-going negotiations - the inhabitants were highly satisfied, while in other estates where the inhabitants made few requests because they had given up as a result of the contempt and indifference with which they were treated, dissatis- faction was very high.

Loss of Confidence in Support from Public Authorities

In fact, the worst social situations are not those in which there is tension or even violence, since that indicates a certain amount of energy, a capacity for expression, a collective desire not to give up - even if it is sometimes expressed aggressively - when the inhabitants do not meet with the response they expected. The worst situations are those in which the inhabitants, having lost all faith in the public authorities' ability to improve their lot, lose all interest in the place in which they live and fall into a sort of collective depression or general lethargy. The politicians, who only take any notice of the housing estates when they pose a threat to law and order, are making an enormous error. Housing estates where nothing happens, where the inhabitants withdraw defensively into their homes and avoid all social contact, indicate a disquieting collapse of community life which in turn has a destructive effect on the people, who are no longer able to formulate even the smallest project. Since these estates do not cause the authorities any worry and are of little interest to them, they are slowly left to disintegrate. It is easy to imagine the danger of imagining that a good tenant is one who never says a word. To Create the Feeling of Belonging, Environmental Control and Au- tonomy

It can thus be seen that the housing corporations play an important role in developing a feeling of belonging to the community, since they symbolize its existence and are responsible for making it function. This feeling of belonging is decisive both for individual development, which is necessarily based on the relationships which can be fonned with other people, and for the organization of community life. People who do not feel they belong to the community in which they live, particularly when they are rejected by it, cannot accept and certainly cannot interiorize its grounds rules, since they have no meaning nor any value for them. They cannot even understand their purpose since they do not feel any connection with the society that makes them. Another decisive factor in the development of individuals lies in their capacity to control their environment, to influence the context in which they live. It is only when they can influence their present situation that they can, in return, accept what would be otherwise intolerable restrictions. In estates where the housing corporations impose their operating methods and rules, without any possibility of negotiation, without leaving any room for even the slightest initiative (such as making changes to one's flat), where people have the impression that there is never any response to their requests, the feeling of dependence, of alienation from the indifferent other, can only nourish a feeling of powerlessness, despair or sporadic revolt. The housing corporation's rules appear to be arbitrary, which encourages the inhabitants to conform passively to them without understanding why they exist, or on the contrary, to transgress them, regardless of how valid they may be.

Corporations Which Are Their Own Users

An analysis of how housing corporations function reveals something of a paradox, according to Barbara Allen1. Although the housing corporations are supposed to provide services to the inhabitants, thereby satisfying the people for whom they are intended, the way in which they operate is mainly aimed at following their own procedures, managing their internal problems and satisfying their own economic and technical requirements. Barbara Allen concludes that most of these corporations are their own end-users, while the service they provide to the inhabitants is simply the function which justifies their existence.

Barbara Allen: nte paradigms underlying transformation of the management of housing authorities. Paper given during the ENHR conference in Budapest, Sept. 1993. This is a classic phenomenon in housing corporations, a reversal of the end-purpose and the means used to achieve it. Originally, these corporations were the means by which services were provided to users; gradually this function has become the means used to justify the existence and ensure the development of these corporations, which have become their real end-purpose. This reversal of roles and shutting off from the outside world tends to exclude the user from the action and place the corporation in a mirror relationship with itself: it looks into the mirror which it holds up to itself. This organizational narcissism makes it lose sight of the initial object of its action, i.e. the inhabitants, who are thrown outside the mirror image, outside the field of vision, or offered the vague prospect of a process of preclusion. This mechanism is exacerbated by a sort of closed circuit which exists from the outset, where the housing corporation as a social entity sees itself as consisting only of its own staff, excluding its suppliers, its users and the other offices with whom it has to cooperate, which are outside its own limits and, as a result, cannot have any influence on the way it operates nor even question it. Consequently, the housing corporations do not see themselves as components of a wider process, each contributing to the management of a given estate, at the service of the occupants, responsible for efficiently structuring the various actions they carry out. Each inhabitant is at the junction of these different interventions, pulled this way and that by their different logics, and is the site of crystallization of the incoherences inherent to their functioning and their relations, where each one is trying to override the others.

Conclusion

This analysis shows that a shift in emphasis is needed when considering the question of how to upgrade low-income housing estates. At present, it is focussed on the rehabili- tation of apartment buildings. These operations, however, need to be put back into the context of changing urban management structures with the aim of upgrading the status of the inhabitants, developing their capacities and creating a new type of social dynamics. This cannot be done without first of all redefining the role of the inhabitants in these development processes. Housing Associations in Bulgaria: a Challenge between Ownership, State and Market

Iskra Dandolova

The meaning of Housing Association (HA) in Bulgaria differs from the use of the same term in other countries1. Housing Association in Bulgaria means the organisation of owners of all units in a condominium buildid. Until recently, Housing Associaions (HA) have been the main institution providing management and maintenance of the housing stock in large Bulgarian cities. Now, the situation is transitional and the HA cross a new period of organisation and new policy of activities. Some other actors appear in this area of management and maintenance too. But the HA network, esta- blished in the previous time, is still powerful and popular in modem cities. The role of local authorities (LA) in the management and maintenance of the housing stock has been very limited in the former period, mostly because of the high rate of private ownership of dwellings and the unwillingness of the municipalities to bear responsibility for this aspect of the housing. The real participation of the local authorities was reduced to the ownership of some council housing, i.e. some flats in the condominium building. Their reaction was manifested in the frame of "social unit owners" among the amount of the other "unit ownersw3.In certain cases only their

This overview does not cover the specific matters of management and main- tenance of housing stock in small urban and rural areas, although residential stock in the latter forms a large proportion of the whole.

"Condominium'' means real estate, portions of which are designated as individual units for separate ownership, and the remainder of which is designated as common property for joint ownership by the owners of the units. Real estate is not a condo- minium unless the undivided interests in the common property are vested in the owners of the units and may not be separated from the owners' interests in the units.

3 There are different forms of housing ownership in Bulgaria. The public/council ownership in housing is the social council housing: those houses or flats belong totally to the city councils, they are "social unit owners". The public/companies ownership in housing is a semi-public type of ownership: those houseslflats belong to a company and this company disposes totally with their distribution. The biggest part of the companies is state-owned. activity in the management and the maintenance of the housing area was dominant and important, bringing some privilege for the condominium: in providing special building agencies for the needed repairs, materials supply or some regulations. The role of the local authorities, directly or indirectly, varied according to the type of the HA. As a whole, the leadership in the maintenance of the housing stock in the large cities was provided by the HA. HA relied and is still relying on a long local tradition. The general transformation of the social and economic situation in the country during the last few years has an impact on the HA too. Changes occur in the manage- ment and the maintenance of the housing stock. The mutations in the housing ow- nership: privatisation, restitution, family redistribution of the real estates etc. are not the main reason. The privatisation is not intensive, the proportion between private and public sectors is not considerably different at the present time, compared to the pass time. In the former period the privatisation in housing was always very high. Important changes are emerging in 'the morality and behaviour of the population, in the attitudes towards owner-occupation and renting of housing. The present conception of Bulgarians, concerning individual and collective forms of activity, is now different from the previous. People agree less to associate, they manifest unwilligness to cooperate even for basic necessities in the condominium life, they develop a strong feeling of individualism. This reaction could be explaned as a mutated contest against the former oppressed system of collective activities. But the result is negative on the overall process of management and maintenance of the housing stock. The financial means of condominium residents today are very limited and they cannot afford to pay the current cost of the housing stock maintenance. This situation creates a great tension in the HA. The HA start to change their type, way of functioning and structure. HA'S activity is sharply decreasing, their role is less important today. Some of the HA are ceasing to exist nowadays without being substituted by other forms of organisation, by other institutions. However, the degradation of the housing stock is increasing very rapidly, follo- wing the similar process in the context of the urban area. The difference in the physical appearance and in the efficiency of technical facilities is impressive. It is due to the high manifestation of vandalism as a general indirect protest against the social crisis, to the low quality of the construction, to the lack of regular maintenance and repairs. Now it is more easy to infringe on private and public properties. Social protection and security are at a very low level. Entire sets from the urban infrastructure are totally demolished such as the cable communications. Elements of the buildings are stolen. At the same time the local authorities are in deep tramition. Their staff suffer from frequent changes, following the general political and structural path of transforma- tions in the country. Community funding for protection, for maintenance of the built environment is completely different now in comparison with the former period. The new laws on housing are not yet available, they are not voted in Parliament. There are no new regulations to replace the old ones, especially on security, protection and maintenance of the real estates, as well as the outside of the buildings' housing areas. The partnership between local authorities and the HA, established in the previous stage of development, is very much disturbed now and is actually disappearing. How to react? Social life keeps going on. The residents are trying to reorganise their local life in the housing areas. Some new activities within the HA have started to emerge in the last 1 or 2 years. Pushed by the new conditions of the market economy, the HA, despite their limited pattern of organisation, are forced to look for new issues in the management. Some new configurations of associations are appearing too with the aim to manage and maintain the housing stock on profit. Are these new forms the right solution in this transitional situation and what could their impact on the development of the built environment be? Tiewill judge.

Housing Structure of Large Bulgarian Cities

Before describing the type of the HA in Bulgaria and their activity, it is of basic importance to understand the character of the housing stock. The first multiple-unit development appeared at the beginning of this century after World War One. Before that, houses had been single-family or multiple-family4. Most of the residential stock in Sofia and in the larger Bulgarian cities is made up of multiple-unit ("collective") developments known as residential co-operatives and apartment blocks (referred to below as co-operatives and blocks or simply as: condo- miniums). However, this is a relatively recent development. The growth of condominiums in Sofia was provoked by the rapid industrialisation and urbanisation in this period. Land value in central urban areas was rising and so was the number of the urban population, especially in the capital, sofias. The introduction of concrete constructions and the new styles in architecture also played a significant role in the establishment of the condominium type of housing.

TO distinguish between multiple-unit buildings and multiple-family buildings: the latter are occupied by several families and/or generations who are all related. Usually these would be parents and their married children.

Sofia became the capital of the Third Bulgarian Kingdom on 3 March 1879. At the time it numbered about 14 000 inhabitants and now, just a century later its popu- lation approaches 1,5 million. Figure 1: nte first condominium "Big House") in Sojia built the end of the 19205

Between the Wars, the number of multiple-unit developments grew dramatically. Most of those still survive and determine the profile of Sofia: terraces of 5 to 6 storied buildings forming rectangular blocks with free inner spaces and shops on the ground floors. These, however, survive in downtown Sofia; the outskirts developed quite recently, during the last three decades, and mostly on vacant land, constructed by the new industrial technology of prefabricated elements. The so-called in that time "co-operatives" are, in fact, justly named so, and in the true conventional sense of the word they are: a voluntary contemporary community acting in the interest of each member during the construction of the condominium block. The peculiarity of the Bulgarian residential co-operative, though, is that once the building is completed, the community is partially dissolved Every member acquires a unit of property, including one or more separate dwellings, and the appertaining attic, basement and ground floor areas. What remains in the co-operative domain are the common elements of the building, including: the main entrance, the stairs and other areas providing access to units, certain service rooms and the vacant part of the lot on which the building stands. Every unit owner holds an undivided interest (share) in the common elements. The proportion of this interest depends on several factors of which Figure 2: A Family House, after the First World U the greatest weight is given to the size of the dwelling, the number of floors it occupies, its value, aspect, etc. As a rule then, undivided interests vary broadly. This may be the case even where the units are equivalent in size and one is exactly above the other. Under the law, the resulting association of owners is known as "floor tenancy". Such formations, common in the past, still exist and appear today, but in certain variations on the basic model, giving way to other types of multiple-unit development. Their survival could be accounted for by the neighbourhood form of local government established in Bulgaria for which co-operatives seem to be best suited. The emergence in the 1960's of the most common type of multiple-unit develop- ment, nowadays known as "(apartment) block" or condominium, was the result of five major factors: 1. Reduction of Privately Owned Urban Land. During the last political system, local governments took away private real estate by several means. One of them was town planning: reconstruction, rehabilitation of urban areas, modemisation. Land property was easily converted from private to public, state-owned. This process took the form of compulsory purchase from the previous landlords at very low, token prices. Complaints against such policies were seldom effective. The process could, therefore, be described as virtual confiscation6. Thus, private land became state-owned and was then, in most cases, built up with detached high-rise apartment blocks in which the owner-occupiers only held the area of their respective apartments but not an inch of the land. The process was implemented in pursuance of subdivision-development plans and master plans. The apartment block was the result of the expropriation and con- solidation of small private parcels in urban areas7.

2. Expansion of Urban Development Boundaries. In addition to the redevelop- ment of private land within established city boundaries, the local authorities annexed adjacent agricultural lands for housing development. Such property was also taken at low prices.

3. Housing Shortage. The demographic explosion in the large urban areas, provoked by a strong migration from the countryside, required rapid, high- volume and low-price industrialised housing provision. This is the so called "post-war" urban development experienced elsewhere in Europe during the economic revival in the aftermath of World War Two. The point is that in Bulgaria this started and went on long after the post-war period.

4. Foreign Influence. After the War urban development practices in Bulgaria fell under the influence of foreign models, notably, the urban planning conception of the "Charte dlAthenes" introduced by Le Corbusier and the Modem art style in many countries. A new, larger scale of development was developed together with rigorous zoning that was aimed at concentrating urban functions like residence, work, communications, etc., into distinct areas of the city. Large residential suburbs based on the high-rise, multiple-unit development were part of that overall concept.

Among other things, such policies provoked owners' uncertainty. The process was so arbitrary that in a few cases multiple-unit properties were demolished as a result of town planning errors. Repairs and improvements of the private stock were reduced to a minimum as owners refused to run the risk of practically losing their investment in the event of condemnation. As a result, entire neighbourhoods in inner cities suffered decay.

Among other things, high-rise large-panel apartment blocks had to be detached and far apart for the simple reason that the building technology required large sites. Thus, such developments were only possible on city outskirts or by the complete redevelopment of inner-city areas. 5. Advances in Technology. Large-panel technologies and other industrial methods of high-rise home manufactu~gwere introduced after the example of USSR. The late 70's witnessed the highest growth of this technology and in a number of cases, the existing manufacturing capacity decided the case for apartment blocks despite counter indications of architectural, land-use, social and economic nature.

The above factors were, of course, interrelated while others, less important or less general ones, also played a certain part in the process and some of them had counter- parts in other countries. More importantly, though, the apartment blocks imposed a new lifestyle and a new community culture. Unlike residential co-operatives, communities of block residents were not necessarily formed in advance, nor were they voluntary. The notable exemptions to this rule were the so called "departmental blocks*: semi-public condominiums, initially funded by some state companies.

Figure 3: Condominium houses from he 1920's and 1965 side by side In the predominant case then, the community of residents was formed accidently, by the leading role of the local authorities, allocating the units according to the waiting lists before or during the construction period or after the building had been completed. Even to 100 percent equity buyers, the freedom to choose their dwellings and neighbours was only rarely allowed. As a consequence, a residential community of total strangers emerged. Attitudes of anonymity and alienation persisted, aggravated by the fact that next-door neighbours were often people of different social background and incompati- ble lifestyles. Apartment blocks also concentrated the largest proportion of municipal units. Between 1970 and 1990 the relationship of private and public property varied from one five-year housing development period to another, but on average, at completion a new block would be half owner and half municipal tenant-occupied. Then, almost imme- diately after the occupants had moved in, the balance would tip toward private property as municipalities encouraged their tenants to buy the units, thus shedding the responsi- bility to participate in the maintenance of the stock. In 1984 private dwellings accounted for 75 percent of the stock in Sofia and 84 percent of the stock in cities, about 100 percent in the countryside and about 90 percent nation-wide. Now, the proportion of private dwellings is over 90 percenl8.

The Structure of the Housing Associations: Management and Maintenance of the Housing Stock

Since their emergence there has been and still is one uniform model of management and maintenance (repairs) of condominiums, whether co-operative, blocks or any other: HA organised by the owners. The tenants, being very small in number, have actually no considerable influence on the HA. The central element of the HA is the Residential Council or Council of Co-owners, like a steering Committee of one HA. It is possible to differentiate between the following levels of HA, used to be developed in the former period and still existing here and there in present days:

' Departmental blocks are of two types distinguished by property, i.e. wholly private or mixed. In the wholly private ones, all units are owner-occupied by staff members of the department that built the block or by other individuals that bought units from the department; or part of the units are owner-occupied and the rest remain as departmental property to be leased to staff members. In this case the management and functioning of the block as a pie+ of property and as a community of residents exactly matches the co-operative pattern. 1. Entrance (door)-association: association of residents in one entrance of multifamily housing (apartment block) - still existing at the present time.

2. Block-building association: combination of entrance-associations in one block- building: still existing at the present time.

3. Neighbourhood-block association: combination of block-building associations or block-building groups associations - in some cases still existing at the present time.

4. Neighbourhood association: combination of neighbourhood block-associations.

Three other types of HA have recently ceased to exit: OF Clubs, DOT and DS. HA - OF Clubs were the neighbourhood membership clubs of Othechestven Front ("Father- land Front"), an anti-Fascist organisation that emerged during the War and in the post- war period. This type of HA was concerned with management and maintenance activities on the level of neighbourhood, such as: - cleaning of the "outside area" (out of the blocks); - cleaning of some areas for social activities and sports or of departmental buildings and areas; - maintenance of common areas for neighbourhood; - organisation of community life: celebrations, national or traditional festivals, sports events, children care in summer time, womens' association activities, tourist-visits outside of the neighbourhood etc.

DOT or Dobrovolen Otryad (Voluntary Patrol, Neighbourhood Watch) were formed to assist the police with the keeping of public order and the protection of property. This type of HA has completely disappeared nowadays without being substituted by other types of protection: Activities included social events for the residents and physical maintenance for materials and built environment. DS or Drougarski Sud (Community Court) were neighbourhood committees that arbitrated in local disputes trying to avoid formal litigation. The central idea was to facilitate the negotiations during the confrontation acts or to introduce a form of local democracy, especially in the cases of public conflicts. This type of HA has completely disappeared at present without being substituted by another type of association and for negotiations in the neighbourhoods. Those three types of HA were very close to the implementation of the local authorities' management in the residential area. They have been considered as instru- ments of local authority's activities, as mediators between the local authority's staff and the residents. However, the prevailing opinion among residents is that those had fostered certain community traditions and that some of the activities carried on within their framework should be revived, notably those related to public order and communal disputes. The funding9 for the HA was from the municipalitiesI0 and some small taxation and donations from residents. Some credits were available through community activities, especially by means of collecting scraps for recycling, small production etc. A Residential Council (RS) or the Steering committee of the HA is elected by the owners board, who have common stairs accessed within a multiple-unit building. This is the predominant form, the so-called RC of entrance (door) HA. Where the building has several separate entrances, HA are, as a rule, formed by entrance, and a higher level body of HA may then be formed bringing together the leaderships of those. This pattern is not statutory but is most common. Separation or association, as the case may be, is relative to the cleaning arrangements for the common stairs, the authorities' meters for water, electricity and heating, the roof of the building and the surrounding area. The Residential Councils by entrance may also be unassociated and forming ad hoc contacts as warranted by common needs. In addition to the Councils, there were until recently, other voluntary associations. One of them, that still survives on a limited scale and outside the present legal frame- work, is the neighbourhood association common in inner cities and usually defined within the boundaries of a street block. Groups of detached high-rise apartment blocks in the new suburbs have also formed such associations. Their emergence has been mostly related to the use and maintenance of the vacant land which is usually developed as a car-park or a playground or, more recently, as a commercial area.

Summary of Residential Council Activities according to Current Practices

(i) Cleaning of Common Spaces: entrances, door lobbies, stairs, lifts, common rooms, courtyard, sidewalks and setback area (approx. 33 ft from building or up to kerb.)

This area is regulated by a set of Rules approved by the Decree of the Council of Ministers No 1486 of 13 December 1951 and the several amendments to it. The Rules are annexed to the Property Act, and some special cases related to residential leases are subject to the provisions of the Obligations and Contracts Act (Articles 228-239). There is no a special condominium law in Bulgaria.

lo In the mixed-property departmental blocks some units or the ground-floor shopping, etc., areas are owned by the local government. This pattern is rather rarely the case, though. (ii) Maintenance of the building: common electrical system; common water and sewer system; post boxes, common heating system, doorbells, internal phones, fire alarming system, ventilation system, doors and windows of common premises; walls, floors and ceilings of common premises; exterior wall covers; waterproofing of roofs. (iii) Maintenance and cleaning of Surrounding Area: development and main- tenance of green areas; repairs to paving; benches, garbage collection facilities, etc. (iv) Activity of Housing Associations: spring cleaning; snow removal; celebra- tions; sports events; preserving food for winter; home-brewing etc.

The above list of activities is an adequate reflection of the established tradition, but the tendency is of reducing these to the absolute minimum necessary for the normal life of the separate households (e.g. repairs of major damages" to the building's infrastructu- re). In recent years there has been a sharp decline in residents' motivation to maintain common elements1'.

Fom~ationand Balance of the Housing Association Budget according to Current Practices

Until recently owners' contributions toward current expenses related to the property were paid in on a monthly or quarterly basis. Additional sums were raised on an ad hoc basis to cover expenditure for repairs or capital improvements. In the past two years this practice has changed so that now contributions are always monthly, higher than ever before, and limited to current expenses. The size of the monthly contribution is flat and agreed upon by all owner occupiers. When additional funds are needed for repairs or improvements, the size of contributions varies in proportion to the undivided interest in the common elements attaching to the units. Non-owner- occupiers are exempt. Given the difficulty of raising enough revenue to cover current and capital expenses, residents increasingly resort to leasing common space for different purposes. Hiring a cleaner for the stairs and landing has become in many cases unaffordable, and cleaning these areas by the residents

11 Summary of common damage to the stock: water supply system, sewer system, electrical system, heating system, roof, courtyard, doors and windows, walls and ceilings, floors and floor covers.

'' Summary of the sources of cummunity tension in multiple-unit developments: noise, leaks, problems with infrastructure, cultural differences, financial matters, unlawful invasion, technically incompetent modifications, common meters for water, electricity, heating, lift, etc. taking turns is being introduced. This is the long established usual practice for removing snow from paths in the winter. If a resident is unwilling or unable to make his current contributions to the buildings' budget, the community can do close to nothing, even if they wished to take the trouble, since no effective legislative mechanism of enforcement is readily available. The finances of mixed-property multiple-unit buildings are most difficult to handle. The local authorities must defray costs on behalf of their tenants, but they may also object to the planned repairs or refuse to cover their full share of costs as appor- tioned by the Residential Council. Where public organisations are also owners (this includes social housing), one additional difficulty comes from the financial regulators that constrain the budgeting policies of such organisations. In practice then, the Residential Councils of such properties often delegate full authority to the public owner (municipality or department) to plan and fund repairs. Thus, the local authority may make repairs at its own discretion and in the face of opposition from the other owners (especially if it comes to redecorating exteriors) and then force everyone else to pay their share. Even this practice, however, has come to an end in recent years, as municipal maintenance companies have been dissolved and other more pressing problems have come to the fore in local government policies. The currently predominant case is of leaving the whole range of activities related to the maintenance of the stock in the hands of individual owners and their elected bodies, the RC. The typical procedure includes: establishing the damage to be repaired; adopting a decision to go ahead with necessary repairs; raising the necessary funds; contracting the work; control and acceptance; payment; report to th HA.

Transition to Market Economy and Housing Associations: a Challenge to Ownership or Maintenance of Housing Stock

In this period of transition to market economy different phenomena of social organisati- on are manifesting their existence. Some of them have global influence, some - local. Global aspects concern the sharp decrease in the living standard and unemployment, which is affecting, according to the last Census (1992) over 48 per cent to 80 per cent of the active population in some regions and the average being about 20 - 25 per cent (about 46 per cent for young people under 30). Most Bulgarians have low incomes, the local authorities are helpless to provide any kind of primary support to people who have fallen in misfortune, the social policy in practice is not yet established and developed according the needs of contemporary civil society. Structural changes in the public administration are following the movements of political games. Their organisation is unstable, vacillating even confusing. Latest data analysis at the national level regarding the incomes of Bulgarian households indicates that only 4,s per cent of them have sufficient means to cover their life expenditure and to develop their activity to some extent; about 14 per cent are trying to keep relatively the same way of life in present days in comparison with the former period and the rest - over 80 per cent of the households - have incomes just to survive physically13. Those global issues have a great impact on the housing and precisely on the functioning of HA. This broadly described situation is partly the reality in which transition to market economy is being introduced. The private sector in housing (about 94 per cent) has positive and negative meanings in this period of transition to market economy. The positive aspect is that the owner-occupation is protecting, to some extent, the greatest part of the households in troubles. But those of the households which are not owners cannot afford to buy or rent a flathouse today because of the gap between needs, prices and incomes. Only for about 5 per cent of the population this gap is not existing. Another phenomenon is emerging: degradation of the housing stock and the lack of funding for maintenance and providing security for residents. Some of the HA are still keeping the main role in the management and maintenance of the housing stock, there are only certain exceptions of management by special private agencies. The local authorities are still exercising very low activity in the condominiums and generally they have no links with the HA. The dissolution and the mutation of some types of HA provoke troubles, some other types of HA are not established with the aim of substituting earlier types. HA of a traditional type are considered hopeless in terms of solving the problems of residents or of implementing some of the decisions taken. The main reason is the appearance of the new urban poor and the considerable changes which have taken place in human values. Considerable portions of the population are unable to cover even the cost of the water supply, heating and electricity. The situation is worst when the question is to cover the expenditure of maintenance of common spaces in the block or building facili- ties. The residents have no motivation to pay because of the desperate situation of their households in the everyday life and food expenditure. More and more often households have no means to pay their contributions. The rest of the residents are unable to make them pay. The tension became higher because it is a question of equity, too. The snowball effect is building up.

13 According to a survey on: Incomes and Unemployment in Bulgaria (1993), Institute of Sociology. The law concerning HA is very old, having existed since 1951. The Court and the concerned institutions in justice and social order are very busy with other issues at present and they cannot make the necessary proceedings against the irregularity in housing attitudes. Neither can the local authorities. Even if finally somebody is declared "guilty", very often it is useless, because of the lack of control on the implementation of the Courts' decision. HA are looking for new ways to raise funds and to cover the needs of maintenan- ce and comsumption of the housing stock. It is possible to distinguish between the following groups:

1. Sales: usually in those sales residents from the same block of HA are involved and the subject of sales is a part of the common space. For instance: rooms for the garden, lobbies, attics, stock-rooms, inner yards, service-rooms, etc. With such income sources the HA of residents are able to cover some of the cost of the maintenance or a repair.

2. Renting: some common spaces or premises are let to rent for business activity, shops, services and the incomes are partly used to the cost of maintenance of the building. Another issue (but not well developed) is to bring taxation to those owners who let their apartments for offices or other business activities.

3. Self-help maintenance: providing maintenance and repair of common spaces by the help of residents according to the personal ability and skills of everybody. This is a kind of private HA's contract as a result of negotiations between owners.

It is possible to differentiate other ways of providing means to cover maintenance cost by the HA. The residents are looking for non-traditional solutions. It is up to their imagination to collect sources and to solve their own problems of communal life. The actual HA difficulties in management and maintenance of the housing stock are undoubtedly indicative of the difficult, hopeless situation of condominium residents, especially in the large estates. The degradation in these areas is very high. Very soon the living conditions in them will be very damaged, some of the basic technical systems such as water supply, sewage, heating, electricity will be non-functioning. Lifts are the first to fail, but the residents are much more concerned with water, heating and electricity than with lifts. The crises in the urban technical systems and the infrastructure of cities is very strong too. The problems of isolation, of more protection to the blocks seem less important now then the general destruction of the built environment. The HA are helpless to react. They are unable to pay repairs, services. Their apartments start to be devalued. The housing market is reacting very sensitivey, the scale of prices on housing

6 Transitional Housing Syslems 153 has became more precise. The establishment of housing policy is still very ineffective in providing some protection and in preventing the total degradation of the housing stock as a measure to protect a greater part of households from homelessness.

The Role of Local Authorities

As it was mentioned above, the local authorities (LA) are not able now to influence effectively the management and maintenance of the housing stock in large Bulgarian cities. In the dominant cases the links between LA and HA are broken. Serious conflicts are rising due to former legislative decisions. The HA as well as the LA find it difficult to react. One of the issues is linked to the property rights on flats and land used for buildings. This is the most frequent case in the large real estates. Just an example: great damages were done to one block in a real estate in Sofia some months ago. The flats in it are totally private. The repair cost should be at the expense of the owners: this is the first reaction. But the owners proved that damages were due to ground subsidence. As they have no rights on the land on which their building had been constructed, they brought their case to the Court for compensation from the LA. A great discussion is raised: who is right in this case? This example is not a unique one. The legislative system until now has not been well established to treat similar problems conforming the new political image. The role of the LA is reduced. They cannot provide enough protection against vandalism in the built environment or to repair infrastructure. The citizens are protesting because most of the population is loyal to the state and LA, they pay the necessary taxes and contributions. A new range of conflicts is emerging concerning state and owners. It is important to notice that the image of LA has decreased very rapidly in the electors' opinions. The link between citizens and public administration which existed through principles of democratic management has been lost. The citizens' evaluation of those state institutions is contingent on their quality of everyday life and the standard of social organisation. The restitution of housing and commercial properties has another impact on the situation of housing stock and the role of LA. Mostly this phenomenon is outside the competence of HA, because of the dominant amount of the restituted properties: single or multi-family houses and flats. According to the legislation, those properties are given back to their former landlords. The present tenants or owners should leave the property or stay with a new agreement by the "new" owners. The future of those houses and flats is completely under the regulations of the free housing markets, without any control on the rent prices, with rights of eviction. The solution at the present time for the restituted houses and flats is often to let them to an institution or company, able to pay high rent and in exchange for a long-term rent, the house or the flat is reconstructed. Those cases of restituted houses are not the direct subject of this description of HA's. But there is an important point in this procedure of restitution with an impact on the HA: the introduction of non-residential activities in the condominium, which creates a lot of tension and problems for the inhabitants. There is an impact on the neighbourhood housing areas too - active parking in any time, dangerous situations for children, noise, illegal occupation of housing spaces, degradation of the space between the blocks of condominiums etc. The HA are not powerful enough to protect the residents from this aggressive introduction of different non-residential activities. There is no law or other legislative principles to organise the newly established situation in the housing areas. The LA are ignorant at the moment, unable to react under the heavy duty of privatization, unem- ployment, homelessness and other types of social exclusion. The disintegration of some types of HA is linked to a rapid degradation of the spaces between blocks. In this case the LA have no suitable models of reaction. The role of the restitution here is very strong. Some of the inner spaces, for example, are restituted and the former owners have the rights to destroy children's play ground, gardens, parks, everything which is not built up on this area. The LA have no rights to do anything against this. A strong control in this restitution phenomenon is missing. The legal regulations are very limited. Discussion is going about the impact of this procee- ding in the period of transition to democracy. HAS' are powerless to do anything too. It is time that some other types of associations appear. The situation now is rather complicated because the question concerns the general interests of different groups of citizens, different interests of owners. Now, the conflicts are trying to be solved separately by the Courts.

Questions as a Conclusion

The structure and the role of the HA in this transitional period are each changing and there are no clear patterns for their future development. It is certain that the process of disintegration, of atomisation in different sizes of social groups and communities will continue. The alienation, the increase of individualism, of protest against collective forms of activity are strongly growing and turn against the individual. In this vulnerable period, citizens nowadays disunite, contraty to principles of "union is strength", especially important in periods of crisis. They are often greatly disappointed with the associations to which they have belonged before. They express their protest against the state which is not able to secure the basic living conditions. How long will this protest continue? In what kind of associations will the present HA be turned over? Will some new HA emerge? What is the best way to support the citi- zens in their interpersonal disputes, on the one hand, and disputes with the state, on the other? The housing stock will continue to get involved in the free, uncontrolled market. The LA will be unable to provide help or control over the housing market. The quality of housing conditions will decrease and that process will influence undoubtedly the quality of households' life. The tension between residents will grow up. It will lead to an additional degradation of the environment. The residential mobility will grow too and its impact will be on the social stratification in housing. Having in mind the shortage of housing stock in large cities the degraded blocks will be used as long as possible and not demolished. In this order the potential of the pre-homelessness situation for a great amount of them will be realistic. Different options are possible under this situation: 1. Establishment of social housing stock by buying damaged blocks with private owned flats at low prices. The role of LA here is significant. 2. Establishment of speculative housing stock for urban poor by private agencies built up on capitalisation of damaged blocks. It is quite possible to see that the role of traditional HA would be substituted by the activity of specialised private companies in management and maintenance of housing stock. The role of LA in this process is still not clear. 3. Reorganisation of the existing HA with a view to maintaining the housing stock in a better way is by introducing new management technologies. The active role of the HA here is crucial and significant. 4. Establishment of new links between the HA and the LA with the aim to protect by different means the residents in their existing living conditions. Those are partly the questions linked to the HA arising in this transitional period of housing policy. Some of them have analogous models of action in the past time of Bulgarian society before the War. Others might be discovered in the present practice of the developed European countries. But some of them are individual and unique. The social development in this period conversion to new social organisation is hardly predictible.

Acknowledgement: This study was partly funded by NATO (North Atlantic Treaty Organisation) and I would like to express my thanks for the support. Large-scale Housing Estates as a Societal Task in Eastern Germany - A Planning Sociological Overview on the Basis of Scandinavian Experiences

This article aims to be a documentation of the preliminary results of a research work currently in progress. The project focuses on charting the situation in industrially produced residential suburbs, more precisely (1) housing-related problems defined on the basis of the broad concept of habitation, (2) the role of renovation activities in solving these problems, and (3) the necessary sociological research and planning in Eastern Germany. My approach to these issues is from the context of planning sociology. This basic idea has been applied to practice by using three types of analysis: - international comparative macro-sociological method for analyzing the special character of the Eastern German societal situation (e.g. Offe 1993), and the social meaning of the investigated problem complex with the related aspects (modernization/vitalization), - actors analysis for revealing the dynamics of the implementation process and inherent contradictions of targets and interests, - mezo-sociological analysis using the spatial-communicative dimension "private - semi-public - public" enabling concrete observations on the impact of different physical solutions related to the renovation process of large-scale housing estates on the development of the inhabitants' social life.

The article concludes with remarks on the tasks related to planning, organization and inhabitant mobilization. In my opinion, these tasks are of primary importance for researchers and planners preparing renovation of residential suburbs in Eastern Ger- many. I suppose, that this discussion has a special relevance to the realisation of respective tasks in Central Eastern European, i.e. the post-communist countries. The Situation in Society and the Meaning of Renovation of Residential Suburbs

The merge of the two Germanies in 1990 meant not only the dissolution of the GDR state machinery but also a radical breakup of the society's productive structure, with the resulting flash adaptation of the cultural and social life to the Western requirements of market economy and politics. All this had quite understandable results in the reproduc- tion of human life, in the life in residential suburbs. Introduction of westem-type con- sumption-oriented lifestyle, mass-motorization with its negative effects, unemployment, disruption of municipal services, increase in residential expenses (rents increased four- five-fold), social disintegration, and restlesness (extreme rise in the rates of criminality and xenophobia)(e.g. Thomas 1993). These phenomena have both public and private manifestations in the residential suburbs. The importance of the problem complex in relation to the industrially produced residential areas is emphasized by their high percentage of the total housing stock. Within the territory of the previous GDR there are 2.15 million apartments that were built by using prefabricated construction methods (Sanierung von Wohnungen ... 1992, 23). There are, in total, 125 residential suburbs, which house 20 per cent of the total population, that is 3.4 mill. people. The massively physical nature of these suburbs becomes clear through some figures: 70 of them have more than 5,000 apartments each, seven supersuburbs have more than 100,000 inhabitants each (ibid, 107). It has been estimated that about two thirds of these flats (about 1.5 mill.) are in need of thorough repair either immediately or within a term of 5-10 years. In light of today's financial prospects 25-30 years has been estimated as a realistic term for realising the necessary modernization (ibid, 23). Is it possible that the prefabricated housing stock can stand wear during this period, remaining inhabitable? What will happen to these suburbs' population stucture and social life during this period? There are certainly other tasks demanding attention in housing policy (such as promotion of the building of new apartments, renovation of old housing stock in city centers) but repairs to prefabricated suburbs simply cannot wait. This has been proved by analyses of the condition of the buildings concerned, as well as research about social life in these suburbs. To take an example from Scandinavia: the situation of industrially produced residential suburbs, particularly in Denmark and Sweden, became problematic during the dynamic structural changes of society in the 19701s, as public housing policy supported owner-occupied houses by stipulating deductibility of housing loan interests in taxation. This resulted in depopulation and social decay of residential suburbs, particularly in the largest cities. As a consequence, the mode of rental-apartment housing as a whole received a negative image. The "suburb problem" was generally acknowledged as a major question of housing policy, owing to the aggravation of rental-apartments' economic difficulties, social problems in the residential suburbs, deterioration of the apartments and their physical environments (Christiamen et al. 1991, 17). In Sweden and in Denmark the general awareness resulted in special legisla- tion providing support for these residential areas, with the appropriate subsidizing programs by central state, in the mid-1980's. For example, the Swedish Rot-program (1984) provided very generous financial support to stimulate improvements of large scale housing estates. The state subsidies in 1988 accounted for about 60 per cent of the total discounted capital costs (Cars 1992, 8-9).

Figure 1: Vicious Circle of Public Owned Housing Estates in Scandinavia

Source: Christiansen et al. 1993, 36. International comparisons easily reveal grave problems, both physical, structural- functional and ecological, in the newly constructed residential areas in Eastern Ger- many. In comparison with the prevailing Scandinavian standards, the main physical dif- ference is that of dimensions, as the residential areas in Germany represent much more massive measures than the average Scandinavian areas. The eastern residential areas, however, differ from their Scandinavian counterparts in an interesting way, in terms of the social composition of the inhabitants. In Eastern Germany the suburbs are not conglomerations of socially problematic groups and individuals. The inhabitants there are mostly well-provided for, with social resources and equal to the average population in their socio-demographic characteristics (Staufenbiel 1983, 1985, 1987). This is understandably an important resource factor to be taken into account in planning activities for a general improvement in the level of these suburbs.

Outlining Main Aspects of the Basic Renovations of Suburbs

The Physical Aspect in Built Environment - New Norms and Demands for Improved Housing Standards Have to be Applied with Consideration

Analysis of the physical condition of older blocks of flats has revealed an urgent need for heat and sound insulation and renovation of roofs, facades and balconies1 (Sa- nierung von Wohnungen... 1992,55-59). Research on the technical-physical aspects of housing, as well as practical experience, clearly reveal that planning of renovation works must be based on accurate condition analyses related to individual buildings. This is because these problems may be substantially different in buildings representing the same age group and same type (ibid, 64). In a broader sense, it is necessary to raise the standard of jointly used rooms and the housing environments. Also the very monotonic overall impression of these suburbs is in need of some gingering up. Means for these changes are provided by repairs to facades, various insulating works, new types of solutions for balconies and roofs, and colour design for buildings. Planned extension and supplementary building activity,

Inhabitants have expressed wishes for modernization of kitchen and sanitary faci- lities, as well as for new and more flexible room solutions with increased storage area for the relatively small dwellings. particularly in residential suburb centres, provides new architectural ways for impro- vement and diversification of the overall visual impact. In accordance with the general goals of German policy, efforts are made there to- wards harmonization of housing conditions in different states. This is a positive goal as such, keeping in mind the striving towards an all-out social equality. However, there is a severe built-in risk as regards Eastern Germany, if its special points of departure (housing stock and level of economy) are not taken into consideration. Grave errors may be committed unintentionally by an uncritical application of Western norms and demands for improved housing standards. Functional and qualitative improvements in prefabricated dwellings are possible by renovations. The first and essential task, however, is to define a housing standard with relevance to the prevailing local cir- cumstances. We should see the application of housing norms and the raising of accomodation standards as a joint process which can be carried into effect in the course of a lengthy period. More generally speaking (e.g. Dubiel 1993, 170) the challenge is to find a reflective strategy for modernization of housing in East Germany. If the above facts are not observed, the risk exists that an application of Western standards and inhabitants' wishes without paying due attention to the local material preconditions (e.g. inhabitants' capacity to pay high rents) will have unfavourable social ~esultsin the residential areas. An unreflective modernization will speed up migration hom these suburbs to an unreasonable extent, as uncontrolled market economy mecha- nisms tend to favour more technologized housing and expensive solutions (Hansen & Skifter Andersen 1990, 24, 76). Activity of this type results in an improvement of the technical level of housing, while it easily pushes aside the optimum relation of pri- celquality, which is the main interest for an ordinary citizen. This evident problem may be solved only by introduction of inhabitant dialogue, organized by quarter and building in order to define the precise quality standard of the renovation works. Extension and supplementary construction may offer new accomodation solutions and higher standards for those willing and capable to pay for these dwellings.

