MAS ETH Thesis_ Elissavet Tamvakera by Elsa Tamvakera

MAS ETH in Housing

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When the State has no more money Looking for qualitative affordable housing models

MAS Thesis Elissavet Tamvakera July 2013

When the State has no more money Looking for qualitative affordable housing models

Abstract With the current financial crisis putting increasing pressure on the budget of low and middle-income households, the issue of housing affordability raises increasing concern. In spite of economistsâ&#x20AC;&#x2122; attempts to limit the current crisis to the financial sector, it spread to all other markets due to the deficiency of the global financial system. As a domino effect, public services, citizensâ&#x20AC;&#x2122; everyday lives and the foundations of the social system were shaken. The economic crisis transformed into a housing crisis. Nowadays, in many countries and as a consequence of the instability of housing markets and the imbalance between demand and supply, many middleincome households are in danger of losing their home. Considering all this situation, this MAS thesis addresses the increasingly crucial problem of the housing crisis and, by implication, the growing need for affordable housing. It aims to identify qualitative affordable housing models, with particular emphasis on the financial and administrative dimension, implemented in countries that have already experienced a housing crisis. Thus, public-private partnerships and community initiatives are examined in the cases of Argentina, Turkey, and Ireland. Thereafter, affordable housing models are proposed for the case of Greece and more specifically for Thessaloniki, since many Greek low and middle-income households are confronted by such problems since the beginning of crisis in 2008. Housing solutions, which are not initiated by the government but by individuals, communities or other institutions, will be in the center of attention.

When the State has no more money Looking for qualitative affordable housing models

Acknowledgements The author would like to express her deepest appreciation to the people, who contributed to the development of this MAS thesis on the topic When the State has no more money. Looking for qualitative affordable housing models, part of the MAS Housing course of the Swiss Federal Institute of Technology in ZĂźrich. First of all, the author is extremely grateful and indebted to Prof. Dietmar Eberle for giving her the opportunity to work on this thesis. He has the attitude and the substance of a genius and with his advices and expertise, he played a key role in the thesis structure and authorâ&#x20AC;&#x2122;s perception on housing quality and affordability. Additionally, the author wish to truly thank Dr. Marie Antoinette Glaser and Dipl. Ing. Arch. SIA Georg Precht for their continuous support and guidance. Without them, this thesis would not have been possible. Many thanks to Prof. Christian Schmid, Prof. Jacques Blumer and Mrs. Susan Gysi for their valuable suggestions, which enriched the thesis, through their interdisciplinary approach. Moreover, the author would like to express her sincere thanks to Associate Prof. Konstantinos Spiridonidis and Associate Prof. Maria Voyatzaki of School of Architecture of Aristotle University of Thessaloniki for their precious guidance and encouragement in the first steps of the concept of this MAS thesis. The author places also on record, her sense of gratitude to The Panayiotis and Effie Michelis Foundation for providing her the Michelis Scholarship and making her stay in Switzerland possible. Last but not least, the author takes this opportunity to record thanks to her parents, Vlasis and Evaggelia, and her sister, Danai, for their unconditional and selfless support and help, not only during this journey, but also during the last 25 years. ZĂźrich, July 2013 The author

When the State has no more money Looking for qualitative affordable housing models

Table of contents: 1 Introduction

1.1 Introduction in Master Thesis

1.2 Starting position

1.3 Objective and goals

1.4 Main research questions

1.5 Hypotheses 17 1.6 Method of research

2 Affordable housing

2.1 The term â&#x20AC;&#x2DC;affordable housingâ&#x20AC;&#x2122;

2.2 Affordable housing policy

2.3 Funding affordable housing

2.4 Identifying most affected households

2.5 Quality requirements for affordable housing

3 Good quality affordable housing models_ Case studies

3.1 Administrative approaches to affordable housing

3.2 Selection criteria and analysis instruments of case studies

3.3 Argentine Republic

3.4 Turkey 61 3.5 Ireland 71 3.6 Synopsis 80 4 The case of Thessaloniki, Greece

4.1 Facts and figures of Greece

4.2 Introduction_ Housing crisis in Greece

4.3 Defining housing typology and quality in Greece

4.4 Selection criteria of Thessaloniki

4.5 Administrative Structure of Thessaloniki

101

Table of contents

4.6 Society and demographics of Thessaloniki

102

4.7 Economy of Thessaloniki

103

4.8 Housing in the urban context of Thessaloniki

104

4.9 Administrative housing models in Greece and Thessaloniki

115

5 Proposals for good quality affordable housing in Thessaloniki

121

5.1 Concept elaboration

122

5.2 Implementation Process of Proposals

130

5.3 Realization Scenarios

135

5.4 Proposals for housing typologies of the three different models

143

5.5 Final conclusions

143

6 Appendix 147 7 Bibliography 148 7.1 Monographs, research papers and studies

148

7.2 Press articles

151

7.3 Internet-based documents

151

7.4 Internet sites

153

7.5 List of Figures

153

7.6 List of Tables

157

When the State has no more money Looking for qualitative affordable housing models

Chapter 1 Introduction

Figure 1.1: Housing crisis (For sale. Reduced price) Source: The author

When the State has no more money Looking for qualitative affordable housing models

| | 1 Introduction | | | 1.1 Introduction in Master Thesis With the current financial crisis putting increasing pressure on the budget of lowand middle-income households, the issue of housing affordability raises increasing concern. In spite of economists’ attempts to limit current crisis in the financial sector, it was generalized to all other markets, due to the inefficiency of the global financial system. 1 As an unobstructed domino, public services, citizens’ everyday life and the foundations of the social system were shaken. The economic crisis transformed into housing crisis. Nowadays in many countries, as a consequence of the instability of housing markets and the imbalance between demand and supply, housing became unaffordable for many middle-income households. Considering all the above mentioned phenomena, this MAS thesis attempts to explore qualitative affordable housing models implemented in countries that have already experienced housing crisis. These findings could become role models for future cases of countries, which may experience similar situation. The increasingly crucial problem of housing crisis and the growing need for affordable housing are examined here. This thesis is about affordable housing models, with particular emphasis on the financial and administrative dimension. The trigger was the current financial crisis and the impacts that it had on the housing sector of each country. Meanwhile, the study ‘The housing “crisis” and the need for a new housing politic’ of Vatavali and Siatitsa (2011), referring to housing crisis in Greece was the impetus for the author to turn her attention to the topic of affordable housing. The need for new organizational and financial affordable housing models are obvious in the case of Greece. It is widely known that the Greek State is unable to cope with the social needs and is regarded by the majority of citizens as unreliable. For this reason, housing solutions, which are not initiated by the government, but by individuals, communities or institutes are researched. In the first chapter, the initial thoughts and structure of this dissertation is determined. The starting position, refers to the need of countries for affordable housing, after experiencing economic and housing crisis. This need motivated the author to research this topic. The main goals and research questions are listed here, while the working hypotheses are analyzed. Moreover, the method of research and the selection and comparative grid, which are used in the thesis for the analysis of the case studies, are defined. In the second chapter, the analysis of the term ‘affordable housing’ follows. Some other terms, with similar meanings are also defined here, in order for the reader to acquire a clear picture and understanding of the topic. Basic parameters related to housing affordability are mentioned, such as affordable housing finance, policy, and

1 Voulgaris, Spiridon and Triantafyllopoulos, Nikolaos. The crisis in the subprime mortgage loans: the causes and mechanisms. (Η κρίση των ενυπόθηκων στεγαστικών δανείων υψηλού επιχειρηματικού κινδύνου: τα αίτια και οι μηχανισμοί της.) Volos: Department of Planning and Regional Development, Faculty of Engineering, University of Thessaly Series of Research Papers, 15 (12): 221-236, November, 2009, 225

Introduction

determinants. In addition to this, the most affected households by housing crisis are identified. To conclude with, quality requirements of affordable housing and some main characteristics of its architecture are determined in the second chapter. In the third chapter, qualitative affordable housing models are sought in bibliography. The research is concentrated in case studies around organizational and economic models in similar contexts to the case of Thessaloniki. The selection criteria of both the models and the countries or contexts are listed here. At first, the models and their basic structure and characteristics are analyzed. Thereafter, each case study is examined in various levels. General facts and figures about the country, the economic crisis that it has experienced, and its impacts on the housing sector and society, are also mentioned in this chapter. Special attention is also given at this point, to governmental intervention, to private sector’s respond and to individuals and community initiatives, aiming at confronting and addressing affordable housing issue. Afterwards, the models implemented in each of the contexts are evaluated on financial, administrative, and social level. The third chapter ends with the first conclusions of the research findings and with a critical comparison of cases. In the fourth chapter, Greece and the case study of Thessaloniki is introduced. Like the above contexts, this case is analyzed using the same grid. The selection criteria, the Greek economic and housing crisis, the lack of affordable housing and the State’s attitude towards housing issues are some phenomena, which need special concentration. A short historical review in Greece’s housing typology and quality is also presented here. Furthermore, the current situation in housing sector in Thessaloniki is analyzed, with the precious help of some experts on this topic, who were willing to be interviewed and transfer their precious knowledge and experiences. Last but not least, the fifth chapter is constituted of the final findings and conclusions of the whole thesis. The formulation and proposal of some ideas for the implementation of affordable housing for low and middle-income households in Thessaloniki are deemed necessary. After synthesizing and examining the above mentioned case studies, the author attempts to suggest the most appropriate strategies, aiming at affordable housing solutions. It is certainly difficult to change a country’s existing laws and rules, written or oral, but a developmental policy towards the fulfilment of “the right to decent and affordable housing ... applied to all” is essential (CECODHAS Housing Europe, 2012). 2 Thus, through appropriate, administrative and financial filtering, qualitative affordable housing models are defined for the case of Thessaloniki. At some point the State, the community, other institutes or individuals, will hopefully take measures on this topic and until then, this research may be a valuable source of information.

2 Office of the United Nations. High Commissioner for Human Rights. Human Rights. The Right to Adequate Housing. Fact sheet No. 21/ Rev.1. UNITED NATIONS, 1991, 4

When the State has no more money Looking for qualitative affordable housing models

| | | 1.2 Starting position | | | | 1.2.1 Housing in the context of financial crisis The current global financial crisis is already a fact and has greatly influenced the whole social and economic structure of countries. In spite of economists’ attempts to limit current crisis in the financial sector, the real structural problems of the global economic system were revealed.

Figure 1.2: The problem of high unemployment rates

Source: http://www.crackingace.com/is-it-necessaryfor-everyone-to-have-a-job/ (accessed on April 8th, 2013)

Since the summer of 2008, global economy confronted a deep crisis, caused to a great extent by the inability of controlling on providing subprime loans, as mentioned by Voulgaris (2009, 225). It is worth mentioning that many financial crises have occurred the last 20 years around the world, with the most known in Southeast Asia (1997), in Russia (1998), in Turkey (2000) and in Argentina (2001). Some of these were caused by the over-borrowing from major banks and governments (South East Asia and Argentina), while others were the result of resources mismanagement and excessive risk exposure (Turkey and Argentina). In contrast to them, the current crisis was spread to all other markets, due to the inefficiency of the global financial system. 3 In 2007, USA housing bubble was followed by subprime mortgage crisis and by implication, by the bankruptcy of major banks and credit agencies. This whole period was characterized by historically low interest rates and continuous growth in housing prices. Huge amounts of money were allocated to insolvent borrowers for subprime loans. A policy of providing ‘cheap money’ and easy borrowing, caused a consumption boom and a ‘bubble’ in the housing market. The criteria for providing mortgage loans were extremely loosened, whilst new financial products were invented, aiming at the greatest possible profits. Since 2000, the housing value was increased around 10% annually. Subsequently, both the construction industry and the whole housing sector were profited to a great extent. However, it is logical that when interest rates began to rise and housing price to fall, because of oversupply, many borrowers could not afford repaying their loans, in all this context of profiteering. As a consequence, the subprime mortgage loans crisis was extended to bonds with collateralized debt obligations and to insurance companies of debts, resulting in financial suffocation. 4 In addition to all these, there are some basic financial and social parameters, regarding the whole issue of crisis, which should be examined. First of all, the impacts of financial crisis were seen in the downward indicators of the economic development of these countries and in the decrease of employment opportunities. The poverty, which low and middle class met, their forced relocation to the countryside, due to the lower living cost, and the emigration of the young people in other countries, searching for better employment and life opportunities, 3 Voulgaris, Spiridon and Triantafyllopoulos, Nikolaos. The crisis in the subprime mortgage loans: the causes and mechanisms. (Η κρίση των ενυπόθηκων στεγαστικών δανείων υψηλού επιχειρηματικού κινδύνου: τα αίτια και οι μηχανισμοί της.) Volos: Department of Planning and Regional Development, Faculty of Engineering, University of Thessaly Series of Research Papers, 15 (12), November, 2009, 221-236 4 Ibid 1, 224-226

Introduction

are also facts that cannot be ignored. Furthermore, salaries and retirement were reduced, while household expenses stayed in many cases in about the same level as before. Moreover, the most significant characteristic of crisis, the long-term unemployment, led almost one person out of two, to experience unemployment for more than one year. The young people are the most affected, while their unemployment rate went over 50% in some countries. Besides, the long periods of unemployment, the rapid restructuring of economy and the lack of job opportunities were clear indications of increasing the risk of poverty and social exclusion in many countries. 5 Figure 1.3: Proportion of the population at risk of poverty or social exclusion, 2010

Source: Edited by the author based on http://epp. eurostat.ec.europa.eu/ (accessed on April 8th, 2013)

More specifically, in 2010 23% of population in EU was estimated to be at risk of poverty or social exclusion. This fact was translated into high rates of people living, with severe material deprivation or in households with significantly low work intensity. It is worth mentioning that only 10 Member States fell below 20%. 6 According to a report of European Commission (2012, 5), although employment was considered to be the optimal solution to poverty and social exclusion, many households continue to experience housing stress, due to the current high labor market segmentation and minimum wages. The main reasons for this phenomenon were employers’ low skills, precarious employment and low work intensity. Secondly, the most vulnerable and affected social groups by the financial crisis were ‘the new poor’ (Hanan, 2012, 7). Many people in countries of economic crisis were already at rick of poverty, because of unemployment and incomes reductions. People, who were in housing risk already before the crisis, young couples, low educated citizens, immigrants and ethnic minorities, the elderly and single-parent families are included in this category. Subsequently, the economic situation of the middle and low-class was worsened significantly. 7 Thirdly, the crisis had negative social impacts on people’s everyday life, which were expressed in various levels. Low birth rates were caused by young couples’ dilemmas between having a child and buying a home, in order to establish their family. Households sank deeper and deeper into credit card and mortgage debts, resulting in an 5 European commission. Announcement of Commission. Annual Growth Survey 2013. Brussels: COM, 2012, 13 6 European commission. Europe 2020 Targets: Poverty and Social Exclusion. Active Inclusion Strategies http://ec.europa.eu/europe2020/pdf/ themes/25_poverty_and_social_inclusion.pdf (accessed on April 8th, 2013), 2 7 Hanan, Robin. The Social Impact of the Economic Crisis in Europe. July, 2012: Working Notes. Issue 69. http://www.workingnotes.ie/ index.php/item/the-social-impact-of-the-economic-crisis-in-europe (accessed on April 5th, 2013), 17

When the State has no more money Looking for qualitative affordable housing models

everyday struggle for securing the livelihood. Inhabitants, who had lived in a residential area or children, who were going to a specific school, for a long period, were forced to relocate their home, aiming at having cheaper housing. At the same time, States were unable to offer social support to those that need it. Governments were mainly concentrated in the financial structure of the county and considering the welfare. In contrast to any possible governmental attempt to control crisis social effects, many experts believe that the true social and economic costs have not yet been revealed. Possible negative effects could be bad working conditions, stress, domestic and urban violence, lack of housing security and homelessness. Through all of these phenomena in combination to the forced relocation and in relation to the poor and unstable economic situation of households, social stability and cohesion can be threatened. 8 Not to mention the fact that with the strict austerity measures and the unbearable taxation, the gap between lower and upper class is continuously widening. To sum up, as a domino effect public services, citizens’ everyday life and the foundations of the social system were shaken. As mentioned in the beginning, the USA housing bubble and the subprime mortgage crisis had a direct impact in the housing market of countries around the world. As a consequence, countries started showing negative growth and the economic crisis transformed into housing crisis. At the same time, the development of housing sector effected directly each county’s financial sector, resulting in a vicious circle. | | | | 1.2.2 The need for affordable housing in countries of crisis Affordable housing is an important topic that affects many aspects of someone’s life. It should be provided to all social groups of a community, since everyone needs a home, in order to meet not only basic needs, such as the need for shelter and security, but also psychological needs. People need to feel that they belong somewhere and have their own place, from where they can start their social activities, defining in this way their own identity. Moreover, housing provision contributes towards a family’s wealth creation, educational prospects and attainment of development of social life, and affects positively people’s health and well-being. 9 However, nowadays in many countries, the median and low-income households are unable to recover and instead sink even more to the economic crisis. The increase of housing costs, the number of foreclosures and unemployment rates in many countries, in combination with the continuously decreasing salaries, drive more and more households in housing stress. In 2012 the GDP of Europe was decreased, making the need for turning into sustainable growth more current than ever. The system of social security, unemployment, financial hardship and poverty were the first side effects of financial crisis. Although fiscal and monetary policies, and gov8 Australians for Affordable Housing. Addressing Housing Affordability in Australia: A 4 point plan for the next 5 years. August, 2012: http:// housingstressed.org.au/wp-content/uploads/2011/09/Addressing-Housing-Affordability-v5-2.pdf (accessed on March 12th, 2013), 2 9 Davinson, N. M. and Malloy, R. P. Law, Property &Society: Affordable housing and Public- Private Partnerships. Great Britain: Ashgate, 2009, 51, Michael Diamond