Economic Aspect - an Accurate Knowledge of Expenditure and a Renovation Strategy of Small Steps will be Required

An essential prerequisite for city renewal is a realistic economic basis for the renovation activity. This economic aspect has at least the following four components on the respective levels: (1) national economy and state budgetary policy; (2) municipal econ- omy and planning capacity; (3) housing companies and public rental-house asso- ciations; (4) private household economies. Moreover, these different levels must be capable of cooperation for guaranteeing successful financing for the renovation works. International experience proves that starting developing activities of large panel built suburbs in particular requires substantial public funding overall (loans, interest subsi- dies, rent allowances for private households, settlements of old debts, etc.). The general problem is that housing associations are not able to accumulate the capital needed for basic renovation by simply collecting rents. Owing to the prevailing scarcity of economic resources in Eastern Germany, innovative solutions are required for the implementation of renovations. A high awar- eness of the expenditure required for renovations, as well as a rational, gradually pro- ceeding strategy of implementation must be developed. The core of the problem is the production of modernized renovated flats of prices that are within the limits of people's paying abilities. Households in Eastern Germany have relatively little room for econo- mic manoeuvre. For instance, the average level of wages is about 60 per cent of the Western German level, the rate of unemployment is high (its consequences are felt by approximately one third of all households). In Berlin for example, one household in ten has difficulties in paying the rent, already being burdened by substantial amounts of unpaid rents.

Ecological Aspect - Awakening Consciousness and Setting Rational Priorities

As far as the actual physical action needed in Eastern German prefabricated houses is concerned, it has been found that a normal renovation of thermal isolation and heating systems results in a 35-50 per cent cut in the energy expenditure (Sanierung von Wohnungen ... 1992, 145). Thus, these activities are also important ecological invest- ments'. The process of choosing the materials for renovation requires extensive research and development of working methods, with the view to reaching the most ecological solutions possible. Sorting of household waste and organizing systems for raw material re-use and recycling naturally belong to the action program of ecological housing. Technically more demanding and thus more expensive systems - use of solar energy, separate re-use systems for drinking water and household water, etc. - probably will be parts of the long-term modernization strategy of residential suburbs. It is important to

' This can be regarded as a general statement regarding high raise housing in the whole of Eastern Europe, because the level of energy efficiency (i.e. to get output effect from used energy) is very low and this is in general a big problem in their economies (Lang 1990, 102-104). For example in Estonia the energy consumption per square meter has been fourfold relative to that in comparable buildings in Sweden and Finland (Nordic Investment Bank 1991). note that today quite different technical strategues and levels for ecological housing are available (Svane Jorgensen 1990, 169). Instead, today's tasks include improvement of the ecological condition of outdoor spaces by yard and park planning, aiming at the creation of green belts with their own micro-climates between the constructed areas. Housing environment solutions can be used also to create special identities for the suburbs. The experience in Scandinavia proves that the total expenditure incurred on account of housing environment improve- ment can be kept within reasonable limits (Christiansen et al. 1993). However, these activities greatly improve the dwellers' satisfaction and raise the aesthetic value of these areas, playing an important role in the improvement of the total image of these suburbs and the mode of housing.

Social Environment - the Role of the Inhabitants as the Basic Factor and an Important Resource Source

The ultimate task of urban renewal is the promotion of human living and housing conditions. A Prerequisite for the planners' capacity to perform this task is their ability to cooperate with inhabitants of the respective area. Residential suburbs in Eastern Germany are relatively healthy in their composition of population and their social structure. Development towards social segregation and decay has not yet started. The challenge is the unaltered conservation of the present inhabitant structure and the mobilization of inhabitants to participate in the renovation work, with the view to guaranteeing these physical arrangements' contribution to the positive development of the inhabitants' social living (Hunger & Westennann 1993). Investigations performed by interviews and enquiries regarding the accomodation situation and the related inhabitants' needs are understandably the very first steps in this activity. The whole planning process must be kept open for the inhabitants, guarantee- ing their participation and influence in decisions. Ultimately the inhabitants are responsible for the bulk of expenditure incurred, in the form of rent increases. The participation of inhabitants renders possible long-term persistent work for development of tenant democracy. The next stage in this process is involvement of the inhabitants in the practical work of preparations (repairing and painting staircases, constructing chi- ldren's playgrounds, renovating immediate environments, parking areas and driveways). All this starts primarily as an activity of democratic instruction for the inhabitants, but it may proceed to concern economic questions: the inhabitants may perform the simpliest repairs with the view to cutting total housing expenditure and thus decreasing the pressure towards rent increases. A valuable goal for widening the scope of close- range democracy is inhabitant activity in the maintenance of common houses, jointly used rooms and spaces, and continued participation in decisions, after the completion of repairs.

Interests and Goals Differentiated by Actors

In practice, the contents and strategic implementation of urban renewal are influenced by several social forces md actors. It is possible to analyse this political formation and the preparations for planning by use of actor analysis (e.g. Siiderbaum, 1992, 37-39). Among the major actors influencing urban renewal and the revitalization of housing estates discussed here are the following3:

1. Representatives of public politics: federal state, states, municipalities. I presume the municipalities and cities play a weak role as actors in Eastern Germany, owing to the scarcity of economic resources and planning capacity, and the reorganization of administration and municipal policy after the German unification. They are not able (and on the political principle not willing) to provide an overall steering capacity (Heise 1992, 147). The Western German legislation (Building Statute Book, Town Building Planning, Housing Planning, Rent Laws, Building and Loan Financing) entered into force has been applied during such a short period that municipalities' role in reforming residential suburbs has not yet been clarified.

2. Investors as actors. It has to be presumed that they have a strong influence, parti- cularly in supplementary construction of residential area centres, because municipalities lack both planning capacity and regulation powers. In this situation it is easy for those endowed with resources (funds) and clear action programs (investments in commercial services) to have their goals acknowledged in the planning process.

3. Owners of the accomodation and building stock (of business and service buildings in the centers of residential areas). Ownership structure in Eastern Germany has previously been concentrated in large apartment building corporations (Wohnungsbau- gesellschaft) with up to 35,000 flats and 1,000 workers, or in large cooperatives. Public politics are presently in favour of privatization of flats, which in practice probably results in the establishment of relatively small private housing companies. It seems that

The following outline is a very rough sketch, as at the present stage of my re- search I do not have a sufficient amount of empirical material at my disposal concer- ning renovation projects of Eastern German residential suburbs. Consequently, this is a hypothetical draft which has later to be specified. the inhabitants are implementing this policy most reluctantly, and the privatization of panel-built estates' housing stock is therefore proceeding slowly. Reorganization of the ownership structure might proceed more efficiently by founding small cooperatives and splitting up the existing municipal housing associations and large cooperatives in smaller administrative entities. In particular the heavy burden of debt, that existing owner organizations carry, prevents them ftom starting large-scale renovation works. Thus, different groups of proprietors have very different interests in relation to city renewal.

4. Inhabitants can be classified into different subgroups based on age or other socio- demografic criteria. These groups may be organized on the basis of their respective interests, attempting to influence the reform process of suburbs. Organizing is often also based on political opinions, ecological questions, or even on opposition to modernizati- on measures. Therefore the inhabitants cannot be considered a uniform grey mass, but a conglomeration of groups furthering different needs and interests.

5. Planners, i.e. professionals working with preparation and operative implementation of the renovation activities, may also be divided into groups furthering different goals. This is often determined by the background group (for instance, the planner as a coordinating representative of the municipality, or representative of the specific interests of the investor or the proprietor, or spokesman for the inhabitants groups' special interests) or by the planners' differing ideological opinions. The planners, no more than other groups, represent one standard view, which in their case might be dictated by, for example, the professional ethic, but represent disunity in their goals. (In the concluding remarks I shall discuss the planner's changing role).

As an example of usefulness to apply an actor analysis in evaluating urban renewal projects I will show here one of my early cases ftom the mid 1980's in Stockholm. It is a compressed result of a sociological planning case study on the modernization of a housing estate, situated on the outscerts of the inner-city area, built 1939 - 1944 (Tanninen 1986). The findings demonstrated the very essence of urban renewal: concentration of many conflicting goals and interests, some fundamentally useful metacategories (power, time and money) and the need of a new role for planners4.

Also in Sweden at the beginning of the 80's the planners involved in urban renewal understood the renovation of housing estates to be a technical task rather than a comprehensive project to develop socio-cultural life of the residents (Nordbeck 1983). In recent research work Ove Ulltorp (1989,1994), Mats Ekstrom and Berth Danermark (1991) have developed qualified conceptual frameworks and evaluated housing renewal cases on the basis of power analyse. Figure 2: Planning for Urban Renewal of Housing Estates - a Complex Task

Fundamental Conflicting Focus of Seeking of categories topics the problem a solution

111. TIME 3A. Long-term perspective \

2A. Municipal economy mrole for planners. 1B. Public domain 1 to negotiate A negotiator has tc deside upon e.g: -ethics of his own I. POWER ownership1 profession powcr of property -social questions - r~levantpolitical 1B. Private right to issues in order actionslinvestment to clarify hidhers professional 2A. Building economy

[I. MONEY/ 3A. short-term/ CAPITAL perspective

Spatial-physical Typologization of Renovation Activities htemational experience proves that - particularly when the amelioration of panel-built housing estates is problematic for any reasons (as in Finland, a lack of resources combined with an ownership structure dispersed in innumerable small housing compa- nies) comprehensive and integrated planning is needed (Makkonen et al. 1989; Hansen & Skifter Andersen 1990, 16). While the implementation must progress wihtin the limits of scarce economic resources, partial measures must be interrelated with a comprehensive plan of integrated stategy, which simultaneously defines the priorization of tasks and the timing of their implementation. This seems to be the prevailing situation in Eastern Germany as well. An old functional planning theory for housing (relevant to the housing estates analyzed here) has been often blamed in that it only worked through two polarized spatial categories, "totally private" and open "public space1', missing the intermediate categories at the mezzo-level. Here the idea of creating hierarchies of space is freely used on the basis of the fundamental ideas of Oscar Newman (1973), who emphasises the importance of spatial arrangements in neighbourhoods in order to develop temtional feelings among inhabitants. The comprehensive approach and the application of a broad concept of housing presuppose observation of the dwelling, building, neighbourhood, residential area, and the whole city as an intractive comprehensive system. Sociologi- cally this totality may be controlled and organized using the spatial-communicative dimension "private-semipublic-public". While this dimension typologizes spatial- physical measures of renovation work, it helps in outlining action's social consequences in people's behaviour. This makes the social life of inhabitants in the residential area. The dimension in question can be used to illustrate the city renewal activities as follows in private, semi-private, semi-public and public spheres: Activities aimed at the private living sphere. Perhaps somewhat astonishingly, there are no great differences behveen Eastern and Western German wishes for an ideal mode of inhabitation (Sanierung von Wohnungen... 1992, 38): the prevailing Eastern ideal is also the normative type of nuclear family living. The inhabitants mainly wish to have better-functioning kitchens and sanitary facilities of higher quality, more flexible floor plans for solving spatial problems in small apartments and more storage. Technical solutions for these problems are provided, for example, by joining small apartments with each other. The Eastern German inhabitants seem to be relativey conservative in their wishes: they are not hoping for any radical modernization measures but for normal repairs. The stated motivation was mostly a wish to receive more satisfaction for basic ammodation needs, and to raise the family's quality of living. This caution may largely be deter- mined economically, that is, by fear of substantial rent increases. With the view to widening the range of selection of modernization measures, a special housing allowan- ce, payable to those living in modernized houses during a certain transitional period, is a perfect housing policy tool for promoting basic renovation activities (Hansen & Skifter Andersen 1990, 23, 33, 105). Partly privatehemi-private5 sphere of living. For instance, garden patches connected directly with basement flats have proved to be functional solutions: they are looked after, enhancing and enlivening the common living environment. As regards renovation of balconies, the available construction technology offers several alternatives for implementing different solutions, either as traditional balconies or as glassed-in "supplementary rooms". Additional constructions connected with the facades may

S"~emi-private"is an awkward concept: we may well wonder whether something only partly private can exist. However, in relation to housing we may refer to some spatial-structural solutions belonging to this category. For instance, enclosed garden patches of basement apartments as well as balconies are private spaces which also are open to visual communication with neighbours. In apartments of many generations and in collective housing there are common kitchens, dining recesses and living rooms, which are only partly private but anyhow not semi-public. provide more space for the adjoining rooms and welcome variety to the perhaps monotonous facade image. Those solutions belonging partly to the private living sphere are related to efforts aiming at the creation of building and quarter identities and at improving the image of these suburbs. Particularly in relation to supplementary constructing there is a need to investigate possibilities to create more semi-private space, for instance connected with the staircases (small living rooms, laundry rooms, etc.), because this arrangement provides stimuli in the flat housing life often devoid of communicating. Semi-public space is meant for joint use by several inhabitants -stairways, ent- rances, nearby environments with children's playgrounds and inhabitants' living spaces. Arrangements related to these spaces are important particularly because it has been found easy to activate inhabitants to participate in designing and building them. Activities concerning semi-public space are thlcs important tools for mobilization of inhabitants. They are furthermore strategically decisive means in supporting com- munication between inhabitants, as well as in creating house-wise identities. In a communicative sense there is movement of impacts from private to semi-public and further to public space. All this relates simultaneously to raising the aesthetic level of the environment and increasing visual pleasantness. This is a significant factor from the viewpoint of inhabitants' well-being and general satisfaction. In their wishes concerning accommodation the Eastern German inhabitants seem to favour preservation of semi-public space for action related to accommodation (action ground for small children, neighbourhood communication and recreational use) instead of any other types of activities. Consequently, it is suggested that mixed activities - services, working places, etc.- should be placed in the centres of residential suburbs (Saniemng von Wohnungen ... 1992, 55). Public space comprises large common areas and meeting places of the living environment: parks, gardens, centres, traffic routes, car parks. Particularly with the view to creating an urban lifestyle (multi-functionality, mixing and stratification of activities) the residential area centres with their surroundings are of crucial importance in placing the new functions and the required supplementary building activities. However, projects of centre development are most sensitive to conflicts, as these centres attract strong business interests and mighty investors. A crucial task of sociological research is to provide planners with reliable information of the inhabitants' needs and wishes, thereby providing a rational basis for developing residential centres. The supplementary construction projects of the residential area centres also open possibilities to enliven a monotonous visual impression by introduction of a new architectural form language and new spatial solutions, while simultaneously new room is obtained for new services and workplaces. Similarly, environmental art with a conscious colour design can function as an information system permeating through Figure 3 - 4: Some of the first renovation projects in Scandinavia in the mid 1980's: Rosengdrd in Malm6 (South of Sweden) and a renovated public rental house in the Finnish Housing Fair 1987 in Tornio (North of Finland). (Photo: T. Tanninen) different spatial levels. This may be a crucial part of the total symbolism, the use of which aims at the creation of different identities for these suburbs and at raising the general image of this type of housing. In connection with this largest space category, consideration must be given to tasks related to the often problematic structural and functional relations with the total city entity. By their nature these may be linked with traffic routes and connections, relations between constructed environment and nature, environment image or panoramic view. The question is of "supra-regional" physical, communicative, and social connec- tions passing the partial-area limits of city geography.

Concluding Remarks

Empirical data and research in sociology caution against physical determinism while making observations about inhabitants' social lives in residential areas (Hjarne 1985). There is every reason to be sceptical about "the oldfunctionalistic ideas that organiza- tion of the urban environment is at the base of social relations" (Bonetti 1994, 6). Physical solutions to spatial problems do not as such create social communication between inhabitants, but they form the framework that serve as its prerequisite. There are many other preconditions for the development of social communication - joint interests and values, material incentives, temporal continuity etc (Tanninen 1985). A good plan for the renovation of a residential suburb does not alone solve the problems related to insufficient communication and social life, however, combined with sociolo- gical knowledge planning can improve the conditions that are conducive to their development. The comprehensive strategy for developing residential suburbs emphasized here implies that physical measures of improvement must be integrated in the most effective way in the revitalization of the social life in the respective suburb. It is thus important that the comprehensive activity program covers all levels in the spatial-physical typology, implementing different actions in a reciprocal way. This means that the inhabitants will be motivated to remain active during the renovation, as long as it may prove to be. The Eastern German social conditions necessitate the creation of a general strategy rendering possible the mutual integration of different level activities within the limits of a realistic economic plan, and which has the capacity gradually to solve the social problems related to construction, economy, organization, environment and housing. Understandably, this type of a realistic implementation program must always be related to the respective project or the residential suburb. Given that a large-scale renovation program of residential suburbs in Eastern Germany will not be launched at the earliest possible date, there will be reason for concern that these areas start losing their inhabitants with the best resources. Inter- national experience proves that the next stage of social decay will easily follow, the reversal of which will be a most difficult and complicated task. This is why I consider the following three task areas crucial for further planning of the development of su- burbs, and the necessary research as its prerequisite:

Towards a New Planning Practice

We have to become aware of the fact that the development of suburbs is not a tech- nical-economic but a social task. It is obvious on the basis of past experience (Nord- beck 1983) and recent evaluative research in Scandinavia, that resident's priorities diverge significantly from what has actually been done in renewal projects (Ekstr6m & Danermark 1991, 163-167; Cars 1992, 18). Performing this task presupposes the planner adopting a new role; instead of being an omniscient expert, he/ she should act as an arbitrator between different interest groups in the design process. Communicative and other collaborative abilities are required for the perfomance of this task. In interna- tional discussion, this type of work and planning has been called "negotiative planning" (see e.g. Sager 1990, 290-359). Collaboration between the parties is a long-term effort (in Denmark the preparation of projects took three years on the average, while the construction work was performed uninterrupted in 6-12 months) (Christiansen et al. 1994, 178). A similar type of action in the large residential suburbs of Eastern Germany would probably take 5-10 years, performed in stages. In projects as long-term as these it is of crucial importance that the inhabitants are experiencing improvements in their accomodation and environment resulting from the projects, with the view to keeping them motivated for collaboration. Of essential importance is also an open and active information network supporting the construction of an improved image for the suburban housing.

Organizational Questions and Management

Even Scandinavian research offers but one general type of information, recommending the creation of smaller organizations and administrative patterns with the view to improving direct contacts with the inhabitants. Municipal organizations for distributing apartments with the related regulation of this distribution is a crucial tool in attempts to influence the structure of inhabitant composition in separate residential areas and quarters (see e.g. Vale 1994, 10; Hansen & Skifter Andersen 1990). Organizational problems are particularly complicated in large residential areas, as division of tasks between the municipality and its administrative organs and housing companies is often unclear. How to combine the efforts to have private capital invested with public development projects? Who has the coordinating responsibility for planning and implementing the residential suburbs? How are housing administration and inhabitant democracy going to be organized in the renovated suburban areas? Danish experience proves that construction of common houses/activity centers and establishment of allotment gardens are not enough, as the inhabitants are in need of assistance in organizing their operation and management (Christiansen et al. 1994, 91, 113-117). Eastern Germany has special problems, like the question of the new ow- nership organizations of old apartments. There is also the question of establishing constructor organizations for participation in the projects developing residential area centres. The municipalities have withdrawn from the tasks, while new space is being built for services and for new workplaces.

Mobilization of Inhabitants

The future will probably bring adjustment to mass unemployment, and the respective consequenses for social life. Consequently, suburbs are not going to be there for slee- ping only, but will have to provide possibilities for full-day use of time for a large proportion of inhabitants. A central issue in the sociological research and planning of suburban development is thus the following: How to activate these under-utilized tal- ents and skills available among inhabitants as important resources of the renovation activity? Even Scandinavian research reveal this as being a far from uncomplicated task. On the whole, public renovation programs have not paid attention to the questions of promoting social life in the residential areas and solving problems relating to housing. Even the Danish funding programs did not provide any support for these tasks, although rendering possible clearing of unpaid debts, improving environment and repairing the building stock. Particularly in Sweden the social welfare sector in municipalities has developed community work and other methods for revitalization of the social life in residential areas. In this respect the sociological research providing relevant assistance to the city renewal activities still has lots to do. The form that the activity of renovating residential suburbs will take, will depend on the prevailing general ideology of city renewal, trends of housing policy, ways of solving problems related to city structure and housing economy, or of repairing physical defects in the buildings. Unfortunately the socio-cultural aspects directly influencing the everyday lives of ordinary people are usually last on the list. In the context of planning future renovation activities for residential suburbs, these priorities need to be reor- ganized. References

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Maria Joiio Freitas

The existence, at the end of our century, of large shanty towns and extremely poor housing conditions in the metropolitan areas of Lisbon and Oporto has brought to public discussion, recently and again, the urgent necessity of promoting a slum clearance program with the involvement of the central and local authorities. At the beginning of 1993, the Portuguese central government announced a Special Programme for Re- housing the families living in the slums or very bad housing conditions of these metropolitan areas. In this article I am not proposing a guided visit through Portuguese housing policies or to this specific Slum Clearance Program, but I would like to share some remarks about the Rehousing problem in my country. I have organised these remarks into four main paradoxes: Firstly, I would like to comment on the contents of the rehousing concept and practice and the paradox that is often found behind the main goals of rehousing. A paradox exists in the balance between the resolution of the population's housing problems and the resolution of problems of public conscience given the existence, so close to home, of such a great number of families living in such poor housing conditions. Secondly, I will discuss the paradoxical, and often non-existent, relationship between the specific social dynamics of rehoused families and the political, technical and administrative solutions utilized in these processes. Ihirdly, I Illdiscuss the rest- ructuring of family life that can result from the rehousing processes. The main issue of this paradox is the sociaVresidentia1promotion of rehoused families or, conversely, the reproduction of the culture of poverty. Finally, I will present the more relevant political attitudes toward solving these housing problems as - paradoxically - inadequate based on the fact that they run through stereotyped solutions without any efficacy or efficiency. This is illustrated by several examples of the demolition of residential settings in various locations around the world which have adopted these solutions with disastrous results. In Search of a Non-existant Concept for Rehousing?

Someone who tries to find the word "rehousing"in Portuguese dictionaries or encyclo- pedias will not be successful, even though this word has already some particular history. Meanwhile, we can say that rehousing means housing again, and we can associate this word with the social necessity of providing families who live in very bad housing with new homes. The term also applies to families who have lost their old house as a result of natural disasters, or who are forced to leave their houses to make way for public construction. These are the main reasons why hundreds of families were moved into temporary neighbourhoods during the fifties in Lisbon, and why, during the seventies, The Rehousing Service was created within the Housing Department of the City Council of Lisbon. Since then many neighbourhoods of social housing have been built in Opor- to. As far as political speech goes it is the aim of these social housing policies to promote the quality of life and housing conditions of the families, and to promote their general well-being. We read, for instance, in the Strategic Plan for Lisbon (1992) the intention to "upgrade the residential function" in town, and more precisely "to upgrade the housing conditions through slwn clearance program and the improvement of urban rehabilitation" @. 65 - 66). The purpose of this strategic line for Lisbon consists of "improving the quality of life of the population" @. 100) by means of rehousing programs. The point of this discussion is to define what the politicians and technicians mean by the revalorization of the residential function or to the improvement of the quality of life of the population. The political discussions about these problems show a tendency to group them into stereotypes of poverty, disgrace and marginality and, consequently, to make them the object of general programmes for vigourous clearance of dirty spots and social annoyances. This has been how the rehousing concept appears as an efficient and innocuous solution to give apartments to families who live in poor housing conditions is regarded as a sufficient means of promoting the transformation of their way of life. That is, to assure residential satisfaction, and to banish the social cancer from Portuguese society of shanty towns and poor housing conditions. Meanwhile, he success of these re- housing projects is measured simply by quantitative criteria: the number of built apartments and the number of rehoused families. In short, the rehousing processes have mostly been characterised as the gift of an apartment to those who urgently need it. This perspective of giving a house to someone raises a lot of problems regarding the relationship between those who give and those who receive. The relationship assumes a character of mutual dependency (those who receive the house will remain socially and politically obliged to those who give it), and frees both parties from responsibility in the global process toward improving the quality of life. But, if we carefully read the political speeches addressing the matter, doubt remains as to their purposes: i.e., the fact that this giving of apartments mostly seems to be pretending to solve some of the problems of public consciousness - damaged by a complex of shame for the poverty, which is related to the existence of so many shanty towns at the end of this century - rather than pretending to solve the housing deficit, and improve the quality of life for the families who live in shanties. Obviously, this ambiguity seems to be based itself on the dubiousness of political attitudes and on their difficulties in making clear their political and technical purposes through their practices.

The Characteristics of Social Dynamics and the Processes of Intervention

Following what we have said, it will not be difficult to introduce the second paradar. It exists in the almost non-existent relationship between the characteristics of the social dynamics of the rehoused population, and the political, technical and administrative solutions in the public processes of distributing responsibility toward the resolution of this housing problem.

Those Who are not Provided with Basic Housing

Even if, in Portugal, the right to an adequate house is a constitutional right, it is not something that everyone can have. Those who are not provided with basic and adequate housing also live below the standard patterns of quality of life and social well-being. They demonstrate very low levels of scholarship and professional skills, and share huge difficulties competing in the housing markets. These families can live in very different housing scenarios, such as slums; very degraded, non-infra-structured, unplanned neighbourhh, very ancient temporary neighbourhoods built by the municipality; unfinished andlor stopped buildings that have been occupied for housing purposes; old residential areas characterised by cohabitation and over-occupation; some yards, villas or ilhas; or even the streets, for the homeless. These families, apart from the fact that they are not provided with basic and adequate housing present a particular story in relation to the way they settled themselves in the main cities, this migration being mostly motivated by the search for better working conditions. In Lisbon, from those who live in slums and very degraded and provisional housing conditions, we can identify three groups of families, taking into account three phases of settling in the town and its surroundings: (i) The first group of families came to the town late in the fifties and during the sixties, corresponding to the migration process which brought thousands of families from the inner lands of Portugal to its coast, and mostly to Lisbon; (ii) The second group settled in the shanties in the time beginning after the revolution of 1974, and continuing until the beginning of the eighties. Most of them came from former Portuguese colonies after independence was achieved or a little later, when the war in those countries escalated. The majority of those families are of Portuguese nationality, though they belong to different ethnic groups; (iii) The third group came more recently to these areas, mostly between the eighties and now, and represent the immigration of workers to Portugal from the Portuguese-speaking African Countries (PALOP'S). These workers came alone at first, escaping from war or from very bad economic conditions in their countries, and then, called their families and friends. 7he ethnic diversity is another characteristic of these populations who share very bad housing conditions and live in the capital or nearby. These groups demonstrate very specific habitus of land use and ways of living in their habitat. The particular features that each group demonstrates contribute to the complexity of this phenomenon and also to its socio-ecological richness and interest. Despite having some points in common, this population presents a wide variety of profiles due to its backgrounds, social composition, internal dynamics, residential contexts and demands for external supports and interventions.

The New Houses and the Old Neighbourhood: the Dilemma of the Rehoused Families

In a study concerning 30 families/women from a slum who were rehoused in Bairro da Boavista, Lisbon late in 1989 (Freitas 1993), one of the most important analytical axes identified was the relationship between the house as the novelty of a project, and the "bairro"as the origins and preservation of an identity in a dilemma of transformati- onlmaintenance of ways of life resulting from the processes of interaction with places. To these women the new home appears as a challenge, as support for hope in social and residential promotion, and as the main and central point of change in a house-oriented logic. This is mainly as regards a) investments in the interior of the dwellings aiming at increasing their standards of comfort, b) daily life and social relationships, and c) their affections and emotions (through their overall satisfaction). To these women the Bairn, where they were born and brought up is a cradle one does not disown, whatever the circumstances. They do not want to leave the neighbowhood and enhance their local identity through the rejection of other neighbourhoods that can be spatially or socially closed to their own neighbowhood. In this way, they show their spatial and social roots, developed during the years of permanence in this Bairro, with the absence of other residential references. The Bairro is, to the interviewed women, the great and more important (and almost unique) spatial reference; the center of their daily activities and the base of their daily life. me main changes caused by the new homes are mainly felt in the time variables: the time spent with neighbours decreases and the time spent at home increases substantially. The new homes obviously present many advantages over the former ones, however, there subsists some feelings of saudade of other important elements as the strong sociability they created and maintain in their daily life and the possibility to use the secondary spaces. The former residential scenarios were characterised predominantly by an intense and important use of the spaces immediately outside the house (secondary spaces). The fact that the previous house was very small meant that the street was an extension of it, allowing an opening of domestic life to communal life. It was on the verandah of the house, just next to the street, that sardines were grilled in summer, where the evening was spent at that time of year due to the heat in the prefabricated buildings, where there was always the neighbour to break up the monotony of the afternoon, where there was an extension of family life, hemmed in by confined spaces, though without the sensati- on of being "out of doors". These social contacts and appropriation spaces which characterise the communal life of the families who live not only in the old Bairro da Boavista, but also in most housing estates of that precarious kind, are seldom to be found in other residential and urbanistic structures, especially those consisting of high-rises. The functional dimension of such extended domestic space is not addressed by rehousing programs based on the assumption that the new housing conditions will make up for the needs associated with extended domestic space. As the result a symbolic dimension and opportunity for social contact are lost, but the need for that extended domestic space did not disappear. What seems to occur with the loss of these spaces is not only the inevitable invitation to greater closing-in/isolatiodprivacy induced by the new spaces that they have, but a twofold closing-in/isolation in relation to the outside world - social contact outside "Bairro" life. This is attributable to the lack of spaces that fulfill the aforemen- tioned symbolic and relational functions. The first "closing-inn is thought of as appropriate, and is even encouraged as one of the values inherent in the models of habitation capable of offering them some residential and social promotion. The second "closing-in" implicit in this spatial organization poses more problems of adaptation, and lies behind nostalgia that is still patent in what is stated by these families as regards the "atmosphere" of the old "Bairro". "mat is to say, I like it (the street), but I liked the other more, in this respect: anyone who wanted to grill sardines did so and here you can't, and it's this I miss: in summer people used to put a blanket on the street and lie down, but here we don't do that! It's this I miss and I liked the street there. It's not the house, because I didn't like the house... it's the street!" "Perhaps there are things I miss, that's to say the place (...) without having neighbows above or below or vice versa, without going outside, together with company and sitting outside, apart from that the house is better!"

Thus in the new housing scenarios the primary spaces (the houses) acquire more importance, in contrast with the tertiary scenarios (the street), without important existence of secondary scenarios. In these contexts the landings are the links, and therefore the transition between the house (which now has great privacy and is closed to the outside) and the street (which appears as a public space) is not appropriated by the neighbours, does not form part of the great whole which is the Bairro. These landings have mainly a hnction of passage, are not places to stay. This space is not an extension of the house (e.g. for storage) but a space that has to be embellished (plants that flourish and are admired by the neighbours). With its back to the house, the landing acts as a street door: if the street doors were often open, the same did not occur with the doors to the houses: always closed. And so, although they are an important place in the social life of these families, the landings impute to such relations a far more ephemeral character than was habitual in the previous social contexts. One does not open the home door "to chat with the neighbours" - that would not be "done" and, above all, would lack all the naturalness and spontaneity with which one used to open the window or come to the threshold and talk to the neighbour, who also used to be there. "(...) Yes, one opened the door and was in the street. Here I have to go down all these stairs, and we leave ow house. mere, there was the neighbow; if one needed her!"

There are various pointers to this smallbig difference pointing to the fact that the extra privacy also means greater social isolation, which is above all felt by the women who spend most of the day at home and, among them, the older ones. "me one who was most bored was my mother. She is quite 014 and felt the move a lot. She was used to being there, was open ill and got very down because of that. Here it's different: here she hasn't got the people she had there." "I can't deny it. Although the house was no god I missed it, I lived there many years. It was there on a corner, I opened the door and was on the street. lhose houses are tiny, one opened the door and was on the street, one opened the window and there was the street... I had everything going on there: Hello, is everything 0.K ? But here inside this house there are days that I don't see my neighbours. I don't go to my neighbours' houses and they don't come into my house. To each his house. I come from outside, go up the stairs, get inside here, I'm not well enough to be going up and clown the stairs, go here and there - because ifI were I'd like to! (..) well, here in this house Ifind it very lonely. me house is good really, very comfortable, but it's very lonely here inside the house. I feel very, well. .. I'm here, I go there... there sometimes I go to the window. I sit down, here I am, sell. .. 's a life that's ve ry... well after all we get through it!"

The youngest children are mentioned by the mothers as those who also most felt this isolation, which has led to changes in the rules of social contact and sociability of the children. ''Ididn't mind at all. My children di4 because they were used to leaving the house and being on the street. Here they don't go to play. mey are more tied mey live more shut in. mey would like to go out on the street, but I don't let them, here it's no good In the other house one opened the door and it was at once as if one were in a courtyard mere was no trafic, nothing! In fact, my children often say they prefer to live down there, even though they have their own room and down there they didn't, and so on.. but they feel that lack!"

This twofold shutting leads to strategies of various kinds to overcome it, such as going out many times (for shopping, for a coffee or a message, to buy something forgotten, to see if there are any letters or who is making a noise on the staircase...). The windows, another element of eventual transition to outside or public spaces, assume a very passive role. The windows at the back have as their only attraction the work under way on other new houses destined for former neighbours or relatives living in prefabricated houses. Those at the front look out onto a street where the main commercial establishments of the Bairro are, and from what is one of the most impor- tant accesses to it. From them some movement can be seen, but precisely because of this function of the street, which makes it even more public, and owing to the height at which the windows are situated, they do not allow much more than sporadic control over what happens there and some quick good-day greetings. With the loss of such secondary spaces that characterized the way of life of these families, the house acquires a very great importance, becoming for the first time in the history of these families the real center of their everyday life. Everything, as if by magic - and above all suddenly - is oriented around this new space that has been ob- tained. The principle of privacy dominates: one does not open the door without asking who is there; the spontaneous invitation to the inquiring party to come in, although predominant, is not generalized; the doors of the most private spaces are usually closed; and the desire to create greater privacy in the sitting-room in relation to the front door is clear in many stated intentions to transform the house. One of the most interesting issues of this research is the opposition between two different sets of logic, that is due above all to the referent or centrality of each of them: whereas in the previous residential scenarios the center of daily life was the house with extension to the street, (and, therefore, to the Bairro), in a situation of re- housing into buildings, as is the case here, the vital center of these populations becomes mainly the house. Upon a logic of appropriation of and living in space in relationship to the com- munity - mainly characterized by an opening to the exterior and participation in the collective whole - another way of thinking is superimposed. This new "logic" comp- rises demands and constraints that are not only spatial but also social, owing to the new residential status acquired, of greater closing to the exterior and of alteration of identity referents that are now oriented more toward greater affirmation of the individuality of each family. The issue is, then, the shelter effect or double-closing effect of the vital space of these families: From a house with open doors, open to the street and the Bairro, the people move to a house with closed doors, its back turned on the street and the Bairro. From a general opening to outside they pass to a double closing as regards space and society, in a vital space with well defined boundaries that is far more restricted. Ecologically, these families will be led to reflect about themselves. Concretely, the reference points of the life-styles of the women now studied are no longer the Bairro and everything it may signify in their everyday life in community terms. Instead, it is their very worth as individuals and isolated actors. From a community social- spatial logic it seems that they pass to an individualistic social-spatial logic which - if it corresponds to differentiated life styles - demands and obliges social practices that are also distinct. The interest in comparing these two residential logics in the process of adaptation and of responses to the new residential scenarios acquires importance in this study owing to the precedence that the first had in relation to the last one - this precedence solidified habits in the use of the space and of timing of action and social contacts, as has been mentioned -but also because these rehoused families live very close to their old neighbourhood that has not been yet completely demolished - and that fact helps them to deal with the opposition of forces. This shell effect obliges us to examine a certain social isolation, - especially of the women whose spatial mobility is very restricted - and to reconsider their social integration, limited by a present lack of professional activity and removal from the previous social networks and contexts. The question that arises is: to what point are families prepared for this closing in, this encapsulation and encounter with themselves, which will involve a restructuring and another identity, both personal and social? The alterations in domestic spaces represent precisely this match between what has been taken away and what Is again suggested in an attempt at compromise between a rehabilitation of permanences and the transformations inherent in their change.

The Rehousing Processes and the Populations as the Object of the Intervention

The evidence of particular ways of life of the families who live in very bad housing conditions and the persistance of complex dilemmas after the rehousing actions lead us to underline the idea that these rehousing actions are aimed very far from their objects - the population - and are more and more connected with the form rather than with the contents of their actions, both from a technical perspective and in terms of definiti- on of competences. Planners answer mostly to technical and political demands rather than to the nee&, aspirations and expectancies of the population involved in these processes. These needs, aspirations and expectancies are more ambitious than the simple human right to a home. What happens is that the dwellings or neighbourhoods provided by the local authorities seldom resemble the dwellings or neighbourhoods the population would need or prefer. This situation is not surprising because in the process of decision no care has been made to adapt the technical and material demands of the architectonic and urbanistic quality to the social situations and ways of life of the populations. That is, the satisfaction of social needs. On the contrary, most of the time we can observe a subordination of the populations' requests, needs and aspirations to abstract solutions previously presented by technicians. And this happens due to the general absence of thorough studies about the populations and to imaginary or lay perceptions of their needs and aspirations. The dwellings are, in some way, designed and built to be used by imaginary individuals, and do not correspond to the real characteristics of the populations to be rehoused. This feature of housing practice urgently requires an analysis, an analysis of decision processes and housing policies, and more precisely of the relationship between politicians and technicians and the final product (the residential spaces) and its consu- merdusers (the population). The housing problems of these populations, in their multiple features, usually differ from the target of intervention (the families who need better housing and living conditions). These problems are in the end mainly discussed in the sphere of decisions regarding the distribution of competences between the political powers (centraVlocal administrations). In those terms the discussion around the housing problems has been mainly oriented to the formal features of the problem rather than to its contents. That is, while one discusses who should be responsible for the resolution of the problems, one does not discuss what must be done and how to improve the housing quality in the estate. The recent Special Rehousing Program (PER) relieved, in a way, this formal dis- cussion around the political competences, because it made clear the responsibilities and actions of the different agents. But the PER does not yet define the programmatic contents of these actions. This can be compared to a stage on which everyone is preparing a scene that, paradoxically, has no argument, no scenary, no parts to play and no characters.

Transformation or Reproduction

The rehousing process, even when it is reduced to giving dwellings to the families who need them, contains many complex implications at very different levels. When rehoused families face their new residential scenarios they have to restructure their ways of life, as discussed above. But this restructuring can, paradoxically, point to at least two op- posing processes: a process of residential and social mobility and promotion, and a process of reproducing a culture of poverty that these families can share. The research I referred to previously pointed also to another important analytical axis which seems of great importance for the discussion of this third paradox. That analytical axis, which confronts a process of inertia with a process of protagonism, concentrates the discussion of the capacity of action and decision of the social actors or agents in relation to their life projects and, specifically, projects of change following the rehousing action to which they were recently subjected. As has been said, the women interviewed demonstrated life projects that were mainly conditioned by factors of privation and economic and habitational difficulties. In relation to this their intervention seemed to be compromised and even lacking both in terms of socialisation and their prospects. It can be said that these projects, broadly speaking, were empty of content that involved their protagonism in a sense of change or transformation. Inertia characterised them, by the conditioning factors of a life of mainly survival at every level. The attributions and expectations of change were centred mainly in external agents. The time of action of such projects was predominantly a present time, and their practices or ways of life were strongly marked by a daily existence reproducing itself. The great novelty of this move for most of those involved was introduced by the acquisition of a more suitable and qualified habitational condition, both from a material and social point of view. This novelty introduces into the life of these women and their families a feeling that enlarges their perspectives to a time dimension of medium and even longer term. The new house appears as a secure reality that requires and, above all, makes possible their protagonism as agents of a palpable project. Although the social-economic conditions are not always better - on the contrary, sometimes they deteriorate owing to the greater financial effort required by rehousing - the improve- ment in their habitational conditions introduces a new sense and new motivations into their efforts. If the forces for achieving that objective (a new dwelling) seemed very weak, the same does not occur with the will and prospects of developing and personifying it. It is in this sense that this analytical axis of inertia versus protagonism can be identified. There remains to examine, however, the fact that this capacity of action and pro- tagonism becomes exhausted in the development of a gifr, in a set of very specific practices oriented toward one objective only not translating into the larger project of the transformation of their own status and social promotion. Now if a project can be taken to mean verbal intentions, in the sense of their materialisation, i.e. Itconcept endowed with logical properties to be explained in its connections with an action to be undertaken" (Boutinet 1990, 16), comprising capacities of creation and change, it was clear that for this population silence accompanied by a certain incapacity for verbal expression of projects for the future represented a certain inertia and lack of projects, and that the silence was only broken with concrete ideas for the domestic spaces now owned. The protagonism of these families then has a fairly recent history and a very restricted time dimension. Through our observation it was also possible to verify that the most enlarged transformation projects seem only to be present in some women, who in one way or another had already begun it mainly at the level of their social-pro- fessional ambitions. For most of the other women, the attitude of change and action is confined to the house itself and not to the other dimensions of their life, and here their age is not a variable with influence in that perspective. Projects, by definition, are concerned with a tripartition of time - past, present and future - always playing with these three temporal dimensions. What we were also able to verify for this population was a majority over-evaluation of the present time in their capacities for action, a factor that is not altogether surprising and has already been reported in other studies that have dealt with populations of identical social profiles. Oscar Lewis (1961,1964,1966) has already introduced this particularity into his studies on the culture of poverty, Ferreira de Almeida (1992) and his collaborators take it as one of the distinctive factors in the different ways of life of poverty and Eliane Wolff (1991) develops it very explicitly in the study she carried out on the poor population of the Island of Reunion.

7 Trans~t~onalHousing Systems 185 The present time is king in the dynamics of life of these populations, in a logic that is almost of subsistence, and above all in what amounts to condemnation to a destiny that has the future traced out, and little space for each person's intervention. Perhaps we have here all the most determinist explanations of social reproduction (Bourdieu 1979), even those which advocate the superior force of social constraints in the light of individual capacity for action. What is a fact is that the notion of project arises contextualised precisely in the problematisation of the syndromes of social sclerosis and routine faced by modern societies, with the urgency of planned change and potentiali- zation of unexplored possibilities of action (Boutinet 1991). Change and reproduction seem to play dialectically around this axis, playing with the history of the social actors and with their capacity for intervening in it more passively or actively. An interrogation that it is necessary to leave on record here, and which obviously has to do with the newly created environmental conditioning factors, is concerned with the motivations and capacities that new generations will present as regards a more efficacious break with that expectant attitude towards the course of their life; that is, with their capacity to introduce a new life-style with repercussions on their actions or ways of life. As a final balance of this study, we can conclude that although the rehousing situation causes considerable satisfaction, this is mainly due to obtaining a new dwelling, which in this case is of undeniably better quality than the old one. From the habitational point of view, therefore, the balance can be regarded as positive. An analysis of the results of this research and its theoretical framework reveals, however, that there remain doubts about the success of these actions as regards their implications in the social and community dynamics in which these families are inserted, their ur- banist insertion and participation in urban life as a whole. Specifically and prospectively, it can be considered that the improvement in housing conditions introduced by these rehousing actions, by inducing a rupture in the daily routine of these families, at the same time causes positive and negative effects in the social dynamics of these people. As a positive effect it can be mentioned that an element is provided that unleashes projects and protagonisms on the part of the social actors - the house. But it seems to be exhausted as such, without anyone noticing, at least in the near future, its power for unleashing other more structural changes in the strategic positioning of these families before a consistent project of change in their social condition, regarded as poor. On the other hand, there emerges as a negative effect the fact that these families are deprived of an important context of social and identity-related support in their ways of life. This is based on intense sociability relations centred in the neighbourhood, by inducing a reduction in the times of sociability, by not creating ecological conditions for it to develop or be effective in the new contexts and by not providing any significant increase in the integration of these families into urban life. It, on the contrary, actually leads to their social and urban isolation. Now this balance raises doubts as to the effective success of these actions from a social point of view, insofar as they seem to provide a potential for the solving of housing shortage problems but actually tend to perpetuate the problem of these people's integration into and promotion in the social context and structure. These actions also give rise to other social problems concerned with the phenomena of social isolation and breaking of community bonds that are essential for the psychosocial identity equilibrium of these people. These problems that emerge seem even to be fairly serious in terms of urban life because the eventual effects of such a social de-structuring of these com- munities may be irreparable damage - or damage that is at least difficult to cope with and overcome - to the efforts of promoting quality of life and social well being in the urban milieu. These problems that do not seem to have a solution within this type of initiative actually place the problems of intervention with these populations within a far broader field which goes beyond the domains of housing. The questions of transformation and change, as regards the intentions of social promotion and integration of these popula- tions, are placed at a far more structural and complex level, such as the strategies of urban life and the promotion and development of other kinds of life. It has been stated that "satisfaction of quality lies in the most adequate rela- tionship between the nee& and aspirations manifesed in the individual and social search for habitational quality and the offer that the technical and instru- mental means of society are capable of making, that quality being &fined in specific quality, variety, durability and compensating price" (Reis Cabrita 1988, 283 - 284).

This means that if the allocation of houses is an important element - in these cases a fundamental one - for the habitational change and promotion of these populations, it is not sufficient as a strategy for improving their overall quality of life and personal and social promotion. One of the conclusions of that research points precisely to the existence of transformation factors, but also of strong factors for reproducing and maintaining the ways and styles of life to which these families belong. This seems to be accompanied by the design of a tendency toward negative transformation of such ways of life following the destructuration of some models and the lack of a concrete alternative for constructing alternative forms of life that are solid and qualified from the point of view of the social and urban insertion and promotion of these populations. A Challenge to the Introduction of Innovation in the Rehousing Processes

As I have indicated in the introduction to this reflection, this fourth paradox points to a general political attitude which assumes a certain public condemnation of stereotyped rehousing solutions which have been presenting very low levels of efficacy and efficiency. We can point to several examples based on the foreign experience of social residential areas built during the sixties that have been demolished; but we can also point to some Portuguese cases which present themselves as ghettos with very high levels of degradation, insalubrity, insecurity, very deep social problems, high levels of residential dissatisfaction, and non acceptance for the rest of the population with increased manifestation of ethnic, racial and xenophobic conflicts. Rehousing appears as a larger, deeper and far more complex action than merely distributing houses to those who need them. A much more consistent discussion and programmatic content to this kind of action is then urgently requested in the discussion of rehousing processes and programmes. In that sense, a serious reflection of the programmatic contents of the interventions is needed. A deepex knowledge of the specific features of the social tissue which will be disarranged and sewed, is needed as well as the preparation of the political, technical and bureaucratic state to the rehousing proposals and the discussion, consideration and preparation of innovative solutions more suited to the realities of intervention. It is more and more my conviction that if these tasks will be once again undertaken or forgotten, those responsible for these actions will run the risk of definitely compromising the resolution or satisfaction of the existing housing problems, and of raising and increasing the already existing socio-urbanistic problems. References

Bourdieu, P. (1979). La Distinction critique sociale du jugement. Paris: Les Editions de Minuit. Boutinet, J. P. (1990). Anthropologie du Rojet. Paris: Puf. Ferreira de Almeida, J. & Capucha, L. & Firmino da Costa, A. & Luis Machado, F. & Nicolau, I. e Reis, E. (1992). Exclus6o Social Factores e Tips de Pobreza em Portugal. Oeiras: Celta Editora. Freitas, M. Joio (1993). AcG6e.s de Realojamento e Re-estrutura~60 dos Modos de Vida um estudo de caso. Dissertago de Mestrado em Sociologia Ruaral e Urbana. ISCE (nio publicado). Lewis, Oscar (1961). Les Enfants de Sanchez. Autobiographic d'une famille mexicaine. Edigo de 1986. Col. TEL, Paris: Gallimard. Lewis, Oscar (1964). Las Possesiones del Pobre. In Biologia y Cultura - Introducci ona la Antropologia Bioldgica y Social. Col. Selecciones de Scientific American. Madric: Hermann Blume Ediciones 1975. Lewis, Oscar (1966). La Cultura de la Pobreza. In Bwlogia y Cultura - Introduction a la Antropologia Bioldgica y Social. Col. Selecciones de Scientific American. Madrid: Hermann Blume Ediciones 1975. Plano EstratCgico de Lisboa. Lisbon 1992. Reis Cabrita, A. (1988). 0 Meio e a Qualidade do Habitat Residential. In Psicologia, Vol. W,(No 3). Wolff, E. (1991). Quartiers de Vie. In MCridiens Klincksieck (Ed.) Approche ethnologi- que des populations dkfavoriskes de ITle de la Rkunwn. Col. Analyse Institution- nelle. Paris. Halle-Neustadt - A Case for New Town Renewal in Eastern Germany

Holger Schmidt

The Research Project Halle-Neustadt

Since 1992 Halle-Neustadt, along with ten other newly-built areas in the new federal states and East-Berlin, has been a model undertaking for research within the framework of the programme Experimental Housing- and Townbuilding (ExWoSt). This three year programme, supported by the Federal Ministry for Building, the land of Saxony-Anhalt and the City of Halle is intended to provide generalised statements but which are based on this part of the city. Namely: - possible solutions and forms for the further development of urban building in East-German newly-built areas; - the effectiveness of existing instruments for urban building processes and housing policies and suggestions for increasing their efficiency and - the inclusion of the inhabitants in the process of the further development of urban building, which is orientated towards keeping the existing houses and the establishing of accompanying social programmes.

It has to be emphasized that as the initiators, the Federal Ministry for Building and the Federal Research Institute for Landeskunde and Spatial Order have invited entries for research in which quasi provision making and accompanying strategies and the initial stages for action towards a further development of East-German newbuilt areas shall be formulated. Against the background of West-German experiences in the process of revitalising large housing estates one obviously did not want to wait until "the child fell into the fountain". Since the situation is different to that in West Germany, the identifi- cation of a large, newly-built area with that of an area of the city with social problems cannot as yet be said to be accurate. At the same time, the qualitative dimensions of the numbers and size of the newly-built areas that are to be encountered in the new federal states and East-Berlin underline the acute demand for action. Figure 1: Large Housing Estates in East and West Germany

Number of flats in large housing estates Number of inhabitants in large housing estates Percentage of inhabitants in large housing estates Number of large housing estates with 2000 - 5000 flats 55

Number of flats in large housing- estates with 2000 - 5000 flats 193 000 1 Number of large housing estates -14 with more than 5000 flats 70 Number of flats in large housing 127 000 estates with more than 5000 flats 823 0007 The largest musing estate .-Perla& 20 000 ~anahn-59000 Number of large housing estate with more than 100 000 inhabitants r "PI

The Newtown Halle-Neustadt

Measured in terms of the number of inhabitants, Halle with a population of 311,000 is the biggest city in Saxony-Anhalt. The economic stnl:lure of the city is characierised by branches of basic industry, machinery- and vehicle building and foodstuff industries. The enterprises of the chemical industry have to date provided the determining factor economically. Besides a large and qualified labour potential, the city of Halle includes numerous scientific institutions and a considerable research capacity. At present one out of two of Halle's inhabitants lives on a new housing estate, in a flat built with prefabricated panels. Halle-Neustadt, the largest such area with 87.000 inhabitants, was built between 1964 and 1986 to the west of the Saale meadows, well-situated considering the structure of the city. Initially thought out and planned as part of Halle, the "ChemicalProgramme of the G.D.R " from 1963 brought forth a new direction of development. Under the slogan "Chemistrybrings bread, scientific technical progress, high productivity of labow and welfare for the whole nation" the rapid chemicalisation of society was to realize in practice the words of Walter Ulbricht: "Overtaking without catching up". The forced establishing of the chemical industry in the Middle German industrial region of Halle-Leipzig made it necessary to recruit more labour and create new living space for it. A newly-built flat of one's own, with bathroom and WC, with district heating and light rooms were reasons enough for many people to follow the call of the chemical industry. Using the experience gained through the setting up of new towns like Eisenhuttenstadt, Schwedt or Hoyerswerda it was decided to erect a new town in an industrial way, entirely with prefabricated panels. As the place for building, a site near Halle to the west of the Saale meadows was chosen, not least because of the good air, hygienic situation and the nearness to Halle. Halle-West in this way became Halle-Neustadt: the independent town of the chemical workers. A large scale project began, we would say today. Competence for planning and decision making was transferred from Halle to Berlin, a building staff was founded and entries for an urban building competition were invited. Parallel with the competiti- on, erection work was already started on the fht section of the living complex, this having been designed by Halle planners. The basic concept of Halle-Neustadt followed the model of the sectionalized design and dispersed city with an axial structure. Alongside the "Magktrale" (the main highway) were the dominating urban aspects, the city centre and the living areas being affiliated to them. Each living complex has apart from the dwelling houses, its own centre, schools and institutions for looking after pre-school children. The living complexes consist of from five up to eleven storey panelconstruction buildings and some tower-like high-rise buildings. The overall structure of Halle- Neustadt is essentially characterized by streets for traffic. From the North to the South a suburban railway runs through the area, with the help of which a fast connection was

Figure 2: Geographical location of the New-Town in the urban agglomeration of Halle provided to the former chemical combines at Buna and Leuna and the main railwaysta- tion of Halle. In the city centre the railway goes underground and is crossed by the six-lane Magistrale running in an East-West-direction. Via the Magistrale, Halle- Neustadt is connected with the eastern parts of Halle and its historical old centre. In addition to the suburban railway, several buses travel between Halle and Halle-Neu- stadt. Until 1990 Halle-Neustadt was a separate municipality and had the status of a district-free city (that is to say it had its own administration). After questioning the citizens in 1990, the two former entities were united as one city.

Urban Renewal in Halle-Neustadt

The starting point in Halle-Neustadt is similar to that of other newly-built areas in the former G.D.R. The following deficiencies can be listed: - technical construction damage to buildings, supply- and disposal systems, - because of the structural standardization there are functional deficiencies in the flats concerning style, building quality and equipment, - design and utilisation deficiencies around the dwelling houses, - deficiencies in the offer of a widely spread programme of cultural and spare time institutions for the different age groups and social strata, - lack of a variety of job offers in the area, - "flooding" of the housing complexes by the metoric development of traffic and others.

In spite of the existing structural and infrastructural deficits of the new area it is at present not a social problem area. Yet the danger exists that if considerable imp- rovements in the housing stock of the estate do not take place, this area, just like others in East Germany can, in a process that is difficult to describe in advance, develop into a social problem area leading to a politically explosive situation. But from our point of view there is no necessity that this scenario occurs. Rather there is a series of potentials that could be activated within the framework of a cons- ciously organised and executed further development of Halle-Neustadt: (i) The opinion of a majority of the inhabitants about the newbuilt area is clearly better than its reputation as presented by the media. Many residents have a strong identification with where they live and see a real perspective for life on the estate. (ii) The apartments all have a clear legal status being either municipal property or in the hands of associations. Thereby they represent an important basis for communal housing policies. Consequently, the possibility exists that through active policies on the part of the municipality consequent social problems in the large estates can be counte- red in good time. (iii) In many parts of the estate, particularly in its marginal areas, there are considerable opportunities for concentration or potential building. These can, above all, be utilised to complement the lack of functional facilities within the housing area, for trade and commerce, leisure and cultural activities etc.

Pre-supposing a necessary precursor to planning and the solving of the problems of old debts, one could begin immediately on an improvement of the direct housing situation through a socially acceptable renovation and modernisation of the prefabricated panel buildings and the re-designing of the surrounding area. Moreover, through the reduction of existing functional and design failures in the city surroundings, one could achieve an improvement in the living situation that would be perceptible to the residents. The very controversial and emotional public debate over the demolition or the further development of the newly-built areas in East Germany that took place in 1990-1992 has in the meantime become realistic and has led to the following basic consensus:

1. The newly-built areas in the new federal states with their more than 1 million apart- ments represent an important part of the housing supply and from the housing policy angle they cannot be relinquished for the foreseeable future.

2. The development of East German new construction estates is an important, and in consideration of its complexity, a new task for urban development and the social policies of the communities involved.

3. In response to the "post-Wende" period demand for the demolition of the prefa- bricated panel building areas, today there are positive indications towards development, with the aim of arousing the residents' trust in and commitment to their residential area and its immediate surroundings.

4. The existing shortcomings in the newly-built areas in Eastern Germany do not go hand in hand with a concentration of instances of social problems as is frequently the case in the West. Therefore, strategies for renovation are required whereby social and cultural traditions that have stood the test of time are activated on behalf of the further development of the estate. Topics to the Project: Urban Renewal as a Democratic and Cultural Process

The research project described in this chapter is based on three pillars:

1. Seven research components were prepared, as a result of which fundamental ques- tions in the field of research were dealt with in concrete instances. As an example, existing approaches to development were explored, new planning requirements probed and investigations were made to explore the tying in of the city quarter in the overall strategy for the whole city as well as the efficiency of organisational and housing policy measures.

2. Creation of institutions supportive of an independent further development of the newbuilt estate on a broader democratic basis. Here we are concerned with holding project workshops on a regular basis, functioning as a platform for discussion for community politicians, administrative staff members and citizens alike. Further, an on-site office is to be established which shall offer support to small unit renovation activities and which can function as a mediator between different participants in the urban renewal process.

3. Dissemination of methods of operation and the results of the research project and of concrete examples of the means accompanying further development projects, which at the same time encourage discussion about the aims and methods of the further develop- ment of large estates being aspired to and can make a contribution to the stabilisation of the identity of Halle-Neustadt.

Image and Identity as Decisive Criteria

The central "crunch point" for the success or failure of the further development of newly-built areas like Halle-Neustadt is overcoming the widely-held "negative image" and "social unease" felt by many residents. "Unease" is markedly diffuse and at present not clearly definable with regard to its real causes. In the sense of urban renewal that is both democratic and expansive, identification and a feeling of belonging on the part of the residents of Halle-Neustadt is amongst the most important potentials for development, in that like technical, natural space or structural characteristics they directly (or indirectly) and persistently characterise everyday life in a city quarter. Precisely because of the contradictions, the insecurity of approaching the idea of "home" being in ')anel estates" and the importance of the topics identification and home for the future of Halle-Neustadt a differentiated approach will be attempted in the following.

Table 1: Typical Nicknames Used to Characterise Halle-Neustadt

19 - Concrete silo 17 - Concrete city Concrete desert

Following the outliving of the euphoria over the "modern city", it would appear that from the residents' viewpoint there is an exclusively negative, almost scathing verdict concerning descriptions of Halle-Neustadt. Although, on the one hand, the residents for the most part reserve very negative names - indeed they are almost abusive - for their section of the city, the overwhel- ming majority of those questioned have, contrariwise, found their home in Halle-Neus- tadt.

Figure 3: Feeling at Home in 1984 and 1992 The contradictions of life in Halle-Neustadt are conveyed very graphically in these two pieces of evidence. A form of "schizophrenial~is recognisable - or cognitive dissonan- ce. The overall "negative image " of Halle-Neustadt is to a considerable degree charac- teristic of outsiders - or at least is strongly reinforced by them - and not of those who live there. Amongst the residents themselves, the external discrimination often falls on fertile soil in this regard inasmuch as considerable shortcomings and disadvantages actually exist in this quarter of the city. Thus the "negative image from within" appears at least in part to be explainable as an undiminished reflection of the alien view from without. The adoption and increasing repetition of negative cliches on the part of the residents can only be seen in part as being a result of their own, everyday negative experiences. Already in GDR times, abusive names were in evidence for the characterising of newly-built areas and as such the first signs of a negative image. Nevertheless, this never reached the stage of a comprehensive and public devaluation by politicians, experts or the press as occurred between 1990 and 1992 when the swell of discriminati- on reached its peak. It can be said that new construction areas function as an incarnati- on of the GDR, so they could provide an example for a large-scale devaluation of the East German way of life. Astonishingly enough, however, discrimination results not only from outsiders, the Neustadt residents themselves abuse the place where they feel themselves to be at home, discriminate against their own place of domicile and their own living situation. The question of the other dimensions of the predominantly negative and burdening nicknames must be left unsettled here: to what extent the Halle-Neustadt residents find "their" sleeping city, "their" concrete desert, "their" workers safe deposit box as something special, unique, of value, how much hapless pride is hidden in these names, how much hidden love and how much normality and how much that is habitual. Although the extensive devaluation of and discrimination against East German newly-built estates through politicians, experts and the media came to an end about two years ago, a negative evaluation of newly-built areas such as Halle-Neustadt remains widespread. The devaluation culturally of the new estate will become a problem in particular when it has a destabilising effect on the existing social situation: on the one hand it strengthens resignation and withdrawal in the private sphere, on the other it will strengthen the will of potential migrants to depart. In both instances additional barriers will have been erected in the efforts to revitalise and renovate Halle-Neustadt. The age groups living in Halle-Neustadt, with their different experiences of life and life styles, express themselves very differently. Whilst the "original inhabitants" with their experience of the building up of the estate express themselves overwhel- mingly in positive terms regarding Halle-Neustadt, the children there and the residents who moved in later are critical. Derived from this, it is clearly necessary to develop Figure 4: Centre sphere in Halle-Neustadt (Photo: H. Schmidl) completely different offers and different forms of strategy regarding the constructional and functional alterations within the newly-built area for these very heterogeneous groups. All the measures planned must consider from the outset their identification- supportive effect on the different groups of residents and their different social effects.

New Values Necessary for Social Aspects

For a comprehensive renewal of Halle-Neustadt it is not enough to adapt the expe- riences gathered during revitalisation processes on large housing estates in West Germany without utilising our precise knowledge concerning the entirely different social situation in newly-built areas in the East. The future development of Halle-Neustadt is only a constructional or constructional-technical problem in the second instance. The need of an integrated development concept which is in essence guided by social, cultural and ecological premises is decisive for the future. Only if there is also an "uprise" of the area through the provision of an improved cultural and leisure time infrastructure, at the same time as reconstruction and modernisation of the dwelling houses is carried out there will be an improvement in the image of Halle-Neustadt and the identification of its residents with it. The future development of these areas can be prophesied only with great difficulty. Conjecture concerning the near future of new areas cite either a picture of the "nice living area for the middle classes" or the nightmare of a "constructionallyand socially distressed part of the town". It is idle to argue about the strikingness of both scenarios. It is more to the point to observe the contemporary social situation and possible social changes and to take into consideration the sociological information gathered in this way for all the essenthl decisions to be made. Considering the multitude of tasks to be solved in the newly-built areas in East Germany and their interdependence, the social aspects or the possible negative social effects of single measures taken have so far played only a subordinate role. The difficulty lies in the integration of existing knowledge concerning the social problems, the planned renewal projects in the newly-built areas concerning their effectiveness and the accuracy of their aims and whether it may be possible to undertake different or additional measures. Since this possibility has so far been given away it must be reckoned with that there will be a tendency towards an increase in the instances of social problems and of an exodus by the residents, especially the younger and the better educated.

An Extended Scope for Social Planners

For social planners and social planning as a discipline involved in the process of urban renewal this means that they need to break out of the tightly conceived framework for their actions as drawn up according to Construction Laws (g 180). This restricts them to "convalescent" (or post-care) and compensatory activities. If the social mix that exists in the newly-built towns in East Germany is to be used as an essential potential for the further development of such areas then social planning will need to fulfil two quite different tasks at the same time, e.g. acting as lobbyist and as a practical worker.

Lobby work (preventive activity): Practical work (compensating activi- ties): - image improvement - involvement of residents in the - strengthening of identification planning process - give a specific city quarter a - support self-help cultural stamp - practical social work - secure residents' influence on - tenants' right of co-determination basic questions - securing of institutions for - influence city publicity communal use. - secure a framework for practical work Figure 5: A young generation of the stony city (Photo: H. Schmidt)

Urban Renewal as a Democratic and Cultural Process

The cultural offerings in Halle-Neustadt - poor anyway - broke down almost entirely after 1989. Standing in opposition to the troublesome task of the establishment (re-es- tablishment) of a stable offering one hears time and again the argument that there is no money. At the same time space allocated for cultural purposes gets less because of the other, more attractive alternatives of letting. This loss of cultural substance is accom- panied the death of the city's public life. Since the residents reflect upon these facts very critically and are very dissatisfied with this situation, it must be feared that following the "cultural &cline1' in the near future there will be a decline socially in the newly-built area. To be precise, this will occur when younger, more active and better earning groups of residents decide to leave a place that is relatively lacking in culture. The starting pistol for such an occurrence was fired with the cultural devaluation of Halle-Neustadt described above. Even so, this ought to have been a false start: indeed it can still be so. To avert this decline the concerted action of all participants is required, independent of the different interests, and the development of new, democratic policy forms of urban renewal is needed. - Future development is only a constructional or technical problem in the second instance. Decisive for the future will be an integrated development concept which is essentially guided by social, cultural and ecological premises. Only when parallel to renovation and modernisation of the accommodation there is an "upswing" in the attractiveness of the area through the means of an improved cultural and leisure time infrastructure will the image of Halle-Neustadt improve and the sense of identity of its residents rise. - The process to be induced requires appropriate support from those involved, both persons and institutions resident in Halle-Neustadt. The establishing of a "Neustadt Forum " where the different interests are represented and where common aims and areas of action could be found would be a desirable starting point. Individual measures could be investigated at an early stage with regard to their effects on the social situation and the functional structure of the quarter of the city. Furthermore, relationships and cornexions between the actions of other interested parties could be established. - The general disposition within the framework of the further development of Hal- le-Neustadt to strengthen the residents identification with the area and to improve its image could be supported by the establishment of "Neustadt office1.This would, at the same time, serve as a location for contacts to be made, as an intermediary agency, as a lobbyist and as the organizing body for the Neustadt Forum. It could thus serve as the moderator in various problem areas. The establishment of such an office would in itself be indicative of a growing acceptance of the specific problems of the Neustadt residents by the Halle city fathers. It is important that every participant, no matter whether a building firm or a research team, a housing association or a resident, must be conscious of the fact that with each building process that is initiated or with each decision made a very complex and very sensitive entity is being interfered with. We must learn to understand how intensive our interdependencies are and how fragile are seemingly stable relationships. Beyond Filtering Down - Housing Decline and the Underlying Mechanisms

Eva T. van Kempen

High-rise Problems in Focus

Housing and neighbourhood decline has received a lot of attention in both management and scientific circles in Western Europe during the last decade. The immediate causes were the severe social and technical problems in post-war housing estates which became manifest during the 1970s. Especially high-rise housing seemed to be prone to social decay, although the problems were not confined to this type of housing only. However, some early, notorious high-rise estates like the Pruitt-Igoe estate in St. Louis, USA and the "Piggeries" in Liverpool have put their stamp upon the discussion. Initially, it was the youth of the estates and the good intentions going wrong, that troubled people mostly. Built to solve the post-war housing shortage, most of the housing estates in trouble were less than twenty years old and many of them like Bijlmermeer in Amsterdam, the Netherlands, not even ten years old at the moment the problems became clear. Generally, these housing estates were constructed under newly developed, industrialised housing systems. Some of the more notorious problem estates like the Pruitt Igoe estate and Bijlmermeer are well known for their experimental design which intended to promote the social life in the blocks. This does not mean, however, that the post-war high rise boom can be explained by ideological motives or a general acceptance of high-rise living, although ideological motives certainly were a factor (Blanc 1993; Power 1993). It was in the tirst place a "technological shortcut to social change" (Dunleavy 1981, 99ff.). Or in other words, high-rise construction promised a quick solution to the housing shortage of that time. Because of that and because of the newness of design and construction methods used, it is no surprise that the problems presented themselves, or at least were experienced as being in essence technical prob- lems. And so, initially the discussion focused on technical measures to remedy design and construction failures. Although technical improvement programmes often bettered the living conditions on the estates, they did not solve the social and management problems. The decline of the estates proved to be a much more complicated problem than initial discussions suggested. In these discussions the decay of high-rise estates was dealt with as a rather specific and isolated problem. No references were made to more general ideas and theories about the downgrading of neighbourhoods and housing estates. Neither were the problems themselves placed into context. Consequently, the relative character and social backgrounds of the problems were neglected. Since then the discussion has taken on more nuance and the importance of the social factor has been recognised. Neverthe- less the discussion still lacks clarity and tends to be technically biased. Case studies and attempts to isolate indicators to predict decay in an early stage and to develop remedies have diverted attention away from the processes and mechanisms that are responsible for the decline of neighbourhoods and estates and its conditional character. This makes the findings often rather specific and not easy to apply under other social conditions like in Eastern European countries with their different housing systems. To give the discussion a more general meaning, it seems at least necessary to redirect the reflection. In the following I will focus on the phenomenon of housing decline and its underlying mechanisms. Starting from a more theoretical point of view at first the concept of housing decline is at stake. Five questions are raised which all have to be answered in order to understand the mechanisms behind housing decline.

Filtering Theory and Housing Decline

An overall explanation of housing decline is offered by the almost classical "filtering theory". Later attempts to grab the backgrounds of housing decline have a less theo- rising, more enumerative character and give more insight into the complex interrela- tionship of the many factors involved than in the mechanisms and direction of change (see for example the model developed by Rak and Priemus 1984). Therefore, I will return to filtering theory and use it as a "hanger" to reconsider the phenomenon and backgrounds of housing decline. Central to filtering theory is the idea that housing services deteriorate with age like all other goods. Wear and functional obsolescence, but also changes in taste of the general public affect the services. The gas heater does not only wear out, it becomes obsolete as a heating system as well; the appreciation of the kitchen-cum-living room, the open kitchen and the kitchen apart changes with time, as every estate agent knows. Consequently, the argument goes, new housing is more favoured than older housing. Or in other words, with time older dwellings are moving down the housing ladder. Because every household wants to have the best housing services at the price it can pay, new construction triggers a move from older housing, resulting in a filtering up of individual households on the housing scale& important implication of the theory is that a general improvement of housing conditions occurs with time. From the perspective of a particular housing estate or neighbourhood, however, housing conditions are deteriorat- ing'. Not only the houses and the built environment are subject to functional and style obsolescence and wear. The social status of the population is degrading as well, both in absolute and relative terms. A process that has become known as "social downgrading". Generally, social downgrading is considered to be one of the main features of housing and neighbourhood decline. With filtering theory in mind, however, we may wonder whether it is appropriate to put the phenomenon of housing decline on a par with the process of social downgrading. Regarding the social downgrading process of housing estates and neighbourhoods, filtering theory offers the following insights: 1. social downgrading is a quite normal and inevitable process; 2. the pace and appearance of the downgrading process are dependent on the position of housing estates and neighbourhoods in the housing hierarchy; 3. the position in the housing hierarchy in turn is dependent on both the evaluati- on of housing services in relation to their price and the structure of the local housing market (i.e. the amount of new construction).

Behind the three points lays the close relationship of the social downgrading process with the process of obsolescence. It is in this respect that the concepts of social downgrading and housing decline seem to diverge. In any case, the decline of post-war housing estates cannot be considered a "normal obsolescent process" that is beneficial for general housing conditions. To clarify the discussion a more precise definition of the phenomenon of housing decline is needed. Referring to filtering theory it seems advisable to speak of housing decline only when a) a housing estate or neighbourhood has a lower position on the housing ladder than can be expected on the basis of age of the housing concerned and b) problems in the field of the physical and technical lay-out and equipment, living climate and management of the housing estates can not be attributed to the ageing of the housing estate or its subsequently changing position on the housing market only.

Filtering theory is developed in the field of housing but it can easily be applied to whole neighbourhoods. Neighbourhoods can be considered both as being a collection of houses, often built in more or less the same period, and as a living environment, subject to wear and functional and style obsolescence as well. Regarding the last aspect, for example, I can refer to changing opinions about public spaces in flats, the lay-out of residential areas, the location of lean-to's, the public accessibility of courtyards and SO on... Figure 1 - 2: An effective urban housing structure in "green", Biljamermeer in Amsterdam (Photo: T. Tanninen) The first point manifests itself in a population with a lower social-economic status than can be expected on account of the age of the estates. The last point refers to the idea that neither the occurrence of social downgrading, nor wear and tear or obsolescence in themselves are sufficient conditions to speak about housing decline. Decline problems are beyond "normal" maintenance and turn-over problems and arise when the pace of change, often combined with a more general neglect of maintenance and care, disturbs the living climate and social cohesion in a neighbourhood. A generally agreed upon key feature of housing decline is the concentration of an often ethnic heterogeneous, socially marginal population on the estate. Other evident, generally agreed upon signs are the incidence of vandalism and crime and in the field of management the incidence of vacancies, rent arrears and a comparatively high mobility rate.

Five Questions Regarding Filtering Theory

To define housing decline as an aberration from the filtering process implies that filtering theory cannot give an explanation of it right away. Rather the gaps in the theory are more likely to give clues for a better understanding of the decline process. Therefore, I will use the suppositions of filtering theory to organise my argument. Roughly, the suppositions can be divided into suppositions with regard to the housing market and suppositions with regard to the housing preferences of households. In both cases, however, they can be treated as answers to questions about the problem of social downgrading which become questionable in the case of housing decline. They are subsumed under the following headings.

A) With regard to the housing market: al. The idea that "new dwellings are better than older ones". This idea deals in fact with the question about the determinants of the assessment of housing qucrlity. a2. The idea of one housing market and one housing supply. This idea refers to the question about the accessibility of housing. a3. The idea of a free housing market. This idea concerns the question about the way accessibility of housing is regulated and organked.

B) With regard to consumer preferences and behaviow: bl. The idea that housing aspirations and moving behaviour of households are dependent on the ratio between housing services and price. The idea refers both to the question about the factors that determine housing satisJaction and the question about the reasons for moving. b2. The idea that there are no external restrictions to moving. This idea regards the question about the entitlements a household has to housing.

The five questions have in common that the given answers seem to be quite simple representations of a complex reality and can be easily criticised. However, this makes them quite suitable as a starting-point to scrutinise the mechanisms behind housing decline.

The Assessment of Housing Quality (al)

Housing Characteristics, Interfering with Age

The idea that new housing is more appreciated than older housing has been heavily criticised. Not only the quality of newly built housing is not necessarily better than older housing. Also the location, local situation and general valuation of particular housing blocks and estates are important in assessing housing quality. The use of new construction methods can cause early technical problems, as the case of high-rise illustrates. Norms with regard to maximum floor space and standard equipment can be lowered in time, as was the case in social housing in the Netherlands during the last decade, and subsidies can be cut, making newly built housing less attractive than older housing. A peripheral location and an unpopular housing type like high-rise can dimin- ish attractiveness. Differential levels in management and maintenance, however, can change this valuation, as for example in Eastern Europe. Here high rise housing is more highly valued than badly kept, older inner city housing (see a.0. the contribution of Tanninen). Thus, other housing characteristic. are interfering with age and might be even more important in defining the position of housing on the housing ladder. Neither these characteristics, nor age, however, have an absolute value. They get their meaning within the context of the local housing market and culture.

The Conditional Role of the Local Housing Market

In an essay on the upgrading and downgrading of urban areas Herlyn (1989) points at the importance of the local situation in understanding neighbourhood change. Whether a neighbourhood is in a booming or declining area or city, is essential to the prospects of the neighbourhood. In a declining city, it is argued, less populai areas like the high- rise housing estates of the 1960s and the beginning of the 1970s in Western Europe, are especially prone to "social erosion". Central to the argument is the loosening of the housing market in declining areas as a result of economic stagnation and population decrease. The subsequent fall in demand gives the more well-to-do tenants of the less favoured estates the chance to move and change homes, leaving the estates to people who are "socially marginalised" and have no choice whatsoever. The implicit proposi- tion of the argument is that in growth areas the weak position of less popular estates on the housing market is covered up by an overall housing shortage, because the tight housing market restrains people from moving and prevents housing decline. In this way the conditions on the local housing market become an important factor in triggering housing decline. Besides the demand-supply relation on the local and regional housing market, the structure of the local housing market is important as well. In areas where less popular housing like high-rise dominates, as in many Eastern-European cities, high-rise does not automatically appear on the lowest part of the housing ladder, nor does single- family housing automatically appear on the highest part in areas where this type of housing is the dominant one. In such a situation where one housing type dominates, other factors than mere housing type or design and technical deficits must be held responsible for the decline of certain housing blocks or neighbourhoods. Among them the "social factor", i.e. occupancy and reputation, seems to be of prime importance.

Occupancy as a Key Factor in Housing Decline

A concentration of a socially marginalised population and a consequently bad reputation are mentioned as main causes of the fall of notorious problem estates like hitt Igoe and Bijlmermeer (Yancey 1971; van Kempen 1987). Still, even in the case of a problem estate like Bijlmermeer with its nearly uniform housing blocks, some blocks have been more prone to social decay than others (Brakenhoff et al. 1991). Other Dutch case studies which compared nearly identical housing blocks, show important differences in living climate and satisfaction of the inhabitants with their home environment as well (Heeger and van der Zon 1988; van Kempen and Musterd 1991; Westerterp and Musterd 1987; de Waard and van Kempen 1988). One of these studies compared forty- nine high-rise blocks of the "slab block with balcony-access" type. All blocks belonged to the non-profit rented sector and showed only minor differences in design features like the number of storeys, the number of dwellings per block and location. Yet, in terms of vacancy, turnover rate and satisfaction of the tenants with their home environ- ment, they differed considerably. On closer review, this could not be attributed to differences in design, outfit, management or maintenance. Only the occupancy of the high-rise blocks differed accordingly, the "good" blocks having a population, mainly consisting of older families with the same ethnic background, whereas the "bad" blocks had a young, transient and relatively poor population. Obviously there is a link between occupancy and the incidence of social problems. Generally, as we saw, a socially marginal population is considered to be an important characteristic of the decline of housing estates and neighbourhoods. As we are interested in the mechanisms of decline, the question should be raised now, how housing estates, despite their age, obtain a socially marginal population. Often the initial occupancy is supposed to set the stage as the example of Bijlmermeer confiis. Here, the combination of a loosening housing market with comparatively expensive housing of the disliked high-rise type led from the outset to a deviant population in terms of ethnic origin, age, mobility and way of cohabitation. Singles, unmarried couples, homosexual couples and ethnic minorities were overrepresented among the hrst inhabitants and gave the estate a bad reputation because of their supposed aberrant way of living. Even before the estate was finished, it was already perceived by the inhabi- tants of Amsterdam and its surroundings as being "bad for people", "anonymous", "dreary" and a "social dump" (van Kempen 1987; Wielemaker-Dijkhuis and de Jonge 1972). This does not mean, however, that an average initial population is a safeguard against decline, as the history of two problematic high-rise blocks in another, middle- sized city in the West of the Netherlands illustrates. Initially, these blocks had a favourable occupancy, due to a tight housing market. Two years after completion the situation changed because of the loosening of the local housing market. The general low appraisal of high-rise living manifested itself in a high turnover rate in the blocks. Neither the housing association in charge, nor the local authorities reacted immediately upon the new situation. Only when the high turnover rate proved to be persistent and the prospect of vacancy loomed, they came to see the block as a "transit-block" and behaved accordingly by using the block for the temporary rehousing of households from inner city renewal areas. This worsened the already bad reputation of the block and made also the tenants aware of the problem character of their flat. Everyone who had the opportunity, left. Consequently the blocks got a low appraisal in the municipal housing allocation system, emphasizing its "last resort" character for people who have nothing to loose. From that time on only households came to live in the blocks who had no choice whatsoever (de Waard and van Kempen 1988).

The Role of Reputation and Labelling

Crucial for the occurrence of a decline process, then, seems to be the reputation of a housing block, estate or neighbourhood. Once an estate has got a bad reputation, public opinion, housing agencies and tenants work together to reinforce the reputation, a process we can catch under the name of labelling (van Kempen 1994). According to "labelling theory" deviance is at the root of a bad reputation. Deviance is defined as "the infraction of some agreed-upon rule". At the basis is not the deviant act, but rule- making society that, by its rules, labels people who violate them, as outsiders (Becker 1963). In the case of declining housing estates or neighbourhoods this means, that not the life on problem estates itself but the way it is evaluated or labelled by mainstream society is at the core of the problem and can become an actual factor in housing decline. Further more, the people who are in daily contact with the situation, the inhab- itants and the agents who are in control of the situation, i.e. the housing managers, define the situation as deviant and act accordingly (Schur 1975, 441ff). Only then, according to theory, labelling works as a self perpetuating process and becomes an important mechanism in the decline process. Figure 1 schematises the factors, relations and loops of the labelling process with respect to housing decline. Two Eactors are outside the loops. At the outset there is a general dislike of the housing situation which is, as we saw, not necessarily related to age and may differ between cultures and societies. However, as argued before, only under certain housing market conditions this dislike will become manifest and will lead to a socially aberrant population, the crucial Eactor in the labelling process.

Figure 3: A Schematic Representation of the Labelling Process with Regard to Housing Decline

Source: after van Kempen 1994. Housing characteristics other than age, housing market conditions and structure, occu- pancy and reputation, thus interrelate in a complicated way, causing housing and neigh- burhood decline. This makes it difficult to point at particular housing characteristics as the cause or predictor of housing decline. Although high-rise housing for example, seems to me more prone to decline than other housing, high-rise is neither a sufficient nor a necessary characteristic to explain decline, as the situation in Eastern Europe illustrates. High rise estates do not house a residual population and are offen even quite positively valued by their inhabitants because they offer well equipped housing compared to older apartment buildings (see the contributions of Tanninen and Schmidt).