Introduction

ernmental structural reforms worked in the restoration of countries’ competitiveness and macroeconomic imbalances, the considerably high debt levels of public and private bodies obstructed development. 10 As a consequence of the instability of housing markets and the imbalance between demand and supply, housing becomes unaffordable for many middle-income households. The sharply reduced incomes, the stricter policies of banks providing housing loans and the rise of interest rates, the unbearable fiscal measures, the growth of operating housing expenses, as well as the significantly decreased housing benefits by the State, worsen the situation. Auctions and evictions constitute the immediate threat of many households. The phenomenon of housing crisis is now evident, reflected in the difficulties of low-income families to pay off their mortgages or pay their monthly rent. Moreover, housing affordability problems arise, since lack of low-cost housing and low land values affected the quality of people’s lives. Massive transportation, forced relocation and land use challenges are some side effects of the fact that employees cannot afford living close to their work. 11 As MacDonald (1996, 165) mentioned in Democratic Architecture. Practical Solutions to Today’s Housing Crisis, the last decades of the twentieth century, financial globalization and the spreading of capitalism in communist countries resulted in changing the social thinking. These facts, combined with the current financial crisis led to a decline of public funding in housing for low-income households. These cutbacks are visible in all forms of public funding, such as limited provision of public-owned housing stock or tax credits, aiming at low-cost housing developments. However, a country’s private and public sector should be motivated to provide affordable homes for all citizens, promoting at the same time high-quality living and the sense of security. 12 Furthermore, due to inability of housing markets to cope with the sharply growing urban centers in limited land base, and all these social and economic changes, housing affordability problems were emerged. At the same time, the housing sector effected the social and financial relationships in a country, as for instance the wealth gap among social groups, the employment opportunities, the poverty and the housing quality. 13 The lack of affordable housing had a direct impact on society, identified in homelessness, overcrowding housing, inadequate housing quality and disproportion between housing costs and household income. While the recent mortgage crisis, brought many people at the edge of losing the privilege to homeownership and experiencing debt and foreclosure, many families experienced the risk of losing not only their property, but also all the related meanings, such as freedom, continuity, identity and security. 14 Social exclusion, insecurity, and reduced standards of living are some of the social psychological costs of housing crisis. Needless to say that the stigmatization of debt and the rela-

10 European commission. Announcement of Commission. Annual Growth Survey 2013. Brussels: COM, 2012, 2-3 11 Wake, Tim. Review of best practices in affordable housing. Smart Growth BC, 2007, 5 12 MacDonald, Donald. Democratic Architecture. Practical Solutions to Today’s Housing Crisis. N. York: Watson- Guptill Publications, 1996, 165 13 Hegedüs, József. Housing affordability issues in Eastern and Central European countries. Brussels: Paper prepared for Seminar on Housing, Social inclusion and the Economy. Social Situation Observatory – Network on Income distribution and living conditions. April, 2009, 1 14 Davinson, N. M. and Malloy, R. P. Law, Property &Society: Affordable housing and Public-Private Partnerships. Great Britain: Ashgate, 2009, 172, Lorna Fox O’ Mahony

When the State has no more money Looking for qualitative affordable housing models

tionship difficulties, rose feelings of sadness, loss and diffidence of many former homeowners. Those people have increased possibilities of experiencing imbalance in their mental health and well-being. 15 Of course, it should be emphasized, that the most affected social group by this economic context are private or public servants and workers, economic migrants, repatriates and destitute. More and more are added in the last category making more visible the phenomenon of homelessness. Young unemployed, low-income employees or elderly former workers, who lost their jobs a few years before retiring, constitute the new vulnerable group of this crisis. In conclusion, the causes of housing affordability problems are not only generated by individual households, but also by society. Even though affordable housing policy and legislation are considered to have direct effects on a society and its economy, steps toward addressing housing issues are still lacking. Often, broader economic, social and environmental goals of State also conflicted to affordable housing provision. 16 At the same time, the private sector had until now a limited contribution in solving the problem and failed to provide an adequate supply of well-located affordable housing. Not to mention the fact that the inflated land prices, bureaucracy, local authority unwillingness and conflicting political interests in many cases, did not favor new affordable housing developments. For this reason, the objective of this MAS thesis is to address broad questions on housing affordability, housing laws, public-private partnerships and other housing initiatives, aiming at affordable housing developments. | | | 1.3 Objectives and goals

• Deep understanding of the term qualitative affordable housing, while analyzing affordable housing finance, policy, determinants and quality factors.

• Defining qualitative affordable housing models, through exploring some case studies.

• Identify and explain the housing market of Thessaloniki.

• Expressing ideas for housing affordability models and further development in Greece and in Thessaloniki.

15 Davinson, N. M. and Malloy, R. P. Law, Property &Society: Affordable housing and Public-Private Partnerships. Great Britain: Ashgate, 2009, 201, Lorna Fox O’ Mahony 16 Yates, Judith et al. Housing affordability: a 21st century problem. National Research Venture 3: Housing affordability for lower income Australians. Sydney: Australian Housing and Urban Research Institute, September, 2007, 6-7

Introduction

| | | 1.4 Main research questions

• Which could be qualitative affordable housing models for countries being in a bad economic condition?

• What are the important parameters of housing market in Thessaloniki, which could define the most appropriate strategies for qualitative afford able housing there?

| | | 1.5 Hypotheses

• Qualitative affordable housing models can be achieved independently of State funding.

• Internationally developed affordable housing models in cities, facing or having faced economic crisis can provide valuable information for understanding housing affordability and be role models for the case of Greece and more specifically of Thessaloniki.

| | | 1.6 Method of research One of the most important parts of a scientific work is the method of research. It is one of the educational goals of the MAS in Housing and aims to provide the necessary supplies for critical thinking, application of scientific research methods and remarkable and original knowledge. The research methodology, followed in this work is mainly based on the use of a selection and a comparative grid. | | | | 1.6.1 Literature and web research First of all, the literature research is oriented in studies, articles and books, related to the topic of the thesis. Primary selection criterion is the year of publication of each resource. Thus, more recent studies are preferred, in order to supply the reader with the latest knowledge on the topic. At the same time, models for affordable housing in a country that experienced a financial crisis, almost limits the literature research in studies of the last 20 years. However, during the theoretical phase of the research, where important terms are defined and analyzed, some older studies are examined. Furthermore, both literature and web research must have high value on an administrative, economic, architectural or social level. Another source of information of major importance are economic studies, theories and analyses, which deemed necessary for the definition of ‘affordable housing’ and its determinants. Additionally, special emphasis was given in the information provided by the European Federation of Public, Cooperative & Social Housing, (CECODHAS

When the State has no more money Looking for qualitative affordable housing models

Housing Europe 17 ) and UN-HABITAT. 18 Eurostat 19 and OECD 20 library provided also the author with substantial data and statistics about the countries that are examined in the following chapters. | | | | 1.6.2 Interviews Prompted by the lack of sufficient data on the property market and housing in Thessaloniki, due to the current economic crisis in Greece and the fluidity of the situation, the conduction of interviews is selected as the main research tool, in combination with some relevant studies and statistics. This is an iterative process, part of the qualitative research, aiming at gathering information from experts on the topic. The interviews have semi-structured questions, with the flow of conversation being the leader and with a gradual withdrawal of the researcher during the flow of the interview. The goal is that the interviewees will have the opportunity to narrate and describe the situation and classify by themselves the important and essential elements. The interviews were recorded, but not presented word by word, and being part of the thesis. Moreover, despite the difference of the language, there was an effort to transfer intact the meanings and to follow, as closely as possible, the words of the interviewee. However, the parameter of personal interpretation of interviewees’ words is inevitable. Thus, the raw texts constituted the theoretical basis for this part of the scientific work. Through the presentation of experts’ opinion, it aims at providing a critical perspective of housing issues and at reader’s deep understanding of them. As experts, on the field of real estate market and housing crisis in Thessaloniki, specific people were selected, because of their professional experience and engagement on this field. The experts belong to the field of economics, administration, constructions and housing market. Below their names and their status are listed, as well as the date and location that they were interviewed by the author.

• Giorgos Gogos, MSc, Surveyor engineer, Manager in CB Richard EllisAxis, Fellow of Royal Institution of Chartered Surveyors (RICS) Hellas Board (on January 10th, 2013, Thessaloniki)

17 CECODHAS Housing Europe is the European Federation of Public, Cooperative & Social Housing. Since 1988, it is a network of 45 national and regional federations, with about 41.400 public, not-for-profit and co-operatives housing providers from 19 countries. About 12% of the housing stock in EU is managed by this federation. As stated in their internet site, their vision is to provide “access to decent and affordable housing for all, in communities which are socially, economically and environmentally sustainable and where all are enabled to reach their full potential.” [http://www.housingeurope.eu (accessed on April 3rd, 2013)] 18 The United Nations Human Settlements Programme (UN-HABITAT) is the United Nations agency for human settlements. Its goal is “to promote socially and environmentally sustainable human settlements development and the achievement of adequate shelter for all.” The financial resources for this Programme are contributions from multilateral and bilateral partners, governments, local authorities and foundations. [http://www.unhabitat.org (accessed on April 3rd, 2013)] 19 Eurostat is the statistical office of the European Union situated in Luxembourg, since 1953. Its objective is to provide high quality statistics at European level. Through analysis of these data, comparisons are possible between the European countries by governments, businesses, the education sector, journalists and the public. [http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home (accessed on April 3rd, 2013)] 20 The Organization for Economic Co-operation and Development (OECD) is a forum, addressed to governments around the world and works in cooperation with labor committees and civil society organizations. It aims to policies and solutions, which will enhance economic, social and environmental dimensions of a country, focused on all citizens’ wellbeing. [http://www.oecd.org (accessed on April 3rd, 2013)]

Introduction

• Pavlos Zarogiannidis, administrator of the real estate agency ‘Kosmopolis’ in the center of Thessaloniki (on November 7th, 2013, Thessaloniki)

• Romanos Kontogiannidis, financial journalist working in the daily, most popular newspaper of Thessaloniki, named Aggelioforos, concentrated the last 10 year in the property market in Thessaloniki (on November 8th, 2013, Thessaloniki)

• Tasos Konaklidis, Civil Eng., President of Technical Chamber of Greece, Section of Central Macedonia (on January 9th, 2013, Thessaloniki) | | | | 1.6.3 Selection and comparative grid of case studies

The analysis of the main characteristics of the case studies and the subsequent comparison between them, is made, by using a comparative grid for each country based on:

• General facts and figures, giving a basic description of geographical location, population and economy.

• Economic data, presenting the current economic situation and the financial crisis that each country experienced.

• Social analysis, examining the impacts of the economic crisis and the most affected social groups.

• Economic and social analysis in the housing issue, determining the impacts of the crisis in the housing sector.

• The administrative intervention of the State and most importantly of the private sector and the individuals. Thus, public-private partnerships and community and individuals’ initiatives are thoroughly examined.

As a key tool for the selection of the different affordable housing models were used organizational and economic criteria: • The model should have been implemented in a context, similar to Greece, where economic crisis and therefore housing crisis was faced and over come.

• T he State should not be the main funding resource of the examined housing projects.

• The case study should be recent, in order to be compatible with the case of Greece. A time frame of 20 years could be set.

When the State has no more money Looking for qualitative affordable housing models

Figure 1.4: Flow diagram Source: The author

When the State has no more money Looking for qualitative affordable housing models

ďżź

Chapter 2 Affordable housing

Figure 2.1: Looking for qualitative(?) affordable housing Source: The author

When the State has no more money Looking for qualitative affordable housing models

Source: http://www.coastalhawaii.com/ Affordable%20Housing.htm (accessed on March 12th, 2013)

Housing affordability problems are a widespread and structural phenomenon, which derives from a society’s housing system and not only. In the book Affordable housing and Public- Private Partnerships, Iglesias notes that the cause of housing affordability problems is placed in “the cumulative effect of government regulations raising the production costs of housing.” 1 Access to affordable housing provides, except for a shelter, “access to jobs and services, family stability and educational attainment”. On the other hand, the lack of affordable housing affects negatively “economic performance and labor market efficiency, social cohesion and polarization of cities, environmental considerations and the creation and distribution of wealth through home ownership.” (Yates et al., 2007, 1) According to the prediction of the third AHURI-funded National Research Venture, “housing affordability is a 21st century problem”, expected to worsen due to expected demographic and housing market changes. 2 It is a fact that after the onset of the global financial crisis and the financial imbalance, that communities face, the need for affordable housing becomes more and more urgent. According to Diamond, “Affordable housing is receiving renewed policy attention in the wake of a global economic crisis, tied fundamentally to failures in housing markets.” 3 Aiming to home ownership, the possession of financial resources is required, in order to cover the purchase price. The capacity for the acquisition of mortgage loan is also substantial. However, in the post-financial crisis period, the cash shortage and the difficulty in accessing credit, due to mistrust of banks, impose restrictions on affordable housing access, a fact that a State of social welfare should not allow. Moreover, the high value of properties in densely populated urban landscapes makes inaccessible the habitation of social groups with limited financial resources. 4 As a consequence, these people find housing solutions in areas or buildings with poor living conditions. Therefore, key condition for the development of living and housing quality in every society is the development of new approaches to affordable housing issue. The residential architecture of every democratic society should aim at offering privacy, security and sociability at affordable prices. 5 Thus, through the provision of affordable housing the foundation for smart growth are laid in the field of economy, society, transportation and environmental quality. 6

1 Davinson, N. M. and Malloy, R. P. Law, Property &Society: Affordable housing and Public- Private Partnerships. Great Britain: Ashgate, 2009, 16, Tim Iglesias 2 Yates, Judith et al. Housing affordability: a 21st century problem. National Research Venture 3: Housing affordability for lower income Australians. Sydney: Australian Housing and Urban Research Institute, September, 2007, 1 3 Davinson, N. M. and Malloy, R. P. Law, Property &Society: Affordable housing and Public- Private Partnerships. Great Britain: Ashgate, 2009, xi, Michael Diamond 4 Goodwin, Craig and Jantrania, Anish. Solving the Affordable Housing Conundrum. NCS Wastewater Solutions. http://www.ncswastewater.com/images/papers/SolvingHousingConudrum.pdf (accessed on March 12th, 2013) 5 MacDonald, Donald. Democratic Architecture. Practical Solutions to Today’s Housing Crisis. N. York: Watson- Guptill Publications, 1996, 28 6 Wake, Tim. Review of best practices in affordable housing. Smart Growth BC, 2007, 2

Affordable housing

| | | | 2.1.2 Definitions A number of terms are defined below, in order for the reader to clarify meanings around the term affordable housing. These terms are selected because of the high frequency of their presence in bibliography and their importance in the whole issue of affordable housing. |

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Affordability

With the general term affordability, the ability of people to obtain essential goods or services is denoted, as for instance a decent house, healthy and adequate food and satisfactory medical care. 7 In line with Hawtrey (2009), “affordability expresses the challenge that each household faces, in balancing the cost of its actual or potential housing, on one hand, and its non-housing expenditures, on the other, within the constraints of its income”. 8 |

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Affordable housing

Housing affordability is an intricate term and there are various definitions expressing it. The first mentioned term is the one, which will serve the goals of this MAS thesis. However, due to author’s willing to objectivity, some other frequently met definitions are going to be presented. First of all, the most common definition implies the relationship between household income and household expenses. It is indicated in a ratio that declares a satisfactory degree of the absolute household income after the removal of the housing expenses. 9 In order to have affordable housing, the following equation has to be met: 10 Total housing expenses ÷ gross household income ≤ 30-35% The housing expenses comprise the monthly amount of money, spent for paying off the rent, mortgages, basic residence operating costs and for housing maintenance. 11 In addition to this, analyzing the relationship between gross household income and housing expenditure, David Cumberland Housing Regeneration Ltd. (2005, 17) tried to define housing affordability. It is reported in three different levels, based on mortgages, renting and shared ownership:

• Affordable mortgage ≤ 3.5 * single income or 2.9 * joint income • Affordable rent ≤ 25% gross household income • Affordable shared ownership ≤ 30% gross household income

7 Litman, Todd. Affordable- Accessible Housing in a dynamic city. Why and How to increase Affordable Housing Development in Accessible locations. Victoria Transport Policy Institute, 2012, 9 8 Hawtrey, Kim. Affordable Housing Finance. New York: Palgrave Macmillan Studies in Banking and financial Institutions, 2009, 7-8 9 Yates, Judith et al. Housing affordability: a 21st century problem. National Research Venture 3: Housing affordability for lower income Australians. Sydney: Australian Housing and Urban Research Institute, September, 2007, 9 10 Hawtrey, Kim. Affordable Housing Finance. New York: Palgrave Macmillan Studies in Banking and financial Institutions, 2009, 7-8 11 Litman, Todd. Affordable- Accessible Housing in a dynamic city. Why and How to increase Affordable Housing Development in Accessible locations. Victoria Transport Policy Institute, 2012, 9

When the State has no more money Looking for qualitative affordable housing models

Another term defines affordable housing as “social rented and intermediate housing, provided to specified eligible households, whose needs are not met by the market” 12 . These households are not able to afford houses in the open market and, in order to be included in the social group of homeowners, financial help is required. As a consequence, affordable housing is financed directly or indirectly and is developed independently from the private market system. 13 Last but not least, Litman’s definition (2012, 9) refers to governmentally financed housing, addressed to people with handicaps (physically or mentally) or to those who experience extreme poverty. In conclusion, it should be noted that affordable housing differs from social housing, as the first one represents the economic inability of low and middle-class households to have access to home ownership. 14 Moreover, according to Baer, there is a difference between the notions ‘housing affordability’ and ‘affordable housing’. The first one is presented as an indicator, which is a system of measure- ment, while the second as a standard, which an indicator should be consistent with. 15 |

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Social housing

Social housing offers the opportunity for a decent house to people that cannot afford it without the governmental assistance. 16 It can be expressed in various versions such as the provision of land or building materials to lower, than the market, prices, or the provision of ready homes or rental housing, owned and managed by local authorities. 17 |

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Intermediate housing

As reported by Hughes and Lindsay (2010, 9), the term intermediate affordable housing refers to “discount products and forms of tenure that aim to ease access to home ownership, usually for first-time buyers, and intermediate-rent schemes that offer cheaper rents than private sector rent levels, but not as heavily subsidized as social rents.” To put in other words, it is about housing that its acquisition or renting costs between social and market prices. 18 It is usually provided by private housing developers or governmentally subsidized housing associations. 19 Intermediate housing includes shared ownership, worker’s housing and discounted homes for sale.