A Segmented and Regulated Housing Market (a2 and a3)

Segmentation of Housing as a Factor in Housing Decline

The idea of one housing ladder on which houses are moving down and households are moving up is offen used as a representation of the "filtering process". It presupposes one housing market which, apart from income, is equally accessible to all households. However, the variety of housing forms and the fact that housing markets are subject to regulation, make reality much more complex. Regarding the access to housing, housing markets are segmented according to tenure and price, whereas also the kind of housing can influence accessibility (Bourne 1980). These differences in accessibility are import- ant in order to understand housing and neighburhood decline. The concept of "housing residualisation" illustrates the importance of housing market segmentation quite well. In fact, this notion is not very different from the idea of housing decline. Both notions refer to a process that brings housing onto the lowest rungs of the housing ladder, irrespective of age, and concentrates a socially marginal population into discrete parts of the housing stock with the concomitant danger of a bad reputation and a disturbed social climate. The difference is that the notion of housing residualisation points emphatically to the segmented nature of the housing market. The concept of "residualisation of housing" has been developed in the British context. It refers to the combined side effect of the "Right to Buy", introduced in the 1980 Housing Act and the consequent large scale sale of council housing to sitting tenants and the decline of the private rented sector in Britain in the 1980s. As a consequence the segment of the housing market accessible to lower income people, became substantially smaller, whereas at the same time the group of people that has to turn to this segment became more homogeneous in the sense of being socially marginal. It was the more affluent and able tenants among the council housing inhabitants that seized the opportunity and purchased their homes. Mostly these households already lived in the best parts of the council housing stock. Thus, not only in terms of social ability of the tenants, but also in terms of housing quality and attractiveness, the sale of council housing proved to be highly selective. (Forrest and Murie 1993, Murie 1994). In fact, the best part of public housing and the best part of its tenants as well were moved to another segment of the housing market, leaving the remainder of council housing more susceptible to decline. Although it is stated that the situation in Britain is typical for this country in the sense that no other Western European countries are confronted with the same degree of destabilisation of the social rented sector (Murie 1994), the process of housing residualisation itself has a more general meaning. It does not only show that the acceptance of the idea of a segmented housing market is a prerequisite to locate housing decline, it also shows that a changing segmentation can be an important factor in generating housing decline.

Housing Policy; the Mechanism of "Exclusion" and "Inclusion"

Underlying the concept of residualisation is the idea that the accessibility to different segments of the housing market differs. In the regulated housing markets of the Western European welfare states this is not only a matter of income and housing opportunities. Especially, the access to public housing and sometimes to the cheaper parts of the private rented sector too, are subjected to politically established allocation rules and eligibility criteria. Income, household size and time on the waiting list generally belong to the most important criteria. Mostly, at least in the Netherlands, only households hom the lower income brackets are entitled to social housing, although once housed in public housing they cannot be forced to leave, when their income increases. Besides, it is common practice that local authorities practice some kind of population selection which restricts the accessibility of certain segments of the housing market further. Population policy on a local level can have a direct, as well as indirect character. An example of the first is the requirement of residence permits to allow settlement in a certain municipality. Indirect population selection often works by means of housing and planning policy, a practice that has become known as "exclusionary zoning". In the Netherlands, for example, central and regional government decide upon the yearly permitted amount of subsidized housing to be built and its eventual location. It is up to local government, however, to implement this policy. Although they can not surpass the allotted quota of subsidized housing, local authorities do not have the obligation to realise the quota. The building of non-subsidized housing is free. Thus, by their building policy local authorities are not only able to create a shortage in certain segments of the housing market, they can also influence the social structure of the population by this policy. In fact, together with the practice of residence permits building policy is the main instrument, municipalities have to "keep their social character". It has proved to be an important factor in the growing social cleavage between central cities and their sur- roundings. Case studies of the housing policy of affluent suburbs around the city of Amsterdam show that they combined a housing policy which favoured the construction of non-subsidized housing, with a system of rigid rules to get a housing permit. The city of Amsterdam and its surrounding new towns, on the contrary, favoured public housing construction. Here, hardly any non-subsidized housing was built (Ostendorf 1986; see also Meulenbelt 1993; van Weesep and van Kempen 1992). Together with a lenient allocation policy, the building policy and the subsequent housing situation in the central cities proved to be an important factor in the impoverishment of the Dutch central cities during the 1970s and the 1980s. From the perspective of the conurbation, it might even be appropriate to speak of a "social decline of the central city" (van Kempen 1993, WRR 1989). The above example from the Netherlands illustrates how on the level of the conurbation, housing policy can become a social segregation device and a factor in urban decline by means of "exclusion".On the central city level housing policy can be a factor in the decline of certain parts of the city as well, but now by what may be called a practice of "inclusion".Under discussion is the allocation policy of the munici- pality and other actors who are in control of the allocation of social housing. It regards both the domain of the formal rules and the more informal domain of implementation. Unintended side effects can be noticed in both domains. In the domain of formal rules equity considerations can lead to a concentration of people who have the least to choose in the least desired housing. This phenomenon even has been noticed in situations where the allocation of social housing is centralised as in municipalities in the Nether- lands with a high housing shortage or in the case of council housing in Britain. Often the allocation of housing is organised via a system of "urgency scores". Households with the highest urgency score, which in practice usually means the longest time on the waiting list, are the first ones to be entitled to vacant, popular housing, leaving less popular housing to households who are not able to wait. Individual housing associations frequently use a similar kind of system to assign their housing. Thus, albeit uninten- tionally, the allocation of housing has become an important factor in social segregation and housing decline (de Waard and van Kempen 1989; Spicker 1987). Implementing Housing Policy

The process of allocation itself is subject to another mechanism. Although mostly governed by formal rules, these rules often leave room for interpretation when imple- mented. This interpretation is not haphazard. In the case of lower level workers in "street level bureaucracies" like housing associations or municipal housing departments who are in daily contact with their clients, the way they implement the rules is heavily dependent on their working situation (Lipsky 1980). The "street-level bureaucrat" or lower-level worker, Lipsky states, has to do his work in an environment that is characterised by personal autonomy, a high work load, complex tasks, complicated rules and instructions and often conflicting goals, whereas daily practice is highly qualified by the interaction with the clients and thus by local circumstances. In such a situation the interpretation of rules, instructions and procedures is easily adapted in a way that facilitates work and promises success. From the realm of the Employment Exchange, for example, it has been reported that lower level workers tend to concentrate their efforts on those unemployed they consider to be the ones most likely to find a job (Engbersen 1990; Lipsky 1980). A comparable mechanism in the sphere of housing is the inclination of housing agents to allocate the housing they perceive as less attractive to households they perceive as not able to refuse (van Kempen 1994; Spicker 1987). In this way housing agents do not only react on the stigma of housing estates, they also reinforce it by their behaviour. Policies and practices of "exclusion" and "inclusion", then, seem to restrain espe- cially the access of lower income people to housing. They become a factor in housing decline at the moment they channel people with the least chances on the housing and labour market, i.e. the poor, the unemployed, the lone parent families, the ethnic minorities, into the least desired parts of the housing stock. These are not by definition, as I argued before, the oldest parts of the housing stock. In fact, many large scale housing estates from the 1960s and 1970s are competing for this position as their low valuation in the allocation system illustrates (van Kempen 1987, Meulenbelt 1993; de Waard and van Kempen 1989)

The Appraisal of Housing (bl)

The Meaning of Home

Shifting from the supply side of the housing market to the side of the "housing consu- mers", I will firstly deal with the question about the factors that determine housing satisfaction and housing choices. According to filtering theory, a changing relation between quality and price, whether it is possible to get more quality for the same price, or the same quality for a lower price, should influence the moving behaviour of households. This presupposes that housing quality can be expressed in terms of money and that housing satisfaction and the decision to move are regarded as a product of rational choices. However, there are many aspects of a housing situation that cannot be weighed in money terms. One of the first critiques on the idea of filtering already stressed the importance of the cultural meaning of neighbourhoods in impeding neigh- bourhood decline. On the individual or household level the meaning of the home encompasses more than a material and economic meaning as well. Elsewhere (van Kempen 1994), I have argued that from the individual perspective four basic dimen- sions can be discerned on the meaning of the home in contemporary Western society. They are: 1) The utilitarian dimemion which points at the home as the site where the reproduction of the household takes place. This involves a lot of day-to-day activities like eating, cooking, sleeping, washing, caring and recreating which the home has to accommodate.

2) The existential or "shelter" dimemion which comprises three aspects: a. the privacy aspect which is referred to as the freedom from surveillance (Saunders and Williams 1988, 88) or the possibility to control interaction, including both the act of protecting oneself against unwanted behaviour and events and the potentiality of selectively contacting others (see Altman 1975, 17ff., 207). The privacy aspect is important for both the relation between mem- bers of a household, i.e. within the home, and the relation between the household and others, i.e. the home and the outside world. b. the secwity and rootedness aspect which implies feelings of safety and belonging. c. the control aspect, i.e. the ability to decide autonomously on the use, lay-out and decoration of the home. In social rented housing, for example, this ability is often restricted by rigid regulations. 3) The communicative dimemion which includes the more down-to-earth meaning of "having an address, where I can be found" and the sociological one of the display of wealth and status.

4) The capital investment dimemion, i.e. the fact that a house is not only a con- sumption, but also an investment good which means that one can save money for old age or bad times by owning one's home. Some of these meanings are clearly shirking evaluation in rational or money terms by their emotional character. Especially, the security and mtedness aspect seems to be at stake.

A Hierarchy of Housing Needs?

Although it is clear that the way housing meets the four dimensions will differ conside- rably according to both its physical (type, location, lay-out) and social characteristics, it is difficult to weigh the different dimensions against each other. Based on the idea of Maslow that needs and wants of people are arranged in an hierarchical sequence, Dutch researchers have arranged the discrete features of the home and its environment in a sequential way. Features of a lower order or "basic features" are features that have to be present in order to let people sense features of a higher order as "lacking". Especially when basic facilities are lacking in the home environment, this is experienced as an acute deficiency and gives rise to feelings of serious discontent (Driessen 1984). Apart from the dwelling itself (size, upkeep), basic facilities proved to refer to the equipment @laying ground for children) and social characteristics (nuisance by neigh- bow, a quiet street, a safe environment) of the environment. Features, thus, that corre- spond to the utilitarian and existential or "shelter"meaning of the home. Yet, by the way it is organised, also this research does not give a full insight into how, for exam- ple, feelings of security and belonging contribute to the satisfaction with the home environment. It is an important factor, as we know from studies among inhabitants of urban renewal areas after relocation. In "Grieving for a lost home" Fried (1964) describes how deeply family and personal life were disrupted by the forced relocation, despite the dilapidated conditions in the old neighbourhd. Loss of spatial identity and social belonging expressed themselves in feelings of sadness, mourning, insecurity and breakdown. In her contribution to this book Freitas shows how deeply the social life and social contacts of women were affected by the rehousing from an old neighbour- hood in Lisbon to a newly built high-rise estate. Loss of social bounds and feelings of insecurity are not only an outcome of moving, they can be an incentive to moving as well. In this way they can be a signifi- cant factor in the decline of housing estates. High-rise estates again are an illustrious example. Despite the fact that high-rise apartments are often favourably valued by their tenants (illustrating that at least part of the utilitarian meaning of the home can be met by high-rise), other aspects of high-rise living are less favoured. These aspects concern the other three dimensions concerned with the meaning of the home. Especially the privacy aspect and the security and rootedness aspect seem to be at stake. Complaints about hearing, but not knowing "next-door" or "next-floor" neighbours, about the necessity of daily confrontation with the unfamiliar behaviour of "strangers" in the realm of the home environment and about feelings of fear and the non-interference of people when confronted with vandalising behaviour, are frequently reported. These complaints regard problems that are often subsumed under the headings of "anonymity and lack of social control" and that can be ascribed to a coincidence of the high-rise design and a heterogenous, transient and numerous population. The elevator can be used as an illustration. Whereas in blocks with a homogeneous population the elevator is a meeting place, in heterogeneous blocks with a rapidly changing population it becomes a frightening spot that asks for social distancing (van Goo1 et.al. 1989). Although inter- mingled in the experience of people with the high-rise design, the sociol environment becomes an important incentive for moving when the existential and communicative meaning of home are concerned. These meanings are undermined still further when moving becomes a common reaction, contributing to the spiral character of housing decline.

Entitlements to Housing and Housing Decline (b2)

The existence of a regulated housing market means that other "entitlements" than income alone determine the chances of a household on the housing market and its possibility to move. Regarding the opportunities that are offered by these entitlements to households who otherwise would have little to choose, it seems appropriate to speak of an "additional income", although it is hard to value it in money terms. The entitle- ments that are referred to can be formal, as well as informal. Formal entitlements, for example, are entitlements that qualify people for social housing and for rent allowances. They can cover a quite varied range of characteristics like having a low income, "time on the waiting list" or "time of residence in a certain municipality", age and household size. These entitlements are derived from "citizenship", i.e. living in a certain jurisdic- tion. In principle they are the same for everyone who belongs to that jurisdiction. Between jurisdictions they can differ according to the housing policy of the local or regional authorities, making households susceptible to the above mentioned mechanism of "inclusion". However, even when formal entitlements are the same between jurisdictions, local variations in the chances of a household on the housing market do occur. Whether one can realize its entitlements, depends on both the housing provision in a certain area and the fact whether the entitlements are recognised in practice by the local authorities. Thus, households with a low income, for example, are privileged in areas where the share of social housing is high like in the main cities of the Netherlands. On the other

8 Trans~t~onalHousing Systems 217 hand, local authorities can impede the use of entitlements by "corrective" policies. An example is the right of people to choose their residence freely. In the Netherlands, in areas where there is a housing shortage, municipalities are allowed to restrict residence permission. When they do so, they mostly require that one should be economically tied to the municipality or its surroundings in order to get a residence permit. In practice this means that the unemployed can be barred, channelling them to areas where the housing market is less tight and requirements are more loose with the danger of stigmatising these areas further. Apart from formal entitlements, the chances households have on the housing market, are defined by what can be called informal entitlements. Two types of informal entitlements can be discerned. The first type has to do with "uscribed" qualifications that open up or preclude housing opportunities. The second type concerns the power one has to use or intervene in the housing allocation process in favour of oneself. A well known example of the first type is the practice of "red-lining". By this practice inhabitants of certain neighbourhoods which are perceived as" risky", are excluded from financial funding if they want to get a mortgage on a property in that neighbourhood. It illustrates quite well how an informal entitlement, ie. the neighbourhood where one lives, can be decisive for the chance of households to better their housing situation and thereby becomes a factor in neighbourhood decline (Goetze 1979). In fact, we are talking about the stigma attached to a neighbourhood that becomes a stigma of the people who are living there as well, excluding them, although illegally, from housing opportunities other people have. Key informal entitlements of the second type are "education" and "connections". Both are important in finding one's way in the bureaucracies and often complicated rules and practices that surround the allocation process in regulated housing markets. Education refers to the ability to understand and use the rules to one's own advantage and to assess the opportunities offered. "Connections" not only refers to the possibility to get easy or early information about opening opportunities which is especially important in a system of "first come, first served". It refers also to the possibility one has to deceive the system by knowing the right persons, or belonging to the right group like the "nomenclature" in former socialist countries. These important factors explain the access to highly esteemed housing and the concomitant concentration of the elite in the most favoured parts of the cities, even in Eastern European countries (see for example LadAnyi 1989,1993). By definition, low education and lack of connections are impeding the access to this kind housing, restricting the housing opportunities of the less educated and powerless to the less favoured parts of the housing market. Depending on the degree of regulation and bureaucratization and the degree of permeability and corruptness of the system, formal and informal entitlements impede the moving behaviour of households, channelling them into certain parts of the housing market and certain neighbourhoods. In this way they are important factors in causing social segregation and for that reason important in explaining housing and neigh- bourhood decline as well.

Summary and Conclusions

The preceding argument can be read as a plea for a more careful use of the concept of "housing decline" to denote the social downgrading of housing estates and neighbour- hoods. Departing from classical filtering theory it is argued that "housing decline" dif- fers from the social downgrading process in two respects. Whereas social downgrading presupposes a relation between the age of the estate or neighbourhood and the social position of its inhabitants, this relation is broken in the case of housing decline. Furthermore, also the technical and social problems which declining estates or neigh- bourhoods are facing, do not belong "to their age". They have much to do with the dis- turbance of the social climate on the estates by the rapid pace of changes and the concentration of an often ethnic heterogeneous, socially marginal population as the key feature of housing decline. Given the central place of ageing in filtering theory, filtering theory fails in explaining housing decline. This becomes even more clear when we review the suppo- sitions of filtering theory while asking the question why they are not applicable in the case of housing decline. Regarding the suppositions, five sub-questions are raised which all point in the direction of a much more complicated and situation-bound process than filtering theory hypothesises or the general discussion presumes. Firstly, there is the question of the assessment of housing quality. It is stressed that this is not dependent on age only and that it is a conditional process. Besides physical features such as housing type and location which do not necessarily relate negatively to age, social characteristics are important in the valuation of housing. Occupancy seems to be a key factor. Once a housing estate or neighbourhood gets a socially marginal population, labelling reinforces the decline process. Underlying this concentration process and subsequent stigmatisation, however, is a general rejection of the housing situation. This rejection is not an universal phenomenon as high-rise illustrates. The appraisal of housing is dependent on housing market conditions and will differ between housing market areas and countries. Secondly, there are the questions of the accessibility of housing and the way it is organised. It is argued that in the Western European welfare states with their regulated housing markets segmentation and allocation policies are important factors in explaining housing decline. By definition segmentation limits the access of certain people to certain parts of the housing stock and encourages social segregation. Changes in segmentation like the deliberate large scale sale of public housing in Britain to its tenants, can reinforce this process, leading in this case to a "residualisation of social housing". Although often unintentionally, allocation policies and the way they are implemented, may strengthen social segregation as well. On the level of the conurbation local authorities may try to exclude people they consider as less desirable fiom settlement by their population and building policies. On the local level allocation policies and practices of the local government and housing agents tend to channel "people who have the least to choosef' in the least desired housing or areas by what I have called "mechanisms of inclusion". Thirdly, the question about the determinants of the appraisal of housing by its occupants and the reason for moving is raised. It is stated that the evaluation of housing by its occupants is not a rational process. The meaning of home in contemporary society comprises dimensions that are different in character and cannot be put in an orderly sequence or weighed against each other or easily expressed in money terms. So much is clear that apart fiom more "utilitarian" housing services, the way housing meets the existential and status needs of people is important. This is not only a matter of age, equipment or dwelling type, but even more a matter of social environment, although social environment and dwelling type are often intermingled in the perception of people, as is the case with high-rise. Yet, an environment that fails to satisfy these needs, gives an important incentive to move and illustrates the spiral character of housing decline. The last question has to do with the entitlements of people to housing and the way they work out. It is argued that in regulated housing markets the access to housing cannot be explained by income alone. Other formal, as well as informal entitlements are important. Formal entitlements are derived fiom "citizenship". This is the reason why entitlements can differ between localities and influence social segregation differently. But even equal entitlements can work out differently in different areas because of differences in housing provision and recognition by the local authorities. Besides, infor- mal entitlements can cross formal entitlements. In the case of housing decline they concern "ascribed" qualifications or stigmata that preclude the poor fiom housing opportunities and the power to intervene in the allocation process. Power dimensions are a poor education and lack of "connections" which are impeding the poor from assessing housing opportunities or using the system to their advantage. In his way informal entitlements may become an impediment to the access to popular housing, even when formal entitlements strive for equity, and thus a contributing factor towards housing decline. Although many examples fiom the Netherlands are used to illustrate the mechan- isms behind housing decline, the mechanisms themselves have a more general meaning. In any case one should not confuse them with the manifestations of housing decline. These manifestations will differ between areas and countries with different housing systems and ask for a careful transference of insights gained in another context.

References

Altman, I. (1975). The Environment and Social Behavior. Monterey: Brooks & Cole Publishing Company. Becker, H.S. (1963). Outsiders. New York: Free Press. Blanc, M. (1993). Housing Segregation and the Poor: New Trends in French Social Rented Housing. Housing Studies 8, 207-214. Brakenhoff, A. & Dignum K. & Wagenaar M. & Westmm M. (1991). Hoge bouw, lage status (High rise, low status). Amsterdam: Department of Human Geography. Bourne, L.S. (1981). The Geography of Housing. London: Edward Arnold. Driessen, F.M.H.M. (1984). De ontwikkeling van voorkeuren voor de inrichting van het woonmilieu. (The development of preferences in relation to the layout of the living environment). In Handboek Bouwen en Wonen. Deventer: Kluwer. Dunleavy, P. (1981). The Politics of Mass Housing in Britain 1945-1975. Oxford: Clarendon Press. Engbersen, Godfried (1990). 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Architecture, Interaction and Social Control; the case of large scale public housing project. Environment and Behavior 3, 3-18. TO OBTAIN AND MEASURE QUALITY IN HOUSING

The housing stock accounts for a significant proportion of the built environment and has many different functions: it defines space by shaping a diversity of places which give order and structure to dwelling activities and shelter from the natural elements. The housing stock forms our living environment in decisive ways. Buildings and their maintenance also place demands on resources and finances, just as building processes and living processes have far-reaching ecological consequences. The built environment, seen as a whole, can be said to reflect society's own values. And thus, the quality of the built environment is often cited as an indicator of a society's striving towards aesthetic standards. The appearance of our buildings and environments is certainly regarded, psychologically, as an important contributing factor to positive well-being. Historically, many theories of human life and social behaviour have taken the concept of needs as their starting point, ascribing protection and shelter to the most basic category of needs. Need theories also give importance to housing and settlements in that these structures influence other categories of needs, eg. rest, child development, personality development and general welfare. Given this research background, it has been natural for housing sociologists to give attention to questions concerning satisfac- tion of residents' needs, (whereby housing may be assessed according to the degree to which it satisfies user demands and preferences) and issues concerning views of good, functional dwelling places. In housing policy and policy evaluation, the central problem is, also, that of matching the characteristics of available housing to actual demand. Therefore, the last 20 years of housing development - and the related scientific critique - has not only been concerned with quantitative production, but also the demand for higher quality. But how does one give a precise definition of the qualitative aspects of building and housing? Different professional approaches have considered this question from their respective (narrow) viewpoints: with hindsight we may say that earlier research gave greatest weight to functional and aesthetic views, concentrating almost exclusively on spatial standards and household fittings and equipment as indicators of housing quality. To define quality in housing and to form and choose the political and technical means which lead most effectively to better housing is, however, a multi-dimensional task. It is precisely because of the different functions of housing in society and the different meanings of housing to its users, together with the central importance of housing as the kame within which many human needs are met, that evaluating housing quality is a difficult challenge. Who should evaluate? On which premises and on which criteria should the evaluation be based? Which methods can be used? What are the important aspects of housing to examine? How should empirical findings be interpreted, etc. These are some of the eternal questions of housing evaluation research. In the first article in this section, Roderick Lawrence takes up these general problems of housing evaluation. Houses, like all buildings, have their particular use- value and their own social and cultural distinctions. This view is expressed in his many-facetted review of the qualitative aspects of housing, in historical, geographical and cultural contexts. The concept of "housing" has developed over time so that is now includes local surroundings, service and management relevant to housing. So these aspects might be regarded as building bricks for a modem approach to housing evaluation. Lawrence proposes a contextual evaluation of housing quality as the most relevant and indicates that ecological and political aspects must be accorded greater consideration in the future. It is likely that environmental problems, sustainability and the consequences of diminishing energy resources will colour future definitions of the qualitative aspects of housing. User-centered evaluation processes for quality measurement form the basis of the article by Ivor Ambrose, who refers to evaluation methods which have been applied in empirical studies in Denmark. The stategy of involving residents, managers and housing personnel in evaluatory research gives not only useful, substantive information which may be of use for local housing management and muncipal decision-makers. It also gives clear indications that housing quality must be seen as a relative concept. This view of quality is not often reflected in national policy-making processes, which results in a continuing mismatch between policies and user perspectives - as illustrated by several examples of recent policy initiatives. In his contribution, Dagfinn fis enlarged upon a number of different theories and viewpoints on housing by considering the conceptual typologies of "dwelling-hou- se/apartment-home". On the basis of an empirical, sociological analysis of representati- ve interview material, he gives new insights into current housing preferences and trends in .the Norwegian housing market. How to achieve better housing quality (and for whom) is no longer, primarily, a technical or economic question but, rather, one of housing policy. In the most affluent societies the material conditions for high housing quality already exist. The question is whether there is the political will to quarantee a good level of housing quality for the majority of the population? This leads to the last section, which addresses developments in systems of housing provisions. Housing Quality: an Integrated Perspective

Roderick J. Lawrence

Housing quality can be interpreted in many ways. The different means and measures used to define and assess housing quality reflect the diverse origins, rationale and goals of those who conduct or sponsor studies on this subject. The purpose of defining and evaluating housing quality may relate to one of the following themes: the assessment of aesthetic and use values; the identification of targets for upgrading or replacing existing housing units; the effective use of invested capital including the allocation of housing loans and subsidies; and concern with the health and wellbeing of the residents. Studies of housing quality may be intended for the formulation and implementation of govern- ment housing policies, academic research, or the dissemination of information to professional groups and the public. Given the wide range of contributions in this field, it is not surprising that there has been little consensus about the means and measures used to define and assess hou- sing quality. The pitfalls of a piecemeal approach, which is narrowly defined in terms of academic, professional or political interests, are legion (Lawrence 1987). Conse- quently, this chapter reinterprets housing quality in terms of an integrative, intersectorial perspective. It begins with a brief historical overview of recurrent interpretations of the qualitative aspects of housing. This overview includes a critique of recurrent interpreta- tions of housing quality including the formulation and application of housing standards. It argues that mainstream research tends to emphasize aesthetics, choice and functional criteria at the expense of a range of other factors that are historically, culturally and geographically specific1. Hence, instead of selecting and studying a few specific factors, it is necessary to consider residential environments as a complex system in which sets of cultural, socio-demographic, ecological, economic and political factors are interrelated. Collectively, these sets of factors are called contextual conditions. It is suggested that these conditions should be integrated into studies that are meant to identify and study housing quality. Hence some principles for innovative practices and participatory processes related to the evaluation of residential environments are tabled.

For example, the increase in scientific and professional knowledge plus the growing concern of the public for environmental issues since the 1970s should not be ignored. An Historical Overview

Studies of the housing conditions of urban populations in European cities during the nineteenth century, and in many cities around the World today, confirm that it is neces- sary to consider a range of economic, ecological and political parameters that structure and function in human societies. In the last century (like today) those people who did not have regular employment, who could not afford to pay prearranged housing rents or mortgage payments, who needed to live in urban neighbourhoods in order to be readily accessible to the job market, had (and still have) the most unfavourable housing condi- tions. Then (as now) the advent of "slum clearance" meant that vast numbers of these unfavourable housing units were demolished. Consequently, overcrowding increased, not by choice as some claimed, but by economic necessity. These processes and their consequences were (and still are) the crux of housing and health problems in many cities. Hence, it is difficult to gauge the impact of "objective" definitions of the qualitative aspects of housing and concomitant housing standards on government housing policy, housing construction programmes, and housing tenure. The concept of the "model house", in England, for example, has been studied by Gaskell (1987) over the period of a century beginning in 1851. It is noteworthy that idealistic interpretations of architectural styles and domestic life were examined in order to formulate interpretations of desirable housing units. Although the motives of different groups in Victorian England who charted housing reforms and the construction of housing units were stimulated by charity, phi- lanthropy or commercial interests, such groups (e.g. industrialists, landowners, and social reformers), became involved in a prolonged public debate about the definition and application of housing standards. According to Gaskell, the model house was not an "unattainableideal" but "a realistic alternative". Consequently, the concept had "a dimension beyond those of architectural creativity, patronage, and philanthropic endeavour: that dimension was didactic" (Gaskell 1987, 3). It is noteworthy that, from 1851, specific housing principles were addressed to two quite different audiences. First, the designs and constructions of prototypical dwelling units were meant to show architects, housing reformers, landlords, and politicians how it was possible to improve the quality of the housing conditions of "the working classes". Secondj the tenants of model residences were meant to live according to prescriptions defined by those who provided these housing units. Such prescriptions were both implicit (because the organization of domestic space was meant to instil certain kinds of domestic behaviours), as well as explicit (given that many model housing estates had caretakers who were meant to observe that tenants complied with the regulations and codes of conduct prescribed by landlords). There is now abundant evidence showing that both implicit and explicit prescriptions have been used during the last one hundred years to reinforce a nonnative and regulative approach for the definition and application of housing quality. Yet what are the costs and benefits of this "top down" interpretation? The preceding discussion illustrates that the meanings and uses of the built environment cannot be restricted to a set of technical or spatial characteristics, such as nett surface area, acoustic and thermal isolation, or heating. In principle, there are no "objective" static standards which enable us to comprehend housing quality in a comp- rehensive way. In general, although basic or minimal standards have been formulated by international agencies and national governments in order to guarantee the qualitative definition of housing, when such standards are studied historically it becomes clear that they are commonly defined by macro-economic, technological and political parameters rather than according to the goals, lifestyle and well-being of the residents. From this perspective, Hole (1965) states that "none of the attempts by housing reformers (in England from the mid-19th century) to bridge the gap between a desirable minimum standard in housing and one which the worker could afford was wholly successfirl." This statement is supported by a study of government housing standards which defined the desirable floor area of dwelling units in the United Kingdom between 1919 and 19612. According to Powell (1974) the decline in floor area during this period was largely due to the reduction of expenditure for housing during periods of economic recession, irrespective of possible consequences upon the well-being of citizens, notably related to overcrowding in dwellings.

Limitations of Absolute, Prescriptive Standards

During this century, the practice of prescribing "objective" housing standards has led to a number of significant improvements in architectural design, building construction, and site planning in both industrialized and developing countries. Nonetheless, historical overviews of housing policies and practices have confirmed that the presence of sub- standard housing is not merely an architectural nor a technical problem but also (and basically) an economic and a political one. From the mid-19th century many house- holds with low-incomes could not (and still cannot) afford to rent or buy model dwelling units unless there was some kind of direct housing subsidy. In general, even when subsidies were made available by governments or employers, low-income households were (and still are) confined to live inadequately unless it is possible for them to bypass conventional channels in the formal sector and opt for the informal

The Tudor Walters Report (published in 1919) generally stipulated larger floor areas than those recommended in the Dudley Report (published in 1961). sector. A growing number of citizens in industrialized and developing countries are choosing this option. This practice is not a recent one as several authors in Australia, North America, and the United Kingdom have shown. In England, for example, Hardy and Ward (1984) present case studies of owner- builder housing that illustrate how the labour of residents transformed basic materials and marginal plots of land into property with a relatively high capital value. These residents moved from the formal to the informal sector in order to own make-shift accommodation that was gradually modified and improved over an extended period of time, despite the caustic opposition between public and private interests. In general, the authors show that conflicting interpretations of societal and individual rights concerning land use have become stronger during this century in tandem with the enactment and the enforcement of land and housing legislation. In this study, many residents indicated that one of the main reasons for residing in housing of this kind was its "health-giving qualities", whereas there is also ample evidence to show that Medical Health Officers were severe critics of this kind of housing owing to rudimentary water supplies and sewerage disposal. Furthermore, the authors indicate that public officials decried the visual disorder of this kind of housing, whereas such aesthetic considerations were unimportant for the residents, especially in relation to health and economic parameters. Studies of the kind by Hardy and Ward show that housing practices in the infor- mal sector can be compared with housing provision in the formal sector, which is often regulated by "objective" housing standards and normative regulations. Such comparisons indicate that beyond differences between the designs of housing units in each of these sectors, the inhabitants also have quite different means of expressing their aspirations, lifestyles and values in the domestic realm. From this perspective, there is now ample evidence to show that the design, the meaning and the use of housing differ when vie- wed from "the bottom up" and "the top down". It is necessary to distinguish between the explicit professional know-how of professionals (including architects and housing administrators) and the tacit know-how of diverse groups of laypeople. The responsibilities of the public and private, and the formal and informal sectors should be examined bearing these principles in mind. Moreover, questions concerning individual's rights and societal responsibilities, short- and long- term planning perspectives, and intended and unintended consequences, ought to be addressed. Consequently, the informal sector may not be the panacea for the implementation of land and housing policies. Nonetheless, there is evidence today which confirms that the contribution of this sector can help to bridge the chasm between the goals, values and economic means of low-income households and afforda- ble housing. Therefore, it is appropriate to examine ways in which the roles of govern- ment agencies and citizens can be reformulated. Yet whose interpretation of housing quality should be borne in mind? Critique of Recent Architectural and Psycho-Sociological Interpretations

There are numerous published studies that evaluate residential environments from the point of view of laypeople, in general, and the inhabitants in particular. These studies were commonly conducted using sociological and psycho-physiological models of aesthetics, ergonomics and human comfort. Cooper Marcus (1977) and Rapoport (1977, chapter 2) have represented a large number of these studies published until the early 1970s. The underlying intent of the majority of these contributions is to make design professionals accountable for the "anonymous users". The most common way of meeting this goal has been the formulation of design checklists or guidelines about "user needs". These contributions, especially the studies by architects and urban designers, evaluate housing environments largely in terms of aesthetic and functional parameters. This kind of approach has recurred in recent years (Wilkinson 1990). From this perspective many authors examine "images of environmental quality", "perceived environmental quality" and "environmental preference". From his reading of this kind of contribution Rapoport (1977, 60,61) concludes that housing studies in Britain concur that "the main variable of satisfaction with the housing estate ... is appearance", whereas aesthetic parameters are only surpassed by 'Ipractical considerations" in the United States of America.

Figure 1: Although there have been numerous architectural, sociological and psycho -physiological studies of people and buildings, today it is no longer plausible to discuss indoor environmental condi- tions without considering the reciprocal relations with external environmental conditions. Rapoport does not present a critique of the studies he references, but implicitly accepts their bias towards aesthetic and functional parameters at the expense of a wide range of contextual conditions pertaining to the design, the management and use of residential environments. For example, little consideration has been given to the conflicting values and goals of different groups of people (e.g building owners, administrative officials, building users and professional designers). Moreover, ecological factors related to the costs of consuming resources and energy saving measures were commonly ignored although these were debated publicly from 1973. This limited perspective leads Rapoport to claim that "environmental evaluation is more a matter of overall affective response than of a detailed analysis of specific aspects, it is more a matter of latent than of manifest function, and it is largely affected by images and ideals" (Rapoport 1977, 60). Rapoport does refer to studies that identify the consequences of urban renewal projects to illustrate how the images and ideals of architects and planners often do not correspond to those of laypeople. Nonetheless, he does not relate either sets of these constructs to the societal context in which they are grounded. Rather, he argues that the images and ideals of laypeople can be identified by examining "habitatselection and migration as a response to environmental preference" (Rapoport 1977, 81). This kind of approach has recurred consistently during the last three decades. It reflects an under- lying belief of many professional designers and social scientists who maintain that there is "an empirically -based ability to create andlor modih the design of residential envi- ronment(~)to provide for greater residential satisfaction" (Michelson 1980, 137). An underlying assumption of this interpretation is that there is a law-like, mechanistic relationship between the degree of satisfaction with the built environment and its physi- cal configuration which is studied in terms of aesthetic response, functional efficiency, human behaviour and stress. Cooper Marcus (1977) and Michelson (1980) relate this custom to the approach of those academic and professional designers, and social scien- tists, who maintain that if "user needs" are identified they can serve as guidelines for architectural design. In contrast to interpretations of this kind, which assume a direct relationship between the physical features of residential environments and people's satisfaction, selection and use of them, Michelson (1977) and Lawrence (1987) show that there is no law which prescribes the interaction between how satisfied people are with their resi- dence or whether they will move elsewhere. Rather, both argue for the application of a contextual analysis. According to Michelson (1980, 144-5) the relativity of an individual's evaluation of the quantitative and qualitative characteristics of residential environments should be acknowledged in housing research. Furthermore, in view of advances in the building and environmental sciences since the 1970s which have identi- fied relationships between global environmental issues and building construction practi- ces, housing quality can no longer be narrowly defined in terms of aesthetics, er- gonomics or space standards. Rather, it is necessary to consider housing quality in relation to environmental quality using an integrative perspective that not only includes economic, material, social and psychological factors but also ecological and political ones. This reorientation can identify those basic principles underlying the means and measures that can enable and sustain a quality of housing that is acceptable to individu- als, households and social groups.

Principles for Intersectorial and Participatory Practice

The preceding sections of this chapter have argued that it is necessary to redefine what is commonly meant by housing quality. This section suggests that housing quality can be interpreted as a relative concept by refering to sets of interrelated constituents and processes that concern not only the material conditions of residential environments but also social relationships (such as landlord and tenant rights and obligations), economic conditions (especially affordability in terms of household budgets), and ecological consequences (including the reduced use of all kinds of resources). From this perspecti- ve housing quality is no longer defined only in terms of static, objective measures but also according to the opportunities that people have in choosing, appropriating and modifying their residence and its surroundings in order to meet and sustain individual, household, and communal aspirations, goals and requirements that change over time. These objectives concern both the short- and the long- term, and they are relevant to one or more geographical scales. Although these temporal and spatial dimensions are interrelated, this has not been widely recognized in contributions about housing quality. There is now sufficient knowledge to show that achieving environmental quality across diverse geographical scales will depend as much on decisions about the use of resources including land, materials and methods in the construction of the built envi- ronment as on the orientation, volume, layout, services and energy sources used to specify environmental conditions in cities and within buildings. In the United Kingdom, for example, building energy use accounts for a half of the total energy consumed, and buildings contribute to the "green house effect" because they emit carbon dioxide as well as other polluants (Shorrock & Henderson 1990). Hence, it is no longer reasonable to discuss housing quality without considering the reciprocal relations between internal environmental conditions in residential buildings and much broader environmental con- ditions. All architectural and land-use planning projects generate a range of costs and benefits which vary in kind and magnitude according to the type of evaluation being made as well as the point-of-view of the assessor. The relativity of any evaluation should not be seen as an obstacle, but rather as an opportunity for professional de- signers and housing administrators to explicitly account for the point-of-view of laypeople. There are two ways of achieving this. Fitby incorporating diverse groups of people in the design and planning processes. Second, the observation and systematic evaluation of a building in use over time enables designers and social scientists to test assumptions and hypotheses, formulate scenarios, and account for projected costs and benefits. One of the great anomalies of the architecture and town planning professions as they are (and have always been) conducted is that buildings or larger projects are not evaluated with any rigour once they have been constructed and occupied. It has been argued elsewhere that this custom must change and that laypeople should be included in the evaluation process (Heath 1984; Lawrence 1982; 1987).

Figure 2: Too many residential buil- dings and neighbourhoods have been constructed by professionah who have not enabled laypeople to parti- cipate either in the design or the management processes. me critique of architects in this figure indicates that not all public sector tenants in a suburb of Melbourne want to be treated as voiceless be- ings. (Photo: RJ. Lawrence)

Following an overview of citizen participation in architectural projects and environrnen- tal planning it is apparent that few opponents of citizen participation in decision- making considered it appropriate to question whether it was participation per se, or the specific tools and methods used to enable participation, or the (sometimes) conflicting aspirations and goals of different individuals and groups of participants, that could be identified with the success and/or shortcomings of specific participatory projects. Fortunately, this limited, indeed biased, critique of citizen participation has been corrected, at least in part, by Castells (1983), Lawrence (1993), Susskind and Elliott (1983) who have identified five sets of prerequisite conditions for citizen participation in community affairs, including architectural and urban projects, and land-use planning: these are institutional, technical, social, and political circumstances, as well as the personal characteristics of the participants. These prerequisites define and are mutually defined by the contextual conditions in which housing quality occurs as both product and process. Moreover, they determine whether laypeople participate in programmes of research that are meant to promote an understanding of housing quality. Bearing these qualifications in mind the next section of this paper illustrates the complexity of assessing the qualitative dimensions of housing.

Policy Formulation, Impact Assessment and Implementation

The positive and negative consequences of projects have rarely been included in ap- praisals of extant built environments, particularly the growing volume of studies known as post-occupancy evaluations of buildings (Cf. Preiser et al. 1988). Although these studies have encouraged the formulation and the application of systematic approaches, they do not empower the users of buildings, and they rarely include economic and ecological perspectives. The preceding critique of evaluation studies can be enlarged to refer to decisions concerning the location and construction of new residential buildings, a factory, or a railroad, which are usually related to the purchase price of alternative sites, the availability and cost of site services, infrastructure, and transportation, the availability and cost of energy supplies, and other parameters which are readily quanti- fiable. Those persons employed in the factory will usually try to choose the location of their residence by compromising the distance, cost and travelling time from home to work with access to community services and facilities, the attractiveness of the neigh- bourhood, and a range of other social and economic parameters. Neither the factory owner, nor any of the workers, is responsible for (or fully aware of) the external, ecological and economic costs generated by their respective decisions. Nonetheless, although the factory benefits the local community by providing employment, the production processes it shelters may create nontoxic and toxic wastes that cannot be eliminated, but pollute the air and/or subterranean water and soil thus creating direct harmful effects. Hence, there may be negative outcomes on the health and well-being of the workers and the local population. Likewise, each of the workers (like all motorized commuters) will pollute the air, use nonrenewable fossil fuels, and contribute to ambient noise levels while travelling between home and work. In essence, what may seem rational for the factory owner or worker (at least in economic terms) may not serve the best interests of the local community and its environmental conditions. Until recently, traditional economic theories and applications (such as cost-benefit analyses), did not include the use of natural resources (especially air, soil, water and wind) when accounting for the monetary cost of production and consumption processes of humans. Furthermore, they commonly overlooked the production, treatment and disposal of waste products. These waste products have commonly been considered as garbage rather than a possible reusable resource; and, the cost of treating rubbish has been overlooked until recent decades. As waste products have not been accounted for, there have been no explicit regulating mechanisms for their monitoring and use, in relation to the entropic laws of the planetary eco-system. Such misleading theories and practices, coupled with biased economic calculations, have exacerbated economic diffe- rentiation in human societies, as well as the continual harvesting of all kinds of resour- ces and the accumulation of toxic and nontoxic wastes. Beyond this criticism of economic theories and applications, it is important not to overlook other explicit mechanisms for calculating the nonmonetary costs and benefits of human activities. One approach concerns the evaluation and monitoring of energy flows related to the production and use of human artifacts (such as individual buildings, or neighbourhoods) based on the energetic laws of the planetary ecosystem (Hall, Cleveland & Kau fmann 1986). From this perspective, energy measurements become a common denominator for the calculation and evaluation of alternative proposals: these proposals can be compared systematically with respect to the amount of energy they consume if they are implemented, the amount of energy they will require during their use and maintenance, and the waste products generated initially, as well as over a long period of time. In the field of environmental economics, the externality principle has been for- mulated and applied to account for the indirect pricing of natural resources, the transformation of materials, and flows of energy (Folke & KAberger 1992). Externalities can account for both the direct and indirect effects of human production and consump- tion processes that are not included in the market price of goods and services. Conse- quently, the impacts of air pollution, noise and solid wastes can be calculated as negative external effects, whereas the purity of air, quietness and reusable waste products are calculated as positive externalities. This economic interpretation enables traditional accounts of production and consumption to encompass ecological costs and benefits that are borne either internally or externally. Nonetheless, the application of the principle of externality to serve as an explicit regulator of economic activity (for example, the polluter-pays-principle) is limited in as much as it is explicitly tied to economic affordability rather than market efficiency, social consensus or ecological sustenance. Furthermore, the principle of externality does not include human knowledge, communication and information, because these fundamental constituents of human ecosystems cannot only be analyzed by flows of energy and materials. Another approach identifies and monitors the costs and benefits of human products and processes in relation to the health and wellbeing of people. One of the main functions of buildings is to provide protection from the exigences and the hazards of the external environment. Therefore it is pertinent to assess the effectiveness of housing units to achieve this function, and to ensure that protection from external dangers are not complemented by unforeseen internal hazards. Yet, unfortunately, epidemiological and psychological studies show that the internal conditions of many residential buildings constructed during this century can cause harm, harbour pests, condensation and mould growth, and encourage accidental injury and sickness (Bumdge & Ormandy 1993). Research on the "sick building syndrome" shows that there are some pathological conditions that stem from the external and internal environmental conditions of residential buildings. For example, those extant site conditions (including inadequate site drainage and the emission of radon gas); the use of construction materials that are toxic for humans (including asbestos products, lead base paints and formaldahyde adhesives); inadequate ventilation within buildings (which may relate to the architectural design, or to measures to reduce energy consumption and the emission of carbon dioxide); and building construction methods that may provide inadequate thermal insulation between indoors and outdoors, while promoting damp, condensation and mould growth.

Impacts of Ecological Principles on Housing, Building and Land Use Planning

The economic, energetics and health theories and applications briefly presented here indicate that there are distinctly different ways of evaluating and monitoring the costs and benefits of alternative design proposals, either prior to or following the choice of one proposal for implementation. Such a range of theories and methods have rarely been debated with respect to the evaluation of diverse land uses, private versus public transportation systems, or the built environment, whether it be at the scale of an individual building, a neighbourhood, or a city. Nonetheless, this chapter argues that if theories and applications of environmental and housing quality are to be comprehensive then these diverse approaches ought to be interrelated. Environmental health officers, medical practitioners, architects, social scientists, and planners can make an important contribution to the accounting and monitoring of the finite constituents of human ecosystems. Subsequently, alternative proposals for land uses and housing construction, for example, can be formulated, then tradeoffs, can be examined, and compromises can be negotiated. Today too few public or private institutions are examining the range of benefits and costs of developments and changes for specific communities, or populations, or ecosystems. Hence a range of costs and benefits are not assigned, and negative impacts cannot be reduced. Unfortunately, this kind of approach was not implemented prior to the construction of vast numbers of rental housing units - constructed as "model hou- sing" - in numerous countries around the World during this century, and especially since the Second World War. The legacy for current and future generations is a grim one: it has only been during the last decade that the ecological, social and economic costs of such housing have been studied in detail (Prak & Priemus 1985). The condition of these housing units has been related to the nature of their immediate surroundings, and also to conditions in other areas of the city or region in which they are located. For example, some attention has focused on the quality of atmospheric conditions, the microclimates of housing estates, and indoor air quality. Concurrently, it has been found that respiratory illnesses and diseases are the primary cause of death in European countries today. Moreover, new (or formerly unidentified) diseases have been tabled. One example is legionellosis, which comprises two distinct but related illnesses: an infection of the lower lung, known as legionnaires' disease, and Pontiac fever, a non-pulmonary disease like influenza. According to a recent report published by the World Health Organization (1986) this disease has been associated with the internal conditions of residential buildings. Studies have established that room humidifiers, air conditioning systems, cooling towers and hot and cold water supplies nurture legionellae bacteria and transmit them through the indoor building environment, or discharge them into the atmosphere outside the building. Although chlorination and temperature control are crucial for both hot water supply (not below 60 "C) and cold water supply (not above 20 "C), the integrative perspective presented in this chapter also raises many other issues. One could begin by asking why the water supply has become prone to bacteria. One could examine the mount of energy required to pump, filter and heat hot and cold water supplies in relation to the increase in comfort and convenience provided. One could also examine "the need" to install air humidifying, air conditioning and ventilati- on systems in an increasing number of buildings that have internal rooms or spaces devoid of natural light and ventilation. Apart fiom the installation, the maintenance and the running costs of these services, are there not alternatively practices for building and housing design even at relatively high densities? It is suggested that the perspective presented in this chapter not only raises fundamental questions of this kind, but it also confirms the need to identify the relationships that exist between the quality of the Figure 3: An ecological housing experiment (an integrated water supply system), Bernburger Strasse 22 - 26 in Berlin. (Photo: T. Tanninen) indoor environment, the constituents of the design and construction of buildings, and the quality of the outdoor surroundings. This example shows that the calculation and monitoring of costs and benefits is a fundamental, controversial, and complex task that should be assumed by government rather than individuals, or groups, who may have vested interests in specific localities. Many professional groups, including architects and town planners, should also become aware of the stake involved with respect to specific development projects: The vested interests of client corporations, institutions and individuals, as well as those of groups of citizens ought to be borne in mind when formulating new land uses, planning new neighbourhoods and specific housing schemes. The ecological, social and economic costs and benefits of alternative projects ought to be calculated prior to implementation, and extant natural and built settings ought to be monitored in order to reduce negative impacts (Ricci & Rowe 1985). Lay-people ought to participate in the formulation of costs and benefits of alternative proposals. There are clear indications today that this is and rarely has been common practice. Consequently, one plausible reorientation of contemporary policy, research and practice will now be briefly presented. From Principles to Policy Applications

The reinterpretation of housing quality outlined in this chapter can be used for the reformulation of contemporary housing policies. This reorientation stems from a radical shift away from the formulation of prescriptive principles in order to identify and apply those proscriptive principles that enable and sustain a quality of life that is acceptable to individuals, households and communities. It is noteworthy that contemporary environmental, housing and public health regulations are usually prescriptive principles. They specify what ought to be achieved. This approach means they decrease the capacity of autonomous environmental control that each party can exercise. In contrast, earlier paragraphs of this chapter have argued that environmental control by individuals or households ought to be increased. In order to achieve this goal it is suggested that proscriptive principles replace prescriptive ones. Proscriptive principles state what not to achieve or do; they imply that what is not forbidden is permitted, and may engender a wide range of solutions to housing requirements, as many studies of self-help housing (including that by Hardy and Ward mentioned earlier) have shown. In contrast to absolute, environmental standards that prescribe optimal housing conditions, the World Health Organization (1990) has defied the health implications of certain kinds of environmental conditions in terms of three levels of indicators, the intensity and duration of exposure to these three levels and the vunerability of particular groups (such as children and the aged). These three levels are: 1) desirable levels of environmental conditions which promote human health and wellbeing; 2) permissible levels of environmental conditions which are not ideal but which are broadly neutral in their impact on health and wellbeing; 3) incompatible levels which, if maintained, would adversely affect health and wellbeing.

It is suggested that the approach adopted by the World Health Organization illustrates one way of applying the perspective presented in this chapter, and that this approach can be enlarged to redefine housing policies based on the fundamental principles of: 1) Ecological environmental policies that help to identify and overcome the unforeseen and unacceptable consequences of urban and rural development, from the localized scale of harmful substances inside buildings and the conditions of specific sites to the impacts of energy policies on regional and global atmospheric conditions.

2) Affordable housing policies that help to overcome recognizable negative impacts owing to homelessness, adverse indoor and outdoor environmental conditions, as well as a lack of household and personal control over these conditions.

3) Preventive public education and medical practice that helps all citizens to identify risks owing to adverse extant or projected conditions from the scale of indoor environments to that of external environmental conditions at re- gional, national and international levels.

According to the theoretical and methodological principles presented above, it is possible to overcome the frequent bias commonly given to a few selected factors and then to enable the study of contextual conditions that are historically, culturally and geographically specific. Bearing in mind the preceding discussion, the reinterpretation of housing quality requested in this chapter can be founded on the following recom- mendations:

Evaluation methods and techniques should identify what is context specific and what can be generalized when evaluating residential environments (or any kind of environment) across a range of geographical scales. This principle acknowledges that even if the floor plan of a dwelling unit is repeated, each site has specific characteristics which may (or may not) influence how people evaluate these units, or characteristics of them. For example, one cannot automatically make generali- zations about the position of and views from windows, or ventilation, or thermal insulation and sun penetration and their related consequences.

Evaluation methods should account for those impacts, constraints or contextual contingencies which impinge upon the design and use of residential environments, from the smallest to the largest geographical scales of human settlements. There are explicit rules and regulations (eg. building codes, use regulations and govern- ment subsidy requirements) that prohibit certain options irrespective of the intentions of the architect or client. Furthermore, there are implicit conventions (which are culturally and socially dependent) that indicate how rooms are or- ganized and furnished for certain activities but not others. Consequently, evalu- ations of housing quality should help identify and explain how implicit and ex- plicit parameters regulate the use of diverse kinds of resources.

3. Evaluation methods and techniques should elicit the diverse impacts and the costs and benefits of alternative proposals that are not inhibited by the status quo. This principle implies that beyond broad cultural and national differences, people of different age, religion and professional training have different lifestyles and values which impinge upon the meaning and use of the built environment, in general, and of housing, in particular. If the implications of values and lifestyles in the design, management and use of residential environments are not understood, a normative approach can be unquestioned and repeated without a search for viable alternati- ves.

4. Three sets of information can be collected: first, data about personal values and choices of building users, corporate clients and professionals involved in the design, management and use of the built environment; second, how divergent values and choices can be reconciled to generate one or more design proposals without inhibiting individuals from expressing their own viewpoint; third, how these alternative proposals, once realized, impinge upon the use of monetary and natural resources, and human health and well-being. This principle implies that interpretations of extant buildings cannot be limited to an appraisal of their aest- hetic composition or their functional performance. They should also examine decision making from the formulation of the project brief throughout the planning and construction processes, in order to identify the goals and intentions of all the parties involved.

5. Evaluations should include a longitudinal perspective, accounting for the history of landscapes, the built environment, and the residential biographies and life- cycles of peoples, as well as the range of economic, entropic and human health costs and benefits that accumulate over an extended period of time. Research has indicated that housing units can accommodate diverse requirements rather than providing neutral backgrounds; that people do have goal-oriented behaviours which are reflected in the meanings attributed to and the uses of housing units; that past, present and future (or intended) residential environments and daily life- styles are interrelated.

Conclusion

The integrative perspective outlined in this chapter can enable professionals, politicians and laypeople to develop a more comprehensive understanding of the qualitative aspects of residential environments. This chapter suggests, however, that in order to achieve this goal, individuals, groups and institutions should be encouraged to establish the diverse costs and benefits of their products and processes. Moreover, there is a need to remove those academic and professional boundaries which hinder the formulation and applicati- on of an integrative approach for environmental design evaluation. This chapter has also illustrated that any particular building, as well as the built environment at a more general level, serves a range of interrelated purposes that impinge upon the quality of the environment. No static,"objective" standards or prescriptions can account for the complexity of this subject. Rather a range of costs and benefits ought to be borne in mind if interpretations of the qualitative aspects of housing are to be undertaken in a comprehensive manner. It is hoped that the multidimensional and intersectorial perspec- tive presented here will stimulate debate and prompt responses from others working in this field.

References

Burridge, R. & Ormandy, D. (Eds.11993). Unhealthy Housing: Research, remedies and reform. London: E & F N Spon. Castells, M. (1983). The City and the Grassroots: A cross-cultural theory of urban social movements. London: Edward Arnold. Cooper Marcus, C. (1977). User needs research in housing. In S. Davis, (Ed.) The Form of Housing. New York: Van Nostrand Reinhold, 139-170. Gaskell, S. (1987). Model Housing: From the Great Exhibition to the Festival of Britain. London: Mansell. Folke, C. & Kaberger, T. (Eds.11992). Linking the Natural Environment and the Economy: Essays from the Eco-Eco Group. Dordrecht: Kluwer Academic Pub- lishers. Hall, C. & Cleveland, C. & Kaufmann, R. (Eds.11986). Energy and Resource Qzuzlity: The ecology of the economic process. New York: John Wiley. Hardy, D. & Ward, C. (1984). Arcadia for all: The legacy of a makeshift landscape. London: Mansell. Heath T. (1984). Method in Architecture. Chichester, UK : John Wiley. Hole, V. (1965). Housing standards and social trends. Urban Studies, 2, 137-146. Lawrence, R. (1982). Trends in architectural design methods: the "liability" of public particiption, Design Studies, 3 (2), 97-103. Lawrence, R. (1987). Housing, Dwellings and Homes : Design Theory, Research and Practice. Chichester UK: I. Wiley. Lawrence, R. (1993). Simulation and citizen participation: Theory, research and practice. In R. Marans and D. Stokols (Eds.) Environmental Simulation: Research and Policy Issues. 133-161. New York: Plenum Press. Michelson, W. (1977). Environmental Choice, Human Behavior and Residential Satis - faction. New York: Oxford University Press. Michelson, W. (1980). Long and short range criteria for housing choice and environ- mental behavior. Journal of Social Issues, 36, 135-149. Powell, C. (1974). Fifty years of progress. Built Environment, 1, 532-535. Prak, N. & Priemus, H. (Eds.11985). Post-war Housing in Trouble. Delft: Delft University Press. Preiser, W. & Rabinowitz, H. & White, E. (1988). Post Occupancy Evaluation. New York: Van Nostrand Reinhold. Ricci, P. & Rowe, M. (Eds./1985). Health and Environmental Risk Assessment. Oxford: Pergamon Press. Rapoport, A. (1977). Human Aspects of Urban Form: Towards a man-environment approach to urban form and design. Oxford: Pergamon Press. Shorrock, L. & Henderson, G. (1990). Energy Use in Buildings and carbon dioxide emissions. Building Research Establishment (BRE) Information Paper IP 18/88. Garston, UK: Building Research Establishment. Susskind, L, & Elliott, M. (Eds./1983). Paternalism, Conflict and Coproduction. New York: Plenum Press. Wilkinson, N. (EdJ1990). Quality in the Built Environment: Public and private respon- sibilities in housing design and settlement planning. Newcastle, UE Open House International Association. World Health Organization (1986). Environmental Aspects of the Control of Legionel - losis. Copenhagen: World Health Organization. World Health Organization (1990). Indoor Environment: Health Aspects of Air Quality, Thermal Environment, Light and Noise. WHO/EHE/RUD/90.2. Geneva: World Health Organization. A House of Mirrors: Reflections on Housing Policy and Housing Quality

Ivor Ambrose

Recent Scandinavian research on housing quality has provided considerable amounts of substantive information about the housing stock, its residents and housing management. Often as a "by-product", these studies can also provide insights into the ways in which society views its housing, and the various ways in which housing meets the require- ments of the individual resident. This paper highlights differing interpretations of the theme of housing quality with a number of examples from research findings and government policy objectives for public- and private-sector housing. It is suggested that debates about housing quality need to be concerned with differing constructions of reality and views of the future, and that - as a consequence - researchers require new strategies and methods to accommodate the various actors in the housing dialogue.

Evaluation of Housing Quality

In a number of previous articles I have examined various approaches to the evaluation of housing quality, with particular reference to Scandinavian variants of the so-called "Post-Occupancy Evaluationt' (POE) model (Ambrose 1990,1992). The common basis of these evaluations lies in gathering the experiences of users in order to identify problems andlor satisfactory conditions in dwellings, estates or neighbourhoods. Results of the evaluations usually take the form of structured, concise accounts of different stakeholders' requirements, the observed patterns of use and the opinions of those who use the dwelling areas. Results frequently make explicit reference to either normative expectations for the given housing area, or to (national) standards. On occassions both these types of benchmark are applied. One example of a recent POE study is the longitudinal study of a newer housing estate in Denmark's third largest city, Odense (Ambrose 1993). This study was also used to develop measurement techniques which can provide reliable information about use of space (i.e. behaviour) and user perceptions, both of which can be useful to housing management, designers and resident groups. Besides the use of statistical and observational methods, a main feature of my own and other techniques used in Scandinavia is the active involvement of users in the evaluati- on process, such that residents, caretakers, housing managers (and other personnel groups) participate in the framing of issues and perspectives during the course of the evaluation. These techniques have been developed and applied over several years.

Figure 1: me Blangstedgdrd estate was built in 1988 as a permanent housing exhibition. mere are over 20 different housing groups built by teams of architects, builders and housing corporations.

One of the products of the Blangstedg5rd study and similar housing evaluation studies elsewhere in Scandinavia is a wealth of material describing residents' and professionals' percept ions of housing quality (Ambrose & Paulsson, forthcoming). This "first hand" knowledge often consists of detailed verbal accounts and statements provided during interviews, structured discussions and "walk-through" tours of estates where users have had the opportunity to express their views and opinions. Such views and opinions can be almost overwhelming in number and content. In the Blangstedg5rd study, non-directive user-involvement techniques (i.e. not using direct questions, but using the environment as a stimulus for judgements and state- ments), have produced over 500 different value judgements and over 100 suggestions for alterations and improvements regarding the outdoor environment alone. These user- judgements and suggestions were gathered from a total of about 70 persons who participated on 6 "walk-through" tours. All these responses relate to a housing estate with only 600 dwellings, and at the time of the study it was only 2-3 years old! Figure 2: 7he estcrte com~vri~~s600 dwellings, common houses, a community centre and other common facilities. mere is a mhof tenure with public-renteg private -renteg private and cooperative housing.

Figure 3: In the "walk-through" technique, a mixed group of residents, housing personnel (eg. caretakers and gardeners) and ad- ministrators follow a pre -defined path through the area, no- ting quality characte - ristics along the way. Notes are pooled in a meeting immediately a#er the tour and can be developed into a programme for cor- rective action. Figure 4: A walk-through tour in progress. Participants write down their "positive' and "negative"impressions, as well as "suggestionsfor improvement" at stopping points along the route. Notes should not be discussed during the walk - this avoids Nself-censorshipNat the following meeting.

A framework of "qualityaspects " and "environmental levels " has been used to systema- tize and present this and other items of information (see Table 1). At this point I will not dwell on the content of these findings, but I do wish to emphasise the richness of the material which has been gathered: a colourful tapestry of explanations and insights into users' experience of the nature of housing quality. Understandings about housing quality, like those which have been derived from the BlangstedgArd study, have enabled housing managers and resident groups to identify and give priority to development tasks within the overall maintenance-planning structure for the estate and housing groups. Here the main point I wish to emphasise is that the term "housing quality" is given meaning by those who are directly affected: renters, owners, managers, supervisors, caretakers and other estate personnel. And this meaning is highly complex, and often very specific to the roles of individuals and the characteristics of certain kinds of places. Table 1: Framework of analysis for the Blangstedghd POE study

Env. level Dwelling Housing Estate Quality aspects SOUP Spaces for activities X X X Installations X X Sound, heat and light X X Identity, flexibility X X Architecture1 aesthetics X X X Access X X X Privacy/ community X X X Services and facilities X X Social integration and differentiation X X Landscape and nature X X Traffic and transport X X Services and public institutions X Cultural facilities and activities X Organisational structure and f'unctioning X

Housing Quality in Housing Policy

I am struck by the apparent difficulty of drawing user-based information about housing ("experiences of housing quality") into the realm of policy-making in a significant way. The desirability of doing so perhaps needs to be explained first. Firstly, an awareness of user experiences of housing - what the public thinks and wants - is of general value in the political process. This is well-accepted political "good sense". But secondly, there may be good reasons for making closer examinations of popular, local experiences of housing quality, given that there are moves towards political decentralisation and deregulation of housing. This political tendency is certainly the case in Denmark and other Scandinavian countries and may become so in other countries as well in the coming years. In general, the shedding of central government responsibility for public housing (including reduced economic responsibility) is not so extensive in Denmark as, for example in Sweden or Finland, not to mention the UK. The trend is primarily towards decentralization and - to a more limited degree - towards deregulation of housing, giving responsibility to the municipalities for decisions on what types of subsidized housing to build and monitoring the activities of the public, non-profit housing corporations. These tendencies towards decentralization and deregulation are intended to give rise to more finely-tuned housing policies, which better match the local housing market conditions in municipal areas, and perhaps also better meet the expectations and needs of the users and home-seekers. The devolvement of responsibility which has been put into effect on 1st January 1994 may give rise to a situation in which local housing policy-making and control is capable of reflecting more closely the local conditions. Local policy-makers may take the opportunity to hold a mirror up to the existing housing so as to capture an image of the qualities - strengths and weaknesses - which the users experience. On this basis they could initiate building and renewal projects which take local demands into account in ways which central government was not able to do. Specifically, local municipalities have the potential of working more closely with local residents and housing management to develop policies. And the municipalities have the additional opportunity for local networking and coordination between different areas of policy - housing, transport, health, seniors, families, etc - which may also contribute to the realization of well-functioning housing areas. Housing policy may be facing a significant change in terms of both goals and means. Potentially, at least, it is feasible that the "housing quality" dimension may take on new meaning and new importance under the new conditions. This will depend on a development of the democratic influence of residents and resident boards as participants in local housing policy matters.

Quality

"Quality"is perhaps one of the most long-lived catchwords in current usage. This may be because its range of applications is so great and because so much can be read into this highly elastic concept. Already in the 1950's, the Japanese started using "quality circles" amongst factory workforces as a means of checking and developing the standard of industrial products: finding and reducing faults, aiming to do the job right the first time, discovering inefficiencies and discussing alternative work methods. The technical use of the term "quality" in this context was - and is - used to denote a relationship; i.e. not specific characteristics of things. That is to say, the quality level is an expression of the extent to which something is perceived to match the intended or expected outcome. According to this doctrine, quality standards may be fixed at a given level which may vary considerably from a normative view of what might constitute a good or acceptable standard. It is probably reasonable to suggest that laypeople typically apply a normative and operational notion of the quality concept if asked about housing characteristics. This is also the case amongst politicians, generally. Debates about housing quality frequently revolve around normative expectations and standards. At the political level, judgements about, for example, the state of the housing stock and the desirability of certain changes are made, and this of course entails a weighing of "quality" variables against each other and against other factors, often that of costs.

The Identification of Housing Quality Measures

Example 1. Housing Renewal and Renovation

In any country, the issue of housing quality is incorporated in various ways in all areas of housing policy: conservation, urban renewal, building codes and standards, fixing rent levels, taxation, state building subsidies, etc. Different definitions of quality - or one might say different aspects of quality - are brought to bear on specific areas of policy. Notably, policies require consistent usage of quality parameters in the definition, implementation and appraisal of housing policies. Urban renewal is a major activity where housing quality issues have a direct bearing on the outcomes. Renewal activities in Denmark have taken a leading role in building activity since the downturn in new construction in the 1980's. In connection with renewal activities over the past 7 years or so, a number of studies have been conducted which - tangentially or more directly - throw light on the position of housing quality in policy-making. During recent years the Danish Ministry of Housing and Building has undertaken an assessment of the Danish housing stock and its finances, with the participation of 3 professors of economics and a number of civil servants, (and with some assistance from my own institute). Three volumes of findings have been published, focussing on the Housing Market and Housing Policy, the Housing Stock and Housing Quality and Housing Surplus and Rent Distortion by the Ministry of Housing (1988, 1990, 1993). The titles alone give an indication of the socio-economic questions which are addressed in these reports, these being:

9 Transitional Housing Systems - How does the regulated housing market perform and how might the rela- tionships between investment, tenure and productivity be improved? - What is the standard of the housing stock, which standards should be applied to determine those dwellings which should be renewed, and what might be the effect of renewal subsidies and maintenance programmes? - How does the standard of rented housing relate to the market price and what (distorting) effects do rent subsidies have on the functioning of the rented housing market?

Here I will not discuss the results of these reports but, rather, the view of housing quality which is presented in one of these reports. The 1990 report (Ministry of Housing, above) sensibly pointed out that housing quality has traditionally been described in relation to the presence or absence of certain characteristics, for example technical installations and size (rooms or m3. To a certain degree it follows that the age of the building determines to a large extent the quality level, given the state of technology at the time of building. Around the turn of the century advances in plumbing and the construction of sewage pipes made it possible to fit water closets in Copenhagen houses on a general scale. Baths followed later and in the 1930s central heating made its entry into newly-built houses. It is hardly considered reasonable to expect that older houses, say from pre 1930 should have central heating, since it was not part of the original standard. But often "lack" of certain installations will automatically indicate poorer quality and indeed the word lack suggests that the absence should be made good (or that the house in question is poorly equipped and may therefore be suitable for demolition). This approach ignores, however any reference to the market value of a house with or without, say, central heating. A problem arises for the tenant (who may be happy to pay a lower rent and make do without central heating) if the property is declared to be "sub-standard", such that a renewal project should be carried out. As for the public purse, if quality demands are set "across the board" as part of housing policy it is necessary to rely on public economic involvement in order to achieve the standards which are set. In Denmark, building quality standards for houses which are to be renovated are currently set according to the same standards for newly-built housing. Consequently renewed housing has a fairly uniform, high and expensive standard (Andersen & Munk, forthcoming). This policy - motivated by an understandable desire to create long-term improvements - is proving to be a hindrance in relation to the legal requirement for public involvement in housing renewal. Young people in sub-standard housing, for example, have taken a stand to seek cheaper subsidized renewal with shared bathrooms and kitchens. These demands are now being considered and in some cases cheaper, alternative solutions are on the way. Furthermore, the public subsidies available for renewal in Denmark are specifi- cally targeted at the standard of dwellings or apartment houses, not urban infrastructure or urban areas per se. Therefore a number of possible housing quality dimensions are overlooked in the renewal process. Those which are included are dwelling size, building material, construction type, technical installations, (bath, central heating, gas, etc.), other installations, (insulation, double-glazing, elevator, garage, etc.), and maintenance standard. Those which are not included are, for example, dwelling location in the neighbourhood, neighbourhood density, transport possibilities, residential environment, social life, cultural aspects. Detailed, local area analyses covering the listed aspects of housing quality would have particular relevance in the urban renewal context. Here the example of so-called "Community Profiling" used in the WK can be of particular relevance in developing suitable mechanisms for the consideration of local needs and local values (Burton 1993).

Example 2. Renovation and social development of newer, multi-storey housing estates

In the late 1980's a government programme was established to rescue 81 newer housing estates from a "vicious circle" of high rents, empty flats, high-interest loans, deteriora- ting physical fabric, poor maintenance and a high concentration of social problems amongst tenants. Studies carried out by the Danish Building Research Institute have documented the efforts to put these areas and estates to rights (Christiansen et al. 1993). The effort has been judged a success on several counts. In particular the econo- mies of the estates have been brought on an even keel and the buildings and outdoor surroundings have been renovated, to the considerable satisfaction of the residents. However there remains a tremendous need for "social renewal" and re-vitalization in these areas. The solution which was applied in the 81 estates focussed on all but the social problems - and these remain to be solved. A narrow definition of the problems of the estates, (heavy interest rates on loans, empty apartments, building decay) was the starting point for the assistance programme. A broader assessment would also have identified further relationships which needed to be addressed. Again, the chosen "quality criteria" - or lack of a certain type of quality characteristics in certain estates - gave rise to a housing policy intervention which, although not too far wide of the mark, missed the opportunity to achieve better results through coordination with other policy aims. Only in 1993 had the government begun to set about tackling the social problems of these and other areas in a coordinated fashion. The programme for assisting the deprived housing estates and urban areas focusses more broadly on the range of social problems which the hardest hit housing areas experience. These problems have been discussed in relation to the obligations of several government ministries: housing, social affairs, education, home affairs, church and justice. They include: youth unemployment, racial problems, homelessness and eviction, crime and vandalism, fear of crime, etc. The coordinated effort to alleviate problems has taken the local area as the unit of analysis and arena for action. There are positive indications that involvement of local networks and coordinated solutions will be the chosen mechanisms for change. The role of research in this connection is likely to be two-fold: to support the processes of development in local areas and to evaluate the results of the programme, both locally and nationally. In order to meet these challenges researchers and local actors must develop forms of dialogue which can inform decision-makers at the local level about on-going processes and possible courses of action. Secondly, detailed studies of the effects of the various initiatives in local areas must be carried out and their results must be related to the overall objectives of the programme. An essential requirement for future housing studies must be that the various actors in the housing dialogue are enabled to give their own account of the goals they seek to achieve - including thereby the housing qualities they value. This will be especially important given the new perspective on housing which is emerging: that housing areas and the resources they contain can play a primary role in the development of solutions to societal and individual problems. Having more detailed knowledge of housing (and neighbourhood) quality as perceived by the users may give better scope for policy-making at the local level, and the results of such policies may be better in line with the demands of the users. This is the opportunity. To realize this opportunity municipal administrators, housing managers, other market actors and researchers must focus their efforts on the provision of information which will give local administrations more direct access to user perspectives. This will require new partnerships and new roles for all parties, and and at the same time it will require a broader level of understanding of the notion of "housing quality" from the position of central government. References

Ambrose, I. (1990). Approaches to Housing Evaluatioa In Gallad B. (Ed). Housing Evaluation. CZB Proceedings Publication 118, Luusanne. Ambrose, 1. (1992). Brukarmedverkan i utvardering av bo&omr&den (User Involve- ment in the Evaluation of Housing Areas). In Hurtig, E. et al (Eds.11992) Utvir- dering av bostader och bostadsomrilden. Chalmers Technical University, Dept. of Architecture, Gothenburg. Ambrose, I. (1993). Evaluering af Blangstedgdrd i brug. Resultater af undersogelser 1989-92. (Post Occupancy Evaluation of Blangstedhkd. In Danish with English summary). SBI-Town Planning 66. Horsholm. Ambrose, I. and Paulsson, J. (Eds./forthcoming) Methods in Evaluation of Housing and Estates in the Nordic Countries - an Anthology. (In Danish, Swedish and Norwegian with English Summary). Danish Building Research Institute, Town Planning Series, Horsholm . Burton, P. (1993). Community Profiling. A Guide to Zdentifiing Local Needs. University of Bristol: School for Advanced Urban Studies. Christiansen, U. et al. (1993). Better Estates - Better Qzuzlity of Life? SBI-Town Pla~ing65. (With English summary). Horsholm: Danish Building Research Institute. Ministry of Housing (1998). Boligmarkedet og boligpolitikkea Copenhagen. Ministry of Housing (1990). Boligmase og boligkvalitet. Copenhagen. Ministry of Housing (1993). Boligmaetning og huslejespaend Copenhagen. Skifter Andersen, H. & A. Munk (forthcoming). The Welfare State Housing Policy versus the Social Market Economy - Comparison and Evaluation of Housing Policies in Denmark and Western Germany. Scandinavian Housing and Planning Research. Houses, Dwellings and Homes - Attitudes toward One's Own Place of Living

Are dwellings today a commodity to be bought and sold like all other commodities? You can for sure buy dwellings, provided you have enough money. They are even the largest investment that many people make in their lives. But, are people looking upon their dwelling also in the same way as they do with respect to other goods? Something to buy, use and also throw away? Is this the dominant attitude? Our attitudes are of course dependent upon the social circumstances we live under. We are not isolated fiom common ways of defining the outside world. A dwelling however, can constitute something more than a thing and be different fiom other things in the environment. It can be something to identify with, It can in short be a home. There is a main difference between looking upon the dwelling as a home and thereby part of one's identity, and that of seeing the dwelling as thing in the envi- ronment outside one's self. These views of course, are to be seen as "ideal-typical" attitudes. If we probe for attitudes like these we will find that most people adhere to more than one view. Their attitudes will often be a mixture of emotional and rational elements. We will however, also find people with attitudes close to the ideal-typical ones. For those that look upon their dwelling as something outside one self, - as a commodity, we will find some that are most concerned with the value or price, while others will be most concerned with the quality. In this way I postulate three main ideal-typical attitudes. Some will mainly look upon their dwelling as their home and something they not easily will leave or exchange. For them the dwelling has an emotional value. Other people will look upon their dwelling an investment in line with other financial investments. For them the dwelling has an exchange value. Finally, the third type is represented by those that look upon the dwelling as something to use and something that shall support and fit in with the activities of the household. For them the dwelling has a use-value. We also have a series of "names" for the buildings we live in. In some ways these fit in with the ideal-typical attitudes. Some people refer always to their dwelling as a home. Other people invest money in houses or apartments. Third, the people that are concerned with the functional qualities call it simply their dwelling. There are certain indications that tell us that the attitudes associated with one's housing are not stable over time. The "housing market" does show tendencies today of being more commercialized than before. Trading of dwellings through real-estate agencies are probably becoming more common, and the production of dwellings, for sure, have undergone great changes. We have today an industrial production industry for houses and dwellings which in earlier times was unknown. Development and change is part and parcel of our modern society. How we hu- mans adapt to this and how we internalize and interpret these shifting circumstances is in the background of this study. How far the commercialization of our surroundings have penetrated and influenced our attitudes is the concrete problem at hand. We will study this by confronting the three main ways of defining one's relation toward own dwelling. First however we will go through the thinking and theories we can find about this problem in the literature.

The Problem Hand Some Theoretical Perspectives

The three ideal-typical attitudes are seldom related or dealt with together in studies of housing. In more general theories of people and their surroundings such problems are very seldom discussed or analyzed. Scholars in different disciplines are typically concerned with different variables, they seldom look across the borders to other disciplines. The three disciplines that are relevant in our context are economies, archi- tecture and psychology. We shall here relate how they each try to deal with the problem at hand.

The Economical Perspective

The economics of housing is today in Norway a very hot issue. There is an active debate going on about financing of housing, housing prices, interest on mortgages and in particular the social problems associated with people not able to pay their housing expenditures and deal with their housing debts. The economists are however, dealing with the economic questions in the housing sector as they do in other sectors of the society. There is no particular economic theory of housing. The economic questions related to housing are of course important and serious, but it is an open question if economic variables and economic theory is very helpful in explaining peoples behavior in the housing market. Most economic theories are based on the assumption that humans are rational and behave in ways that maximize gain and profit. Anyway, we do not find anything in the economic literature that can help us formulate any specific hypothesis about investments in housing. For sure, we find nothing about attitudes associated with economic behavior related to housing. We should perhaps not be surprised about this. This is considered more a question of common sense. There are many indications that there is a tendency towards commo- dification of housing, or more simply stated, that people look upon housing as a commodity. The production and marketing is clearly more commercialized now than before. Economic questions will always be on peoples' minds, particularly at specific times like when you acquire or change your housing. Housing expenditures will also always be important for those that have low incomes. If economy is a dominant theme in peoples' relation to their own housing however, is an open question.

The Architectural Perspective

Questions concerning the functional qualities of the dwelling belongs to the field of architecture. The functions of the dwelling are many and there is little agreement among architects as to whae constitutes the good and/or the preferred plan for a dwelling. Some will try to achieve a fit between the dwelling and the activities of the household, but other will reserve the right for themselves to determine what people should have. An example of the Batter can be found in Norway, and it has to do with the kit- chen. The functionalist architects of the 1930s defined the kitchen as a workplace. It should be planned and constructed as one as well, and the result was a very small space with as short as possible distance between the separate places for fd-preparation ancE other household tasks. This thinking influenced strongly the production of new housing and it can be documented that the average space diminished over the years until the 1950's. At that time counter forces were mobilized and the size of the kitchen is now again increasing. The housing standard of Norwegian dwellings today is very high indeed. Crowded dwellings is a problem of the past, almost all dwellings have an acceptable arrangement for WC and bathroom, the kitchens are typically well equipped, and so on. Certain new problem have appeared however. Storage space is presently in great need, insolation against noise from outside or from the neighboring dwellings is not good enough, there are too many stairs and steps for handicapped people, etc. We apparently need to re- define the housing standard. There is a clear association between the layout of a dwelling and the ethnic culture or social class is part of. It is possible to "read" the layout of the dwellings and draw conclusions about social and cultural traits. The way a dwelling is organized in terms of rooms and connections between rooms are however not quite stable. It changes as the society changes. Again the kitchen is an interesting example. There are studies that show how it in certain cultures has increased in size and moved £?om the back of the house to the front and clearly mirroring the change in the role of women. The dwelling in Norway today is seldom an important workplace for occupa- tionally active persons. It is however the arena for personal activities for two thirds of the daily time. Its functionality is clearly important. This does not conflict with other aspects. It is very difficult however, to formulate hypothesis concerning for whom the functionality is most important.

Other Perspectives

In contrast with the two themes and the two disciplines discussed above, the topic of the home is extensively dealt with in psychology as well as in sociology, anthropology and philosophy. The literature is extensive and recently a special symposium was arranged around the theme "Meaning and Use of Home" in Sweden. This symposium tried to sum up the accumulated knowledge about the home and peoples1relation to it. In the following I will relate some of this. An overview of the large literature is provided by Carol Despre' (1991). She has identified and classified the different ways of expressing one's conception of home. She proposes four broad categories. These are treated very shortly and summarily in the following. In the first category we find theories of territories and territorial behavior. Pheno- mena like marking and defense of own temtory are easy to observe and there are a series of studies of this (Altman 1975, Porteous 1976, Sebba 1986). The dwelling is perhaps the most important territory for human beings. Many are willing to go very far in defending one's home. In the world of animals this behavior is typically explained by "instincts". This is seldom accepted for people. In certain psychological theories and models of individuals the home is seen as a symbol or part of the individual (Cooper 1974). The boundary between the person and his environment does not go along the skin. The clothing for sure, and often also the dwelling is part of the ego. The shape of the dwelling, its decorations and its equipment is often an expression of one's self. Other psychological theories for the personality, as for example Maslow's theory of needs presents a hierarchy of human needs that the dwelling with its elements can be seen to correspond to, and provide satisfaction for at all levels. A home will in particu- lar satisfy the need for privacy (Finighan 1980) and also the need for recognition and status. Personal identity and social identity are important elements in social psychology and the home play a central role in the individuals attempts to develop this (Appleyard 1979, Rapoport 1981, Sadalla 1980). Even if the individuals not consciously use the dwelling in this way, it is easy for observers to "read" the message that the physical structure of the dwelling express about the inhabitants status, position and cultural attachment (Ng~e1991). Lastly, phenomenological models and principles from developmental psychology stress that the relation between persons and their dwellings, and the idea of home is part of a process over time (Kjglsrgd 1981, Dovey 1985, Korosec-Serfaty 1985, Karjalainen 1993). The home is typically enduring and stable and in this way it binds together the individuals past, now and future. The home can be seen as a "container"for memories and experiences. The container will increase in importance over time, and a long stay in the same dwelling will create a strong feeling of home (Lawrence 1983). The home encloses and defends the individual - the place is to some extent secret and shields the intimate and private activities. The large and varied literature about the home bears witness about the importance of the topic for humans. Not all dwellings however, have the quality of being a home, and we will not be able here to test out all the hypothesis that stem from the theories we have referred to. We will however try to see to what extent the dwellings of Norway constitute homes as the inhabitants themselves report it.