12 Hughes, Nicola and Lindsay, Daniel. Policy: discussion paper: The forgotten households. Is the intermediate sector meeting affordable housing needs? Shelter: July, 2010, 9 13 Davis, Sam. The Architecture of Affordable Housing. California: University of California Press, 1995, 1 14 Hawtrey, Kim. Affordable Housing Finance. New York: Palgrave Macmillan Studies in Banking and financial Institutions, 2009, 24 15 Ibid, 23 16 Davis, Sam. The Architecture of Affordable Housing. California: University of California Press, 1995, 1 17 Communities and Local Government. Delivering Affordable Housing. London: Communities and Local Government Publications, London, November, 2006, 9 18 Ibid, 9 19 Hughes, Nicola and Lindsay, Daniel. Policy: discussion paper: The forgotten households. Is the intermediate sector meeting affordable housing needs? Shelter: July, 2010, 9

Affordable housing

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Shared home ownership

Share home ownership or part-rent/part-buy home, 20 as it is often named in bibliography, is mentioned as one type of share equity. The purchaser has the right to buy shares of the initial property (usually 50%) and pay rent for the rest percentage of the property, which is not in his possession. Equally, in case he wills to sell, he has the right to do it only of the percentage of equity, which he possesses. Additional shares may also be bought over the years and in relation to the shareholding, the rent level is accordingly adjusted. There is the possibility that at some point the buyer will be able to acquire up to the last share from the original owner or to put in other words, to staircase 21 up to 100% home ownership. However, in some cases this affordable housing model, in order to be efficient, is addressed to specific social groups that can afford the prices. 22 |

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Low cost housing

Low cost housing is associated with tenure products of intermediate market, related to shared ownership or equity. 23 Developers provide dwellings, in decreased prices, almost equal to 25% of the open market value. 24 However, this type of rent or ownership can meet housing demands, without be included in affordable housing market. Conforming to Communities and Local Government (2006, 10), low-cost housing should be provided by local authorities, in order to achieve variety in housing markets. |

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Housing stress

According to Hawtrey (2009, 78) housing stress is not a psychological term, but a technical-economic one, or in other words, a benchmark, which defines housing affordability. More accurately, “housing-induced financial stress” is related to “housing- driven monetary hardship”. Households, who spend over 30% of their joint income for housing expenditure, confront housing stress 25 and are potentially at risk of housing affordability problems. These can be low-income households or even median two-income families. Other way to specify housing stress is the payback period, which constitutes of the needed years for a middle-class household “to pay back a loan equal to 90% of a median home value at prevailing mortgage interest rates” 26.

20 David Cumberland Housing Regeneration Ltd. The Golden Triangle Affordable Housing Project: Affordable Housing Good Practice Manual: Delivering Affordable Housing through Section 106 agreement. Cheshire: Housing Corporation, 2005, 26 21 Staircasing is a term, describing “the possess of additional shares in a shared home ownership”( David Cumberland Housing Regeneration Ltd, 2005, 26) 22 Communities and Local Government. Delivering Affordable Housing. London: Communities and Local Government Publications, November, 2006, 10-11 23 Hughes, Nicola and Lindsay, Daniel. Policy: discussion paper: The forgotten households. Is the intermediate sector meeting affordable housing needs? Shelter: July, 2010, 9 24 David Cumberland Housing Regeneration Ltd. The Golden Triangle Affordable Housing Project: Affordable Housing Good Practice Manual: Delivering Affordable Housing through Section 106 agreement. Cheshire: Housing Corporation, 2005, 26-27 25 Yates, Judith et al. Housing affordability: a 21st century problem. National Research Venture 3: Housing affordability for lower income Australians. Sydney: Australian Housing and Urban Research Institute, September, 2007, 4 26 Hawtrey, Kim. Affordable Housing Finance. New York: Palgrave Macmillan Studies in Banking and financial Institutions, 2009, 9

When the State has no more money Looking for qualitative affordable housing models

Figure 2.3: Affordability spectrum of payback period Source: Edited by the author based on Hawtrey (2009, 9)

Furthermore, according to a more subjective approach, housing stress is measured based on people’s easiness to pay off their monthly housing expenses. It is worth mentioning that although some middle-income households spent less than 30% of their income for the housing costs, they would classify themselves in the cases that experience housing stress. Of course, low-income households, which hardly pay their housing expenditure, almost always realize the difficult situation that they confront. 27 |

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Affordable-accessible housing

Affordable-accessible housing refers to the provision of affordable, accessible and decent dwellings to households with inadequate incomes. Both the access to dwellings location and the access to all common services and activities should be possible without requiring vehicles. The aim of affordable-accessible housing is that household’s expenditure for housing and transportation may not overcome 35% of their incomes. Usually this type of housing appears in two to four-storey block of flats, townhouses, duplexes and single-family houses. These neighborhoods comprise the basic common services, such as school, church, parks, stores and healthcare, high quality public transportation and infrastructure. 28 |

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Public Entity

According to the Greek Law 3389/2005, article 1, paragraph 1, the term public entities refers to the State, organizations of regional associations of Municipalities and communities, local authorities, public law legal entities and limited liability public companies. 29 |

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Private Entity

Similarly, the term private entity includes individuals, organizations, communities and private companies that aim, through their activities to financial personal profit.

27 Yates, Judith et al. Housing affordability: a 21st century problem. National Research Venture 3: Housing affordability for lower income Australians. Sydney: Australian Housing and Urban Research Institute, September, 2007, 5 28 Litman, Todd. Affordable- Accessible Housing in a dynamic city. Why and How to increase Affordable Housing Development in Accessible locations. Victoria Transport Policy Institute, 2012, 17-19 29 Lambadarios, Constantinos. Private Public Partnerships. Athens: Lambadarios Law Firm, January 9, 2012 http://www.greeklawdigest.gr/topics/banking-system-finance-investment/item/44-private-public-partnerships-law-3389-2005 (accessed on May 7th, 2013)

Affordable housing

| | | | 2.1.3 Conceptualizing housing affordability_ Determinants of affordable housing problems Housing affordability problems begin when households are not able to meet their needs satisfactorily, after paying off their monthly housing expenses. 30 Being in housing stress, they start to have various forms of deprivation, such as missing out activities or forced relocation, and end in experiencing financial stress. 31 For this reason, housing affordability is an issue that should be taken seriously into consideration. This can be made through scrutiny of the determinants of affordable housing problems. There are many factors, affecting housing affordability, as reported by Hawtrey (2009, 1): • Spatial factors: The implemented planning methods and sustainable design are determinants of building budget. Moreover, indicated housing types in some case can reduce housing costs. The visitability and the characteristics of the provided land play also a vital role in housing affordability. • Economic factors: Efficiency, quality of results and housing investments characterize affordable housing production. Furthermore, inhabitants’ incomes and rents’ level define the value-to income ratio. • Governmental policy and finance: Taxes level and the provided subsidies affect directly housing market. In addition to these, interest rates, banking insti tutions, capital markets and financial innovations play an important role in affordable housing sector. In another approach of Yates et al. (2007, 5), affordability problems are part of a vicious ‘risk cycle’. They affect and are affected by the whole society. Firstly, the changes in economy and society have a direct impact in the provision of affordable housing, which subsequently provoke housing affordability problems. Thereafter, housing stress and its problems have economic, social and environmental impacts, which in the end alter society’s characteristics. Figure 2.4: The risk cycle

Source: Edited by the author based on Yates et al. (2007, 32)

Economic, demographics and social drivers

4 Economic, social and environmental impacts

Declining housing affordability 2

Housing affordability problems

30 Hawtrey, Kim. Affordable Housing Finance. New York: Palgrave Macmillan Studies in Banking and financial Institutions, 2009, 7-8 31 Yates, Judith et al. Housing affordability: a 21st century problem. National Research Venture 3: Housing affordability for lower income Australians. Sydney: Australian Housing and Urban Research Institute, September, 2007, 5

When the State has no more money Looking for qualitative affordable housing models

Moreover, in a more detailed description of affordable housing determinants, they are divided in two categories: demand and supply. Both of them are affected by various other key factors, such as dwelling prices and rents, interest rates, demographic factors and household characteristics. 32 Housing quality is also a very important factor, which affects the household income, and the demanded housing quantity. Figure 2.5: Key determinants of housing affordability

Natural increase

Immigration

Household formation

Source: The author

Household growth

Land availability

Institutional structure of finance provision

Wealth

Infrastructure cost

Demand

Supply

Quantity

Housing quality

Maintenance cost

Construction cost

Property-related taxes

Household income

Land development processes and policies

Personal resources

Tax concessions (to owner- occupied and rental housing)

In another approach by Baer (1976) mentioned by Hawtrey (2009, 23), the notion ‘affordable housing’ is presented as a “triangulation”. It consists of three parts trying to answer basic questions:

1. The addressed group (affordable to whom?) 2. The duration of living in affordable housing (for how long?) 3. The affordable housing standards (on what standards of affordability?)

Figure 2.6: Triangulation of affordable housing

Addressed group

Source: The author

Duration

Standards

32 Yates, Judith et al. Housing affordability: a 21st century problem. National Research Venture 3: Housing affordability for lower income Australians. Sydney: Australian Housing and Urban Research Institute, September, 2007, 14

Affordable housing

To conclude with, all the above mentioned determinants of affordable housing are accepted, since they reflect the reality. However, Yates et al. (2007) description, referring to ‘supply and demand’ is considered to be the most representative and complete, covering the whole ranges of determinants of affordable housing. | | | | 2.1.4 Conceptualizing affordable-accessible housing Affordable-accessible housing has plenty of economic, social and environmental advantages. First of all, it benefits society on an economic level, since it decreases homelessness and all relevant problems, increases economic opportunities and contributes positively to residents’ education and employment. It also increases households’ savings, by limiting housing and transport expenses, reduces road and parking facilities costs for the State and businesses, and benefits financial development in agglomerations. Secondly, affordable-accessible housing has many favorable impacts on a social level. It allows inhabitants to stay in the same community, even if their transportation is not easy anymore, due to their old age or disabilities. Moreover, it raises the sense of personal security, due to decreased traffic. Thirdly, through affordable-accessible housing developments, there are many environmental benefits. In contrast to more sprawled communities, there is less traffic congestion, accidents (reduced over 50%), emissions and energy consumption. Last but not least, these developments preserve open spaces and promote pedestrian traffic, which has many positive impacts in peoples’ lives and environment. Nowadays, new demands for affordable-accessible housing appeared, based on the continuously aging population, which is considered to be doubled until 2050, and falling birth rates, both of which impose smaller and accessible homes. Furthermore, incomes stagnancy or even reduction, risen fuel prices and growing urban, traffic and parking congestion, show an obvious need for alternatives housing models, with less transportation costs and problems. Additionally, new lifestyles and health and environmental concerns indicate demand for attractive places, which promote safety, healthy living and environment. Opposed to all the above-mentioned benefits and needs for affordable-accessible housing, criticism examines some quality disadvantages and social costs. Because of the compactness of such projects, visual privacy, views and access to open spaces and direct sunlight may be reduced. At the same time, there may be significant increase in development and public service costs (sidewalks, resources management, welfare, and public transportation) and transit crowding, which without appropriate public services may lead to over-crowding problems. However, affordable-accessible housing promotes social and economic diversity. This is due to the fact that households with various incomes and abilities may live in the same neighborhood. It also aims to social integration, since its residents have more chances for qualitative education, better employment opportunities and participation in community. In this way “attractive, diverse and dynamic neighborhoods” are created (Litman, 2012, 16).

When the State has no more money Looking for qualitative affordable housing models

To conclude with, there are some housing types 33 that may be not only affordable but also accessible: • neighborhoods with small urban houses (50m 2 to 100m 2) • family houses with additional units, serving all household’s functional needs • detached townhouses with front separate entrances • two to four-storey apartments, with low-cost building materials • five or more-storey apartments, in contexts with particularly high land values • residences in the upper floors, while ground-floor is used for retail • renovated old industrial or commercial buildings, transformed into accessible apartments | | | 2.2 Affordable housing policy Affordable housing policy aims to provide decent homes in “mixed sustainable communities” to those, who are in housing stress. 34 The most important goals of affordable housing policymakers are: • the provision of shelter • offering more possibilities for wealth acquisition, through home ownership • increasing inhabitants’ psychological well-being, resulting in raised will for social participation • social and economic integration, aiming to cultural diversity or more and improved employment opportunities • creating environmental friendly housing • respecting property on a historical and cultural level • offering qualitative and flexible dwellings to renters. In order for the governmental policy to achieve all the above, properly adjust regulations, activities in the open market and incentives for the construction of affordable housing projects should be created. The last mentioned may be subsidies for home acquisition or rent, tax reliefs, zoning and land concessions. 35 Moreover, affordable housing outcomes are affected and at the same time have a direct impact on a number of factors. These factors play vital role in affordable housing policy and more specifically include policies for local economic development, transportation, labor market, infrastructure planning, population, sustainability and incomes and retirements. 36

33 Litman, Todd. Affordable- Accessible Housing in a dynamic city. Why and How to increase Affordable Housing Development in Accessible locations. Victoria Transport Policy Institute, 2012, 16-18 34 Communities and Local Government. Delivering Affordable Housing. London: Communities and Local Government Publications, November, 2006, 10 35 Davinson, N. M. and Malloy, R. P. Law, Property &Society: Affordable housing and Public- Private Partnerships. Great Britain: Ashgate, 2009, 1-3, Michael Diamond 36 Yates, Judith et al. Housing affordability: a 21st century problem. National Research Venture 3: Housing affordability for lower income Australians. Sydney: Australian Housing and Urban Research Institute, September, 2007, 39-40

Affordable housing

Figure 2.7: Macro drivers of housing affordability outcomes Source: Edited by the author based on Yates et al. (2007, 40)

Labour market policies

Regional economic development Transport policy

Housing affordability outcomes

Fiscal and monetary policies

Income support and retirement income policies

Urban and regional planning

Population policy and settlement planning

Sustainable communities and regions

Furthermore, it is also very important that affordable housing policy should ensure that dwellings quality and style are smoothly integrated in private homes of the neighborhood. This should be achieved through appropriate policy documents and planning regulations. In this way, affordable housing community is secured from distinction and marginalization. 37 In conclusion, as listed by Johnson (2007, 502), the providers of affordable housing may be: • Federal State and local authorities • Authorities of social housing • Community development corporations • Contractors • Religious organizations. • Non-profit developers | | | 2.3 Funding affordable housing An interdisciplinary study presented by Davis (1995, 63), showed that development costs of affordable housing are about the same with those of market-rate housing. However, as listed by Johnson (2007, 502), the funding of affordable housing may be provided through a variety of types. The most common are subsidies, grants, tax credits and land donations. Other types may be programs on housing mobility, court decisions, inclusionary zoning 38, ‘smart growth’ initiatives and lenders’ marketing attempts. 39 Moreover, in any project the majority of financial resources are

37 David Cumberland Housing Regeneration Ltd. The Golden Triangle Affordable Housing Project: Affordable Housing Good Practice Manual: Delivering Affordable Housing through Section 106 agreement. Cheshire: Housing Corporation, 2005. http://www.harrogate.gov.uk/Documents/ CS_20070112report_print.pdf (accessed on March 12th, 2013), 26-27 38 Inclusionary zoning is a term, describing a State program. This program consists of controls and incentives that promote the provision of affordable housing. Property developers, whose property is included in such programs, have to allocate a share of their construction for the development of affordable housing. Of course, there are some alternatives for the builder, such as paying once a fee instead of taking part in the program. In addition to this, participation incentives are given by the inclusionary zoning, as for example permit for construction of increased density, fee waivers, building subsidies and faster arrangement of permits (McFarlane, 2009, 1). 39 Johnson, Michael P. Planning models for the provision of affordable housing. Environment and Planning B: Planning and Design 2007, volume 34 (2007): 501- 523., http://works.bepress.com/michael_johnson/subject_areas.html (accessed on March 12th, 2013), 502

When the State has no more money Looking for qualitative affordable housing models

derived from private finance, as much as from grants, public loans or other subsidies. Other types of equity and planning or land concessions play also a vital role in affordable housing financing. 40 Nowadays, there is an obvious need for less involvement of governmental investments, since there are more and more restraints on public authorities’ funds. In contrast to this, many private investors offer commercial finance of competitively prices. 41 As depicted in Figure 2.8, affordable housing funding may have four different forms or sources. It may be private funds, or public loans, grants or other subsidies. It can also have the form of land provision, as for the initial required capital for a housing development. Finally, it may be any other equity, such as for example, the provision of building stock for renovation. Figure 2.8: Financing an affordable housing project Source: Edited by the author based on Milligan (2010, 19)

| | | | 2.3.1 Reducing construction budget of affordable housing One of the hardest issues in affordable housing is finding ways of reducing the construction budget, in prices below the market-rated, without lacking in housing quality. Architects should succeed providing housing space that is decent, comfortable and attractive, by keeping at the same time the prices at low levels. 42 On the other hand, the use of poor-quality materials and space shrinking, could cost the inhabitants not only economically, because of the future needed renovations and building maintenance, but also socially. One way to succeed this is through universal and consistent planning and insightful design. In this way, it could be possible to reduce up to 10% the overall cost. However, the funding deadlines, the land costs, the involved working team and the complexity of the political context, complicate the whole process. In addition to this, one way to decrease the affordable housing building costs in suburban and rural communities is to rely on specific housing types. Moderate-density and lowrise buildings are, according to Davis (1995, 3) the most suitable types for these cases. 40 Milligan, Vivienne. The affordable housing model: policy and practice. Presentation to SGS Economics and Planning Seminar ‘Alternative Housing Models’, City Futures Research Centre, University of New South Wales, June 8, 2010, 19 41 Milligan, Vivienne. The affordable housing model: policy and practice. Presentation to SGS Economics and Planning Seminar ‘Alternative Housing Models’, City Futures Research Centre, University of New South Wales, June 8, 2010. http://www.sgsep.com.au/system/files/ SGS_Affordable_housing_Milligan_presentation.pdf (accessed on March 12th, 2013), 5 42 MacDonald, Donald. Democratic Architecture. Practical Solutions to Today’s Housing Crisis. N. York: Watson- Guptill Publications, 33

Affordable housing

Another way reducing the construction budget is through “standardization and replication of buildings” 43. Frank Lloyd Wright claimed: “Here then, within moderate means for the free man of our democracy, with some intelligence and by his own energ y, comes a ... house that may be put to work in our society to give us an architecture for ‘housing’ which is becoming to a free society because, though standardized fully, it yet establishes the democratic ideal of variety- the sovereignty of the individual.” 44 However, the basic design standards do not always meet individual’s needs. Variety and diversity in designing process is critical to achieve this goal. Future inhabitants should have the possibility to adjust through some small changes the dwelling in their own needs. 45 Of course, it is crucial, that the visitability standard should always be considered for people with current or possible future disabilities. 46 In conclusion, many architects prefer designing and planning by consensus. 47 Taking into account inhabitants’ opinion, not only they have more possibilities to meet majority’s needs and fulfill their will, but also to agree in possible increased prices if needed, always within the desirable budget. | | | 2.4 Identifying most affected households The needs of all low-income groups, that are likely to confront housing affordability problems in the future or are already in this position, should be addressed by governmental subsidy housing policy 48 or by other housing affordability models. These groups include diverse populations, such as seniors, families and singles, 49 young, households with children, private renters, purchasers, 50 couples with a high number of dependents, people with disabilities or seriously ill, people who suddenly lost all their property, the unemployed, residents of certain geographic locations, 51 low- wage workers, students, and people living on pensions, who are renters without any governmental or by another source financial assistance. 52 As reported by Yates et al. (2007, 5), there are four significant groups that experience housing stress. These are:

1. the ‘Stretched’, who have bought their first house in a period, when the housing prices were increased and are still discomforted, due to high housing expenses and indebtedness,

2. the ‘Backsliders’, who lost their property after experiencing an adverse situation in their professional or personal life or with their health,

43 Davis, Sam. The Architecture of Affordable Housing. California: University of California Press, 1995, 3-5 44 MacDonald, Donald. Democratic Architecture. Practical Solutions to Today’s Housing Crisis. N. York: Watson- Guptill Publications, 1996, 21 45 Ibid, 19 46 Visitability standard’s aim is that every house can be easily and safely visited by each community member. (Davinson, N. M. and Malloy, R. P. Law, Property &Society: Affordable housing and Public- Private Partnerships. Great Britain: Ashgate, 2009, 209-210, Lorna Fox O’ Mahony) 47 Davis, Sam. The Architecture of Affordable Housing. California: University of California Press, 1995, 48 48 Davinson, N. M. and Malloy, R. P. Law, Property &Society: Affordable housing and Public- Private Partnerships. Great Britain: Ashgate, 2009, 3, Michael Diamond 49 Davis, Sam. The Architecture of Affordable Housing. California: University of California Press, 1995, 5 50 Yates, Judith et al. Housing affordability: a 21st century problem. National Research Venture 3: Housing affordability for lower income Australians. Sydney: Australian Housing and Urban Research Institute, September, 2007, 5 51 Hawtrey, Kim. Affordable Housing Finance. New York: Palgrave Macmillan Studies in Banking and financial Institutions, 2009, 7-8 52 Litman, Todd. Affordable- Accessible Housing in a dynamic city. Why and How to increase Affordable Housing Development in Accessible locations. Victoria Transport Policy Institute, 2012, 9

When the State has no more money Looking for qualitative affordable housing models

3. the ‘Aspirant purchasers’, who have a stable salary and they dream to acquire their own house, but prices fluctuations in the housing market, have not yet allowed them to do so, and

4. the ‘Struggles’, who are low-income renters, possess no capital assets and are not able to afford homeownership. This group of people is in the worst predicament and continuously faces housing stress.

In a different approach, mentioned by Hawtrey (2009, 24) the people could be ranged from “over-housed” to “under-housed” in a housing spectrum. This spectrum represents housing target groups and the corresponding models, based on the financial resources for home acquisition. The groups exceed from people who have high support needs to people who have manage to obtain decent dwellings. However, many people, included in the inbetween groups need affordable housing, since they are still “vulnerable” to negative financial trends, due to the pressure of paying the rent, the mortgage or the interest rates. Figure 2.9: Housing spectrum

Source: Edited by the author based on Hawtrey (2009, 24)

Based on the housing spectrum of Hawtrey, the housing population is classified in three groups. The first one includes about 50% of the population, the ‘comfortable homeowners’. In the second cohort the ‘aspiring’ or middle class homeowners are classified and in the third one the ‘chronically under-housed’ or ‘excluded’ people, who cannot meet their needs for a decent home. It is obvious that these two cohorts constitute the affordable housing target group.

Affordable housing

Figure 2.10: Housing population spectrum

Source: Edited by the author based on Hawtrey (2009, 24)

To sum up, both of Hawtrey’s population groupings are very representative and help the reader to have a clear picture of the spectrum that depicts housing target groups. At the same time, the four groups of Yates et al. describe in the most detailed way, the addressed social groups and the situation that they experience. | | | 2.5 Quality requirements for affordable housing “Safety and space are measured by needs, not by abstract theories.”

Source: MacDonald, Donald. Democratic Architecture. Practical Solutions to Today’s Housing Crisis. N. York: Watson- Guptill Publications, 23

Many people claim that the provision of shelter, of a clear living environment, of safety and the satisfaction of basic needs, is all that affordable housing should offer. However, as a rule, lack of control means in the majority of the cases, lack of provided housing space by the developers. 53 There is also the misconception that affordable housing should maintain low design standards compared to the market housing, in order for the prices to be kept in lower levels. Otherwise, there is a widespread belief that, there is a misguided money use, especially when the financial resources come from the State. Unfortunately, this attitude has been adopted by many architects and planners, resulting in poor quality architecture and by implication, to residents’ stigmatization and marginalization. 54 At the same time, regulations, politics and narrow-minded attitudes prevent innovative movements in affordable housing. 55 For this reason, after plenty of efforts the last century to define the minimum space standards, for dwellings provided by the public sector, some trends were set. According to Davis (1995, 3) affordable housing should not lag behind the quality of market-rate housing. All dwellings have to be consistent with residents’ culture, habits and psychology, respect their individuality and social environment, and promote the contact with the community. Moreover, the strengthening of self-expression and self-determination 56 of each individual should be a basic requirement in housing design. Additionally, it is a fact that housing quality has a social, financial, and cultural dimension. Firstly, in its social dimension, it affects the forming of a person’s character. Secondly, it reveals the economic situation of inhabitants, which could classify them in social groups. Additionally, housing quality shows the culture of a region. The quality of architecture and the decoration of a house signify the aesthetics of a place, the construction time, the builders and its residents. 57 Moreover, the extent of housing space related to the number of residents, the clearance, the basic facilities and equipment are factors, which indicate the housing quality. To end with, housing quality standards aim at providing a safe, healthy and comfortable living 53 Drury, Andrew, Watson, Jon, Broomfield, Richard, Levitt, Davit and Tetlow, Robin. Housing Space Standards. London: HATC Limited, Greater London Authority, 2006, 7 54 Davis, Sam. The Architecture of Affordable Housing. California: University of California Press, 1995, 3 55 Ibid, 109 56 MacDonald, Donald. Democratic Architecture. Practical Solutions to Today’s Housing Crisis. N. York: Watson- Guptill Publications, 19 57 http://www.pi-schools.gr/books/gymnasio/oik_oikon_a/math/79_88.pdf (accessed on April 12th, 2013), 80

When the State has no more money Looking for qualitative affordable housing models

environment. They can be divided in two categories: in the ones that are essential and follow legislation and the other that are more subjective and are related to the special needs of each household. 58 Of course, all these requirements should coexist in affordable housing with some “certain criteria for the livable space” quoted in Design for housing Checklist of the American Institute of Architects Foundation 59:

• Appropriate rooms’ size, shape, and scale • Ease of circulation • Appropriate furnishings • Visual privacy • Acoustical privacy • Accessibility for elderly or handicapped • Natural and artificial lighting quality • Natural ventilation • Adequacy of indoor storage • Appropriateness of finishes and materials • Pleasing design details • Integration/ adequacy of building systems • Overall impressions

It should be also noted that, in line with Housing Space Standards of Drury et al. (2006, 9), the dwelling space should be adjusted accordingly to the number of inhabitants. Otherwise, disproportionately growth of the number of inhabitants within a house causes increase of undesirable social contacts and decrease of privacy and individuality, unintended prevention of daily habits, such as watching television, visiting the bathroom, eating, cooking and possible ignorance to people that need special care, such as children or ill people. It is also noted that all the above situations could lead to “interpersonal aggression, withdrawal from the family, sexually deviant behavior, psychological distress or physical illness.” 60 Furthermore, housing types or standards depend on individuals or household income, on society, where someone lives, and on personal and marital status. The lack of some basic characteristics of a house or the lack of some of them compared to another social group, implies that less of the residents’ needs are covered, which leads to biological, psychological and social deprivations. It is a fact that the housing conditions play the most significant role in determining the living standard of a person and, by implication, his living quality. For this reason, a dwelling should be a place, offering comfort and safety. According to Karekla, there are three determinants 61 of housing quality:

58 Office of Public and Indian Housing. A Good Place to Live! U.S. Department of Housing and Urban Development http://www.hud. gov/offices/adm/hudclips/forms/files/593pih.pdf (accessed on April 12th, 2013), 2 59 Ibid, 30 60 Drury, Andrew, Watson, Jon, Broomfield, Richard, Levitt, Davit and Tetlow, Robin. Housing Space Standards. London: HATC Limited, Greater London Authority, 2006, 9 61 Karekla, Katerina. The effect of modern lifestyle and living space in the quality of human life. Household survey in Larnaca in Cyprus. (Η επίδραση του σύγχρονου τρόπου ζωής και του χώρου διαβίωσης στην ποιότητα ζωής του ανθρώπου. Έρευνα σε νοικοκυριά της επαρχίας Λάρνακας στην Κύπρο.) Athens: Harokopio University, Department of Home Economics and Ecology, 2006, 40-41

Affordable housing

• Housing density: This is one of the most commonly met housing problem. It is defined by the ratio of the number of rooms in a house or the total living surface to the number of its inhabitants. The main living and auxiliary spaces and the way, they are used, in order to meet residents’ needs, such as the need for privacy, and are important factors of density. For this reason each house should include enough bedrooms for the inhabitants and a living room, so as to cover their need for sleep, privacy and communication. High density is often met in low-income families with children, who live in much smaller houses than their real needs. • Comforts and equipment: Housing quality is affected by the comforts and the equipment that a house includes, such as the type of heating system, means of cooking, and durable consumer goods. All of these are connected with the living standards and living conditions of inhabitants, since their acquisition is affected by the household’s affordability level. The lack of basic comforts and technical housing equipment characterizes housing quality as low. Of course, it is worth mentioning, that the living standards of the various social groups change over the years, or some housing comforts become more affordable for a wider range of society after some period of time. The most substantial technical equipment that has to be included in a house is the supply of warm water, shower and toilet, since problematic or inadequate sanitary areas can have serious impacts on residents’ health. • Housing tenure: The housing tenure is divided into three categories: homeownership, rent and free use. The homeowners have some advantages in comparison to the others, as for example they have a permanent place to live, a permanent income, in case they decide to rent their house, a property which they can sell and with this money buy other consumer goods, and a guarantee, in case they wish to take a loan. For all these reasons, homeownership and the security, it offers, affects positively the inhabitants, who invest more willingly to their house. That means that they may renovate it, renew its equipment or even increase the living area through some extensions. All these bring better housing quality, which makes housing tenure an indirect determinant of it. In addition to the above factors, some other determinants of housing quality have to be listed. These are: • Location: The location of a house plays a vital role in defining the living quality it offer to its inhabitants. First of all, the distance between the house and the urban infrastructure affects many aspects of their daily lives. For instance, easy access to public transport make the people feel more satisfied with their house, since they need less time for visiting their jobs. People also need easy access to shopping centers, in order to cover their daily needs. Moreover, social services and open green spaces increase the urban living quality, while these inhabitants evaluate more positively their house.

When the State has no more money Looking for qualitative affordable housing models

• Cultural habits: Apart from the objective factors that determine housing quality, there are also the subjective ones, different for every person or group of people with similar beliefs. As reported by some studies 62 , the personal, social and economic environment of a person, in combination with the institutional and biophysical context, shape someone’s beliefs. Additionally, the personal characteristic of someone’s personality, the family origins and the culture play an important role in this shaping and in people’s expectations about housing quality. Thus, for example a house in Greece without a balcony is regarded, as of lower quality, than one with a terrace. An explanation for this way of thinking is that the quality requirement change from country to country. They are set, based on the folkways and habits of a society and always in relation to what people feel familiar with. To put in other words, people expect from a new house nothing less than what their previous residence offered. • Basic needs: Undoubtfully, a house should cover all the basic needs of their residents. It should provide them a shelter from the environment, privacy and safety. Only in such a context people can develop they identity and have a decent life. Otherwise, many problems can occur for them, such as problems on psychological or social level, or even in terms of their health. • Maintenance cost: One very important aspect of determining housing quality is the maintenance costs of a house. Although this factor do not affect directly inhabitants’ living quality they always correlate the level of these costs to comforts and all these that a house offers. The lower the costs or this ratio are, the higher the level of housing quality satisfaction grows. To sum up, housing quality can be determined by various factors. The following graphic gives an overall picture about it. Figure 2.11: Housing quality

Housing tenure

Source: The author

Housing density

Comfort and technical equipment

Housing quality Location

Maintenance cost

Cultural habits

Basic needs

62 Gloustianou, Konstantina. Socioeconomic indicators of quality of life in the Greek family. (Κοινωνικοοικονομικοί δείκτες της ποιότητας ζωής στην Ελληνική οικογένεια.) Athens: Harokopio University, Department of Home Economics and Ecology, 2008, 15

Affordable housing

| | | | 2.5.1 Basic parameters of the architecture of affordable housing As Davis (1995, 108) stated, “specificity and codified standards” that have been set by public or private providers of affordable housing, have led to expensive, repetitive, standardized and inadequate housing. For this reason, the institutionalized housing standards should not be blindly followed by planners and architects, but they have to constitute a guide, which sets the basic rules for housing design and planning. Therefore, architectural principles should ensure and provide accessible community spaces, sense of security, and social identity and, at the same time, respect individuals’ identity. 63 Another objective is to create decent, well-design and comfortable dwellings. However, vital determinant, which affects housing comfort, is time. Over the years the household members may increase or change habits and space demands. The result is that spaces, such as playing room, storage, private rooms, should be appropriately adjusted. Therefore, there are three basic strategies, in line with Davis (1995, 108), in order for new spaces’ needs to be met: 1. Flexibility: Many architects attempted to make dwellings’ space more flexible, through size increase of the initial housing surface and housing specificity reduction. In this way, the inhabitants are able to make more easily changes in the furnishing or in spaces’ separation, so as to adjust to needs of each new activity. Additionally, there are some other strategies serving flexibility, such as enabling physical changes in the dwelling. The goal is space diversity, access and privacy. Representative example of this strategy is a loft, in which the structure can be appropriately adjusted, by moving walls. 2. Typolog y diversity: Another strategy is the incorporation of different types of housing units in the same building. In such a way, inhabitants have some alternatives for housing, when the number of household’s members and, consequently, the space requirements, are increased or reduced. It is also worth mentioning, that by providing various housing units in the same development, residents have the possibility of longer residency in it. At the same time, social heterogeneity is delivered in such a housing project. 3. Expansion possibilities: The last strategy refers to grow dwelling’s space by expanding it. This may be achieved, through joining a new building volume to the original structure, turning an auxiliary space to a living space with primary use or by enclosing an open space, such as a patio. In addition to the above strategies, Davis (1995) presents Dana Cuff’s preconditions, so as ‘excellent architecture’ to be accomplished. These preconditions have to follow the design process and they are:

Davis, Sam. The Architecture of Affordable Housing. California: University of California Press, 1995, 94

When the State has no more money Looking for qualitative affordable housing models

• Meeting quality demands • Simplicity of planning process within complexity of bureaucracy • Collaboration of each principle, such as architects and clients • Open thinking boundaries while confronting regulations and restriction • Flexibility with integrity of design principles • Team work with independence • Exceeding the limits of the initial will for participation

From all the above listed preconditions, successful collaboration, flexibility with integrity and inexhaustible will for contribution in the final results may be the most important for achieving highly qualitative affordable housing architecture. 64 In conclusion, it is worth mentioning, two common building forms of affordable housing: • Simple housing form: Types with simple form have the structure with the highest efficiency. This is due to the possibility for the architect to take advantage to the maximum of the available surface. However, special design manipulations in the facade are required, so as diversity and a friendlier living environment to be achieved, both of which are essentials for inhabitants. 65 • Collective housing form: High-rise and apartment complex may be the most common building types. The domination of the collective form in these types is obvious, while some attempts to reveal individual’s identity, aim to some kind of diversity. In this form, high efficiency is also achieved through high densities. A representative example of the collective form is Italian hill towns or Greek villages by the sea, where there is a recognizable symbiosis of single elements into the whole housing pattern. 66

Figure 2.12: Santorini, Greece

Source: http://www.winetoursantorini.com/theexperience/ (accessed on March 12th, 2013)

Figure 2.13: Cinque Terre, Italy

Source: http://www.urbanhypsteria.com/2013/01/08/ cinque-terre/ (accessed on March 12th, 2013)

64 65 66

Davis, Sam. The Architecture of Affordable Housing. California: University of California Press, 1995, 129 Ibid, 93 Ibid, 83-84

When the State has no more money Looking for qualitative affordable housing models

Chapter 3 Qualitative affordable housing models_ Case studies

Figure 3.1: Co-operative housing Source: The author

When the State has no more money Looking for qualitative affordable housing models

| | 3 Qualitative affordable housing models_ Case studies | | | 3.1 Administrative approaches to affordable housing There are two main administrative approaches, aiming at affordable housing in cases of housing crisis: the top-down approach and the bottom-up approach. The top-down approach follows all the official procedures and is coordinated by governments, banks and developers. Legislation, building standards, land-use zoning and official urban planning norms are observed and implemented in top-down housing approach. On the other side, bottom-up approach is based on individuals’ initiatives, who are willing to acquire affordable housing by mobilizing any means they have. These two categories are based on the construction process, which is followed in each case. One of the most important differences between them, is that the bottom-up approach utilizes residents’ capabilities, ingenuity and resourcefulness, while the top-down approach in place of considering potential construction methods, it prefers fast, safe and standard methods. 1 In the following Table the differences between these two approaches for the situation of housing crisis are juxtaposed. Table 3.1: Differences between top-down and bottom-up housing approach, placed on the various aspects of construction procedure. Top-Down Approach (Contractor-driven)

Bottom-up Approach (Owner-driven)

Architect/engineer

Official appointee

Private appointee

Builder

Large construction company

Small contractors/ unskilled labor

Project manager

Governmental authority

Residents

Material supplier

Known/ contractual

Unknown/ incidental

Cost

Budget

Loan and private funding

Duration

As per schedule

Exceeded limit

Housing typology

Standard design

Diverse typology. Standard design with custom options

User participation

Headman consulted on new locations, based on urban plan. Other decisions by funding agency.