On Attitudes and Acts

In the following we will show the results of an attempt to confront the three above described ideal-typical attitudes toward one's place of living. We have in an interview survey presented a set of statements and asked for agreement or disagreement. The statements referred to their own dwellings that they at some earlier time decided to settle in. In this way we indirectly refer to certain acts. We chose however to look upon the answers as expressions of attitudes. There will be a correlation between acts and attitudes, but we know also that the fit is far from perfect. The attitudes will guide the acts, but we will often act primarily on the basis of the concrete situation we are confronted by. This is where the rationality comes in. In a representative interview survey performed by the Central Statistical Bureau of Norway about 2,500 persons were asked to express agreement or disagreement with the following three questions: - "My dwelling is an investment - if I find another dwelling which is a better object of investment, I will consider to move."

- "My dwelling is a thing to use - if it no longer fits my household, it being the amount of space or the equipment, I will be looking for another."

- "My dwelling is my home - I belong here and I will resist any attempt to make me move."

Results

The results show that Norwegians have clear cut opinions about these matters. Only 5-7 per cent of all say they are neither in agreement or disagreement with the three state- ments. At the same time, the distributions of the answers are very different for the same statements. Out of all the interviews, only 14 per cent report agreement about the statement that the dwelling is an investment, and about half are only "partly in agreement" (Figure 1). On the other extreme, 77 per cent declare that their dwelling is their home. 64 per cent of all report "complete agreement" to this statement. There is no doubt about what is the dominant attitude. We have asked for agreement/disagreement for each statement separately and it is possible to agree or disagree with all three statements at the same time. This however happened in very few cases, only 8 per cent of all. Our expectation about a main line of division between those that consider the dwelling as a home and all others have also been confirmed. It is one pattern that do- minates over all the others. It is represented by agreement about the dwelling being their home and simultaneous disagreement with the two other statements. This pattern is supported by 52 per cent. The next frequent pattern is agreement about the home and also agreement about the use-value, but disagreement about the investment. This pattern is adhered to by 20 per cent. Only 1 per cent agree to the statement about investment and disagree with both the two other statements. Finally, 9 per cent report agreement to the statement about the use value of the dwelling and disagreement about the two other statements. Even if we did not formulate an explicit hypothesis about the outcome, we did expect a dominance for those that considered their dwelling as their home. We were not able to predict the degree of support for this statement. The Norwegians are very mobile and we know that about half of all households have been living in the present dwelling for less that ten years. Figure 1: Persons Agreeing or Disagreeing (%) with Three Statements

My dwelling is my home

..,,,,,.,,,.....,...,. My dwelling is a thing to us

,.,.*,,,,,, !!%..,!:! I: . . . . , . . , , . ,.,.,,,. , 8 My dwelling is an investment .<*.,,,,,,, iiiiiiiiiii 0 10 20 30 40 50 60 70 80 90 100

Agree Disagree Neither agree or disagree strongly agree Strongly disagree

Many would also expect very little support for the statement about investment. Nor- wegians are in many ways a puritanical people and to "make business" with your own dwelling - or home - will be considered by some as almost an immoral thing to do. About a year ago an advertisement appeared from a developer in the Oslo-region that tried to sell their dwellings first of all because they were considered a good investment. If this was a successful way of marketing the project we do not know, but in adver- tisements for vacant housing in Norway the dominant sale arguments deal with the functional qualities of the dwellings. In USA you will often find that vacant dwellings are advertised as "Homes". No doubt, the people responsible for advertising and marketing are well aware of the emotional character of certain words and expressions.

Persons and Groups

We do not find any correlation between personal characteristics and the attitudes under question with one exemption, namely age. There is no difference either with respect to sex, occupation or income. A small group of farmers however, do all look upon their dwelling as their home and disagree with the other statements. On the basis of the psychological theories referred to above, one should expect that length of stay in the dwelling should have an effect. This is clearly confirmed as the diagram below shows. We have here as in the following grouped together the ans- wers "strongly agree" and "agree". Figure 2: Persons that Agree to Three Statements (%) by Length of Residence in the Dwelling

1-3years 4-8 9-13 14-23 24-33 34 years+ Length of residence

Investment Thing of use Home

The diagram also shows how the agreement with the two other statements diminishes with the length of stay in the dwelling. This is not surprising as both the investment aspect as well as use-value are issues most relevant at the time of acquiring the dwelling. The age of the person will be related to the length of stay in the dwelling. A similar diagram for age shows the same as above. When we control then for length of stay the efect of age disappears. It is clearly the length of stay that determines the change of attitudes, not the age. The very young persons do, however, show some particular patterns. For this group the differences in attitudes with respect to length of stay are the greatest. A probable explanation of this is that the young persons that moved in a long time ago did this as children while the young persons with a short stay probably acquired the dwelling themselves. The latter group are the ones that show the greatest per centage of agreement with the statements about investment and use-value. The attitudes under study here deal with our immediate surroundings and it is to be expected that both the type of dwelling and the type of community should be of importance. This is also confirmed in the analysis. In the analysis we have grouped the type of dwellings in four: Farm house, Family house (Detached one-family houses, 1- 2 stories), Small house (Row houses and all other small houses less than four stories), and Large house (Apartment houses, town houses and other with four or more stories) The Place of residence has also been grouped in five: City (larger than 100,000), Big Town (20 and 100,000), Small town (2 and 20,000), Hamlet and Country with isolated farms. Diagrams made with these two variables are very similar. We show the one for Place of residence. Figure 3: Persons that Agree (%) to Three Statements by Place of Residence

Country Hamlet Small town Big town City Investment Thing of use .Home

A closer analysis of the interrelationships show that both these variables, Place of residence and vpe of dwelling, have separate "effects" on the attitudes studied. This is shown in three diagrams where both these variables are taken into account at the same time. We do not find farm houses in towns and cities and large houses in hamlets or in the countryside. Certain cells are for that reason empty in the diagrams.

Figure 4a: Own Dwelling as an Figure 4 b: Own Dwelling as a Investment by Type of Dwelling and Thing of Use by Type of Dwelling Type of Residence and Type of Residence Figure 4c: Own Dwelling as a Home (%) by Type of Dwelling and Qpe of Residence

It is usually assumed that the traditional difference between towns and the countryside in Norway have disappeared. In many ways this is correct, but the cultural difference is definitely not eradicated. From other studies we know that the detached single-family house is clearly the most preferred dwelling type. It is the dominant type of dwelling and many people move to this kind of dwelling if they can manage. This is a selection process. The type of dwelling does not in itself influence the attitudes, but people with certain preferences do seek and are often found in these houses.

Discussion

Those that consider their dwelling to be an investment will concretely and consciously have made certain economic calculations to evaluate the possible economic gains. They will have calculated the exchange-value of the dwelling, financing will have been arranged, loans made and money paid. Investing is a highly rational and concrete set of acts. Those that are most concerned with the use-value of the dwelling have also made certain evaluations when acquiring the dwelling. These evaluations however will not be as explicit and concrete as in the above case. Those that are most concerned with the emotional value of their dwelling will also have dealt in a market. They might have clear ideas of the exchange value as well as being well aware of the functionality of the dwelling. Such considerations might however, not be very central. Only in situations that are critical and difficult will it be considered and this is probably also dependent upon how the dwelling actually was acquired. It would have been important to relate these attitudes to a whole set of circumstances. How did they find their dwelling? Through which channels was the transaction made? Who helped? Did they buy it directly or did they themselves build it? Did they themselves take part in the building? Or perhaps they inherited the dwelling and thereby did not pay for it at all. In this survey no information was gathered to answer any of these questions. From other studies however, we do know in detail how people in Norway acquire their housing. Large scale Housing surveys have been carried out over the last 25 years providing this information. From these studies we can isolate three kinds of housing markets. The first group is those that have got hold of their dwelling through or with the help of relatives and friends. Some will also have inherited their dwelling. They have used informal ways and we consequently call this The informal housing market. Secondly there are some that stay in dwellings owned by their employer. Those that have acquired their dwelling through municipal and governmental institutions are in the same group, as well as those that have got a dwelling by being member of a co- operative society. We call this The regulated housing market. Lastly, we group together all those that have dealt on the free market, working through real estate agents, advertising or responding to advertisements etc. All these transactions have taken place in The free housing market, which perhaps is the only real market in economic terms.

Figure 5: Transactions in the Norwegian Housing Market in Three Decades 1960 - 1980

1960-69 1970-79 1980-89 The informal housing market The regulated housing market The free housing market This diagram shows that the free market does not dominate the Norwegian scene. In the 1980's however it increased its importance by about 10 per cent points. This corresponds to the situation during these years. A change in government in 1981 led to a drastic change in Norwegian housing policy. This change can be characterized as a general deregulation of the housing market. Coupled with an easy credit situation and economic speculative behaviour in many sectors, this led to a heated market situation and increased prices for housing. We cannot for sure say that we here see a real tendency of change. That the informal market decreased its importance during these three decades is evident. To build, or at least stand responsible for building one owns dwelling is an old tradition in Norway. From the same housing surveys we find that 22 per cent of all that acquired a new dwelling in the five-year period 1968-72 can be called self-builders. In the five-year period 1976-80 the corresponding percentage figure is 17. Finally, in the five-year period 1983-87 the per cent self-builders has dropped to 11. This clearly supports the conclusion that we see a tendency to increased commodification of the housing market. If this will be mirrored in a change on peoples attitudes toward their own dwelling however, is an open question. The psychological reasons for striving toward building and creating a home will not necessarily be influenced. Literature

Altman, Irwin (1975). ?he environment and social behavior. Monterey, CA: Brooks, Cole. Appleyard, D. (1979). Home. Architectural Association Quarterly 11 (3), 4-20. Cooper, C. (1974). The house as symbol of the self. Design and Environment 3,30-37. Desprks, Carole (1991). The meaning of home: literature review and directions for future research and theoretical development. Journal of Architectural and Plan - ning Research 8(2), 96-1 15. Dovey, K (1985). Home and homelessness. In I.Altman & C.M.Werner (Eds.) Home Environments. New York: Plenum. Finighan, W R (1980). Some empirical observations on the role of privacy in the residental environment. Man -Environment Systems 10, 3-4. Karjalainen, P.T. House, Home and the Place of Dwelling. Scandinavian Housing and Planning Research 10(2), 65-74. Kj~lsrfld,Lise (1981). A bo som livsprosjekt. Kontrast 6, 37-43. Korosec-Serfaty, P. (1985). Understanding the home environment: Spatial and temporal perspective. In I.Altman & C.M.Werner (Eds.) in Home environments. New York: Plenum. Lawrence, Rodnic J. (1983). Understanding the home environment: Spatial and temporal perspective. International Journal of Housing Science and Its Appli- cation 7(1), 13-25. Norberg-Schulz, C. (1985). ?he Concept of Dwelling: on the Way to Figurative Architecture. New York: Rizzoli. NOrve, Siri (1991). Technology and everyday life: Trajectories and transformations in Report No. 5 in Proceedings from a Workshop, May 28-29, 1990. Oslo: NAVF/NTNF/NORAS. Porteous, J.D. (1976). Home: The territorial core. Geographical Rewiew 66(4), 383-390. Rapoport, Amos (1981). Identity and environment: A cross-cultural perspective. In J.S.Duncan (Ed.) Housing and Identity. New York: Holmes & Meyer. Sadalla, E.K, Burroughs J., & Quaid M. (1980). House form and social identity. In R.R.Stough & A.Wandersman (Eds.) Optimizing Environments: Research, Practice and Policy. EDRA 11 Proceedings. Washington: EDRA. Sebba, R. & A.Churchman (1986). The uniqueness of the home. Architecture and Behaviour 3(1), 7-24. Taylor, R.B. (1985). Home and near-home territories. In I.Altman & C.M.Werner (Eds.) Home Environments. New York: Plenum. TOWARDS AN OBSCURE HOUSING POLICY

Housing policy is, by nature, a complex form of policy. Housing policy consists not only of the efforts of the State to encourage the populace to satisfy its housing de- mands; it is also subject to the influences of demands which stem from many other sectors of society, all seeking their own goals. It can thus be said that national housing systems are formed by the interactions between different sectors of society and other relevant actors. For example, housing policy and production may be tuned to the goal of reversing an economic downturn, as in Keynsian policy regulation during the formative period of the welfare state. Economic and housing policy goals may also be influenced by general monetary and financial policies and by means of interest rates and cash-flow in the economy. These instruments have been exploited widely, influencing possibilities for financing housing construction, housing prices and other housing costs including rent levels. Housing policy also has a clear coupling to social policy and regional policy. Of course, different combinations of these instruments and different national conditions have played their part in the housing processes of different count- ries. With recent housing policy developments as his starting point, Ola Siksio presents a range of concepts which seek to describe this complexity. He distinguished "core housing policies" and "built environment policies related to housing" from other "wider social policies involving housing". By presenting a gestalt of the entirity of housing systems in different societies, and conceiving them as a man-made "social construc- tions", this, argues Siksio, might lead to a better understanding of their changeability. This assumes, however, an internal contradiction: on the one hand, an openness to change via political control and on the other, an inertia because of the very complexity of housing systems. It takes many years to achieve visible results of policies for new production and, especially, in the cases of changing demand-, use- and consumption patterns it may take even longer to see the consequences. Economic concepts such as "weak flexibility" in the market, the low demand for housing as a basic need and "low price/cost elasticity" provide traditional explanations for these phenomenon. The housing policies of Europe in the 1980's have undergone several important changes: the State has reduced its role and transferred its responsibilities to the indivi- dual and the market. Slogans such as "decentralization", "deregulation", "devolvement" (of responsibility) and minimization of subsidies characterize this development. In some countries the goal of home ownership has taken the upper hand, whereas in others, consideration has been given to the housing and consumption situation of weaker groups in society. These differing goals reflect the internal conflicts of the new policy. In an introductory article by Satya Brink, taking the example of Canada, a new perspective on changing housing systems is presented. Her article gives a concrete illustration of how the State changes its policies in a period with budget deficits and public spending cutbacks. Tasks and responsibilities of different actors are changed and relations at different levels (national, regional and local) display both.weak and strong sides on the part of the actors. In the new situation the State must develop contextually appropriate strategies rather than rely on universal policy mechanisms as in the past. Hannu Ruonavaara's article describes the consequences of the upheaval in housing policy in Finland. This country's housing policy can be considered a perfect example of "home ownership society". In the late 1980s and early 1990s there was a dramatic fluctuation in housing prices and fall in housing production due to the recession. In particular, the liberalization of the financial sector, the raising of interest rates and a foreseeable reduction in economic activity led to a crisis for the national housing policy. It may be questioned whether the empirical facts which Ruonavaara presents may be regarded as a critique of the Finnish system of whether they provide more general evidence on the weakness of home-ownership oriented housing policy systems. In the final article, Ola Siksio presents a broad overview of developments which serve as a conclusion for many of the themes which are discussed in this book. He describes, amongst other things, how public housing organizations in a Scandinavian welfare state, Sweden, respond to new challenges and develop innovative strategies in order to offer residents alternative forms of tenure and management systems. The continuing balance between effectiveness (the belief that the market can best take care of housing production) and equity (different groups in the population can satisfy their housing demands), remain the major housing policy question of the 1990's. A "non-existent housing policy" can also be interpreted as a policy for housing! It reveals most effectively the market functions and the true societal consequences. This is a potential challenge for housing sociology in the 1990s: to interpret and explain the structure and specific elements which make up housing systems seen in national, regio- nal and local perspectives. Will households experience a polarization in the possibilities for housing, where housing quality and use of urban space become further differentiated according to wealth and incomes? Continuing to analyse the social consequences of housing policy developments in the future will remain an important task for housing sociologists against the background of changes in Western housing policies which are just as far-reaching as the privatization programmes of Eastern Europe. Working through Partners - Challenge for Housing Policy in Canada

Satya Brink*

Canada has been buffeted by the recent recession which has had unfamiliar characteris- tics. "Rolling recessions" in the various sectors has prolonged a period of contraction in production. The "jobless recovery" has led to slow growth with an actual decline in the number of jobs. Due to this recession, tax revenues have fallen considerably. High inflation has increased the cost of money and as a consequence, the public debt is inc- reasingly burdensome. The federal government operates at a surplus, however, a third of the budget was consumed by interest on the debt. These conditions have placed increasing pressure on the government to reduce spending and the cost of operations. These conditions have spurred the government to take drastic action. This article examines the major changes that have occurred, examining present developments and commenting on the changing role of government in housing under these new economic and political realities.

Canadian Federal Government Actions for Public Savings Impacting on Housing

Among the changes associated with public saving strategies, are the contraction of government, generally by reducing the number of ministers and the consolidation of ministries; the reduction of budget expenditures; the reliance on non-budget expenditu- res and indirect measures; the search for revenues from new or higher taxes or contri- butions; raising revenue through sale or divestiture of public assets and non-tax revenues such as registration or user fees and facilitating other sectors to meet public sector goals. First, the contraction of government by reducing the number of ministers and consolidation of ministries was a step to reduce government operation costs. This is a popular election issue in the present (October 1993) election in Canada. In pre-election

The views expressed in this paper are the views of the author and are not intended to reflect the the views of any organization that the author may be asso- ciated with. restructuring of government, no minister for housing was appointed This change has more than symbolic results. Since there is no minister responsible for housing, as a sole portfolio, housing has lost its place on the government agenda. A minister, carrying other responsibilities carries housing as an additional secondary responsibility. Since the minister does not sit on key cabinet committees, there is no advocate for housing policy decisions or defense for policies which hurt housing. The housing agency, Tlze Canadz Mortgage and Housing (CMHC) continues to operate as an autonomous crown corporation. It has not been consolidated with other agencies as certain other crown agencies were. However, a report prepared during the last recession, recommending the abolition of the Canada Mortgage and Housing Corporation received renewed interest. Second, budget expenditures were reduced, specially in areas where it was possible to argue that consequences would not be serious or politically unpopular. Housing came under the axe, because under the constitution, housing is a shared responsibility with the provinces. Therefore, housing could be expected to have some continuing policy attention fiom the provinces. The social housing budget is vulnerable, however, much of the budget is committed to existing agreements. However, new spending commitments and inflation were not considered in new budget allocations. The social housing budget of CAD 1.695 billion in 1989 - 1990 was limited to CAD 1.785 billion in 1990 - 1991 (15 per cent less than planned, CAD 16 Million cut) and again limited to CAD 1.871 billion in 1991 - 1992 (15 per cent less than planned for a cut of 35 million). In the 1991 budget, a fifteen per cent reduction in planned funds for new social housing was extended through 1995 - 1996. In 1992, the social housing budget was restricted to an average three per cent annual increase fiom 1992 - 1993 through 1996 - 1997. In 1993, the social housing budget was fiozen at CAD 2 billion (CAD 600 million cut for 1993 - 1994 through 1997 - 1998. New social housing units could only be undertaken if savings could be found "through efficiencies" within the allocati- on to CMHC (Battle and Torjman 1993). Entire housing programs have also been eliminated. Tlze Canadian Co-operative Housing Program was ended in 1992, though it was a popular program which was used to complement private supply by adding much needed affordable dwellings as well as special housing. Tlze Residential Rehabilitation Assistance Program for landlords was also terminated a few years ago. Tlzird, the reliance on non-budget expenditures has resulted in the use of off- budget funds which are not accounted for in annual public expenditures. This is done in part by either utilizing indirect measures (since revenues foregone do not appear in budgets) or by eliminating direct expenditures such as subsidies. In Canada, in addition to a slow progression of direct expenditure cuts, the indirect measures were retained. The primary residence is exempt fiom capital gains tax when sold. In 1989, the non- taxation of capital gains on residences amounted to CAD 4.6 billion, a sum far greater than the total housing budget! New measures may rely on foregone revenue. Canada has introduced a new housing incentive based on indirect expenditures. In fact, it requires no additional loss of revenue since the initiative relies on tax sheltered private savings. Canadians are en- couraged to build tax sheltered retirement funds. In 1992, Canadians were permitted to borrow CAD 20,000 from these funds, tax free if repaid over 15 years, to purchase a primary residence. So far, over 152,000 withdrawals, averaging just under CAD 10,000 were noted. It is estimated that CAD 1.5 billion was used to buy homes in 18 months (Department of Finance, Canada, 1993). The best measures are those that bear no cost at all, though there may be some exposure to minimum cost. In 1992, the First Home Loan Insurance Program was launched for a period of two years. The existing federal loan insurance program requirements for a 10 per cent down payment were reduced to five per cent for first time home buyers. It was intended to help first time entrants to the housing market, who could afford the monthly mortgage payments but had difficulty saving the down payment of 10 per cent of the house price. Such loan insurance was available for existing or new homes. This program is considered a great success. Across Canada 60,000 households used the program generating an estimated CAD 10 billion in residential activity up until August 1993. Foreclosure rates have been low. Participants have been prudent. Canying costs of homes purchased under this program represented on average 24 per cent of total income though buyers were permitted to use up to 35 per cent of their gross income. The program has now been extended until February 1999 (Ray 1993). Since wealth appears to concentrate among property owners, inc- reasing home ownership is considered positive although about two thirds of households already own their homes (CMHC 1992). Fourth, in a measure to maintain revenue flow to the public sector, the govern- ment sought tax room without political cost. In Canada, a new federal goods and servi- ces tax (replacing a more complex and limited manufacturing tax) of 7 per cent was imposed. Despite a public outcry, housing, unlike food, was not exempted. Fifrh, the Canadian government has attempted to raise revenue through the sale of public assets or to save revenue through divestiture. Two possibilities were considered. First, the sale of public housing, particularly holdings on expensive central city land, was briefly considered but abandoned. Second, the privatisation of the housing insuran- ce operation also was briefly considered. Eventually, a decision was made to develop some publicly held lands jointly with the private sector. Sixth, non-tax revenues such as registration fees or user fees have been introdu- ced. Many formerly free public services now require cost recovery. For example, statis- tical data requiring special runs or demographic data with special tabulations linking it to housing are now sold. User fees are charged for testing of construction materials. Finally, efforts are made to facilitate other sectors to meet public sector goals. Deregulation is fuelled by this objective. Regulations are considered an additional cost for doing business by the private sector. Regulatory reform, generally the removal of standards and regulations, are expected to reduce the costs of housing and to increase variation in the product. The Canadian government encouraged regulatory reform in 1989 through an initiative called Affordability and Choice Today (ACT) working with the Federation of Canadian Municipalities, the Canadian Home Builder's Association and the Canadian Housing and Renewal Association.

Potential and Known Consequences

Since these changes are recent, all consequences are not yet known, though some may be surmised. These changes could have the potential net result of: - diminishing the federal levers to influence the housing market or housing stock, - increasing the responsibility of lower levels of government for housing, - increasing individual responsibility for housing, - increasing the role of the non-government sectors in housing.

Diminishing the Federal Levers to Influence the Housing Market or Housing Stock

Canadian housing policies have favoured ownership and they have stimulated home ownership through tax policies such as the capital gains exemption and tax sheltered savings for housing purchase. However, interventions in the market are looked upon with disfavour. Successive government policies have pursued residual housing policies, targeting subsidies for low income households though it is estimated that only about 6 per cent of all stock received some subsidies. In particular, these selective intervention subsidies aided the construction of much needed special purpose housing complemen- ting existing housing stock. However, it must be noted that the federal government continues to support and maintain the existing housing stock but the proportion of this stock within the larger stock is likely to be further eroded since additions are unlikely or extremely limited. The common levers used by government are standards and regulation, financial measures such incentives and penalties, subsidy programs, research and information and enabling actions such as co-ordination. The withdrawal of the federal government from the first three levers forces its reliance on the weakest two among them, with no assu- rance of achievement of objectives in the public interest. Though the standard of housing is high in Canada where there has always been a high reliance on the market, there are segments of the population who are marginalized by the market. It is estima- ted that about 15 per cent of Canadian households need housing assistance (CMHC 1991).

Increasing the Responsibility of Lower Levels of Government for Housing

In Canada, responsibility for housing has traditionally been shared by the provinces and the centre. The provincial governments have their own housing programs, some of which have been used in combination with the federal programs. Now the burden of coping with housing problems will fall more heavily on the provinces, Provincial governments are also under pressure to trim their debts and are attempting to reduce expenditures and payments to lower levels of government. When provincial govern- ments reduce their contributions to municipalities to provide housing assistance, they in turn will be pressed to provide a higher aliocation to housing. Because provincial governments continue to spend for housing, they are potentially important partners for the federal government.

Increasing Individual Responsibility for Housing

The commodification and privatisation of housing require individuals or households to rely on the market and less on public interventions. Income support is the government intervention of choice. Housing is treated more and more as a vehicle for investment and taxation policies now tend to treat housing more like other investments. When individuals have difficulty accessing housing, some individual investment is often required to receive public assistance. This may be through sweat equity or through an individual financial contribution towards the cost of housing to qualify for a loan. This type of arrangement can be viewed as joint action by the state and the individual. However, the limits of individual responsibility and the market must be recogni- zed. During economic restructuring, there are a large number of households that are unemployed, in unstable employment or underemployed. Consumption of housing in the market is difficult under conditions of low income, uncertain or irregular income. Prob- lems of homelessness, doubling up and poor housing have risen during the present recession.

Increasing the Role of the Non-government Sectors in Housing

Non government organizations such as non-profit corporations, housing co-operatives and charitable organizations have been key actors in the housing field for the past few decades. These organizations served primarily as sponsors of housing, building and operating housing for low income or special clients. They continue to own stock. These organizations are now looking for other sources of funding, fiom the provincial govern- ments or from other private sources. Their capabilities to construct housing may be reduced because banks may not consider them credit worthy. Organizations that hold property may be able to use it as collateral. The federal government views these or- ganizations as important allies for the achievement of housing goals.

Reliance on Partnerships or Joint Action

Since the Canadian government is not activist, it is obliged to work with and through other actors involved in housing. The main levers available are the use of data and information to stimulate activity and enabling actions. One such enabling action is the establishment of a unit for public private partnerships at the Canada Mortgage and Housing Corporation (called as Canadian Centre for Public-Private Partnership) that brokers relationships and investments for housing projects. It also publishes information on successful partnerships. There is also an effort to introduce non-cash incentives such as the long term leases of land to private developers for the purpose of building certain types of housing. At its best, the strategy of joint action has advantages for the federal government: 1) It is able to use the best contributions of each sector for housing which recognizing that the goals and rewards of each sector are different. 2) It permits streamlining of government, potentially resulting in simplified adminstration, increased efficiency and reduction of duplication. 3) It allows multi-sectoral, multi-disciplinary, formal or informal association, drawing on multiple resources without loss of quality or continuity of services. 4) It allows the voice of vulnerable groups and communities to be heard while exercising social responsibility. The actual benefits depend on the ability of the participants to contribute effectively to the whole. These abilities vary considerably with the characteristics of each organization (See Table 1).

Table 1: Strengths and Weaknesses of Housing Actors1

* May have few economic resources

* Close to informal non-systematic methods * Lack of access to policy * Potential for personal * Limited scale of citizen

* Vested interest and long term commitment

* Major resources and * Rigid issue boundaries * May have a different political party in power * Driven by provincial

* Democratic legitimacy investment and attention * Some resources * Policy and technical * Sensitive to local

objectives

Table 1 continues on the next page.

' Source: Adapted from European Foundation for the Improvement of Living and Working Conditions, Out of the Shadows - Local Community Action and the Euro- pean Community, 1992. Organization Strengths Weaknesses Non-profit, chari- * Commitment to social * High reliance on table organizations responsibility volunteer action so may or co-operatives * Focus on low income lack continuity and or disadvantage sustained action * Facilitation and * May have other primary consensus building skills goals than housing * Housing sponsorship and * Difficult access to credit management expertise * Participatory process * Arms-length to may be slow government * Mobilize voluntary action Social partners * Major resources and * Limited interest in (business, unions potential housing and others) * Political power or * Unfamiliar with influence government and its * Links to other activities requirements * Financial management * Paternalistic view of and organizational people with expertise disadvantages * Different priorities * Need to meet the "bottom line". * Prefer to work with private sector organizations Professionals * Knowledge of housing * Not linked to field government or its * Skilled in multi- policies disciplinary action * Difficulty developing * May have experience strategy with citizen action and * Short term involvement empowerment * Selective involvement such as community

planning A

Typology of Joint Action Strategies

The success of joint action depends on the mix of strengths and weaknesses and on the role they play. Typically, an attempt is made to involve all types of partners in large community housing projects while single projects may have a fewer partners. There are many motivating factors for organizations to act jointly resulting in some type of benefit for the participating organizations and to the team. Each organization weighs the benefits accruing to it against the negative factors, such as the loss of autonomy or the loss of full control. The modus operandi can vary considerably depending on the type of arrangements between the participating organizations. The relationship between the federal government and the participating agent or agencies may vary in terms of the degree to which goals are shared, the relative autonomy of action and the distribution of risks and gains. Table 2 shows a schematic representation of a typology showing five models of joint action.

Independent Action

The federal government may take facilitating actions so that other sectors or levels of government can act independently to carry out tasks that contribute to a public policy goal. Such actions include the use of incentives to stimulate contributions, of regulations to steer the course of action and of research to monitor and evaluate the results. The participating agents may be lower levels of government, private sector developers or firms, non-profit organizations or voluntary groups. The organizations may choose to use the incentives and comply with regulations while also pursuing their own goals and priorities. Therefore, although the degree of goal sharing and gain from joint action may be low, the level of autonomy is high. The advantages of this strategy for the federal government are that it is possible to leverage contributions from other sectors without major expenditures at low administrative costs. However, the results may vary conside- rably and the national government has little control over the outcome. Financial incentives or incentives with monetary value are used effectively by the Canadian government. Examples of joint action with the provinces rely on block funding or the allocation of tax points or taxing privileges. Private and non-profit organizations may receive favourable tax treatment. Small one time grants may also be offered to volunteer agencies such as organizations operating shelters for battered women. Regulations may be used to steer or focus action towards a housing goal in the public interest. These regulations allow private organizations to raise funds or to develop new tenure and financing forms for housing. Under such permissive regula- tions, special purchase plans for elderly home owners have been developed by private developers. Loan stock arrangements, for example, are based on an interest free loan to the builder by the elderly resident. The elderly person lives rent free for life and forfeits claims upon appreciation in the value of the dwelling. The Canadian government also sets standards for quality and evaluates and monitors housing materials, building and planning by other sectors. These actions protect the consumer, reduce the risk of property loss and ensure quality.

Table 2: Typology of Joint Action

ment, pnvate, non- profit and volunteer

ment, local govern- ment, private, non- profit and volunteer

and volunteer sec-

provincial govern- ment, private, non- profit volunteer sec-

Source: With information from S.Brink, in OECD, Urban Policies for Ageing Popula - tions, 1992. Delegat ion

Delegation involves some negotiation regarding commitment to policy objectives, cost sharing arrangements, responsibility for planning decisions, administration and delivery. A variety of arrangements are possible, including delegation across ministries, delegati- on from lower levels of government to the central government and decentralisation to lower levels of government. The Canadian housing agency has been delegated responsibility for the housing component of programs under the jurisdiction of other ministries. For example, the Ministry of Health and Welfare transferred to the Canada Mortgage and Housing Corporation a budget to be used exclusively for the building of shelters for battered women. The Ministry of Indian Affairs delegates the responsibility for native housing to the Canada Mortgage and Housing Corporation. Provincial housing agencies may also agree to have the national housing agency operate a program in their province when they do not have the funds or the capability. Decentralisation is often linked with delegation and in compliance with legislation requiring mandatory provision of essential services (such as emergency housing), lower levels of government may act as delivery agents in designated areas, receive ear marked revenue transfers and agree to detailed procedures for quality, public accountability and national planning. This is the case in Canada where the federal and provincial govern- ments share the costs when welfare recipients receive housing assistance. Other forms of joint action may meet the description for this model as well. Though private and non-profit organizations have their own goals, they may be willing to negotiate for responsibilities for certain tasks. However, because the participants are not bound by the same goals, the risk of such joint action may be high. Efficiencies may be gained through the introduction of competition by working with the private sector. In the case of the non-profit or voluntary sector, there are cost advantages. For example, some forms of contracting out with non-profit organizations for turn-key housing projects, may fall into this type. The participating agency may develop infrastructure and invest in equipment or limit its role to administration. The federal government may retain public ownership of vital assets, wholly or in part. It may be leased to or managed by the private sector or non-profit sector. Community facilities in public housing projects or co-operative housing projects may follow this pattern. Day care space may belong to the project but may be operated by a voluntary resident association. Space may be rented to a restaurant providing meals to seniors projects or to a service organization providing home care. Non-profit organizations are important partners for the delivery of special housing for "hard to house" groups in the population. The federal government may co-ordinate the provision of housing and services though participating agents are free to pursue their own goals while contributing to the public interest. However, funds may be funnelled from other ministries of government such as Industry and Science or from Health and Welfare. The partners enjoy autonomy of action and, therefore, the potential gain from collaboration is low. This model is advan- tageous because sharing of efforts could result in reduction of costs and financial and administrative efficiencies which are attractive to participating parties. The government may play a strict co-ordinating role when a group of participants with vested interests are brought together. Canudian government also plays a co- ordinating role by running an Advisory committee for housing research. Representatives from the research committee gather to discuss research priorities and to provide input regarding data requirements which are then incorporated into housing surveys run by Statistics Canada.

Collaboration

Collaboration occurs when public, private and non-profit sectors work together to ac- hieve a joint or shared goal for mutual benefit without appreciable reduction in au- tonomy. Resources may be shared. It is an attractive alternative because large organiza- tional changes, which could result in shifts of power and autonomy of government departments or sectors are not required. When groups wielding unequal power collabo- rate, there may be some re-alignment of relationships in exchange for elimination of duplication and economies of effort. The Canadian government has entered into intricate tri-lateral relationships for complex projects where it has collaborated with a full range of players in housing and neighbourhood development. Examples are the renovation of unused ports (Montreal) and water front areas (Vancouver) and deteriorated city areas such as Winnipeg.

Partnerships

Partnerships may be formal or informal agreements though the joint action is often legally recognized. These may be characterized as joint ventures between levels of government, the private and non-profit sectors where the goals, costs, risks, effort and returns on investment are shared. It is easier to establish partnerships when interests converge and therefore, it is often difficult to establish true partnerships between the public and private sectors. Yet, commercial viability may be harmonized with public policy goals with success achieved for a limited scope, time or product. The Canadian government has entered into partnerships with provincial govern- ments where they co-ventured public or social housing on a shared equity basis. The risks and the costs are shared. Possibilities for co-ventures with the private sector are also under consideration. The government would hold an equity position, be responsible for debt and share in any appreciation.

Strategic Alliances

Strategic alliances link a number of different organizations making individual spe- cialized contributions to a shared goal. The degree of autonomy is high and the risks and gains are shared. The Canada Mortgage and Housing Corporation has formed some strategic alliances with other ministries, high tech industries and standards setting organizations and industry organizations to develop housing technologies. Its own contributions are linked to data, research and brokering relationships. Ventures in other countries are promoted by the Canada Mortgage and Housing Corporation through strategic alliances. It has worked with non-profit and private agen- cies to deliver low cost shelter in Central America and is now working to provide hou- sing in Hungary.

The Future Role of Government

Since the Canadian government now works through and with other organizations, the policy instruments available to it must be carefully restructured. Table 3 examines the potential contributions by the federal government to facilitate joint action for housing. Some policy instruments are available to other parts of the federal government and may required cabinet decisions. This requires an internal housing advocacy role for the Canada Mortgage and Housing Corporation, based on careful monitoring of the supply and demand of housing.

10 Transitional Housing Systems Table 3: Government Policy Instruments Facilitating Joint Action for Housing

rection of funds from other ministries of government

Innovative financing mechanisms, leveraged from non-government sources

Training in housing sponsorship, management and

Access to credit Affordable and innovative mortgage, rental and lease

Assurance of equity and fairness Consumer protection b I I A comparison of the policy instruments required with the existing array of policy mec- hanisms show that some restructuring is required. Housing programs, regulations and financial subsidies will no longer be of primary importance. To harness the flow of federal investment into housing, a strong housing minister must be appointed who can advocate and co-ordinate expenditures from other departments. Research and Informa- tion and enabling actions will be the primary policy mechanisms.

Conclusions

The changing role of the Canadian federal government is clear through recent develop- ments. The trend to work through other ministries and sectors through joint action will require a shift in operating methods and policy instruments. There may be some losses in efficiency and greater risk of unachieved housing goals. However, there are oppor- tunities as well. It remains to be seen if the Canadian government rises to the challenge.

References

Battle, Ken & Sherri Torjman (1993). Federal Social Programs: Setting the Record Straight. Ottawa: Caledon Institute of Social Policy. Brink, Satya (1993). Shifringgfro Public to Private - Housing Policy Under New Political Realities. Paper presented at the ENHR conference "Housing Policy in Central and Eastern Europe in the 1990's: Transformation in the East, Transfe- rence from the West" 7 - 10 September 1993. Budapest, Hungary. Canada Mortgage and Housing Corporation (CMHC) 1992. Concentration of Wealth through Ownership. Research and Development Highlights, Socio-economic se- ries, Issue 8. Ottawa: CMHC. Canada Mortgage and Housing Corporation (CMHC) 1991. Strategic Plan. 1992 - 1996. Ottawa: CMHC. European Foundation for the Improvement of Iiving and Working Conditions (1992). Out of the Shadows - Local Community Action and the European Community. Dublin. Finance Information. Department of Finance (1993). OECD (In press). Housing and Social Integration in Cities. Paris. OECD (1993). Urban Policies for Aging Populatiom. Paris. Ray, Randy (1993). "It's a smash hit - Federal mortgage program exceeded all ex- pectations, helped thousands to buy." The Citizen Sept. 25, 1993. Ottawa. Home-owners in Distress: Financial Deregulation and the Crisis of the Finnish Housing Model

Hannu Ruonavaara

Owner-occupation is the major type of housing tenure in Finland today. In 1991 72 per cent of households were owner-occupiers (Housing construction 1993:19, 132). Owner-occupation is also the majority tenure in all socio-economic groups although it tends to be more common among households of higher social positions than among those in lower (Ruonavaara 1989). There are two forms of owner-occupation in Finland: ownership of houses and ownership of condominiums. Condominiums are usually flats in blocks of flats. The condominium is a more important form of housing tenure in Finland than in many other countries: in urban communities most owner-oc- cupied dwellings are condominiums. In any society where owner-occupation dominates the provision of housing the opportunities for acquiring credit are central to the life chances of people. So whatever happens in financial markets in general and housing finance in particular will have a considerable impact on people's housing conditions and housing careers. As a steady flow of income for owner-occupier households is also essential to keep them in owner-occupation, the development of the labour market is equally important. Conside- rable changes have recently taken place in both financial markets and labour markets in Finland. The impacts of the new mass unemployment on owner-occupation are not, however, discussed in this paper. Here I shall concentrate on the role of financial restructuring in the emergence of serious and unforeseen problems for a number of home-owners in the early 1990s Finland. The recent economic depression in Finland has deepened the home-owners' distress but at this stage it is too early to evaluate its impacts. Usually home-ownership is not linked to any crisis situation at all. In most societies being a home-owner is seen as a happy state of affairs and not any sort of misfortune. Much of the everyday thinking about owner-occupation in Finland and elsewhere is characterized by what can be called the "stake in the country" theory of home-ownership. By stake in the country theory I mean a view that tends to see home-ownership as a source of economic gain for most (if not all) of the households who have managed to enter the tenure. This view sees home-ownership "as a sound financial investment, a hedge against inflation and a potential source of capital gains as prices rise" (cf. Hamnett 1993, 5). Stake in the country theory can be found also in the academic discourse. The most evident example is Peter Saunders' book '!A Nation of Home Owners" which strongly argues that the majority of British owner-occupiers have gained fiom owner-occupation and that this state of affairs is likely to continue in the future (1990, chapter 3). Saunders' argument was made in the context of the mid-1980s house price boom in Britain. However, in 1989 the volume of sales and house prices started to fall steeply, and now it is estimated that there are 1-1% million owner-occupiers with negative equity in Britain (Hamnett 1993,6). Much the same has happened in Finland. Here also the rise and fall of dwelling prices drove a lot of people into serious difficulties.

Financial Restructuring and Housing Finance

Housing finance in Finland is provided mainly by two sources: the banks and the State. For example in 1986 the banks provided about two thirds of housing finance, the public sector about one quarter, and the remainder was provided by insurance companies and other financial institutions (Salo 1988, Table 2). A special feature of the Finnish housing market is that specialized housing finance institutions have had only marginal importance and banks have financed both business and household consumption. The banks are also a far more important source of housing finance than the State which has granted only secondary loans for housing. To be able to receive a State housing loan for a detached house or a condominium the household must secure a primary loan fiom a bank. In the late 1980s significant changes in housing finance took place in Finland. The terms of access to owner-occupation changed because of the deregulation or, as Doling puts it, restructuring (Doling 1989, 2'75-2'7'7) of the Finnish financial markets. During the post-war period until the 1980s the financial markets in Finland were under State regulation. From 1983 on, the Finnish system of finance was reorganized The econo- mists refer to the change as a shift from credit rationing to a market-based system. In the "old" financial market the administratively determined low interest kept the demand for finance (in the economists' view) artificially high and the banks had to do the gate-keeping. In the new system the interest was to be determined by supply and demand and it was thought that the interest rate would cut the extra demand for credit. Before the restructuring the regulation policy guaranteed a stable and relatively low level of interest (Korkman & Vihriala 1989, 271, 284). The instrument for regu- lation was the central bank's (The Bank of Finland) base rate to which nearly all loans were tied (Kuosmanen 1988,5). The deposit banks' average lending rate was around 10 per cent from the 1950s to the mid-1980s. In conditions of high inflation (especially in the 1970s) the regulated interest rate pushed the real rate of interest into a negative rate. When tax benefits such as the right to deduct interest payments from income are taken into consideration the real rate of interest in housing loans was very favourable indeed for the borrowers (see e.g. Salo 1988, Chart 2). The regulation of interest rates of new loans was removed by 1986. This pushed the rate of interest up. Some of the regulation of old loans was, however, preserved: their interest rate was now determined by the base rate. After deregulation the average interest rate for all loans began to increase from the previous 10 per cent level and was, at its highest, above 14 per cent. Data on average interest rates of new housing loans is available only for 1989-92. The average rate of interest in housing loans was slightly lower than that of all loans. However, this is mostly due to housing loans linked to the base rate. In the end of 1991 still 65 per cent of all housing loans were tied to the base rate (Ahlqvist 1992, 24). Their lower interest pushed the average down. The market rate housing loans have had higher rates of interest than that of all loans in average. For example in loans linked to HELIBOR index the average rate of interest has frequently exceeded 16 per cent between 1990 and 1992. (Bank of Finland Bulletin 411990; Bank of Finland Notification no 411990, 311991, 1211991; Bank of Finland Statistical Review 1211992.) The deregulation of financial markets also meant that requirements of advance saving were relieved and banks began to compete by offering long term housing loans for 20 years or more (Loikkanen 1989, 357). Earlier, the terms of the loan had not differed much from bank to bank. In the old system the private sector housing loans were in international comparison disadvantageous in Finland because of short repayment times and high savings requirements - though low interest rate partly compensated for these disadvantages. During the regulated system the banks required that &st-time home buyers have advance savings of up to 30-40 per cent of the purchasing price of the dwelling before granting a loan, and in trading dwellings the required proportion was often 50 per cent. (Loikkanen 1989,357.) Loans for longer repayment time than 10 years were rare. In such a system the life-time housing costs tend to be the heaviest in the early stages of the life-cycle but the pressure is over in about 10 years. According to Loikkanen, the peculiarities of the "old" Finnish system of housing finance produced certain irrational features in households' housing choice behaviour (Loikkanen 1989, 356; also Doling 1989, 276). The short term loans compelled households into underconsuming housing, purchasing small and relatively cheap dwellings instead of dwellings meeting the requirements of the household. Households later tried to reach their target form of housing by trading up to larger dwellings. The constant movement up the housing ladder increased transactions and thus heated the housing market. It was hoped that a system with longer period housing loans and market rate interests would have the advantage of making it possible for more house- holds to acquire their target form of housing at the first buy. The actual consequences of financial deregulation on the housing market did not meet these optimistic expecta- tions.

The Boom and Bust of Dwelling Prices

In Finland dwelling prices have followed the development of the financial markets rather closely (Koskela, hikkanen & Viren 1991, 10 and Figure 4). When loans have been easily available, the prices have tended to rise and when lending policies have been tight, prices have gone down. This was also the case in the late 1980s. The , deregulation of the financial markets made it easier for households to get credit. Especially important was that banks relieved their advance savings requirements. Even 100 per cent housing loans were suddenly available. The easy availability of credit and the growing demand for housing fuelled a spectacular increase in dwelling prices. The price boom lasted from 1987 to the summer of 1989. Dwelling prices reached absolute top levels in Helsinki where average price in the second quarter of 1989 was 12,705 FIM/m2 for a flat, and 11,451 FIM/m2 for a dwelling in a row house (Housing 1990:1, table 3). In the country as a whole the price level was considerably lower: the average price of a flat was 8,375 FIM/m2 and of a dwelling in a row house 7,249 FIM/m2'. Though the public discussion on this dwelling price boom focused on the outrageous prices in the Helsinki area, the price inflation there was not proportionally the highest. During 1988 the prices increased in Turku by 53 per cent whereas in Helsinki they increased only by 41 per cent (Kiirkkainen & Tiitinen 1989, 91). Howe- ver, the prices there were 4,000 - 5,000 FIM lower than in Helsinki. The development of prices is described in the next chart. The price boom was followed by an equally spectacular bust. After 1989 the dwelling prices took a deep dive down. By early 1993 the real prices were well below the 1983 level. In the Helsinki Metropolitan Area the decline of dwelling prices was the biggest: in early 1993 the average prices were about 60 per cent lower than in 1989. The average prices in the whole country were about a half of what they had been. The number of sales went down, as well. According to statistics based on a tax register the number of sales of condominiums dropped between 1988 and 1990 from 88,000 to 47,000 (Housing 1990:2, Table 1; Housing 1992:4, Table 1).

' In Finland dwelling prices are always calculated as prices per square meter. 287 Figure 1: The Development of Real Prices of Dwellings in Blocks of Flats 1983 - 1993~

Source: Housing 1993:2, Table D.

The development of prices was reflected in dwelling construction - after a lag, however (see Figure 2). Part of the explanation for the price bust lies in the vicious dynamic between price development and new building. The years 1986-1988 were a relatively quiet period in housing construction: only 42,000 - 46,000 dwellings were completed. As prices went up the developers were encouraged to produce more. In 1989 58,000 new dwellings were completed and in 1990 when prices had already started to go down more than 65,000 new dwellings were produced. The developers reacted to the changing market and production started to decline so that in 1992 only 37,000 dwellings were built. Two thirds of dwellings produced in 1992 were State-financed new production. During the peak years of house building the State financed less than 30 per cent of all the new building (Housing construction 1993:19, 8). So most of the new production during the dwelling price boom was by speculative developers. During the building boom a large number of new building companies were founded. When housing markets collapsed, the number of bankcruptcies increased in the building branch. For example, in 1991

The statistics cover only the transactions handled by estate agents which amount to about 30 per cent of all transactions. The difference between this and taxation statistics on all sales is not significant. Figure 2: Dwelling Completions in Finland 1980 - 1992

Source: Housing construction 1993:19, 28. building company bankruptcies increased by 60 per cent in comparison with 1990 (Housing construction 1992: 19, 6). The price boom ended a situation which had been very favourable to consumers. Hyrkko and Lehtinen have compared the development of dwelling prices to the development of wages during the period fiom 1970 to 1989 (Hyrkko & Lehtinen 1990, 26-27). They did this by calculating for each year how many hours an average industrial worker would have to work to get the same amount of housing (measured in square meters) of average price. According to their analysis, dwellings became in real terns cheaper up to 1987. In the whole of Finland dwellings were 16 per cent and in the city of Tampere as much as 25 per cent cheaper in 1987 than in 1970. The price boom ended this highly favourable situation for the consumers. By the end of 1989 the real prices of dwellings had increased by 21 per cent in the whole of the country and by 42 per cent in Helsinki.

Household Debt

One effect of the liberalization of access to finance and the price boom in housing was an increase in household debt. It was not only the availability of credit but also the general economic climate that increased indebtedness. During the 1980s Finland experienced an economic boom: growth of the GNP reached record levels and the unemployment rate was exceptionally low. In the end of 1988 when household debt increased most rapidly, only 4 per cent of the labour force was unemployed (Ahlqvist 1992, 74). During the economic boom, Helsinki Metropolitan Area in particular, experienced an unanticipated flow of migrants as new economic activities were concentrated there. This happened in some other urban areas, as well, and is reflected in population statistics: in the province of Uusimaa (where Helsinki is located) the population increased by 110,000 during the 1980s while in the whole of the country the increase was 190,000 (Ahlqvist 1992, 20). The flow of migrants into urban centres naturally created demand for housing - which in a home-owning society like Finland is immediately transformed into demand for credit. In the late 1980s optimism about the development of the economy was high and people believed that their own economic well-being would be improved, as well. This encouraged households to take loans and borrow larger sums of money than was usual before. Also groups that previously had had difficulties in entering owner-occu- pation, like one-parent families, became suddenly interested in buying a dwelling (Marja-aho 1993,30). According to the "Consumer ~arometer'"there was a declining trend in the proportion of households intending to buy a dwelling fiom 1988 to 1992. In the whole of Finland the proportion dropped fiom 9 per cent in November 1988 to 4 per cent in August 1992. In Helsinki Metropolitan Area the percentages were higher than in the whole country which reflects greater demand for housing in that area.There more than 12 per cent of respondents intended to buy a dwelling in late 1988 and the proportion declined to 6 per cent in six years. (Income and consumption 1991:2; 1991:6; 1992:6; 1992:ll; 1992:14 and 1993:2.) As more funds were available and people were willing to take loans, household debt increased. The percentage of disposable income allocated to household debt inc- reased fiom 68 per cent in 1987 to 84 per cent in 1989 (Ahlqvist 1992, 34). Most new debt was for housing, though other kinds of debt for consumption increased propor- tionally even more. The next two tables show the average household debt of households by age and socio-economic group in 1987 and 198g4. The focus is on housing loans and consumption loans are included in the tables only for comparison (there are other kinds of loans omitted from the table). The idea is to compare debt for "necessary" consumption (housing) with debt for "less necessary" consumption (cars, household technology, etc).

Information about the changes of economic expectations among Finnish people can be found in the Consumer Barometer which is an opinion survey made by Statistics Finland. First twice and then four times a year 1.500 Finns aged 15-74 years have been interviewed about their views on the economy, intentions to make major purchases (like buying a dwelling or a car) and to take loans or to save money.

At the time of writing more recent information was unfortunately not available. Table 1: Average Debt of Households by Age of the Head of Household in 1987 and 1988

Source: Income and consumption 1990:2, Table 4.

In the entire population housing debt increased by one quarter but consumption debt increased even more. However, as can be seen in the table, consumption debt is, on the average, rather small in comparison with average housing debt. It is no surprise that 25-34 and 36-44 age groups are most in debt. In these two groups and also in the 45-54 group the housing debt increased by about one fifth. The two groups having the highest housing debt also have the highest consumption debt which is somewhat surprising. The "necessary" consumption does not seem to precede the "less necessary". Table 2 on the next page shows the differences in debt by socio-economic group. Farmers' housing debt is very low, so probably most of them are outright owners (in their case also the consumption debt is low). These most deeply in debt were whi- te-collar workers, the group whose rate of owner-occupation increased the most between 1976 and 1985 (see Ruonavaara 1989). Their housing debt also increased substantially (in this group the consumption debt is also high). Either still more of the upper white-collar workers are becoming owner-occupiers, or the existing white-collar home-owners have started trading up. In the lower white-collar groups the increase of housing debt was relatively low but that of consumption debt high. Bluecollar worker households had a low average housing debt, however in this group the debt increased the most. Table 2: Average Debt of Households by Socio-economic Position of the Head of Household in 1987 and 1988

Source: Income and consumption 1990:2, Table 3.

The above tables are about the development of average debt. In her study on housing debtedness, Ahlqvist has also examined the development of the number of debted households in various age and socio-economic groups. She singles out young workers and lower white-collar employees on one hand, and middle-aged workers and upper white-collar employees on the other, as the groups in which the number of debtor households increased the most. The younger groups were mostly first-time buyers whereas the older groups were trading up. Ahlqvist notes that especially in the higher white-collar group the proportisn of debted households remains on a comparatively high level as age increases. She interprets this as a sign of a longer housing career for upper white-collar households than for other groups. It takes longer for them to reach their target form of housing. (Ahl.qvist 1992, 39-40.)

The Impacts of the Boom and the Bust

After financial restructuring the owner-occupied market in Finland became a harsher place than it had been before. Households paid real interest to banks for the first time since the 1960s. Especially in the 1970s inflation made borrowing money from a bank a profitable affair as the rate of inflation was higher than the rate of interest. After restructuring the situation was very different as the interest rate was higher than before and there was not much inflation. In Finland the costs from housing loan interest are partly compensated by tax benefits such as the right to deduct housing loan interests from taxes. However, since 1986 the governments have continually restricted such tax benefits by diminishing the portion of loan interest deductable (Ahiqvist 1992, 75; Kosonen 1993, 3-4). So, it was also the tax benefits cushioning the effects of high interest rates that were not as good as before. In public debate the young were seen as the losers in the boom period housing market. The housing price boom made entering the market extremely difficult for young people. As home-ownership dominates the Finnish housing market, this created serious obstacles to leaving the parental home and starting independent life. Private rental dwellings were either not available or too expensive. And young people are rarely eligible for public rental housing because living with parents is not usually considered homeless (which is what puts the applicant at the top of the waiting list). In 1989 a working group appointed by the Ministry of Environment estimated that purchasing an owner-occupied dwelling in urban areas on the private market was a sheer impossibility for most young people (Nuorisoasumisen tyoryhma, 51). The decline of dwelling prices can thus be seen as a positive development for the young. All fist time buyers benefit from the low price level. But there is also one other positive development. The supply of private rental housing recovered from a long-term downward trend. Because of the stagnation in the housing market developers were left with a lot of unsold dwellings. It was estimated that the number of unsold new dwellings in Finland was in 1990 about 15,000 and in 1991 14,000 (Summa 1991, 6; Ahlqvist 1992, 22). These figures mean that approximately a quarter of all dwellings completed in those years remained unsold. As it became increasingly costly to keep the dwellings empty the developers put them in the rental market. The change in rent regulation policies has also made property owners more eager to become landlords: rent controls were terminated at the beginning of 1992. This increased the flow of rental dwellings on the market and stopped a long-term trend: all through the post-World War II period the proportion of rental dwellings had been declining (Construction and housing 1992:19, Table 16). However, the recovery of the rental sector may be a short one: it is expected that the new rental stock will be converted into owner-occupation as soon as prices really start going up again. The sudden collapse of the owner-occupied market meant serious difficulties for many households in Finland. Cases of households in the "two-dwelling gapNwere documented in the media and there is also a small study analyzing 14 cases of such situations (Jarva 1992). A two-dwelling gap means a situation in which a household intending to sell its old dwelling and buy a new one with the income from sale and a housing loan is left with two dwellings and one or several high-interest housing loan(s). During the dwelling price boom many households took loans and purchased new dwellings before they had managed to sell their old ones. They believed that the market would thrive and that they would have no difficulty in finding a buyer and getting the price they expected. When this belief proved false (a buyer could not be found willing to pay a reasonable price), they ended up in serious difficulties. As they had often taken short-term and high-interest loans to finance the purchase of the new dwelling they needed desperately to find a buyer. In many cases the attempt to trade up resulted with the household being forced to trade down. Jarva documents cases where the unhappy process had cost the household in loan interest payments, costs fiom various transactions and loss of savings hundreds of thousands of Finnish marks. What is interesting in Jarva's study is that all of the cases she investigates are households which in normal circumstances would have been relatively well-off (see Jarva 19h, 15-18). Most of the households interviewed had slightly higher income than average. Most of the household members were fairly well educated and worked in upper white-collar occupations. Jarva's cases certainly do not represent all the households caught in the two-dwelling gap but they do demonstrate that the problem concerns also those who because of their economic and human resources cannot be considered as the weakest in the housing market. After the dwelling price boom, housing loan default has become a more common problem than before. In Finland there is little systematic data available on the extent of the problem. Apart fiom Jarva's case study the only research report on households in housing loan arrears in Finland is a pilot study made by Paula Timonen (1992). It is based on somewhat limited data. Though the study concerns only a sample of house- holds in default, Timonen estimates that all together there were in 1991 25,000 - 30,000 households in serious housing loan arrears in Finland (Jarva 1992, 26). She divides households in arrears in two groups. Households in an uncontrolled default were those who were more than 90 days behind their loan payments and who had not been able to reach an agreement with the lender on how ,the default would be paid back in the future. Also cases where the household had solved the situation by selling the dwel- ling were considered as uncontrolled. Timonen defines symptomatic default as cases where the household had agreed with the lender on postponing loan repayments for more than 90 days or where the household had taken a new loan to pay the old one(s). Households in arrears were divided evenly in these two groups. vimonen 1992, 15, 26.) The defaulters in Timonen's data were mainly blue collar workers (36 per cent) and lower white-collar workers (34 per cent) (Timonen 1992,18), so default cases were concentrated in the "lower" end of the socio-economic scale. However, in the Helsinki Metropolitan Area there were more upper white-collar defaulters than blue-collar. The most important reason for housing loan arrears was the loss of income caused mainly by reduction of work, unemployment or divorce. In the Helsinki Metropolitan Area excessive indebtedness was more important a reason for arrears than loss of income. There, 5-10 per cent of excessive debt was caused by the household being in the two- dwelling gap. (Timonen 1992, 18-19 and Tables 10-12.) The families in the two-dwelling gap or those ending in housing loan arrears are not the only losers. Everyone who bought his/her dwelling during the boom period has suffered losses as the prices of dwellings have gone down. Now it can be argued that these losses are not real for the owner-occupiers, only for the speculators. As home- owners sell their dwellings mostly to buy other ones to live in, the general decrease of dwelling prices does not considerably affect their chances to trade dwellings. If all prices have gone down, it does not matter if you get less from your own dwelling. This does not take into account the role of household debt. Those buying in the boom period have usually taken large high-interest housing loans. It is highly possible that what they would gain from the sale of their dwelling after they paid their loans would buy them less housing than the intitial capital (savings, etc) they had when they bought the first dwelling.

The Crisis of the Finnish Housing Model

Hilkka Summa (1991, 4-6) wrote that the developments in the housing and credit mar- kets meant that the basic model of acquisition of housing in Finland had entered a serious crisis in 1991. In Finland households have attempted to improve their level of housing mainly by trading up in the owner-occupied market. They have started their housing careers by buying small and inexpensive dwellings and have later tried to sell them and buy bigger and better ones. Before financial deregulation and the price boom, households could expect that getting the first owner-occupied dwelling would guarantee a slow but steady upward mobility in the housing career. The boom and bust of the owner-occupied market seriously undermined two presuppositions of the Finnish housing model. (1) Buying a dwelling cannot anymore be considered a safe start to a housing career as the development of real prices can also turn out to be negative. (2) The real cost of financing a dwelling is not easily anticipated anymore as more and more of the new loans are tied to changing market rates. In Summa's view this uncer- taint it y especially endangers the Finnish model. In 1993 the situation in certain respects changed from what has been described in this paper: dwelling prices started to rise slowly and interest rates came down. Ho- wever, the Finnish housing model is still in crisis. The continuing economic crisis in Finland is a new factor increasing uncertainty and instability in the housing market. In order to function the Finnish model requires that households have stable employment (usually for both parents) and that the future income development is foreseeable. The new mass unemployment and the spreading of the unemployment risk to all occupa- tional categories and also to the public sector undermine this prerequisite of the Finnish model. As stated in the beginning of this article, I shall not try to analyze the impacts of this new situation here. It is sufficient to note that the economic depression has effectively prevented the solving of the problems that emerged from the housing market developments in the late 1980s. Moreover, it has increased housing loan arrears and excessive debtedness.

Lessons to Learn

Is there any general lesson to be learned from the Finnish experience? What does the Finnish case teach the international housing researcher? I think that there are three lessons worth taking into account. (1) Non-housing policies can be far more important for housing conditions than housing policies. By housing policies I mean policies that are intended to have an impact on housing conditions. Financial deregulation was not such a policy. Nevertheless its impact on housing markets and conditions was far more dramatic than any innovation in housing policy made in the 1980s. Sometimes the policies that really shape housing conditions in a society but are not strictly housing policies are called a nation's real housing policy (Bourne 1990, xxiv), probably in contrast to a nation's nominal housing policy. At the level of research this means that in research on State and housing one should not focus only on explicit housing policies but also on other state policies relevant to housing. (2) Deregulating financial markets may have unexpected and disastrous conse- quences in the housing market, especially if the government policies fail to control borrowing and lending in indirect ways. The home-owner crisis was an unintended consequence of actions by the central actors in the the home-ownership markets. Banks underestimated their risk and were all too generous in granting loans. The developers misjudged the demand for housing and produced too much. The consumers had unrealistic expectations concerning their economic capabilities and the functioning of the home-ownership market. The government made a serious misjudgment in deregula- ting financial markets during an economic boom without any measures that would cool down the credit invasion. The role of economic policy is central here. Economists have pointed out that if taxation measures had been used to cut the extra demand for credit, the problem would perhaps not have become so big (see e.g. Summa 1991, 21-22). (3) The "stake in the country" theory of home-ownership is not universally true. me Finnish developments in the late 1980s and early 1990s contradict many of the usual beliefs of the benefits of owner-occupation. Owner-occupation did not prove to be a good investment, prices went down fast. Owner-occupiers who bought their dwellings in the late 1980s are now in such a situation that, were they to sell their dwellings and pay back their loans, they would end up with much less than the original savings they had. Many would end up with negative equity. Dwelling buyers of the late 1980s would be very much better off if they had kept their money in the bank. The Finnish experience also casts doubt on other beliefs on the benefits of owner-occupati- on. It is probable that the Finnish people's trust in the security of owner-occupation has been eroded as the increasing housing loan default has resulted in forced sales and compulsory auctions. These last points are well in accordance with the constructivist view of housing tenure (see Ruonavaara 1993). According to the constructivist view, housing tenures have no natural properties but their properties derive fiom the context in which they exist. The costs and benefits attached to certain housing tenure depend on specific institutional arrangements, market situations and other historically specific circums- tances connected to the tenure. Universal judgments on the characteristics of tenures are valid only on a very general, ideal typical level. There might be some characteristics which are fairly invariant in all forms of owner-occupation but the alleged capacity of owner-occupation always to bring economic gains to the owner is not one of them.

I I Transitional Housing Systems References

Literature

Ahlqvist, Kirsti (1992). Ibdinomistajaksi velalla. Kotitalouksien asunnonhankinnan ja asuntovelkaantumisen ulottuvuudet. Statistics Finland, Studies 191. Helsinki. Bourne, Larry S. (1990). Introduction. In Willem van Vliet (Ed.): International Hand- book of Housing Policies and Practices. New York: Greenwood PressILondon: Westport. Doling, John (1989). Financial Restructuring and Housing Markets in Finland. Housing Studies, Vol. 4 (No 4), 267-280. Hamnett, Chris (1993). Home Qwnership: Safe bet or uncertain risk? ENHR Newsletter 2/93, 5-6. Hyrkko, Jarmo & Lehtinen, Ilkka (1990). Asuntomarkkinoilla kuplii. Hyvinvointikatsaus, 1/1990, 26-28. Helsinki. Jarva, Vuokko (1992). Asunnonvaihdosta asumiskriisiin - Muttajanmcojan musta aukko. Kuluttajatutkimuskeskus, Julkaisuja 1/1992. Helsinki. Korkman, Sixten & Vihrial$ Vesa (1989). Rahoitusmarkkinatja keskuspankkipolitiikka. In Heikki A. Loikkanen & Jukka Pekkarinen: Suomen kansantalous - instituutiot, rakenne ja kehitys. Porvoo Helsinki Juva: WSOY. Koskela, Erkki & Loikkanen, Heikki A. & Viren, Matti (1991). Housing Markets, Taxation and Financial Liberalization in Finland University of Turku, Depart- ment of Economics, Research Reports No. 9. Kosonen, Katri (1993). The Finnish Capital Income TuReform and the Housing Market. A paper presented at the Bostadspolitisk forskningsseminarium 27-29.4. 1993 in The National Swedish Institute for Building Research. Gavle, Sweden. Kuosmanen, Hannele (1988). The Role of the Bank of Finland's Base Rate. Bank of Finland Bulletin, Vol. 62 (No 12), 5-7. Kirkkainen, Sirkka-Liisa & Tiitinen, Virpi (1989). Asuinolot ja niiden kehitys. In Sirkka-Liisa Kirkkainen & Timo Matala & Virpi Tiitinen & Ari Tyrkko Asun- to-olot ja asurnisen tzdi. Central Statistical Office of Finland, Studies 155. Helsinki. Loikkanen, Heikki A. (1989). Asuntosektorin talous ja asuntopolitiikka. In Heikki A. Loikkanen & Jukka Pekkarinen Suomen kansantalous - instituutiot, rakenne ja kehitys. Porvoo Helsinki Juva: WSOY. Marja-aho, Pellervo (1993). Lapsiperheen asuntosuunnitelmat lamassa. Hyvinvointi- katsaus 1/1993, 29-30. Helsinki. Nuorisoasumisen tyiiryhma 1989. Helsinki. Ruonavaara, Hannu (1989). Socio-economic Position and Housing Tenure in Finland 1971-85. Scandinavian Housing and Planning Research, Vol. 6 (No 4), 229-243. Ruonavaara, Hannu (1993). Types and Forms of Housing Tenure. Scandinavian Hou- sing and Planning Research, Vol. 10 (No I), 3-20. Salo, Sinikka (1988). New Developments in Finnish Housing Finance. Bank of Finland Bulletin, Vol. 62 (No I), 4-8. Saunders, Peter (1990). A Nation of Home Owners. London: Unwin & Hyman. Summa, Hilkka (1991). Korot, hinnat ja amuztopoliti~.Helsinki: Suomen Asunto- liitto. Timonen, Paivi (1992). Asuntovelalliset - riskisfti kriisiin. Esitutkimus asuntovelkojen vuoksi maksuvaikeuksiin joutuneista kotitalouksista. Kuluttajatutkimuskeskus, Julkaisuja 211992. Helsinki.

Statistical Sources

Bank of Finland Bulletin 411990. Helsinki. Bank of Finland Notification no 411990, 311991, 12/1991. Helsinki. Bank of Finland Statistical Review 1211992. Helsinki. Housing 1990:l. Asuntojen hinnat 1989, 4. neljbes. Central Statistical Office of Finland. Helsinki. Housing 1990:2: Asuntojen himat 1987-1989. Central Statistical Office of Finland. Helsinki. Housing 1992:4: Asuntojen hinnat 1991. Statistics Finland. Helsinki. Housing 1993:2. Asuntojen hinnat 1992, 4. neljimes. Statistics Finland. Helsinki. Housing construction 1992:19. Construction and housing. Yearbook 1992. Statistics Finland. Helsinki. Housing construction 1993:19. Construction and housing. Yearbook 1993. Statistlcs Finland. Helsinki. Income and consumption 1990:2. Koti talouksien velkaantuminen ja varallisuus 1987 ja 1988. Central Statistical Office of Finland. Helsinki. Income and connunption 1991:2; 1991:6; 1992:6; 1992:ll; 1992:14 and 1993:2. Central Statistical Office of Finland/Statistics Finland. Helsinki. The Social Construction of Housing Systems - On Institutions, Actors and Actions in Changing Socio-Political Contexts

Ola Siksi6

Times, circumstances and socio-political contexts are changing. This goes for all sectors of society and their societal institutions, actors and actions. Consequently it is also true in the field of housing and when it comes down to defining, creating, ex- plaining and understanding institutional solutions, actors and actions within the housing system. In Northern Europe, governments, mainly with ideological and economical argu- ments, are withdrawing from the housing sector, dismantling housing policy and the institutions belonging to its implementation. In the southern European countries, governments, mainly by social reasons of necessity and with certain economic support from EU, are increasingly getting involved in the housing system matters. In Eastern European countries the development seems to follow the northern European model but the situation and the reasons are of a different character. If there ever was an Eastern European model for housing provision (Turner et al. 1992) - and it is arguable - this is now to be abandoned and something new is to be put into its place. The possibility of new institutions, new actors and fresh actions within the housing provision system is what could be discerned on the horizon in many countries - especially the former socialist ones. In all the mentioned cases however, we notice that the existing institutions within and around the housing system are at stake and we face - as sociologists and housing researchers - a most exciting, demanding and difficult task in this emerging development. It is a crisis alright, but it also opens up for a more untied and flexible way of looking at and analysing the processes we can see at present. It opens up for changes within the existing systems for housing provision and it presents - at least in theory - an intriguing opportunity for social construction of a new system for housing provision in those countries where the housing system has to be built anew (Harloe 1992). To express it sociologically: if society consists of a system of institutions and they in their turn could be seen as systems of norms, values and rules for behaviour and social action and man-made in their creation and change - then we have the opportunity - and duty - to study these changes in a social action perspec- tive or to put it in another way, to study the relation between social action and structu- ral change - in housing as well as in other sectors of society.

Theoretical Approaches for Understanding Society

In trying to understand the functioning of the housing system, or maybe rather, the system of provision of housing, two salient different approaches can be found'. The one is what could be called the realist approach which assumes that the world is inherently structured, differentiated and changing - or at least it has to be posited as such in order for us to make any sense of it. Realism asserts that there are in fact structures and powers which generate phenomena independent of our experience and access to such objects. In the case of housing, realism takes certain properties of housing provision as given. Housing provision is seen as a stable and fixed entity with a certain content concerning the institutions it involves and their relations ahd with certain advantages and/or disadvantages from the point of the actors in and between these institutions. The other approach, which I am going to concentrate upon here could be labeled the culturalist or the constructivist approach. Here the world is viewed not as having an inherent structure, but as a system of meanings which is culturally and historically variable. This view challenges the realist conception and underlines the changing nature of reality - even of housing systems or housing provision. The underlying foundation for a constructivist conception of housing is the fact that the housing system has no natural given properties, institutions or maybe even not actors, but are societal const- ructs and by that it is dependent on cultural, social and historical relations, conditions and contexts. Constructivists, of course, do not deny the existence of a reality "out there", but they argue that it is one which is entirely socially created. In place of realist "laws of history" constructivisti seek a hermeneutic understanding of the social construction of social relations - including relations resulting in housing. So, let us then look at the concept of social organization and social institutions in housing provision.

In his article from 1993 on "Types and Forms of Housing Tenure", Hannu Ruonavaara uses the same distinction - even if he labels what I have called "the realist approach" , "the essentialist approach" - but tries to combine them. He develops an interesting discussion in favour of a fairly restricted "moderate constructivism" on two levels - "general types" and "specific forms" - and claims that it makes sense to compare cross-nationally national forms of tenure. This is because the general forms of tenure share certain inherent characteristics with regard to rights and duties, a view more in line with an essentialist or realist approach. The Principle Modes of Provision and the Housing Provision Chain - a Tool for Understanding the Changing Roles of Social Institutions in Housing?

The principle modes of providing any societal service could basically be said to consist of the following three: State, Market and Community. They all represent different ways of provision respectively and consequently they are built up by different sets of social, legal, economical and political institutions. They have different modes of regulation depending on the different structural features belonging to each and every one of them. And they have different effects - positive or negative - concerning the societal conditions for the actions and actors in their respective implementation. To put it all in a figure:

Table 1: The Principle Modes of Provision

How could we then try to genuinely understand and compare the historical and the current development in the former socialist countries with the situation in other coun- tries? In other words: How would we be able to compare systems for housing provision and the connected institutions and actors - in different societal contexts? And how could we - at least analytically - start to think about what it might be and what should be required instead of the old state dominated provision in these countries - if we at all ponder about the other forms of social organization and social provision - and what kind of housing institutions that could be developed in and between these ideal-typical forms2? To illustrate what I mean I will use a model for "mehousing provision chain" as it has been presented by Peter Ambrose (1991). The model, or rather as I would like

Here I use 'ideal-type' and 'ideal-typical' in the classical Weberian sense of using concepts for analysis of social phenomenon where salient features are emphasized even if they don't necessarily have a factual independent existence in social reality. to call it the framework, is developed and designed to help to make meaningful comparisons between different housing systems. The central argument for the chain is that housing provision should not be seen as an undifferentiated process. Instead it needs to be conceived as a linked sequence of events. The provision and use of a housing unit breaks down into five stages: 1. Promotion - the act of initiating the scheme. 2. Investment - the input of money to assemble factor inputs. 3. Construction - the actual phase of production. 4. Allocation - who will live in it on completion. 5. Subsequent management and use - including maintenance, possible conver- sion, reallocation and eventual termination and demolition.

These five stages from idea to consumption are the processes of provision and use. Each can be carried out by a number of social institutions, from family to political and financial institutions and consequently also by different actors - from the individual self-builder to transnational enterprises.

Figure 1: The Housing Provision Chain

Economic Factors Demographic Factors Assessment of Demand

"" - .w &w; ,NON-DEMOCMTICALLY ACCOUNTABLE-m~w~~~~~~~~~R:

Voluntary of Finance Construction Promoters plus Subsidy Companies

I I I

SUBSIDY INPUT

I I

Slate of Assessment of Need Housing Need The stages of the chain are rather uncomplicated. The production of any housing unit requires first (Stage 1) that some person or institution decides it should be initiated. In modern societies this means to obey to the local land use planning and zoning regula- tions. Then money (Stage 2) has to be found to purchase land, labour, materials to make the unit. Followed by these inputs combined in the construction process (Stage 3) into a usable unit. At this point some kind of allocation process (Stage 4) comes into being, to decide on who should be the first to occupy this unit. Subsequent to this there is the period of use (Stage 5) during which the unit needs maintenance, repair, renova- tion and maybe conversion. This last stage might last for 60-100 years and the unit may turn back to the stage of allocation in the chain of provison several times during these decades. However, this is a description of the normal stages in a rather embedded chain of housing provision. The point I want to make is the fact that human actors and societal institutions determine the events in all these stages. From this analytical point of view it makes no difference and has no real meaning to distinguish between "public" and "private" unless the institutions and actors in the different stages of housing provision chain have to rely on different norms and to act differently according to construction, financing or allocation depending on whether they provide housing within the public or the private sector. In the light of the ideal-typical modes of social organization and provision of course we could see some important differences and limitations with respect to the framework: (i) In the case of state provision and only state provision it is represented by two ideal cases. The one is the democratic state where all decisions are Democratically Accountable @A) and the Non-Democratically Accountable sector (NDA) vanish or is at least considerably diminished3. The other statist example consists of the correspondence to the socialist state manner of housing provision where the non-democratically accountable private sector (NDA) is in principle not present and the democratically accountable public sector (DA) has to be renamed into only the state sector.

(ii) The market mode of provision should result in a housing provision chain where the DA sector plays no important part with regard to housing or nothing else either, when it comes to societal provision. In this case certain public social institutions and actors are squeezed out of the system and housing provision is left in the hands of

This is an ideal-typical example in the sense that it emphasizes salient features, but has no total direct correspondence in reality. the market institutions and their actors concerning initiation, finance, construction, allocation and maintenance4.

(iii) The community model for social organization and provision relies heavily on the community and the small scale solutions and their corresponding social insti- tutions. Family, kin and self-provision are salient features in such an implementation and it comes close to a model of small scale cooperative solutions for provision of housing in society.

Privatisation

In quite a number of countries fundamental changes are happening in housing policy and provision. In Britain the basic shape of the system has been profoundly changed by a prolonged dose of neo-liberal policies during the 80s and 90s (Forrest & Murie 1993). In Sweden, fiscal and administrative changes are undermining the long-lasting ideas about level and form of support for housing. These changes are also fueled by neo-liberal ideologies (Teeland & Siksio 1993). In The Netherlands there has been considerable sale of public housing stock (Priemus 1992) and in West Germany more and more rented housing has passed out of the German system for rent control (Skifter Andersen & Munk 1994). But the most fundamental changes have occurred in the former socialist countries in Eastern and central Europe (Turner et al. 1992). It is a heterogenous group and it is obviously not correct to assume the countries in Eastern Europe to be identical even if they during four decades until 1989 had some certain common features in their housing policies (Clapham 1993). In cultural and economic terms however there was not much in common between Poland and Bulgaria or Romania, not to mention GDR in this respect. The similarities then consisted of the fact that these countries all had a high degree of centralised administration concerning housing, especially in relation to financing and construction, that allocation was according to some recognized space standards, that security for tenants was high, that prime form of provision was flats built by prefabricated panel techniques and most rents were subsidised to guarantee afforda- bility. So concerning housing provision in these terms the principle mode was the state model and the underlying idea was part of the egalitarian post-war philosophy in

This development is what we have recently started to experience in Northern and Western Europe today and it is the interpretation or implementation of the housing provision chain being so much promoted in eastern parts of Europe. the socialist countries that certain essentials - education, health-care and housing - were a constitutional right and should be provided for free or at a price only taking an insignificant proportion of income. And still it became so completely wrong! Maybe partly because what was rather true concerning housing policy was a lie in relation to tenure patterns. In 1989 the G.D.R. had about 54 per cent private ownership while Bulgaria had 85 per cent, Hungary 75 per cent and CSFR 46 per cent. So within the socialist sector of housing, there existed a socially created institution of ownership, with its nationally specific history, rules for access and implementation. Yesterday in the state provision system those countries had the problems with highly centralised inefficiencies, paternalism, overcrowding as a result of tight space-standards and a corrupt practice. Today many observers in the transitional countries see "thefiee market mode" as the cure for all these demanding conditions. They have, however, until now just started to reach the Western experience of "market failwes" in the form of speculation, high rents, repossessions and homelessness on a growing scale. In the context of the discussion about privatisation, it is important to be aware that both the state and the market can be involved to different degrees and in different ways at all stages of the chain. There is not only one kind of market, there are different kinds of markets where the mix of private and state intervention could be a decision for the market as a whole or be concentrated into certain sectors or services in societf. In the housing sector any specific unit may have been produced with an infi- nitely variable mix of public and private initiatives, support and subsidies and efforts. The extreme cases could be a self-built unit in Greece or Bulgaria, unofficially pro- moted and built using personal savings and the other extreme, a pre-1989 state pro- moted unit in GDR with all stages exclusively public. Concerning the mix between state and market - between public and private - it is important to remember that even when we are talking about massive privatization schemes most countries in Europe still have a considerable stock of rental and even social rental housing and consequently even in those countries where government involvement is declining, the level of state intervention in several stages of housing provision is still significant. In political declarations, state responsibility is "out", concerning housing reality it is still - partly by necessity but nevertheless it is - "in" from a consumer point of view. But beware of mixing up privatisation of housing with the market or marke- tisation. The extent to which schemes for selling public rental dwellings include huge

Examples are Switzerland, the prime capitalist country, where the state still has full responsibility for e.g. transportation and also intervenes in the housing system via subsidies to a social rented sector, and China where the state has full hegemony but allows private economical solutions for small scale production and trade and joint industrial enterprises with western investors. discounts - and this has been the case everywhere, as far as I know fiom Britain to Bulgaria - this is not a market determined price or a market solution. It is, at the best, an artificial market solution - brought about by ideological and economic considerations and economically it deeply involves the state and/or the municipality when it is implemented. In Slovakia a main tool in the transition to a market economy besides price- liberalization and currency convertibility is privatisation in different sectors of the economy (Michalovic 1993). With an "inheritance" fiom the former Czechoslovakia the privatisation takes three general forms being labeled "Small privatisation", "Big privatisation" and "Restitution" respectively. The small privatisation consisted of changing ownership of state-owned wholesale and retail shops, service industries and smaller units for production. The outcome of this was the (re)introduction of a new class in present Slovakia society. The "big privatisation" is still in progress and it is directed towards large scale state-owned enterprises and engages both national and foreign investors and investments. The pace in the process has however slowed down considerably after the split of the former CSFR into two independent states. The third general method "restitution" concerns the transfer of nationalized private property back to former owners. It concerns all kinds of former private property - also large industries e.g. Bata shoe-factories - and consequently it applies to houses and housing as well. Following this it is easy to recognize that the privatisation process invades and permeates all spheres of life. Within housing the development is closely connected to development in prices. In the beginning of the market economy there was a steep increase of prices in construction and real estate. The privatisation in the housing sector has three focal points: (1) the existing housing stock - the consumer prespective, (2) the reshaping of housing companies - the construction perspective, (3) the reshaping of housing services - the management and maintenance pers- pective.