Selection freedom among all the procedure steps

1 Dikmen, Nese, Elias-Ozkan, Soofia Tahira and Davidson, Colin. Comparison of post-disaster housing procurement methods in rural areas of Turkey. London: Open house international. Vol.37, No.1, March, 2012, 29

Qualitative affordable housing models Case studies

As history has shown, in line with Dikmen, Elias-Ozkan, and Davidson (2012, 30), top-down housing approaches are not the most successful solution for housing crisis. This conventional approach, since it relies on standardization and technology-oriented solutions, that are economically advantageous and fast, it ignores the cultural and special needs of the local society. In many cases, the produced dwellings may even be expensive and foreign to the residents, resulting in being abandoned by some of them. On the other hand, the bottom-up approach involves substantially the inhabitants, choosing suitable development techniques. Even though residents’ participation may result in time-consuming procedures and management operations, delaying the implementation of the plans, the advantages of this method are plenty. Thus, even if the implementation is late, is smoother, the solution is affordable and cost-effective, and fits better in social context, since residents take part in decision-making procedure. According to some authors, civil society and local organizations are able to perceive to a greater extent than larger public entities, the social structure dynamics. It is also worth mentioning that produced housing units can offer high quality housing, with the precondition that technical, organizational and supervision skills exists. Another important aspect of bottom-up method is that, it has many social advantages, as it enforces social confidence, local capacity, and local cultural heritage and offers employment opportunities. Of course, there are some other methods 2 for housing construction processes, except for these two, which were tried, in order to fit better to local conditions and cultures. • The ‘contractor driven approach’: The contractor, in cooperation with consultants, undertakes the design and technical procedures, and imple ments them either in an existing housing project, by replacing or refurbi shing it, or in a now location. • The ‘subsidiary housing approach’: Private or public organizations sup port governmental grant, with offering construction material and technical guidance. • The ‘participatory housing approach’: Various organizations guide all the required procedures for housing construction, while they thoroughly co operate with the inhabitants. • The ‘owner driven approach’: The owners control and organize the whole process, without participating in the construction, though. | | | | 3.1.1 Institutionalized housing Institutionalized housing refers mainly to public-private partnership (PPP) housing projects. These PPPs are contracts between public and private entities about services or projects of the private sector to the public, in accordance with predetermined agreements. For instance, private entity may be responsible for designing, funding, operating, maintaining and managing a project on behalf of the State. All 2 Dikmen, Nese, Elias-Ozkan, Soofia Tahira and Davidson, Colin. Comparison of post-disaster housing procurement methods in rural areas of Turkey. London: Open house international. Vol.37, No.1, March, 2012, 30

When the State has no more money Looking for qualitative affordable housing models

these procedures are defined within norms and legislation, aiming at achieving an optimized combination of private and public services and funds. 3 Another definition of PPPs is expressed by Iglesias (2009, 18), stating that they have a privatization form and are merely “a one-way movement transferring traditional governmental duties or operations to the private market”, on the basis that housing is a “private economic good”, for which the market is the best provider. 4 The main advantage of institutionalized housing is that the implementation budget of a housing project is defined and the possible time-consuming or costlier risks are considered and transferred to the private entity. The whole procedure until project completion, is also faster and more guaranteed. Moreover, through PPP housing projects both the State and the private sector company are benefited. On one side, the State acquires substantial knowledge on project implementation from the private entity, while on the other side, the second one is benefited with some significant privileges. Such privileges may be tax income exemptions or reliefs, or accelerated bureaucratic procedures. Examples of institutionalized housing may be projects, which are subsidized by the State, and are contracted by for-profit or non-profit private developers. Apart from the case of public funding, the State may contribute with the provision of public land or infrastructure. In another example, the State may provide only some regulatory reliefs or incentives, such as fee waivers or density bonuses, to private sector companies, aiming at affordable housing constructions. There is also the possibility that the State provides public housing developments to private entities, aiming at their refurbishment. 5 | | | | 3.1.2 Self-organized housing |

| | | Co-operative housing

According to the Statement of the International Co-operative Alliance, the term ‘co-operative’ refers to “an autonomous association of persons, united voluntarily to meet their economic, social and cultural needs and aspirations through a jointlyowned and democratically controlled enterprise”. 6 Another definition of the term is stated by the International Labor Organization, saying that a cooperative is “an association of people, usually of limited means, who have voluntarily joined together, to achieve a common economic goal and through the formation of democratically controlled business organizations, to make equitable contributions to the capital required and to accept a fair share of the risks and benefits of undertaking”. 7 Housing co-operatives are legal entities, the members of which work together, in order to manage their housing. They may be homeowners themselves or in case the co-operative holds the ownership, they may lease their dwellings. The percentage of shares that someone holds, corresponds the occupational rights, he has to the 3 Lambadarios, Constantinos. Private Public Partnerships. Athens: Lambadarios Law Firm, January 9, 2012 http://www.greeklawdigest.gr/topics/banking-system-finance-investment/item/44-private-public-partnerships-law-3389-2005 (accessed on May 7th, 2013) 4 Davinson, N. M. and Malloy, R. P. Law, Property &Society: Affordable housing and Public- Private Partnerships. Great Britain: Ashgate, 2009, Iglesias, Tim, 18 5 Ibid, 11 6 http://ica.coop/en/what-co-op/co-operative-identity-values-principles (accessed on May 29th, 2013) 7 Özkan, Alper. A critical evaluation of housing co-operatives in Turkey within the framework of collective action theories: A case study in Ankara and Instabul. Ankara: Thesis, Graduate School of Natural and Applies Sciences of middle East Technical University, 2009, 52

Qualitative affordable housing models Case studies

house. 8 Housing co-operatives developments may form retirement villages, home parks, co-housing communities 9, apartment complexes for low and middle-income families and even houseboats. 10 Co-operative housing is considered as a third alternative category of housing provider in free market, besides private and public sector. There are plenty of financial benefits in it. Through co-operative housing, low-income households can contribute with their savings to collective capital and acquire access to affordable housing. The values of a co-operative are based on self-help, self-responsibility, democracy, equality, equity and solidarity. The sense of honesty, openness, social responsibility and caring for the common good are enforced in this organization. Each co-operative is also governed by certain principles. 11 First of all, since cooperatives are voluntary organizations, everyone can access their services and be a member, without any kind of discrimination. Secondly, as democratic organizations, they are controlled by their members, who participate equally. The members can be selected, as representatives democratically, since each of them has equal voting rights. Thirdly, everyone contributes to the capital of the co-operative and can control it. In case of the precondition that every new member should contribute to the initial capital, then the other members may receive a limited compensation. As a rule, possible financial surpluses are allocated for developing the organization and supporting members’ transactions with the co-operative or other activities, which are determined by the membership. Fourthly, co-operatives, as autonomous and self-help associations, collaborate with other organizations, private or public, or increase their capital from eternal funding. They also organize educational and training seminars for their members, or the community, concerning the nature and benefits of co-operations. Through these programs, the social concern of cooperatives is revealed. Last but not least, they apply, agreed by their members, sustainable policies and work together, through local, national, regional and international structures, aiming at the effectively enhancement of the community. Table 3.2: Principles of housing co-operatives 1st principle

Voluntary and open membership

2nd principle

Democratic Member Control

3rd principle

Member Economic Participation

4th principle

Autonomy and Independence

5th principle

Education, Training and Information

6th principle

Co-operation among Co-operatives

7th principle

Concern for Community

8 Fu, Megan. The role of housing co-operatives in the housing affordability crisis. Sydney: Thesis, The University of New South Wales 2007, 19 9 In cohousing communities, collaboration and self-management is reinforced. Aiming at inhabitants’ community oriented living, special community spaces are designed and activities promoting communication take place. (LaFond, M. and Honeck, T. CoHousing Cultures. Handbook for self-organized, community-oriented and sustainable housing. Berlin: JOVIS Verlag GmbH, id22: Institute for Creative Sustainability: experiment city, 2012, 17) 10 Zeuli, Kimberly and Croop, Robert. Cooperatives: Principles and practices in the 21st century. Madison: University of Wisconsin Extension, Publication A1457, 1980, 32 11 http://ica.coop/en/what-co-op/co-operative-identity-values-principles (accessed on June 1th, 2013)

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Moreover, each member of a housing co-operative has some responsibilities. 12 They should participate actively and be present in all cooperative meetings on an annual basis and be willing to put in for a board seat. They should also be informed about all issues, regarding the cooperative, and criticize its functions and actions, in order to make it better. Thus, in their meetings, members have the possibility, through democratic procedures, to adopt or amend regulation and articles of incorporation, wherever they consider it necessary. It should be also noted that each member is equal and should not expect any special treatment. In addition to this, members should support the housing co-operative, the most possible, and be always complied with their financial obligations. Maybe the most important task of a cooperative member is to elect a responsible and capable board of directors, since it is not possible for everyone to know the administrative procedures of the cooperative. For this reason, they should carefully select people that will not only represent them faithfully, but will also support and strengthen by all means the operation and development of the co-operative. However, apart from responsibilities, a housing co-operative has significant financial and social advantages. 13 It provides affordable housing solutions that do not sacrifice housing quality. According to one Canadian study, after comparing physically similar properties of co-operatives and rental sector, it was stated in the case of co-operative sector, housing expenditure was about 21% lower than in rental properties. Moreover, it has been found that housing co-operatives contribute to social coherence and enhancement, as for example, eliminating crime and drug activities, while at the same time, they may create employment opportunities and promote qualitative living. It is also worth mentioning that housing co-operatives could be classified in five describing models. 14

• Market rate co-operative: It refers to a type of organizations, within its members have individual equity, equal to market demand for the shares. • Limited-equity co-operative: Its members are provided with individual equity of limited growth capacity. • Common or not-for-profit co-operative: In this case, none of its members has equity, which is hold by the co-operative. • Leasing co-operative: This type of co-operative head leases a property, without holding the ownership, and can provide tenant security, through financially control. • Tenant management co-operative: Tenants are co-operative members, which manages the properties and provides financially security.

12 Zeuli, Kimberly and Croop, Robert. Cooperatives: Principles and practices in the 21st century. Madison: University of Wisconsin Extension, Publication A1457, 1980, 49-50 13 Lewis, Terry and Higgins, Lindley R. The Advantages and Disadvantages of Cooperative Housing as an Affordable Alternative. Paper, NCB Development Corporation, 2004, 2 14 Fu, Megan. The role of housing co-operatives in the housing affordability crisis. Sydney: Thesis, The University of New South Wales 2007, 21-22

Qualitative affordable housing models Case studies

In the following Table the housing co-operative models are compared, as listed by Fu (2007), in order for the reader to understand better their function and structure. Table 3.3: Housing co-operative models

Market rate cooperative

Limitedequity cooperative

Common or notfor-profit cooperative

Leasing cooperative

Tenant management

Ownership

Share corresponds to dwelling size

Equity in affordable price, with limited growth capacity

Cooperative hold the property

Cooperative head leases the property

Cooperative manages the property

Cooperative Equity

Yes

Individual Equity

Yes

Affordability Provisions

Yes

Similarity to other tenures

Homeownership

Loan and private funding

Private renting

Public renting

Private/ public renting

Control over future tenants

Yes

Depends on individualâ&#x20AC;&#x2122;s tenancy agreement Control over maintenance and repairs

Security

Longterm

Depends on head lease agreement

Cooperative control over equity/funds

Complete control

Complete control over funds

Control over funds

When the State has no more money Looking for qualitative affordable housing models

Figure 3.2: Families in Santa Rosa de Cabal, Colombia, constructing their dwellings with self-help method

Source: http://www.livingneighborhoods.org/ht-0/ santarosa.htm (accessed on May 31st, 2013)

Figure 3.3: Communities, constructed with self-help housing methods in Soweto, South Africa. Source: http://www.livingneighborhoods.org/ht-0/ santarosa.htm (accessed on May 31st, 2013)

| | | Self-help housing

In the self-help housing method, usually low-income, individuals or groups, build, extend or improve their housing, through self-construction or mutual aid. As a rule, they are financially, administratively, or technically supported by the State, and in some cases, by non-governmental organizations. The point of interest of this housing method is the fact that the households themselves contribute voluntarily with their unused manpower, to meet their housing needs.â&#x20AC;&#x2030;15 Important factor of self-help housing that should be considered are construction budget and time schedule, technical quality, social development, and economic perspectives. In order for projects of self-help housing to be accomplished, there are some preconditions. First of all, the active participation of the inhabitants of the future housing project, is required. They should be able and willing to work in and organize the housing construction process or help their neighbors. Moreover, they should be in the position to contribute financially from their savings to cover a part of the project expenditure. Secondly, the support from the State or other institutions is considered necessary and substantial for the implementation of such housing projects. The State should organize, in first place, the whole structure of self-help housing programs and then motivate the people, through some favorable conditions, to participate. It may also provide them with financial aid, technical equipment, and infrastructure. In addition to this, a technical and skilled personnel should be available, so as to help and work with the families, aiming at housing construction. Furthermore, the State should organize some education programs on building techniques and provide trainers and instructors for all these people, who otherwise are going to start building their house, without having any construction experience. In many cases, the State or the Municipality may also provide credit facilities, for alleviating financially low-income households, or even public land, to locate the new affordable housing project. According to Papanikolaou and Taucer (2004, 61), self-help housing projects could be categorized in different categories, regarding their type and scale. Table 3.4: Classification of self-help housing projects, based on type Type Spontaneous unaided self-help

Description Individuals or families work to meet their housing needs without any external aid.

Cases that they were implemented In informal settlements or rural areas around the world.

15 Geray, Cevat. The application of the aided self-help housing method in Turkey. Ancara: Paper, RCD Symposium on Rural Housing. July 7-10, 1973, 43

Qualitative affordable housing models Case studies

Figure 3.4: Settlements rehabilitation in El Salvador, Construction phase

Spontaneous unaided mutual help

A group of people or families cooperate and help each other, in order to cover their housing needs, without any external aid.

In developing countries, in rural areas. Construction or renovation of dwellings, community buildings and services.

Aided self-help

Individuals or families work to meet their housing needs, with financial or technical aid from a public or private entity.

In developing countries, in urban areas. Aid from national development financing governmental or non-governmental organizations. Significant cases on Chile, Colombia and El Salvador.

Aided mutual help

In housing projects for low-income households. Aid from World Bank for progressive housing developA group of people or famiment, where the infrastructure and lies cooperate and help each partially the houses, are built by other, so as to meet their contractors, while the rest of the housing needs, with financial dwellings are completed by the or technical aid from a public beneficiaries through self-help or or private entity. mutual help construction. Cases of settlements upgrading in Brazil and Argentina.

Source: http://www.sumconsult.de/projects_4.htm (accessed on May 31st, 2013)

Figure 3.5: After settlements rehabilitation in El Salvador Source: http://www.sumconsult.de/projects_4.htm (accessed on May 31st, 2013)

Table 3.5: Classification of self-help housing projects, based on scale Scale

Description

Large

National programs, requiring political commitment, financial programming, urban planning, coordination and training. It aims at the construction of tens of thousands dwelling annually.

Intermediate

Self-help housing programs, with the help of Municipalities or local authorities and non-governmental organizations. It aims at the construction of some thousands dwelling annually.

Small

Non-governmental or community based organizations, housing cooperatives or private companies carry out such programs, aiming at constructing 50 to 500 dwellings.

It is also worth mentioning, that the method of self-help housing has many advantages. People with no or little experience acquire skills and capacities for building construction, which may be an asset for their employment possibilities. The sense of community, solidarity and cooperation are also strengthened, since people work together for a common goal, especially in mutual aid self-help housing method. Last

When the State has no more money Looking for qualitative affordable housing models

but not least, the housing project implementation costs are reduced, considering the provision of inhabitants’ labor force, and the use of traditional technologies and people’s saving. | | | 3.2 Selection criteria and analysis instruments of case studies | | | | 3.2.1 Analysis instruments The case studies countries are analyzed on three different levels. First of all, the economic and housing crisis of each context are briefly presented. Secondly, various aspects of crisis’ most important social impacts are examined, such as unemployment rates, housing affordability problems and the most affected households. Thirdly, administrative movements and housing policies towards addressing housing affordability problems, made by the State, private sector companies or cooperatives are analyzed for each one of the selected countries. Consequently, new policies on institutionalized and self-organized affordable housing, which followed the crisis, are searched in Argentina, Turkey and Ireland. A case study of a specific housing project in each country is also presented. In conclusion, a synopsis and a short parallelism and juxtaposition of the case studies are considered to be essential, in order for the reader to understand the most important facts and acquire a picture of international qualitative affordable housing models. | | | | 3.2.2 Selection criteria In the following subchapters, three case studies are examined, in Argentina, Turkey and Ireland. The goal was to find qualitative affordable housing models in countries that went through housing crisis period, due to financial or other reasons. Firstly, all of the selected countries have experienced or are still experiencing financial crisis (Argentina from 1999 until 2003, Turkey from 1999 until 2002, and Ireland since 2008). Secondly, another common fact of these cases, was the high unemployment rates that accompanied the crisis periods, leading to social imbalance and incoherence. Thirdly, Argentina, Turkey and Ireland presented especially high homeownership rates (66% in 2009, 60% in 2011, and 70.2% in 2011, respectively), a fact that makes them comparable with the case of Greece (75.9% in 2011) 16, which is analyzed in the fourth chapter of this thesis. Fourthly, as a result of the economic crisis, affordable housing problems were arisen for low and middle-income households. In order for these problems to be addressed, the direct intervention of the State or other institutes or housing providers were necessary. However, taking into account the fact that each government was confronting severe financial problems, the selection of the case studies was made, by focusing on bottom-up approaches, such as cooperations between public entities and housing co-operatives or individuals.

http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=ilc_lvho02&lang=en (accessed on June 24th, 2013)

Qualitative affordable housing models Case studies

Argentina

Figure 3.6: Argentine Republic

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

When the State has no more money Looking for qualitative affordable housing models

| | | 3.3 Argentine Republic | | | | 3.3.1 Facts and figures Table 3.6: Geography 17 Figure 3.7: National flag of Argentine Republic

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Location

Southern South America

Area

2,780,400 km2

Density

14.5 per km2

Capital

Buenos Aires

Natural hazards

Earthquakes, windstorms, flooding, volcanism

2010

Table 3.7: Political outline Government type

Republic

Administrative divisions

23 provinces

Independence

9 July 1816 (from Spain)

Table 3.8: Sociodemographics 18 19 20 Population

42.6 million

2013

Population of Buenos Aires 12.8 million

2009

Median age

31 years

Age structure

25.2% 0-14 years, 63.6% 15-64 years, 11.1% 65-over

Figure 3.8: Population pyramid of Argentina Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

17 Area of USA: 9,600, EU25: 3,981, World: 133,700 18 Population of USA: 315.8 million, EU25: 475, World: 7,085 million [http://countrymeters.info (accessed on May 17th, 2013)] 19 PricewaterhouseCoopers. From Sao Paulo to Shanghai. New consumer dynamics: the impact on modern retailing. Argentina. 2006/2007, [http:// www.pwc.com/en_GX/gx/retail-consumer/pdf/from-sao-paulo-to-shanghai_low.pdf (accessed on May 17th, 2013)], 24 20 www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Qualitative affordable housing models Case studies