From the sociological perspective it is easy to conceive promotion of privatisation as a kind of societal change which will have serious repercussions on the existing set of social institutions involved in housing provision. Privatisation of the existing housing stock is governed by three legal instru- ments: First, it is carried out under the new law on restitution. Seconcl, under the recent law on housing ownership, where every municipality who 'inherited' the former state-owned flats - has a right to decide on selling their flats to sitting tenants at a regulated and heavily discounted price compared to the market price. Calculation of selling price is based on construction costs, deducted by an amortisation with respect to the age of the building. The price does not take into account either locality or condition or amenities - and consequently it does not reflect attractiveness or demand in real market terms. The law prescribes a general 30 per cent discount and favourable conditions of payment - 85 per cent of the sum by installments over 10 years without interest. By paying 70 per cent of the calculated price the discount is extended by another 10 per cent. The outcome of this price-setting is that the selling price of an old attractive apartment in the city centre, built before the last war, is considerably below the price for a smaller flat built during the last decades in a peripheral location. ntir4 privatisation is carried out under the law of transformation of coope- ratives where every user of a cooperative flat has the right to apply for ownership. The financial conditions to gain ownership are in this case more favourable compared to the housing market prices although not as favourable as in the municipality owned rental sector. All in all it is predicted, as a consequence of all three forms of privatisation of housing that the share of owner-occupied dwellings in Slovakia in some years will reach 70 - 75 per cent which is comparable to the British situation. Privatisation of housing companies and services belonging to housing is not driven or underpinned by legislative changes. It is rather to be seen as a consequence of partly ideological, partly economical realities. The consequence, however, in terms of institutional change and new roles and professions within the housing provision system is tangible. And it opens up for a re-examination of the &finitions of meaning and roles of "state", "market", "individual"and "private" with respect to developing a greater range of options than now exist in the Western solutions concerning institutions, actors and actions in the different stages of the housing provision chain. The conditions for such a re-examination rest heavily on the development within housing policy in the respective countries. So let us turn to the field of housing policy and look at it with the sociological eyes being especially sensitive to changes and development in a social action perspective.

Housing Policy

The term ~olicy"is open to widely varying and often conflicting interpretations. Dictionary definitions include "the art of governmentn and "course of action". By combining the two, policy could then be seen as what governments do. It seems unsatisfactory though because it makes sense to speak of policies of organisations other than government. If we reserve the term "public policy" for the intentions and actions taken by government we narrow down the meaning and we can also conclude that "housing policy" on the national and local level is included in "public policytd. If public policy following this, can be defined as "the actions and positions taken by the state", then housing policy can be defined as actions and positions taken by the state in relation to housing. This sounds good enough, but what does it mean? Policies which have an impact on housing are often integrated parts of more general policies. Cuts in housing benefit may be a part of more extensive cuts in means-tested benefits generally or reductions in interest rates which could aim at reviving the eco- nomy in general but will also stimulate the housing market. So in analytical terms it is not possible to look for a specific housing policy and separate this fiom the wider context of state policy because it seems to consist of only a number of overlapping policy areas. Housing policy is then "embedded" in other aspects of state policy such as social policy, economic policy, fiscal policy, employment policy and possibly a number of other policies. What we generally do, however, when using the term "housing policy" is to describe a social construct - a set of generally agreed overlapping state policy areas which relate to housing. A suggestion for a classification scheme which contribute to making some pragmatic sense of the wide range of policy areas possibly included in housing policy could be as follows7:

Figure 2: Classification of Policies Related to Housing

Core housing policies a\ Built environment policies Wider policies related to housing involving housing

Public policy is usually seen as essentially pluralistic (determined by a set of competing actors) or essentially elitist (where policy making is separated from policy implementation). In both cases we see that the conception involves a set of institutions and actors defining and carrying out or just defining policy intentions and actions.

This classification is inspired by Somerville (1993) in his paper Exphining Hou- sing Policy. Core homing policies are those being directed primarily at housing relations. They include policies on residential land planning, housing design and layout, new housing construction, renovation and rehabilitation, repair and maintenance, housing finance, tenure change, housing needs assessment, homelessness, housing benefit, accessibility, management and consumer rights. Built environment policies involving housing are those policies directed at the spatial context of housing relations -i.e. area renewal or improvement, general land-use planning and environmental protection. They concentrate on the context as a whole while core housing policies to some extent abstract fiom the spatial context. Wider policies involving housing are those which may be called the social context of housing relations - income support, taxation, employment and unemploy- ment, community care, management performance, client/contractor relations, family. Housing is generally of minor concern in formulating such policies, but they frequently impact significantly and severely upon housing and housing provison. Core housing policies overlap with "spatial" as well as "social" policies in- volving housing. For example, land-use planning includes residential land-use planning and policies on income support overlap with housing benefit policies. But it does not seem enough to distinguish core housing policies fiom policies related to housing's socio-spatial context. Especially not if you are interested in the performance of the housing system in general and the change and creation of social institutions in a social action perspective. This is because core housing policies are in themselves many and varied - containing different sets of institutions and actors - and therefore a further subdivision seems advantageous in order to make the field theoreti- cally manageable. Coming fiom the side with an interest for existing and future institutions in- volved in housing and the related actors, two alternative typologies present themselves as useful, depending on what criteria one chooses to emphasize. The one is to go back to the housing provision process and chain - where the institutional aspect comes to the fore. The other is to concentrate on the professional or administrative-technical divisions - where legal-political institutions are present but the actor perspective is the salient one. The housing provision model for analysing core housing policies assumes a relatively coherent process of housing provision. We know it fiom before and the central argument of this approach is that each stage requires a particular set of policies and a specifically worked out balance of the activities of the state and the market, respectively. In other words, using this approach to discuss present and possible future policy intervention in housing relations, we need to know what social institutions and what actors are active in the play at every stage. This, I think, could be done with reasonable success. However it is not completely clear that housing policies fit neatly into the pattern expected by the structure of housing provision. In that sense it severely limits our original intention to analyse and compare the set of societal institutions and actors involved in housing in different socio-political situations. This difficulty also limits our possibilities to introduce new institutions and actors in the housing system in a clearcut and precise way. In practice, I think, those policies relating directly to each stage of the process will fit, while many others will not. If we concentrate upon and convincingly argue for the meaningfulness of studying the present and possible future institutions and actors for those fitting policies only, the provision model seems appropriate. That is why I talk about reasonable success above. However, by necessity, a lot of housing policies - and by that also a lot of institutions and actors in the housing system, will then be left out of the analysis. If we clearly see those non-fitting policies, and their attached institutions and actors as important for the development and change of the housing provision system, we must look for some other model for analysing the process8. The professional-administrative model makes no assumptions about structural coherence. Policies and policy implementations are distinguished according to whether they relate to the built form, to the rights of occupation and use, to the financial arrangements, to management of housing or to the satisfaction of housing needs. In this sense it clearly reflects the set of actors and possibly also institutions within the housing system i.e. the entities we are interested in. It sees housing policy as appropriated by organised institutional occupational groupings with actors determining the content and direction of it. In reality however, I don't think it is correct to assume that different professions - leave away their frenetic attempts - have been successful in their attempts to monopolize different parts of housing policy and making them provinces of single professions9. The problem with both models then seems to be that irrespective of the nice fact that they open up for an analysis of institutions and actors of the housing system they don't seem to differentiate enough when it comes down to the social reality of housing. Maybe then there is a case if we follow another itinerary and look at the social

For example, rent setting policies could be seen as investment-related (to provide funding), distribution or allocation related (easing lettability) or consumption-related (reflecting attractiveness and use-value of different types of housing).

Even highly technical policies such as housing benefit are in fact not only finance-related but also management related (associated with rent collection, rent- arrears and demand) and welfare-related (help to poorer tenants). Policies on housing and construction standards are not only physically-related but could be tenurely-related (only compulsory for a certain tenure), management-related (minimize future housing management problems) and in a general sense welfare-related (meeting the need for decent housing for most households). construction of housing systems, policies, institutions and actors from the point of the widely recognized, well known and disputed (Barlow & Duncan 1988; Ruonavaara 1993) concept of tenure with a view to its usefulness for comparisons and for its potential as a tool for discussing alternative development and change.

Tenure

Clearly many housing policies in the West - and East - are tenure related. Housing legislation is tenure based, housing management is tenure based, housing provision is promoted in different ways in the different tenures. In certain countries housing finance systems are divided along lines of tenure and tenure change figures prominently in policies on housing distribution. Being interested in the institutions and actors in the housing system there might be a good case to study them in relation to different tenures - existing as well as possible new ones. At present in most European countries - east and west - governments are promoting and stimulating private home ownership, thus reducing the theoretically in- finite range of tenure to only two alternatives - to own or to rent. By this they are also dismantling a number of social institutions formerly involved in housing and they are abolishing a number of actions possible to take within a housing system. By promoting a system for housing provision concentrated on owner-occupation, and consequently also changes within the already existing housing stock in terms of change of tenure - they leave a conception of housing provision which could be labelled the "general needs model" and turn into a conception of state responsibility only for the weakest groups in society in the form of a "residual model" for state housing provision. In the same manner they play down other forms - and the possible social institutions con~lec- ted to them - for housing provision e.g. different forms of cooperative solutions. This development takes place irrespective of its historical developmental context, irrespective of whether the housing markets in the different countries have been diversified before and in a way irrespective of the prevailing conditions for a successful change of the structure of housing provision and housing market in the dualist directions of owning or renting. The consequence however, is that ideas and solutions for housing provision on the one side of the mainstream-solutions have severe difficulties in finding their institutional form. As a result the tendency to structural determinism gains analytical ascendancy, possibly resulting in a uniform system for housing provision and probably also in a partly uniform set of problems within the housing sector. For the Eastern European countries it should seem clear that the West offers no ready-made solution to be imported to solve their problems but rather an offer to create a situation with problems very much like the ones that forced Western governments to take action within the housing sector. And as was said in the beginning, the similarities between the Eastern European countries concerning distribution and consumption of housing were not that salient before, so why should they necessarily be in the future? In this context it is important to point to the specific differences between the former G.D.R. and the rest. In the case of G.D.R. the reunion - or as it is sometimes called the annexation - meant that the already existing housing ,provision system of F.R.G. was introduced in one stroke. This being a rather typical Western housing policy product in line with the description given above of an embedded housing policy with complicated relations to other policies (taxation, social, family) and a network of laws, bye-laws, rules and regulations. This disappointing observation means that the conditions for launching a new housing policy - based on well considered objectives and equipped with appropriate social institutions and well chosen instruments - is more circumscribed in the Eastern part of Germany compared to the other transitional countries. From a constructivist point of view the noticed development, with decline of renting and the expressed preference for owner occupation - and today it seems to be a dominant policy preference - is not the inevitable outcome of either a particular configuration of power in societies such as capitalism, or the open manifestation of some kind of natural law of individual demand like ontological security (Saunders 1990). Rather, it is a socially constructed development through policy-making and in large part the product of the manner in which the rental system and in correspondence the system for owner-occupation, have been strategically modified over decades in many countries. Consequently there is no factual reason why the former socialist countries should restrain themselves to the existing Western development or forms when it comes to their efforts to develop a policy for housing provision in the new circums- tances, even if these circumstances are market-orientated and capitalist in an overall sense. Quite the contrary; if housing policy is seen as a social construct, this construct could contain solutions resting on historical and social conditions and experiences in every single national case. It should be possible to introduce social institutions in the housing system resulting in other forms of housing provision than the dominant Western ones. It opens up for a variety in the rental sector, as well as different kinds and sizes of cooperatives and possibly even a more variegated picture within the owner-occupied sector. It is a matter of thinking in a more liberated way, not restrained by the idea that there are only a limited number of already existing forms of tenure to be implemented and imported. In a way, already during the socialist years, certain Eastern European countries, like Bulgaria, developed a fom of state provided owner-occupation of a rather unique nature, meaning private use but non-profit. This form is now converted into a more streamlined form of Western owner-occupation during the process of privatization. In this process of thinking anew, it could be useful to pay attention to the distinction between unitary and dualist rental markets (Kemeny 1993). Both of them rest on the concept of cost-renting and the polar strategy use of such a system in different countries. In the former, unitary rental market, cost renting is used all over the rental market with no particular distinction between public and private rental sectors. In the latter, the dualist rental market, cost-renting is applied only to a residualised public rental sector whereas the profit-orientated rental sector has no specific regulations. The distinguishing characteristic of the dualist rental market, is the existence of parallel public and private rental systems subject to increasingly divergent forms of provision, hance and conditions for tenure. The unitary rental market system is seen to belong to the geographical sphere historically and culturally influenced by Germany (The Netherlands, Sweden, Swit- zerland, Austria, Germany, Denmark) and the dualist rental market system belongs to the Anglo-Saxon cultural sphere. The point is that even with this seemingly uniform outcome in the form of unitary rental markets among the welfare-states of the German sphere, the routes to this situation have differed considerably between the countries. In other words the social construct(s) leading to this unitary system have been very much country specific. It leads too far to go into details in this paper, but if we take the statement for granted it supports the constructivist view on the matter and it points to the importance to consider the cultural, social and political context in the social construction of new forms of tenure. So, what could be conceived when it comes to alternative forms of tenure for the emerging housing markets in countries trying to restore or develop a new housing policy? If we already from the start leave the common assumption that there are only four forms of "tenure": Public ownership, private ownership, private rental and public non-profit ownership, we are already a bit on our way. Other forms of tenure can be listed and, as social constructions, the content will vary widely depending on the economic conditions and the historic and cultural tradition (Marcuse 1992; Ruonavaara 1993). And last but not least the ingenuity among the actors and social constructors. But to give it a try we could start with the following set: Figure 3: Examples of Alternative Forms of Tenure1'

Ownership: - Individual ownership of single-family units - Individual ownership of apartment units in multi-family buildings for the owners own use, with a joint control and responsibility of common areas

Cooperatives: - Cooperative private ownership in any type of building, where the indivi- dual's right of ownership and use can be sold at a market price - Non-profit cooperative ownership, in which the right to sell for a profit is restricted or non existent

Rentals: - Non-profit publicly owned (national, state, municipal) - Employer-owned - Charitable organizations. - Private ownership for use by other than the owner i.e. private rentals

A Swedish Implementation

me Swedish National Association of Public Housing Companies (SABO) has developed a number of scenarios where public rental and combinations of public rental and cooperative solutions have been presented in a program on the future (SABO 1992). The interesting thing in this context is the idea of a kind of coexistence between cooperative and public rental solutions in financing, constructing and managing housing in the future. Scenario number one is 'business as usual' i.e. continue to run the public housing companies with decreasing subsidies and still offer decent, attractive alter- natives of housing for all groups in the housing market. Such an alternative obviously offers only limited possibilities of economic consolidation. Tenants' participation might

lo It may be important to stress the fad that it is only the examples given for ownership which contain a clear connection with housing design type. A single-family house is a separate unit and the condominium or shared-equity form means an owned dwelling in a multi-family building. The cooperative and rental examples have no such binding to type of housing. They could be implemented either in a single-family way or in a multi-family solution. There is of course a possibility to create an association of single-family houses with a joint responsibility for areas and services for common use, such as parking-grounds, walking-lanes and playgrounds of the estate. Such a mixed construction, however useful, loses its ideal-typical character and consequently I avoid it in this context. be developed but there is an obvious risk for increased social segregation and the development of a - today non-existent - 'social housing' sector in the Swedish housing market. This scenario contains no traceable increase in family-savings. A second alternative focuses on the household taking a certain economic responsibility, by tenants paying a deposit for the flat and also by an increase in the direct democracy in housing i.e. tenant participation. The solution discussed in this alternative towards privatisation is not individual ownership but conversion of rentals into cooperative rental tenure. Public housing companies are divided into smaller self-governing economic units called 'Resident associations' (Boforeningar) which rent 50-200 apartments and decide by themselves their service-level in maintenance and operation, and where to buy it. The MHC's still own the property (buildings) and take on responsibility for structural maintenance and operation in agreement with the resident association. It is not a solution for individual ownership and it allows no speculation or sale of flats because all resident associations must from the beginning agree to return vacated flats to the company for distribution. The cheap deposit paid by the household when moving in is returned and increased by an index rate when moving out. This second scenario contributes only marginally to economic consolidation of the company. Tenants' participation could be expected to increase in a tangible way compared to conventional solutions in rental tenure. The socio-economic segregation could be expected to decrease in a minor way because of the still existing deposit even if it is cheap and family savings would increase in a modest way. The third scenario contains conversion of public rentals into cooperative housing, individually owned. Here the building is owned by the cooperative association, the deposit varies according to size of dwelling and the member has the right to sell the apartment at a market price. Ln the discussion of this alternative the bad experiences of conversion and sales in Great Britain and The Netherlands are often emphasized. There is a risk in this scenario that the MHCs may sell or rather convert the most attractive parts of their housing stock and are left with the least popular or attractive areas. The MHC's are negative to a massive conversion of the whole public rental stock over a shorter period of time, even if this is considered partly to counteract a development towards dichotomization or polarisation of the housing market. The argument against selling the greater share of the public housing stock simultaneously is the obvious risk of puncturing the already existing cooperative housing market together with a possibility of a considerable level of social segregation if the price becomes strongly differentiated. Such a conversion into cooperative ownership gives however the 'cooperative-owner' a considerable amount of rights in the new situation. Rights which come close to outright ownership. The development in property taxation and taxation on capital gains from selling a cooperatively owned rental apartment illustrates fairly well the sitting government's ideas of equalizing the two tenures - ownership and cooperative ow- nership - in certain respects. In this scenario, tenants' participation will be organized in cooperative asso- ciations and concentrates probably on economic issues. The MHCs would consolidate their economic situation and release capital by selling their property to sitting tenants, but it is an open question what they would do with their money. Contrary to the situation in the U.K, nothing is said about the possibilities to invest the sale money into the housing sector again i.e. building public rental housing. The social segregation would probably increase. By increasing deposits the household savings are also expected to increase. This scenario is as close to 'commodification' as the Swedish debate on privatisation comes and it is also the alternative for privatisation which will have the most far-reaching effects on consumers of different kinds - thosc who buy, those who can't buy, as well as those who are starters in the housing market. A fourth scenario concerns the possibility of selling shares of the MHC's to tenants and/or employees. Partly because of a wish to broaden ownership in the direc- tion of more tenant influence, partly to release capital in the company. In this alternati- ve the municipality still holds the majority, but still the economic situation of the com- pany would improve in a decisive way. Tenants' influence - not necessarily participa- tion - would improve in an indirect way, the solution however would hardly have any impact on segregation and household savings would increase, in general. If the MHC's are demunicipalized by sale to bigger private housing enterprises it will probably mean higher costs for sitting tenants. Because of the existing use-value system for rent setting corresponding increases will occur even within the remaining parts of the rental stock. In this scenario the capital base of the MHCs also increases. Tenants' participation will probably be of a lower degree and there are signs of increasing segregation. For the housing consumers this solution will not be a remarkable change. A fifth alternative for a prolonged existence of the MHC's is the introduction of a 'new' form of tenure "public cooperative housing" (allmhuyttig bostadsratt). Here different alternatives are discussed. One solution - which is an open competitor to the dominant Swedish form of cooperative housing in HSB - is that the MHC's in the future build cooperative housing where residents pay a deposit, i.e. residents invest in their housing and, should they move out, thet are free to sell the dwelling at a market price. The MHCs, however, continue to take on the service of maintenance and operative management for the 'public cooperative association'. In this scenario future new-construction in the Swedish public housing sector contributes to the Swedish cooperative sector in the new form of 'public-coop' units. Another strategy aiming at the same goal is the introduction of a 'lease-buy' system where the MHC's build housing which is rental from the beginning, but where the resident has the possibility to join a saving scheme with tax-free interest. It takes the form of saving in connection with the rent and when these savings reach a certain level, the tenant has the right to become a member of a cooperative housing association.

Conclusion

From the social constructivist perspective the challenge for future housing systems in the former socialist countries lies in identifying the appropriate institutions, policies, solutions and actors supporting .the implementation of new forms of tenure in the emerging housing provision process in the respective countries. Depending on what has been said above the resulting social constructions will probably not be identical in the different countries or may be should not be identical because of the different initial conditions. Intuitively I feel the potential for development of new forms of tenure in pro- vision of housing being strongest among cooperative solutions with an eye to a viable non-residualised social housing sector. In cooperative systems for housing provision lies a multitude of different solutions concerning scale, type of housing, savings and investment, construction including self-building and self-management for low to moderate income housing projects, i.e. alternative solutions within every stage of the housing provision chain. But they have to be formulated, accepted by the consumers, politically accepted and supported by at least one or the other major political parties in the respective countries. If we as housing researchers can identify and convincingly argue for the necessity of such solutions - they might be socially constructed by policy-making in the same way as the dominant conception of today is a social construct. So the old needs, the new aspirations and the political possibilities are out there. Let us help them to come into being! References

Ambrose, P.J. (1991). The Housing Provision Chain as a Comparative Analytical Framework. Scandinavian Housing and Planning Research, 8, 91-104. Barlow, J., S. Duncan (1988). The Use and Abuse of Housing Tenure. Housing Studies 3, 219-231. Clapham, D. (1993). Privatisation and the East European Housing Model. Interna- tional Research Conference "Transformation in the East, Transference fiom the West" September 7-10, 1993. Budapest. Forrest, R. & A. Murie (1993). From Privatization to Commodification: Tenure Con- version and Neighbowhood Change. International Research Conference "Transformation in the East, Transference fiom the West". September 7-10, 1993. Budapest. Harloe, M.(1992). The Social Construction of Social Housing. Rented Housing in Eu rope: Fxperience and Prospects. August 15-19, 1992. bebro, Sweden. Kemeny, J. (1993). Comparative Rental Systems - From Implicit Anglo-Saxon Model to a Theory of Change. Gavle: The National Swedish Institute for Building Research. Marcuse, P. (1992). Rented Housing in Eastern Europe: Implications East and West. Rented Housing in Europe: Experiences and Prospects. August 15-19, 1992. ~rebro,Sweden. Michalovic, P.(1993). Privatization of Public Rental Housing - An Example of the City of Banska Bystrica. International Research Conference "Transformation in the East, Transference from the West". September 7-10, 1993. Budapest. Priemus, H. (1992). Social rented sector in The Netherlands: recent policy changes, financial independence and the relation between tenants and housing asso- ciations. In Report of ENHR Workshop Public and Social Rented Housing. April 12 ,1992. The Hague. Ruonavaara, H. (1993). Types and Forms of Housing Tenure: Towards Solving the comparison/Translation Problem. In j(s, D. (Ed.) Housing Policies and Housing Programmes - Orientations, Strategies and Evaluation. CIB Publication 158. Lisbon: LNEC. SABO (1991). lhe municipal housing companies in the 1990s - a program of ideas for development. Stockholm: SABO. Saunders, P. (1990). A Nation of Home Owners. London: Unwin Hyman. Skifter Andersen, H. & A. Munk (1994). The Welfare State Versus the Social Market Economy - Comparison and Evaluation of Housing Policies in Denmark and West Germany. Scandinavian Housing and Planning Research, Vol. 11, 1-26. Somerville, P. (1993). Fxplaining Housing Policy. Working paper, Department of Con- struction and Surveying. Salford. Teeland, L. & 0. Siksio (1993). lhe Importance of Design and Location in the Pri- vatisation of Rental Housing - European Experience and Swedish Expectations. International Research Conference "Transformation in the East, Transference fiom the West". September 7-10, 1993. Budapest. Turner, B. & J. Hegediis & I. Tosic (Eds.11992). lhe Reform of Housing in Eastern Europe and the Soviet Union. London: Routledge. INSTEAD OF AN EPILOGUE

11th International Re-union of CIB-W69) Housing Sociologists in Dessau, 5 - 9 October, 1993. From the left: Elisabet Tharand, Helene Maron, Ivor Ambrose, Eva von Kempen, Timo Tanninen, ~saNilsson, Ola Siksio, Birgit Schmidt, Maria Freitas, Satya Brink, Inara Marana, Iskra Dandolova, Ewa Kaltenberg-Kwiatkowska, Blaise Galland, Dagfinn As. (Photo Ivor Arnbrose) Border-Crossing: You Only Live Twice

Ivor Arnbrose

It was Friday evening. The conference was over. I had said goodbye to my colleagues over a drink in the Club-bar of the Dessau Bauhaus, the host institution for the 11th International Re-union of Housing Sociologists. I left the Bauhaus building, closing the black steel door behind me with the firm, predictable "click" which had become a familiar trace in my Bauhaus schemata after four days in the cradle of functionalism. The lights of the lecture rooms and workshops were still lit this dark, wet October evening. The rectangular windows with their metal trellis-work glared onto Gropius All&, freezing their form onto my visual cortex. I shouldered my bag and camera and turned into the side-street towards the railway station. The way was rough and uncertain, lit intermittently by orange streetlights. I was going to the underpass. I walked along the cobbled pavement through the puddles left by the day's rain. I sensed a whiff of brown-coal smoke from the furnaces of the Bauhaus building and by dis-association, a single breath of thought flashed across my mind: plucking fresh, ripe apples in my garden, home in Denmark the previous weekend ... Dark, empty, stately villas peered at me from both sides of Bauhaus Strasse - houses vacated by the Soviet army, whose officers had lived here with their families until they were called home a short four years ago in 1989. Behind the overgrown gardens the windows of the dressed stone and stucco houses were dark; broken glass and flapping plastic sheeting gave them an uneery look of forlorn abandonment. Had they been 500 metres from the inter-city railway station in any western town, I thought, these houses would be the coveted property of lawyers and merchant bankers. I looked in the direction of the station where, on the other side of the tracks the gigantic Dessau Congress Hotel was under construction, looming up with its blue, mirror-glass shell and inexplicable post-modem details. A cocoon for West-German businessmen. Priority investment. No, there would be no dramatic upgrading in Dessau before the business community had comfortable beds to sleep in and Jacuzzis, I thought. I made the station at 8.40 and went up the steps to platform 2. The train to Berlin was already announced on the illuminated notice-board: "Berlin-Lichtenberg" shone brightly, back-lit by a flickering flourescent tube. A handful of people waited on the platform. A young man with wavy brown hair, shiny shoes and open leather jacket sat primly on the only bench. Two denim-clad women in their 30's with pointed high-heel boots sniggered behind their hands, having a joke at his expense. He was clearly from West-Berlin, going home for the weekend. Perhaps he studied at the Bauhaus - the haven for western intellectuals in Dessau. The train was heralded by a harsh voice ringing down from the loudspeaker which hung ominously from a steel roof bracket with its peeling paint and dirt. It was an old, dark-red diesel locomotive, incongruously pulling a string of shiny, new, light-blue carriages with brightly-lit compartments. As the train pulled to a standstill, a girl of about twenty-one came quickly up from the subway and directly into the carriage in front of me. I remembered I had seen her five minutes earlier in the underpass. Perhaps she didn't like waiting on platforms. I balanced my way into the carriage behind her. She was light-blonde with shoulder-length, tight curls and a long, thin profile. She carried a brightly coloured ADIDAS duffle-bag and wore white jeans and canvas boots - also in white. I was only three steps behind her as we walked down the corridor but she sprang into the first empty compartment and closed the door and curtains as I came to find a seat. Could she really expect to have the compartment for herself? I took the door handle and went in through the grey designer curtains with their bold, horizontal stripes. She turned to me and said something in German, which I took to mean she was going to sleep as she waved at the three seats she was about to sit on. I said assumingly - in English - "That's O.K. I can be quiet, I'm going to Berlin." Maybe she shrugged, maybe she half- intended to leave the compartment as she looked to the door to see if anyone else was coming in. The train lurched forward and the decision was made for her. She sat down and I lifted my bag onto the luggage rack. She had taken her boots off and sat with her knees up and legs over her duffle bag, her back to the window. The stencilled face of Mickey Mouse looked at me from her left ankle sock. She took off her jacket and a bright yellow T-shirt came to view. I took a glimpse at her face. She had blue eyes and her curls fell down on her forehead. A pretty girl. We talked. She was going to Berlin for the weekend. She was not from Dessau but from Bitterfeld, a few kilometres further south. I had seen her town two days before on a study visit - a desolate landscape of heavy industry and chemical plants as far as the eye could see, where production targets had been replaced by empty order books, bringing the industrial collossus to a standstill; and on the fiinge of the brown-coal workings - the huge, heartless slab-block suburbs of Wolfen Nord. Trying not to interview her, I said I was going home from a meeting at the Bauhaus. She had a job - worked in a bank - Sparkasse - where she had been for 4 years. Now she was free for the weekend. For the last two years she had been to Berlin every weekend. "Every week-end? " "Yes, every week-end." A double-life. In the bank, she said, she wore a blouse and a short skirt. She dealt with old businessmen. They had money and they all thought they could marry her. She hated that. But at the weekends she went to Berlin. In jeans, T-shirt and canvas boots. mis was her she said, when I asked her, "Which is you"? She had lots of friends in Berlin. English soldiers. West German friends. Some were gay. She went to parties. She had tried some drugs - "...like those in England, Ecstasy, Speed." Sometimes there were parties all weekend. She didn't like hard drugs but a little was O.K. It makes you feel different. She liked that. But it was not easy. Her family and job were important. She would not just move to Berlin if she had the chance. But maybe she would one day. Her mother was 40. But still young-looking, just like her, she said. "We look like sisters. She's great. She's been to Berlin too. To the parties. Everybody liked her." We talked about her English. She said her name in Russian. Then wrote it on a timetable lying on the window table in the compartment: UADY. "It's English - not Sandra or Alexandra - just Sandy." She had been good at languages at school but hated Russian - hated Russia. She once went to Leningrad - cockroaches; uncooked fatty pork, cold potatoes, ugly names - Natasha, Boris, Ivan. I told her where I came from. Oh! you're English! I drew a map and showed her my path through family and univer- sity: Wales, England, The Lake District, Coventry, Guildford. She knew Coventry "It got bombed - like Dessau - in the war...", she said. Her bank job was O.K. but she didn't get enough money. Eighteen hundred D- Marks netto a month. A man with less experience got two-thousand-five-hundred. She had seen his finto. But he came to their bank from the west. It was not fair. The boss came from the west too. He made five thousand D-Marks. Maybe she could get some job-training in the west. "Maybe in Berlin?", I said. She didn't think so. Not for a woman. In the G.D.R. women got better jobs. Now it was only men who got the good opportunities and good jobs. "But it's a problem, this double-life. It is a lot of stress. I come to work so tired on Monday. And they say things about me - they don't understand me. I said I have gay friends in Berlin so they say I am lesbian. I tell them about things I read, about drugs - because it is important, it interests me - and they say I am a fixer, a junkie. They are so conservative. They don't undertand me. And I feel sorry for my mother. I can't leave her, I think. My brother, Sasha (it's also a Russian name, but nice, I think), he also lives in Berlin now. So my mother would have no-one if I left. Yes, she has my father but he does nothing. He is finished. He is an invalid and gets a little pension. My mother is only 40. She has a good job as a social worker. At a place where young people come. She makes Two-thousand-eight-hundred D-Marks so she has money. But I don't think I can leave her. She would have nothing. I can maybe live like this another 4 years. But no more. I love myself but I love my mother too. I also have a boyfriend but I decide my own life. I would not just do as he says. I am not like that - I have to be independent." The train pulled in at Schijneberg. Somewhere in the dark we had crossed the old G.D.R. - West-Berlin border. "It's good I did not sleep", she said. "You see the house there?" She pointed to a concrete panel-building. "I live in a house like that. It's poor, but I like it. I have a good room. The walls are yellow and the carpet is yellow - like my T-shirt. I like colours, red, blue, yellow. They make me happy. I feel them. Before I had black. It was not good for me. I am a Zwilling - Gemini. What's your sign? "Libra - Waage", I said. "I should have the best relations with a Libra. They are best for me." Hiding my disbelief in astrology and feeling unjustifiably flattered, I said, "That sounds 0.K... my step-daughter knows all about those star-signs." "I believe in it." "I'm not so sure..." We talked some more about Germany, then Denmark. "Copenhagen is a good place", I said. "I think Denmark is a good country to be a woman in." Sandy knew some Danish boys in her town. They had a little shop. Maybe she should come with them to visit Copenhagen. "Yes, do it if you can", I said. I hesitated. "Then maybe you can meet my step- children, Ditte and Andr6. They are about your age." I took out a business card and - as if exposing my hidden identity - wrote my home 'phone number on the back. "You can ring and say 'hello'. It's nice to hear if things like that work out", I said. She held the card in both hands and smiled. She studied the printed side intensely. "Look there's even a picture of you!", she laughed. I smiled too and, feeling a bit silly, I said something about "progress". Our train pulled in. She put her boots on. We stood up and gathered our things. She smiled, blushed a little and offered her hand. "Nice to talk to you", she said. "It was very nice to talk to you too." We looked at each other. Smiled again. "Take care, Sandy..." She nodded. "...and have a good weekend!" "Bye." "Bye." Brink, Satya, Ph.D Senior Policy Analyst /Canadian Ambrose, Ivor, BA, M.Sc Centre for Management Development; Senior Researcher & Project Co- Mortage and Housing Corporation, ordinator/Danish Building Research Ottawa, Canada Institute (SBI), Denmark P: Consultant contributor in "The P: Co-editor "Management and Im- Multi-sectoral Approach to Urban plementation of Ecological Measures Regeneration" (Paris: OECD 1994) in Human Settlements" (SBI 1992). A: International social and housing "Post Occupancy Evaluation of Blan- policy comparisons; Transformation of stedghd" (SBI-Town Planning, Re- social welfare policies in a global, search Report no. 66, 1993) knowledge based, hi-tech economy; A: Housing evaluation; Housing for Social policies for sustainable deve- elderly and disabled persons; Uses of lopment information technology in housing and daily living Dandolova, Iskra, Architect, Ph.D Senior Research Fellow/ Institute of Bittner, Regina, BA in cul. sc Sociology, Informant/ PR-Department, Bulgarian Academy of Sciences, Bauhaus Dessau, Germany Bulgaria P: Cataloque "Impulse" - Studentwork P: Publications (1992- 1994):"Image of at the Bauhaus 1992 city in transition" "Housing and fami- A: Cultural activities of the ly at risk", "Meanings of social- and institution Bauhaus housing exclusion" A: Projects: Homelessness in Bulgaria; Bonetti, Michel, Ph.D in sociology Housing, participation and cultural Department Manager/ Division Pros- identification; Management and main- pective de llHabitat, tenance of housing stock Scientific and Technical Institute for Building Research, CSTB, France Dekleva, Barbara Verlic, Ph.D in P: Research themes: Social enginee- sociology ring, Social development - strategies Docent, Researcher/Institute of Social and methodology Sciences, A: Housing policy evaluations and University of Ljubljana, Slovenia housing schemes implementations; P: "Urban Development between State Social Development of large housing and Market" in Svetlik, Ivan (Ed) estates Social Policy in Slovenia (Averby 1992) A: Housing; Urban renewal; Urban quality of life; Urban-regional In order to give a short formal pre- development sentation of research profiles for the collaborated scholars, will P: indicate here something about their previous research work and A: on actual wor- king themes and research interests. Freitas, Maria Joao, M.Sc in Urban P: Book "Housing, Dwellings and and rural sociology Homes: Design Theory, Research and Research Assistant1 Grupo de Ecologia Practice" (Chichester and New York: Social, National Laboratory of Civil John Wiley 1987) Engeneering, Portugal A: Housing quality; Ecological pers- P: "Relocation Actions and the Trans- peztives for urban planning, building formation of the Ways of Life" (in and housing, Empowerment and citizen Portugese) (LNEC, ITECS, participation; Urban health challenges Lisbon 1994) A: Housing quality and residential Lowe, Stuart, G., BA, Ph.D satisfaction; Attitudes, motivations Lecture1 Dept. of Social Policy and expectations towards rehousing and Social Work, University of York, Great Britain Kaltenberg-Kwiatkowska, Ewa,Ph.D P: Editor "A New Century of Social Assistant ProfessorICenter for Social Housing" (Leicester Univ. Press 1991) Sciences, Warsaw University of A: Evaluation of housing needs; The Technology, Poland social consequences of the growth of P: Editorlco-editor "Housing - home ownership; Comparative housing a Sociological Analysis" (1982) and in Eastern Europe "Urbanization and Changing Cities in Poland" (1988) (in Polish). Marana, Inara A: Housing situation in Poland Sociologist/ Chief Architects Office, (opinions and attitudes); Warsaw Planning Department, City of Riga in the period of transition P: Reports "Social Demand in Latvian Town Building" (Riga 1991) and "The van Kempen, Eva, Dr Social Necessity of Flats in the Re- Assistant Professor1 Dep. of Human public of Latvia" (Riga 1993) Georaphy, University of Amsterdam, A: Demographic, economic and social The Netherlands factors influencing the housing sector; P: "High-Rise Living: The Social Housing policy, housing demand and Limits to Design" in Danermark & its changes in transition period; Public Elander (Eds.) Social Rented Housing participation in planning and decision in Europe (Delft Univ. Press 1994) making process A: Residential segregation and housing policy; Concentration of poverty and Ruonavaara, Hannu, Ph.D soc.sc its after effects; Housing afford- Assistant1 Institute of Sociology, ability problems University of Turku, Finland P: "Four Models of Explaining the Kuhn, Rolf, Dr. sc, Professor Growth of Home Ownership" (1990) Director of the Bauhaus and Types and Forms of Housing P+A: Development and program of the Tenure: Towards Solving the Compa- institution Bauhaus risoflransition Problems" (1993) articles in SHPR Lawrence, Roderick, J., BA, Dr A: Methodological problems in histo- Master of Teaching and Research/ rical sociology; Housing policy and the Centre for Human Ecology and growth of home-ownership in Finland Environmental Sciences, since 1949. University of Geneva, Switzerland Schmidt, Birgit, Dipl. Eng. in Urban Tanninen, Timo, B.A, Lic. soc.sc Construction and Building Head of Interdisciplinary Academy Reseacher & planner1 (1991-1993) Projekt GmbH, Dessau Germany Bauhaus Dessau, Germany P: Urban renewal of small town P: Co-author "Urban Poverty and settlements and housing policy Social Assistance in the Nordic A: Housing policy in Germany; Capitals " (The Danish National Evaluation of old workers' housing Institute of Social Research 1993) settlements in Sachson-Anhalt A. Interdisciplinarity in social sciences for education of planning professions; Schmidt, Holger, Dr in Urban renewal of housing estates; Town Planning Sustainability and regional planning Planner1 Department Workshop Bauhaus Dessau, Germany Valjda-Babarczy, Agnes P: Co-author "Environment-Expo" Researcher1 Institution of Sociology, (Bauhausletter no. 6, 1992) and "Re- Academy of Sciences, Hungary gional Railway Net" (Bauhausletter no. A: Co-author "Use of Time in 8, 1993) (in German) Hungary and Finland" (Central A: Research & planning for regional Statistical Office of Finland 1988). development; Urban renewal in Halle- "Privatization and the Second Eco- Neustadt nomy" in The New Hungarian Quarterly No 126, Vo1.33, 1992 Seferagic, Dusica, Ph.D in sociology A: Survey on small entrepreneurs in Senior Research Associate1 Institute Hungary; Non-governmentallnon- for Social Research, profit sector in Hungary; Different University of Zagreb, Croatia tendencies in the housing sector P: The books "Quality of Living in New Estates" (1988) and "Housing Dagfinn, M.A Policy and Housing Needs" (1987) Research Associate (in Croatian) Norwegian Building Research Institute, A: Transitional changes in the space Norway and socio-spatial segregation; P: Editor of the CIB Publication no. Urban sociology and anthropology; 158 "Housing Policies and Housing Housing questions Programs - Orientations, Strategies and Evaluation" (Lisbon: LNEC 1993) Siksio, Ola, Dr in sociology A. Representative surveys of housing Senior Researcher conditions; Local studies of residential National Swedish Institute for Building developments; Evaluation of housing Research, Sweden policies P: Articles and research report concer- ning housing consumption and welfare, Comparative research on tenure and the privatization process in Europe. A: Research on housing preferences and the functioning of local housing markets. ------PREVIOUS PUBLICATIONS OF THE CIB-W69 HOUSING SOCIOLOGY

Housing Sociology in Times of Change. Proceedings from the 7th Re-union, Santo Kiriko, Bulgaria, 12 - 16 September 1988. Edited by Ola Siksi6, Gfivle: SIB 1990.

Housing Evaluation. Proceedings £tom the 8th Re-union, Lamame, Switzerland, 3 - 5 October 1989. Edited by Blaise Galland, Lamame: IREC 1991.

Housing Policy in Changing Political and Economic Conditions. Proceedings from the 9th Re-union, Vojtechov, Czechoslovakia, 24 - 27 September 1990. Edited by Ivor Ambmse, Delft: RIW 1992.

Housing Policies and Housing Programs - Orientations, Strategies and Evaluation. Proceedings from the loth Re-union, Lisbon, Portugal, 12 - 16 Odober 1992. Edited by Dagfinn h, Lisbon: LNEC 1993. ,J ISBN 3-910022-04-9 CIB Publication 169 Postbox 1837 3000 BV Rotterdam e Netherlands A