Population growth rate

0.98%

2013

Urban population

92% of total population

2013

GDP

$749.9 billion

2012

GDP - real growth rate

2.6%

2012

Currency

Argentine peso

Labor force

17.07 million

2012

Unemployment rate

7.2%

2012

Unemployment in youth ages 15-24

18.7%

2011

Urban population

92% of total population

2013

Population below poverty line

30%

2010

GDP in 2002

$235.2 billion (-10.9%)

1999- 2003

Economic crisis

2001

Economic collapse

Table 3.9: Economy 21

Table 3.10: Housing sector 22 23 Homeownership rate

66%

Size of apartment

50m

Price per m2

€326

Average persons per household

2.58

2011

Average number of persons per room

1.3

2010

Number of rooms

2.9

2010

Share of “poor” dwellings

2.3

2010

21 22 23

2009

www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013) http://cedlas.econo.unlp.edu.ar (accessed on May 17th, 2013) McKinsey&Company. Affordable Housing for all. Washington: World Bank Housing Finance Conference, May, 2012, 17

When the State has no more money Looking for qualitative affordable housing models

| | | | 3.3.2 Housing in crisis Argentina’s housing sector played a significant role in the boom, bust and then recovery of its economy. From around 1980 until the middle of the 1990s, the mortgage market expanded and together with dollar-denominated housing loans led to an economic boom. As a result, mortgage loans became a significant product for bankers and homeowners. At the same time, market-oriented adjustments in financial sector and the integration of international practices in the mortgage regulation system contributed in this direction. Moreover, formal sector production was raised and more people had the opportunity to homeownership, reducing in this way the percentage of people living in slums. The main resources in housing funding were bank mortgages and public housing programs. After the inactivity and the economic crisis of the period 1998 and 2001, a dramatic change happened in the financial sector. The default in December of 2001 was already a fact. The devaluation of the national currency, peso, and capacity constrains helped in housing prices sharp growth. The new construction material costs 24 and the price of the existing housing stock 25 rose sharply, too, while the majority of mortgage borrowers were disadvantaged, regarding their real value of their savings. 26

Figure 3.9: Map of Argentina

Source: www.cia.gov/library/publications/the-worldfactbook (accessed on May 17th, 2013)

The case of Argentina is especially important in defining the role of demand and real estate. The low level of demand had a substantially negative impact in mortgage market development in the years of crisis, while the real estate always constituted a safe asset. The majority of investors concentrated in housing market, trying to avoid the measure of expropriation following the country’s bankruptcy. Housing activity was increased and by implication, properties transactions, prices and construction. Thus, the housing sector had a direct and significant impact on a country’s financial sector. In 2004, 11% of the GDP of Argentina, was construction expenditure, the half of which were referred to housing construction. Not to mention the fact that, when other sectors, related to housing and construction were calculated, then this percentage, reached 22% of the GDP. This fact contributed to generate important job opportunities for unskilled or skilled employees. 27 The financial recession and the financial crisis between 1999 and 2003 affected also dramatically households’ incomes and their housing affordability. Housing prices growth, combined with the reduced incomes of households, created affordability problems and housing stress. The result was that less and less households asked for mortgages, while ownership rates were kept in high levels. In addition to this, according to a research of 2007, presented by Auguste, Bebczuk and Moya (2011), almost 60% of Argentinians were not eligible to obtain a mortgage loan, even with the minimum required criteria. Informal housing construction were again developed, as a temporary solution for people affected by the crisis. 24 More specifically, new construction material costs rose more than 90% during the period 2002 and 2005. 25 For instance, the price of a two-room apartment in Buenos Aires increased by 150%, costing for example $100,000 in 2005, while its price in 1999 was not more than $40,000. 26 Argentina Country Management Unit. Review of Argentina’s Housing Sector: Options for Affordable Housing Policy. Policy Research Working Paper. The World Bank, November, 2006, 12 27 Ibid, i

Qualitative affordable housing models Case studies

It is also logical that households’ income reductions, due to crisis, made the housing expenses unaffordable. More specifically, the gross income of households located in urban areas, fell by 33%, primarily due to the sharp growth of country’s inflation in 2002 and 2003. 28 As a consequence, a significant widening of distribution gaps was noticed, particularly since 1998, when the financial crisis started. This widening, in combination with incomes inconsistent fall, contributed in poverty and inequality growth. 29 Figure 3.10: Slums in Buenos Aires

Source: http://culturmedia.files.wordpress. com/2013/02/buenosaires_slum_for_lemonde-5.jpg (accessed on May 20th, 2013)

At the same time, many households confronted housing quality problems. In 2001, the quantitative deficit of housing was 8.6% of households, while the qualitative deficit for low-income families living in overcrowded or low-quality dwellings was 20.2%. On the other hand, the following years, although homeownership rate was decreased, housing size and quality was enhanced. Table 3.11: Argentina: Quantitative and Qualitative Deficits, 1980-2001 Indicator

1980

1991

2001

Households

7,575.3

8,927.3

10,075.8

Good quality dwellings

6,798.3

7,743.5

9,204.7

Recoverable (low quality) dwellings

599.6

1,461.6

1,576.5

Quantitative deficit (as % of households)

10.2

13.3

8.6

Qualitative deficit (as % of households)

30.2

28.0

20.2

Concluding, the evolution of real estate prices, in combination with the devaluation of peso had major consequences in housing sector. In the Table below, there is a clear comparison of housing sector’s main characteristics before and after crisis. Thus, it is obvious that the crisis affected substantially the homeownership percentage, reducing it by 70.2% in 1999 in 66.2% in 2009. However, the next years and until 2009, economic growth was noticed by 7.5%, while the construction activity was also raised, by 16% annually. The economic growth, which followed after 2003, contributed to the improvement of the other characteristics of dwelling types. Table 3.12: Argentine main urban areas: tenure and type of dwellings Indicator Homeownership

1999

2009

70.2%

66.2%

28 The inflation was increased in only 2 years by 46%. 29 Argentina Country Management Unit. Review of Argentina’s Housing Sector: Options for Affordable Housing Policy. Policy Research Working Paper. The World Bank, November, 2006, 11-13

When the State has no more money Looking for qualitative affordable housing models

Number of rooms per house

2.9

3.0

Persons per room

1.4

1.3

Share of “poor” dwellings

3.0

2.3

Share of dwellings of low-quality materials

1.7

1.4

| | | | 3.3.3 Social impact of crisis The four-year economic and housing crisis had a direct impact on Argentina’s society. The unemployment rate sharply increased, while the population below the poverty line was almost doubled during 1999 and 2002, reaching 58% of the total population. It is a fact that 28% of the population experienced extreme poverty the same period, while before the crisis this rate was 6%. However, the following years of the economic growth, these rates were decreased to 24.7% and 8.4% respectively. The unemployment rate was also reduced from 22.5% in 2002 to 11.6% in 2005. 30 Many low and middle-income households could not any longer afford homeownership. Middle-income households, which had access to homeownership before 2001, at that point, were reoriented to search for housing in areas, remote from city centers, or in rental sector. The result for poor people, who remained in cities, was living in precarious districts, the majority of which lacked decent living conditions and required rehabilitation. 31 One of the first impacts of this situation, was also the sharp increase in vacant and overcrowded apartments in Buenos Aires. The formal administrative initiatives of the State were urgent, aiming at a new affordable housing policy and governmental programs. | | | | 3.3.4 Administration intervention |

| | |

Institutionalized Housing

The State responded in housing crisis with some federal programs, planned for low and moderate-income families. Through these programs, the State raised the expenditure of the federal budget on housing sector, reaching 0.5% of GDP, from -0.45% it was during the crisis period. The majority of these new programs were focused on low-cost housing, addressing the needs of low-income families. Specifically, intermediary organizations, such as Municipalities, local authorities or co-operatives, were employed, in order to help households to use these housing programs and to undertake some responsibilities, with regard to project coordination, implementation or supervision. However, these federal initiatives lacked the necessary steady federal leadership, so as to influence many public and private organizations 30 PricewaterhouseCoopers. From Sao Paulo to Shanghai. New consumer dynamics: the impact on modern retailing. Argentina. 5th edition. 2006/2007, http://www.pwc.com/en_GX/gx/retail-consumer/pdf/from-sao-paulo-to-shanghai_low.pdf (accessed on May 17th, 2013), 27 31 According to Argentina Country Management Unit (2006, i), 500,000 to 800,000 houses had to be replaced, 2 to 2.7 million houses had to be rehabilitated, and 1.7 million households had no adequate sanitation qualities. Moreover, 20% of the population, which corresponds to around 8 million people lacked even convenient access to water, in order to cook.

Qualitative affordable housing models Case studies

and to combine public subsidies, household savings and credits from private sector for housing projects. Contrariwise, lots of direct demand-subsidy programs were used by private developers, producing housing for middle-income families. 32 Thus, the main federal housing agency, FONAVI (Fondo Nacional de Vivienda) funded new affordable housing programs, through Provincial Housing Institutes (IVPs). As a rule, IPVs provided land and credits for the sale of the projects, funded by FONAVI resources. These subsidies covered the expenditure of entire projects and precluded the possibility of households to make a down-payment or be financed by a bank loan. In this way, FONAVI succeeded producing annually 42,000 housing units, over the last 15 years, whilst being in cooperation with local authorities and provincial governments. However, these housing projects were addressed mostly to middle-income families, leaving out of scope low-income households. Moreover, this system produced mostly low-quality housing in remote areas, which cost far above the housing projects of private sector. Furthermore, housing production, especially in large urban centers, started already the years before crisis, consisting mostly of self-construction processes, informal or planned, and of few applications of social policies, initiated by international organizations and the State. Cooperatives and grassroots associations played also substantial role in the production of housing by bottom-up initiatives. After 2002, governmental housing policies were mainly based on cooperations with social movements and social rights organizations. 33 There were two organizations, based on social movement and concentrated in affordable housing, the MTL (Movimiento Territorial de Liberación) and the Madres de Plaza de Mayo Association (Madres). In the following case study, the social organization, MTL, and the government of Buenos Aires cooperated, aiming at low income housing production. Figure 3.11: Flow of housing State programs and bank housing mortgages, 1994 - 2008 (% of GDP) Source: Auguste, Bebczuk and Moya (2011, 9)

32 Argentina Country Management Unit. Review of Argentina’s Housing Sector: Options for Affordable Housing Policy. Policy Research Working Paper. The World Bank, November, 2006, i-ii 33 Scheinsohn, Mariano and Cabrera, Cecilia. Social movements and the production of housing in Buenos Aires. When policies are effective. Sage Publications. International Institute for Environment and Development. Environment and Urbanization 2009 21: 109-125, 2009, 109-110

When the State has no more money Looking for qualitative affordable housing models

| | | Self-organized housing

A remarkable case of self-help housing in Argentina, was part of the Flood Rehabilitation Program, after the El Niño phenomenon in 1998. The program was a cooperation among federal, provincial and municipal authorities, with the help of various other national agencies, as for example ministries, military institutes, national services and universities. All these different sectors provided valuable information or technical equipment or conducted research. The goal of the whole project was to contribute to financing institutional actions and physical work for affordable housing developments. It was structured in two stages, the prevention and the rehabilitation, and it lasted from 1998 until 2004. Through the provision of non-transferable vouchers, the people affected by the floods, could afford building materials. The idea was that poor families without any private financial resources, could contribute with their labor power. Flexible housing prototypes were designed, in such a way that could meet the cultural patterns of the residents. The result was that 455 dwellings went to construction by those families, using local construction materials and the strategy of self-construction and mutual assistance. 34 | | | | 3.3.5 Qualitative affordable housing model Buenos Aires is the capital and the largest city of Argentina and a significant economic center in Latin America. Already in the beginning of 1980s, the number of people living in low-income informal households was substantially and continuously increased. The last 30 years this number was doubled, reaching almost 107,000 people and making the problem more current than ever. 35 In addition to this, after the 2001 economic collapse, Argentina’s unemployment rate reached 24%, while 50% of the population lived under the poverty line. However, the State was unable to meet the housing need, because of the bankruptcy. It should be also noted, that between 1998 and 2006, the number of new housing constructions was no more than 500. For this reason, the following years, the city government started collaborating with social organizations and civil society. Through this collaboration the goal was to develop new affordable housing projects for people, affected by the crisis. The MTL started its activities between 2000 and 2001, concentrated in low-income households confronting eviction. It succeeded to produce employment opportunities by promoting and organizing productive enterprises and managed to secure at least, the minimum subsidies provision from government or other State institutions. It created a construction cooperative, in which about 700 of its members became its employees, even if they lacked work experience. The first housing project of MTL was the Monteagudo redevelopment in Buenos Aires. For the location of the project, a neglected industrial district in the center, with plenty of lorn factories and warehouses, was chosen. The site of an abandoned paint factory was provided for the needs of Monteagudo project. The selection of a 34 Correa, Elena. Preventive Resettlement of Populations at Risk of Disaster Experiences from Latin America. The International Bank for Reconstruction and Development, 2011, 29 35 Auguste, Sebastián, Bebczuk Ricardo and Moya, Ramiro. The Demand for Mortgages under Macro Volatility: The Argentine Case. InterAmerican Development Bank, 2011. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1981537 (accessed on March 19th, 2013), 2-8

Qualitative affordable housing models. Case studies

central location for the project was intentional, since its developers wanted to promote a possible comparison to more typical housing developments. The goal was to support inhabitants’ integration to the new neighborhood and the traditional working class. Another objective was to provide affordable and accessible housing, ensuring direct connections with local transport, urban infrastructure and commercial services. At the same time, the neighborhood accepted positively the project, hoping in general revitalization. In the community-led Complejo Monteagudo project, formerly homeless unemployed people constructed 326 high quality multi-story houses for themselves at an equivalent cost of common social housing. The beneficiaries did not previously have access to credit and the project was realized with public funding. A zero interest loan was given, with a repayment period of 30 years. Additionally, a technical training center was established, in order for people, who would participate in selfconstruction housing projects, to acquire the required knowledge, capacities and skills, related to construction, project planning, and self-management of resources. The project consisted of 326 apartments, a multi-propose room, proposals for commercial and service enterprises, a child-care center and a public common space. Buenos Aires City Government Housing Institute was the main sponsor of the project. The dwellings were allocated in members of the MTL and the selection criteria were based on households’ social participation, family structure, degree of housing stress and ability to pay off all the installments within the next 30 years. In order to keep affordability levels, these installments were adjusted and did not exceed 20% of households’ income. 36 Upon the completion of the project, a construction company in cooperation with self-employees, created 400 permanent formal jobs for structurally unemployed or informal workers, contributing in this way to the improvement of their lives and reducing the problem of unemployment. To sum up, Monteagudo case represents the first pilot community-led and managed housing project in Argentina that received direct funding from the Municipality and gave the opportunity in other communities of Buenos Aires to be inspirited by it and follow this example. 37 Figure 3.12: Plan of Monteagudo Housing Project

Source: Edited by the author based on http://arqa. com/gallery-page?id=7648 (accessed on March 19th, 2013)

36 O’ Meara, Mary-Rain. Innovative Approaches to Housing Policy and Production in Latin America. Two Cases: Sao Paulo, Brazil and Buenos Aires, Argentina. 46th ISOCARP Congress 2010. http://www.isocarp.net/Data/case_studies/1713.pdf (accessed on March 17th, 2013), 6-7 37 Hannula, Emma-Lisa. Going green. A handbook of sustainable housing practices in developing countries. Nairobi: UN-HABITAT, 2012, 16

When the State has no more money Looking for qualitative affordable housing models

Figure 3.13: Sections and view of Monteagudo Housing Project Source: http://arqa.com/gallery-page?id=7648 (accessed on March 19th, 2013)

Figure 3.14-3.16: Monteagudo Housing Project in Argentina Source: http://www.worldhabitatawards.org/ (accessed on May 20th, 2013)

Qualitative affordable housing models Case studies

Turkey

Figure 3.17: Turkey

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

When the State has no more money Looking for qualitative affordable housing models

| | | 3.4 Turkey | | | | 3.4.1 Facts and figures Table 3.13: Geography 38 39 Figure 3.18: National flag of Turkey

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Location

Southeastern Europe and Southwestern Asia

Area

783,562 km2

Density

94.5 per km2

Capital

Ankara

Natural hazards

Severe earthquakes

2010

Table 3.14: Political outline Government type

Republican parliamentary democracy

Administrative divisions

81 provinces

Independence

29 October 1923 (successor State to the Ottoman Empire)

Table 3.15: Sociodemographics 40 41 Population

80.7 million

2013

Population of Ankara

3.846 million

2009

Median age

31 years

2013

Age structure

25.9% 0-14 years, 67.5% 15-64 years, 6.6% 65-over

Figure 3.19: Population pyramid of Turkey, 2013

Source: www.cia.gov/library/publications/the-worldfactbook (accessed on May 17th, 2013)

38 39 40 41

Area of USA: 9,600, EU25: 3,981, World: 133,700 www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013) Population of USA: 315.8 million, EU25: 475, World: 7,085 million [http://countrymeters.info (accessed in May 17, 2013)] www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Qualitative affordable housing models Case studies

Population growth rate

1.16%

2013

Urban population

70% of total population

2010

GDP

$1.125 trillion

2012

GDP - real growth rate

2012

Currency

Turkish lira

Labor force

27.11 million

2012

Unemployment rate

7.2%

2012

Unemployment in youth ages 15-24

25.3%

2011

Population below poverty line

16.9%

2010

GDP in 2000

$166.7 billion

1999- 2002

Economic crisis

2003-2007

Economic growth

Table 3.16: Economy 42

Table 3.17: Housing sector 43 44 Homeownership rate

60%

Price per m2

€2,905

Average persons per household

3.8

2011

Average number of persons per room

0.9

2010

Housing expenditure

22%

2010

42 43 44

www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013) http://www.oecdbetterlifeindex.org/ (accessed on May 17th, 2013) http://www.globalpropertyguide.com/ (accessed on May 17th, 2013)

2011

When the State has no more money Looking for qualitative affordable housing models

| | | | 3.4.2 Housing in crisis After the East Asian financial crisis between 1997 and 1998, a period of financial and economic crisis started in 1999 in Turkey. Two years later the country reached the worst point. The program, named “Transition to Strong Economy” started being implemented in the macroeconomic policies from the beginning of the crisis and until 2008, with a mid-term growth strategy, based on foreign capital inflows. The positive impact of the program on the economy was marked between 2002 and 2007, with the national income growing at such a high rate, that it was enough to cover the recession of the previous years. However, the growth was deceptive, as there were deficiencies on various levels of sustainability. Thus, the country continued presenting economic and social problems, such as high unemployment rates, low-paid employment terms, a growing uneven income distribution, increasing external deficit, privatization and inefficient governmental financial policies. 45 In addition to this, the liberalization of the Turkish economy started, with gradually enforcement of the free flow of foreign capital investments. However, the national currency, Turkish lira, was revalued and the country’s competitiveness on an international level was reduced. In this way, Turkey got more and more depended on its imports. 46 As a consequence, since the beginning of the subprime crisis and the direct impact, it had on the international finance markets, the first signs of recession started being shown. Turkey was hit by the global financial crisis in September of 2008, revealing its problematic growth strategy and leading to a domestic economic crisis. The GDP of the country presented a sharp reduction, reaching -7% in 2009. The financial recession of the country, brought many negative impacts on housing sector. The Turkish housing system, in the period following the crisis of 1999, was characterized by long-standing bureaucratic problems in housing policies. The mortgage markets were less developed and the inconsistency of the State in housing policies was evident. The lack of an effective public subsidy system, contributing to affordable mortgages production constituted also a problem. 47 Moreover, between 1993 and 2002, there was a continuous decline in housing co-operative developments, whilst the previous years, and more specifically in 1988, co-operatives’ activities had reached consisting 35% of the total annual building permits. 48 The decrease of housing co-operatives in Turkey was caused by three main facts. The first reason was the steady growth of the real interest rates, which were crucial for determining the co-operative construction expenditure, since they were completed in a long-term period. The second reason for this decrease, was the termination of the Housing Development Fund in 2001, which was supporting affordable housing production. Thirdly, speculative housing projects dominated in real estate market, offering housing to low-income households, apart from houses for the 45 Balaban, Nazan Bedirhanoğlu. Global Economic Crisis and Turkey. New York: Binghamton University. Vol. 40, 2009, 125 46 Hepşen, Ali and Aşıcı, Mehmet. The Association between Current Account Deficit and House Prices in Turkey. Journal of Applied Finance and Banking, Scienpress Ltd, vol. 3, no. 3, 2013, 66 47 Coskun, Yener. Does re-design of the policies on housing finance and supply help to solve housing question of Turkey? Munich: 18th Annual ERES Conference, MPRA Paper No. 31729, June 21, 2011, 15 48 ICA housing. Housing Co-operatives in Turkey. http://www.icahousing.coop/attachments/Housing%20Co-ops%20in%20Turkey.pdf (accessed on May 24th, 2013), 1

Qualitative affordable housing models Case studies

upper class. The result was that housing co-operatives starting presenting operational deficits, since the land price was increased and individuals’ affordability was reduced. In addition to this, in 2002 a new housing policy was implemented, excluding housing co-operatives from the right to acquire public funding or public land for housing development. However, despite the decrease of housing co-operatives in Turkey after 2000s, it is worth noting that 22% of total housing production from 1981 until 2006, was produced by them. 49 Consequently, even though economic crisis caused overall affordable housing problems, housing co-operatives continued playing an important role in housing provision. | | | | 3.4.3 Social impact of crisis The capital inflows and the global trend in growth, benefited the country the period after 2001. However, when these benefits faded, the Turkish economy revealed its vulnerability. The economic growth of the period between 2002 and 2007 did not solve or even improve the problem of unemployment. More specifically, the unemployment rate was continuously growing from 10.5% in 2003, to 9.7% and then 13% in 2007 and 2009, respectively. Moreover, the real wages fell, bringing many social problems in the Turkey. One of the most important impacts of this fall, was the increasing gab in income distributions. Additionally, rapid urbanization, in combination with population and migration growth, were continuously increasing housing demand in large urban centers. The result was that more and more people needed access to affordable housing. | | | | 3.4.4 Administration intervention |

| | |

Institutionalized Housing

TOKI and local Municipalities and authorities played the most important role in urban transformation projects of Turkey. The ‘Housing Administration of Turkey’, or TOKI, is the State department, of which the objective is to provide social housing to low-income families. 50 These families should first apply for a special mortgage and then, can receive the financial aid. TOKI cooperated with Municipalities, aiming to upgrade poor and ethnically stigmatized communities. Its work was remarkable, especially the period between 2003 and 2012. The mass production of housing projects that took place in 2,350 sites in Turkey, provided 535,000 housing units, of which 86% was social affordable housing and 14% luxury projects for fundraising. 51 The Turkish State in cooperation with TOKI, delivered all these mass housing projects, through a type of Public Private Partnership (PPP). Public land was allocated for mass housing projects. TOKI published tenders for private developers,

49 Özkan, Alper. A critical evaluation of housing co-operatives in Turkey within the framework of collective action theories: A case study in Ankara and Instabul. Ankara: Thesis, Graduate School of Natural and Applies Sciences of middle East Technical University, 2009, 187 50 Tan, Pelin. Populism as Conflict of Values. Noordkaap Times, September, 2011, 2 51 McKinsey&Company. Affordable Housing for all. Washington: World Bank Housing Finance Conference, May, 2012, 12

When the State has no more money Looking for qualitative affordable housing models

who had to prepare plans and proposals for the affordable dwellings. They had also to define the proportion of these housing units that they were willing to provide back to the State for social housing. 52 This form of PPP had many advantages. The private developers avoided expenditure for land acquisition, supporting in this way financially the private market. Of course, only the title of the proportion of the site that corresponded to private housing was given to developers, while the rest remained public. Another advantage of this PPP was the fact that through it, private sector developed mass housing for the government, without confronting problems of land speculation and high land values, which could impose constraints for the provision of affordable housing. It should be also clarified that this form of PPP was especially successful in Turkey, since the State was the main administrator of large areas of land. However, its policies and functions had some disadvantages. First of all, TOKI’s urban policies allowed displacement of inhabitants and changes of their housing tenure type. They also used manipulating and marketing tools, such as urban fears and Istanbul’s urban image, in order to succeed urban clearance and rescaling. Moreover, in order to provide low-cost housing to poor households, the new housing projects, in many cases, were located far away from the city center, which caused more financial problems to the inhabitants, since they were lacking the required direct connections to urban transport. Consequently, the inhabitants of these projects were often segregated from the city center. In addition to this, many of these dwellings could be characterized as low-quality housing. The reason for that was that developers were concentrated so much in achieving housing affordability that they put in second position the housing design and construction materials, concluding to a result that lacked high quality. Furthermore, the State proceeded to some more measures, in order to help indirectly housing affordability. Firstly, it should be noted, that Turkish housing market is mainly based on demand, which reaches annual about 650,000 housing units. It is directly affected by the growth of population, migration, urbanization and disposable income. All of these phenomena cause increased demand for affordable housing and escalate supply driven market. Aiming at reducing macroeconomic risks, the State attempted to help and liberate real estate transactions and facilitate collaborations between government entities and homeowners or renters. Three important laws were amended for this reason. At first, the Reciprocity principle was terminated, so as foreign transactions to be launched. Secondly, the law for pre-forested areas was modified, in order for conflicts about land, between the State and individuals, to be eliminated. Thirdly, the law about condominium ownership was amended, enabling the demolition and reconstruction of a condominium, only with an agreement of the 2/3 of the owners. In this way, the State aimed at increasing housing demand, since 40.5% of the total building stock in Turkey was of low quality. 53 52 Plumb, Craig, Hassouni, Hicham and Sahyoum, Salah. Affordable Housing in MENA. Why Affordable Housing Matters? Jones Lang Lasalle. September, 2011, 10 53 More specifically, according to Haluk (2012, 5), 7.7 million buildings out of the total 19 million houses in Turkey, offered low or medium housing quality.

Qualitative affordable housing models Case studies

Figure 3.20: Housing supply in Turkey, 2005-2010 Source: Edited by the author based on Sur (2012, 4)

In the following Figure, the Turkish housing market surplus and deficit, since 2004 until today, and some estimations on this topic from today until 2016, are demonstrated. Considering the economic crisis of 2008 and the law amendments, the Figure shows that the surplus of housing stock was continuously reduced until the beginning of economic crisis. Moreover, in the following years housing demand and supply is expected to be even more counterbalanced. Figure 3.21: Turkish housing market supply, demand and surplus/deficit, 2004 - 2016E Source: Edited by the author based on Sur (2012, 5)

| | | | 3.4.5 Qualitative affordable housing model Turkey’s geography, climate and topography has caused many natural disasters. During the last century, 87,000 deaths, 300,000 injuries and 700,000 building damages occurred, because of strong earthquakes, landslides, floods, droughts, rock falls and avalanches. Earthquakes were the worst case for building structures and responsible for damaging 76% of these buildings, bringing thousands of people in housing crisis. 54 Therefore, a significant portion of governmental housing construction budget went for the rehabilitation of earthquake victims of Turkey. 54 Regarding the rest of the buildings, 10% were damaged after landslides, 9% after floods and 5% after other natural disasters. [Dikmen, Nese, Elias-Ozkan, Soofia Tahira and Davidson, Colin. Comparison of post-disaster housing procurement methods in rural areas of Turkey. London: Open house international. Vol.37, No.1, March, 2012, 32]

When the State has no more money Looking for qualitative affordable housing models

Figure 3.22: Position of Düzce in Turkey

Source: www.cia.gov/library/publications/the-worldfactbook (accessed on May 17th, 2013)

The following case study refers to a housing project that was developed, as a response to the disastrous earthquakes of 1999. The two major earthquakes of 7.4 and 7.1 on the Richter scale, hit the northern western Turkey, leaving hundred thousands homeless and bringing the country in a situation of housing crisis. Turkish government constructed dwellings for earthquake victims, many of which were not aided, due to social welfare and rehabilitation gabs. 55 The State reacted with Beyciler assisted self-help housing project in Düzce, where the center location of the second earthquake was and severe damages were caused. The project duration was 20 months starting on May 2002 and being completed on December 2003. The goal was to help the most disadvantaged 168 households, most of whom after staying homeless, lived in provisional shelters. 56 Through this housing project the rehabilitation of these families was possible, in dwellings that were formed and constructed by themselves. The main concept of this project was the active community participation in project management, architectural design and housing construction. In this way, the sense of ownership and belonging in a community was strengthened, making possible totally different households 57 to cooperate and establish a housing community. Another objective of this project was the launch of a community association, which would manage and organize financially inhabitants’ needs. First of all, the community center was built and used as a social and administrative center for the community and BEYDER association, which was established by the beneficiary households. The construction of the center was already in 2002 completed, covering an area on 200m 2 . Then, the identification of the beneficiary households started with an announcement of the eligibility criteria and with bro55 www.beycilerevleri.org (accessed on May 28th, 2013) 56 The period between the earthquakes and the completion of the Beyciler housing project, 75 out of the total 168 households were renting a flat or house, 71 were living in prefabricated dwellings and 22 were staying in tents. [http://www.ibc.org.tr/en/sayfa.php?d=proje &icerik=47&sayfa=detay&baslik=BEYCILER-ASSISTED-SELF-HELP-HOUSING-PROJECT (accessed on May 28th, 2013)] 57 The beneficiary households were Roman, Abkhazian, Turkish, Kurdish, Georgian and Laz with different cultures and origins. [http://www.ibc.org.tr/en/sayfa.php?d=proje&icerik=47&sayfa=detay&baslik=BEYCILER-ASSISTED-SELF-HELP-HOUSING-PROJECT (accessed on May 28th, 2013)]

Qualitative affordable housing models Case studies

chures and posters being distributed, in order for the community to be informed about the project. After the selection of the beneficiary families, an agreement, with their customization preferences, and a participation declaration formâ&#x20AC;&#x2030;58, were signed with each one of them. Before the implementation the State conducted a survey on 3,000 households, trying to record their self-help perception, their lifestyle, their familiarity with construction work and the number of households living in shelters. For the preparation of the engineering and architectural design, DĂźzce Municipality and Sakarya University cooperated. Of course, customization options were possible, in order for the inhabitants to be even more motivated for participating in the construction process. Thus, detached houses of 67.66m2 in ground floor and 21.77m 2 in upper floor, were designed. The dwellings were detaches in groups of four, aiming at efficient use of land and promoting the sense of neighborhood. The beneficiaries elected a steering committee, in order to represent them at the meetings with the project personnel. The participants were divided in different categories, based on their skills, capacities and time schedule. Apart from the construction groups, three working posts for concrete watering, night watchman and working in the social and administrative center, were set, so as the elderly and the disabled to participate in the whole procedure. As expected, workers of two contractors, contributed with their professional skills and work, in the construction process, wherever it was considered necessary. Moreover, the required infrastructure for running water and sewage system was provided by the Municipality. The construction period lasted about one year and households were committed not to sell or rent their house for the following ten years. When the housing project was finished, beneficiaries established the BEYBER association, aiming at ensuring project sustainability and addressing the further managerial and financial needs. Last but not least, between 2004 and 2005, the association succeeded increasing funds and organizing seminars on sewing, embroidery and literacy.

Figure 3.23: Participants of Beyciler assisted self-help housing project Source: http://www.ibc.org.tr/en/sayfa.php?d=pr oje&icerik=47&sayfa=detay&baslik=BEYCILERASSISTED-SELF-HELP-HOUSING-PROJECT (accessed on May 28, 2013)

58 The participation declaration form stated the number of household members that could participate in the design and construction process, their skills and capacities and their proposed weekly schedule.

When the State has no more money Looking for qualitative affordable housing models

Figure 3.24: Beyciler houses settlement plan

Source: Edited by the author based on http://www. ibc.org.tr/en/sayfa.php?d=proje&icerik=47&sayfa=d etay&baslik=BEYCILER-ASSISTED-SELF-HELPHOUSING-PROJECT (accessed on May 28th, 2013)

Figure 3.25: Affordable housing unit of Beyciler assisted self-help housing project

Figure 3.26: Female participator’s success on construction works

Source: http://www.ibc.org.tr/en/sayfa.php?d=pr oje&icerik=47&sayfa=detay&baslik=BEYCILERASSISTED-SELF-HELP-HOUSING-PROJECT (accessed on May 28th, 2013)

Source: http://www.ibc.org.tr/en/sayfa.php ?d=proje&icerik=47&sayfa=detay&baslik =BEYCILER-ASSISTED-SELF-HELPHOUSING-PROJECT (accessed on May 28th, 2013)

Figure 3.27-3.29: Phases of construction of the Health center in Beyciler project

Source: http://www.beycilerevleri.org.tr/healthcenter. asp (accessed on May 28th, 2013)

Figure 3.30-3.32: Τhe steering committee meetings Source: http://www.ibc.org.tr/en/sayfa.php?d=pr oje&icerik=47&sayfa=detay&baslik=BEYCILERASSISTED-SELF-HELP-HOUSING-PROJECT (accessed on May 28th, 2013)

Qualitative affordable housing models Case studies

Ireland

Figure 3.33: Ireland

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17, 2013)

When the State has no more money Looking for qualitative affordable housing models

| | | 3.5 Ireland | | | | 3.5.1 Facts and figures Figure 3.34: National flag of Ireland Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Table 3.18: Geography 59 60 Location

Western Europe

Area

70,273 km2

Density

62.2 per km2

Capital

Dublin

Table 3.19: Political outline Government type

Republic, parliamentary democracy

Administrative divisions

29 counties and 5 cities

Independence

6 December 1921 (from the UK by treaty)

Table 3.20: Sociodemographics 61 62 Population

4.77 million

2013

Population of Dublin

1.084 million

2009

Median age

35.4 years

2013

Age structure

21.4% 0-14 years, 66.5% 15-64 years, 12.1% 65-over

Figure 3.35: Population pyramid of Ireland, 2013 Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

59 60 61 62

Area of USA: 9,600, EU25: 3,981, World: 133,700 www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013) Population of USA: 315.8 million, EU25: 475, World: 7,085 million [http://countrymeters.info (accessed on May 17th, 2013)] www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Qualitative affordable housing models Case studies

Population growth rate

1.16%

2013

Urban population

62% of total population

2010

GDP

$191.5 billion

2012

GDP - real growth rate

0.7%

2012

Currency

Euro

Labor force

2.104

2012

Unemployment rate

14.6%

2012

Unemployment in youth ages 15-24

24.3%

2011

Population below poverty line

5.5%

2010

GDP in 2007

$189.9 billion

2000-2008

Property bubble

2008 till today

Crisis period

Table 3.21: Economy 63 64

Table 3.22: Housing sector 65 66 Homeownership rate

70.2%

Size of apartment

88m2

Price per m2

€3,063

Average persons per household

2.85

2011

Average living area in m2 per person

2002

Rooms per person

2.1

2010

63 64 65 66

www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013) http://www.indexmundi.com (accessed on May 17th, 2013) http://www.apartmenttherapy.com/ (accessed on May 17th, 2013) http://www.globalpropertyguide.com (accessed on May 17th, 2013)

2011

When the State has no more money Looking for qualitative affordable housing models

| | | | 3.5.2 Housing in crisis The economic crisis in Ireland started in 2008 and was caused by various factors, with the most crucial, being a series of misleading policies for economic growth. They were developed after a long period of provision of low interest rates and growing incomes. The produced model of these policies was based on continuing supply of goods and services, without taking into consideration the actual demand. 67

Figure 3.36: Map of Ireland

Source: www.cia.gov/library/publications/the-worldfactbook (accessed on May 17th, 2013)

The period before crisis, Irish housing sector had a remarkable progress. It was characterized by a property bubble, due to the constantly growing housing supply. The reason for this phenomenon lied in speculations for increasing population growth, inward migration and declining average household size. The housing stock, modern and energy efficient, with one third of it, built the last 15 years, offered qualitative housing. It should be noted, that 93,000 housing units were completed only in 2006, which was the highest rate per capita in Europe. 68 Nevertheless, the desired levels of housing affordability for low-income households could not be met.

Figure 3.37: Irish housing prices

Source: Edited by the author based on Kelly (2009, 5)

Moreover, it should be mentioned, that Irish social housing sector was not particularly extensive, accommodating only 11% of households in 2006. Under the introduction of a new national legislation, the Planning Development Art program, local authorities were enabled to provide social and affordable housing to lowincome groups. More specifically, local authorities were the direct administrator of 75% of social housing and almost all funding was provided by the State. 69 In line with this new housing policy, they had to consider in their housing development plans, a prognosis of future housing demand and try to meet it. Thus, private devel-

67 Department of Environment, Community and Local Government. Housing Policy Statement. Dublin: 2011 68 Roche, Dick and Ahern, Noel. Delivering homes. Sustaining communities. Statement on housing policy. Dublin: Department of the Environment, Heritage and Local Government, 2007, 7 69 Norris, Michelle and Fahey, Tony. From Asset Based Welfare to Welfare Housing: The Changing Meaning of Social Housing in Ireland. Dublin: UCD School of Applied Social Science, Working paper series, 2009, 3

Qualitative affordable housing models Case studies

opers were obligated to provide 20% of their residential land to local authorities for social and affordable housing, in prices below market value. Without this part of a housing proposal, the plan could not be approved. In the Table 3.23, social and private housing units of the last 30 years in Ireland are presented, revealing the small part of public sector in housing market. Table 3.23: Social and private housing units, 1980s-2007 1980s

1990s

2000-07

Social housing

42,893

20,184

46,926

Private housing

182,203

275,186

468,318

Social housing sold to tenants

46,204

17,024

10,649

As reported by Clayton, president of Irish council for social housing, the global financial crisis had many negative impacts on Irelandâ&#x20AC;&#x2122;s economy and housing sector. Both governmental economy and real estate market collapsed entirely. As a consequence, major oversupply of housing properties in rental and private sector was noticed. In accordance with official estimations, 55,000 private housing units and around 3,700 affordable housing units, owned by local governments remain unsold. All these public owned properties were constructed by private developers under the Planning and Development Act and were purchased by local authorities, in order to be sold as affordable housing. The main reason for this, was the fact that access to homeownership in open market was particularly unaffordable for low and middleincome households, since property prices were constantly increasing. After the beginning of economic crisis in 2008 the value of these housing units fell, resulting in the predicament, in which the State was not able to sell them and at the same time, was obligated to repay the loans that were required for buying them in first place.â&#x20AC;&#x2030;70 In addition to this, it should be mentioned that another impact of financial crisis in Ireland, was the termination of governmental funding to housing associations for the provision of social housing. With exception of some special needs housing programs for pensioners or people with disabilities, the provision of social housing for middle-income families was brought to an end. Moreover, while Ireland was trying to overcome from the bust of the property bubble in 2008, the housing market got frozen. For a better understanding of the situation, there are many examples of housing projects, stuck in the middle of their development. One of them is the residential development at Fringe, a city north of Dublin. The area was about to be covered with 8,000 housing units, shops, a school, and the required infrastructure. However, planning and development process mistakes were revealed, the moment that the financial crisis started. Only the town 70 CECODHAS housing Europe. Financing social housing after the economic crisis. Brussels: Proceedings of the CECODHAS Seminar, September 10, 2009, 72

When the State has no more money Looking for qualitative affordable housing models

center and some housing units at the edge of the site were built, leaving the whole project half-built. As Clayton (2009, 73) stated, the whole area will remain unfinished until the end of the crisis in real estate market. Figure 3.38-3.40: The half-finished large residential development at Dublin’s North City Fringe

Source: CECODHAS housing Europe (2009, 73-74)

| | | | 3.5.3 Social impact of crisis All the above mentioned changes in financial and housing sector effected, as expected, Irish society. As stated by Threshold, a not-for-profit housing organization, there was a lack of qualitative affordable housing the last years, especially for low-income, one-person households, which constitute 22% of all households in Ireland. 71 More specifically already since 2006, their affordability ratio reached 44% to 48% of their gross income, which left the individuals with less money than the basic welfare rate. The result of this financial problems was that labor mobility was decreased and growth was slower, for instance in areas, where decent affordable housing was lacking and jobs were available. In many cases, individuals chose to live in dwellings of poor quality, while single persons with certain characteristics were not accepted and excluded by many accommodation possibilities. As a consequence, negative social effects arose, such as bad interpersonal relationships, delayed selfdevelopment and maturation, and forced relocation. Another effect of the rapid collapse of property bubble in 2008, was the sharp increase of unemployment rate, reaching 14.6% in 2011, while in 2008 was only in 5.8%. The productivity remained also stagnant and the housing prices fall, reached 30%. However, housing affordability ratio remained in high levels, due to falling incomes and employment. 72 Figure 3.41: Number of households by size in 2002 Source: Edited by the author based on Threshold (2010, 18)

71 Threshold. Access to Housing for One-Person Households in Ireland. Dublin: Combat Poverty Agency, Working Paper Series 10/03, 2010, 2 72 Kelly, Morgan. The Irish Property Bubble: Causes and Consequences. 2009 http://www.irisheconomy.ie/Crisis/KellyCrisis.pdf (accessed on June 3rd, 2013), 10

Qualitative affordable housing models Case studies

| | |

Institutionalized housing

In response to housing crisis, Irish government reacted with a model of public grants. Centrally funded grants were provided, to authorized contractors, having as objective, affordable housing construction. These grants could directly influence housing supply and promote and secure other funding resources. However, they were limited to available funds and political commitment to housing sector. Part of the public grants model was also the provision of low interest loans for land acquisition, public subsidized interests and some limited grants for local authorities. 73 Another proposed solution for housing crisis was leasing. The unsold private or public properties were available to housing associations for 5 to 20 years. The goal was to utilize the empty units and provide them for affordable housing. In order to succeed that, housing associations rented these empty apartments, based on tenants’ income, with the rule that the affordability ratio should not overcome 10% to 15% of the net household income. |

| | |

Self-organized housing

The significant growth of Irish economy, population and employment, of the last decade before 2008, led to raised and overestimated housing demand. In addition to this, the land and housing construction costs increased significantly, while the first signs of unemployment growth had started to be shown, especially in the construction industry. For this reason, more and more people renegotiated their housing choices and turned to housing co-operatives, since as individuals could not anymore afford land purchase and housing construction. Nowadays, co-operatives in Ireland are represented by three organizations: the Irish Co-operative Organization Society (ICOS), the National Association of Building Co-operatives (NABCO) and the Irish League of Credit Unions (ILCU). These co-operatives contributed to the provision of thousands of houses the last century, combining at the same time housing programs with educational, training and employment programs. 74 Their work did not stop during the crisis period, but on the contrary, was an alternative solution to the housing problem. Besides, with the current housing policies concentrated on lowering buildings’ energy consumption and improving housing quality, especially in blocks of flats, where the density is higher, co-operatives manage and refurbish apartment building. In Ireland there is also the co-operative social rented housing sector, which, however, is not specially expanded. The advantages of this sector are that qualitative affordable housing is provided and tenants have the security of tenure, while they

73 CECODHAS housing Europe. Financing social housing after the economic crisis. Brussels: Proceedings of the CECODHAS Seminar, September 10, 2009, 17 74 O’Donohoe, Seamus, O’Keeffe, Niall and Brennan, Kieron. Co-operative Alliance Ireland Yearbook. Dublin: 2012 International Year of Cooperatives, 2012, 3

When the State has no more money Looking for qualitative affordable housing models

should be willing to participate as co-operative members. Another advantage is that through the provision of rental housing by a not-for-profit co-operative association, social coherence is achieved and housing needs of local society are met. Moreover, a new model of co-operative equity-sharing housing started to be applied in Ireland. Through it, the members are able to take an affordable mortgage loan and acquire a homeownership equity stake, up to 50% of the construction cost, while the remaining equity is owned by the co-operative. In this way, the associations’ self-help initiative contributes towards relieving society’s housing needs. 75 The funding resources of housing co-operatives are retrieved from mortgage loan, of which security is the property and the repaying period lasts 20 to 25 years. Members’ financial contribution may also reach 10% of the building cost. The level of the mortgage loan and its interest charges are determined in such a way, in order for the purchasers to acquire affordable housing. Figure 3.42: Membership structure and affiliations Source: Edited by the author based on Thompson (2010, 4)

| | | | 3.5.5 Qualitative affordable housing model One of the most important administrators of Irish housing sector is the national federation for the co-operative housing sector, National Association of Building Co-operatives. NABCO has provided around 5,000 houses and been responsible of the management of almost 1,800 affordable houses. 76 It is about a co-operative of housing co-operatives and works closely with local services and authorities, aiming at coordinated efforts for the best possible results. NABCO collaborated with Greenlaws Housing Co-operative in Coolock, for the refurbishment of Ireland’s first rental co-operative. The funding resource was private, while a public subsidy for housing maintenance covered also some of the

75 Housing Co-operatives in Ireland. http://www.icahousing.coop/attachments/Housing%20Co-operatives%20in%20Ireland.pdf (accessed on June 4th, 2013), 3 76 Current NABCO leaflet. http://www.nabco.ie/_fileupload/Current%20NABCO%20Leaflet.pdf (accessed on June 3rd, 2013)

Qualitative affordable housing models Case studies

renovation cost. From the total 3790m 2 site area, 970m 2 were the refurbished floor area, while 345m 2 were the new-constructed floor area. 77 The project was finished in April 2013.

Figure 3.43: Logo of National Association of Building Co-operatives

Source: http://www.nabco.ie/ (accessed on June 4th, 2013)

Seventeen existing, one, two and three-bedroom houses and the existing small community facility were improved. The construction of these building was dated in the late 1980s, in order to provide co-operative social rented housing and met local community’s housing needs. For this reason, the renovation of these building was considered as essential. More specifically, properties’ energy consumption was reduced and accessibility was enhanced for people with reduced mobility. 78 Alterations were also made in houses’ technical equipment and courtyards. Additionally, the provision of two new dwellings was included in this redevelopment project. The first building was a semi-detached, two storey, and two-bedroom house, adjoined to an existing one, while the second house replaced an existing one-storey community room for a new two-storey building, including a three-bedroom house, a new community center and an external store.

Figure 3.44: Plan of Greenlawns Co-operative housing project

Source: Edited by the author based on http://www. nabco.ie/Developing/Default.500.html (accessed on June 4th, 2013)

Figure 3.45-3.46: Greenlawns Co-operative housing project Source: NABCO. (2012, 4)

77 78

Gerry Cahill Architects. Greenlawns Refurbishment. Dublin: National Association Of Building Co-Operatives (NABCO), 2012, abstract http://www.nabco.ie/Developing/Default.500.html (accessed on June 4th, 2013)

When the State has no more money Looking for qualitative affordable housing models

| | | 3.6 Synopsis This chapter about qualitative affordable housing models explored administrative housing approaches, resulting in two main types. The institutionalized housing, referring mainly to public-private partnerships and self-organized housing, referring to housing co-operatives and self-help housing. One of the most important findings of the research was the statement of Dikmen, Elias-Ozkan, and Davidson (2012, 30), about top-down and bottom-up approaches for solving housing crisis. As mentioned, top-down approach usually is not the most successful for such a case, since it is based on standardization and technology. Thus, although it offers economic and quick housing solutions, the culture and special needs of the local community are ignored. Contrariwise, bottom-up approach, on account of residents’ participation, revitalizes social dynamics, confidence and capacity. It also provides affordable housing solutions for low-income groups and a smoother, but delaying, implantation into the social and cultural context. This critique is crucial for the last chapter, where proposals for qualitative affordable housing models are formulated, for cases of a State’s inability to support housing sector. The analysis of the three case studies, which followed, offered also valuable information.

Figure 3.47: Argentine Republic

Source: www.cia.gov/library/publications/the-worldfactbook (accessed on May 17th, 2013)

The case of Argentina points out the possibility of cooperation among social associations and individuals. Especially in the case of the Flood Rehabilitation Program, the collaboration of the State and people was remarkable. Through the provision of vouchers, people, affected by the flood, could buy building materials, which afterwards used, so as to construct their own houses. It should be also noted the direct response of municipal authorities, national agencies and universities of the country. The provision of flexible housing prototypes, meeting the alternatives of residents’ cultural patterns, is also a significant fact. Of course, it is worth mentioning that the governmental administrative approach of housing crisis in Argentina could be an example to avoid. Although it offered plenty of housing units, the majority of them were not affordable for low-income households. Moreover, this model provided mainly housing developments in remote areas and low quality housing, making residents’ everyday life costlier than expected. The first case study of the community-led Complejo Monteagudo housing project in Buenos Aires, presents many advantages. The creation of a construction cooperative, in which the formerly unemployed, members found job, leads by example. With municipal funding and zero-interest loan, the members built their houses by themselves, acquiring in this way, all the essential knowledge to continue working in construction industry. The Municipality provided also the land in an industrial neglected district, revitalizing in this way, the whole neighborhood and achieving social integration of new residents. Monteagudo project was the first pilot community-led housing project in Argentina, which inspired many other communities in Buenos Aires.

Qualitative affordable housing models Case studies

Figure 3.48: Turkey

Source: www.cia.gov/library/publications/theworld-factbook (accessed on May 17th, 2013)

Figure 3.49: Ireland

Source: www.cia.gov/library/publications/theworld-factbook (accessed on May 17th, 2013)

The case of Turkey presents a significant model of public private partnership. Public land was allocated to private developers, with the fee of providing part of the whole project for social and affordable housing. In this way, the private market was financially supported and mass housing projects were developed without confronting high land prices, which could affect outcomes affordability. However, the provision of houses in remote areas and in many cases of low-quality were some of the disadvantages of this affordable housing model. Important measure of the Turkish State was also the amendment of part of the legislation, related to properties. The goal was to increase housing demand, facilitate real estate transactions and promote the refurbishment of problematic or lowquality dwellings. The second case study, the Beyciler assisted self-help housing project in Düzce, is about a rehabilitation program of earthquake victims of 1999. Community response and its cooperation with the State was significant. The Municipality provided land and public funds, while the beneficiaries undertook the construction of their own houses. It should be also noted, the crucial contribution of the Sakarya University to the preparation of the engineering and architectural design. Moreover, the customization of housing design by the residents, is a very important fact. After the completion of the project, the beneficiaries established the BEYBER association, which through some educational programs and its organizational service, achieved in ensuring project sustainability and enforcing social coherence and dynamics. Last but not least, the case of Ireland demonstrates the solution of leasing for housing affordability problems, caused by financial crisis. It this case, unsold public or private properties were provided to housing associations for a limited period of time. Thus, empty and unutilized units were rented, with the affordability ratio being less than 15% of the net household income. In addition to this, the role of housing co-operatives in Ireland is particularly active. They develop, manage, construct, provide, maintain and renovate housing units, being in this way an alternative solution for individuals, who cannot address their housing needs by themselves. The model of co-operative equity-sharing housing is also worth mentioning, since co-operative’s members are able to take an affordable mortgage loan and acquire a homeownership equity stake, up to 50% of the construction cost. The third case study of the Greenlawns housing project in Coolock, held through the collaboration of the NABCO and the local co-operative. The goal was the refurbishment of Ireland’s first rental co-operative. Consequently, the existing housing stock was utilized and renovated, presenting a more sustainable solution for affordable housing. In the following Table, the three applied models in each of the case studies are summarized. As mentioned already the provision of employment possibilities, the utilization of neglected industrial area and the self-help approach in the Monteagudo Housing project, the community participation and the provision of urban land for self-help housing in Beyciler project and the refurbishment of low-quality cooperative housing in Greenlawns project, are substantial and helpful information for the further research.

When the State has no more money Looking for qualitative affordable housing models

Public entity

People/ Authority

Social movement MTL

Land Acquisition

Funding Source

Neglected industrial district in the center of Buenos Aires

Public funding by City Housing Institute

Municipal land in DĂźzce

Municipality funds

Argentina

Public entity

Private entity

For formely homeless members of the MTL

Municipality

For 168 most disadvantaged households from the eartquakes of 1999

Public subsidies for maintenance

Public entity

Private entity

Turkey

Private entity

Ireland

National Association of building Co-operatives and greenlawns Co-operative housing society

Refurbishment of Irelandâ&#x20AC;&#x2122;s first rental co-operative housing

Private funding

Qualitative affordable housing models Case studies

Organization/ Construction

Outcome

Institutionalized housing Monteagudo social housing project (2006)

Cooperation between MTL and Emetele housing cooperative

Design by Sakarya University in cooperation with the Municipality

Self-help housing Beyciler assisted self-help housing project (2005)

Community participation

Self-organized housing Greenlawns Co-operative, Coolock (2013)

Housing cooperative and selfadministration by residents-members

When the State has no more money Looking for qualitative affordable housing models

Chapter 4 The case of Thessaloniki, Greece

Figure 4.1: Greece

Source: Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17, 2013)

When the State has no more money Looking for qualitative affordable housing models

| | 4 T he case of Thessaloniki, Greece | | | 4.1 Facts and figures of Hellenic Republic Table 4.1 Geography 1 Figure 4.2: National flag of Greece

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Location

Southern Europe

Area

131,957 km2

Density

87.2 per km2

Capital

Athens

Natural hazards

Severe earthquakes

2010

Table 4.2 Political outline 2 Government type

parliamentary republic

Administrative divisions

13 regions

Independence

1830 (from the Ottoman Empire)

Table 4.3 Sociodemographics 3 4 Population

10,8 million

2013

Population of Athens

3.252 million

2009

Median age

43.2 years

2013

Age structure

14.1% 0-14 years, 65.8% 15-64 years, 20.1% 65-over

Figure 4.2: National flag of Greece

Source: www.cia.gov/library/publications/the-worldfactbook (accessed on May 17th, 2013)

1 2 3 4

The case of Thessaloniki, Greece

Population growth rate

0.04%

2013

Urban population

61% of total population

2010

Table 4.4 Economy 5 6 GDP

$208.5 billion

2012

GDP - real growth rate

2012

Currency

Euro

Labor force

4.951 million

2012

Unemployment rate

27.2%

2013

Unemployment in youth ages 15-24

44.5%

2011

Population below poverty line

20%

2009

GDP in 2008

$233.2 billion

2008 till today

Economic crisis

Table 4.5 Housing sector 7 8 9 Homeownership rate

75.9

Size of apartment

79.6 m

Price per m2

€3,516

Average persons per household

2.4

2011

Average rooms per persons 1.2

2010

Average living area in m2 per person

32.03m2

2004

Housing expenditure

28%

2010

5 6 7 8 9

2011 2

http://epp.eurostat.ec.europa.eu (accessed on May 17th, 2013) http://data.worldbank.org (accessed on May 17th, 2013) http://cedlas.econo.unlp.edu.ar (accessed on May 17th, 2013) http://www.globalpropertyguide.com/ (accessed on May 17th, 2013) http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=ilc_lvho02&lang=en (accessed on June 24th, 2013)

When the State has no more money Looking for qualitative affordable housing models

| | | 4.2 Introduction_ Housing crisis in Greece The economic crisis that Greece and Europe experience, since 2008 onwards, has particularly adverse impacts on housing sector. The construction activity is continuously falling, bringing, consequently, unemployment to plenty of professions related to construction. At the same time, the turnover of many construction companies is daily dwindled and in many cases is nullified. In accordance with the Hellenic Statistical Authority and as shown in Figure 4.4, the production indicators are significantly decreased in recent years. More specifically, the period between January and December 2012, the total construction activity in Greece, fell by 36.7% regarding the number of building permits, by 30.45% regarding the built surface and by 28.9% regarding the built volume, in comparison to the same period of 2011. Figure 4.4: Evolution of prices in construction sector, 2009-2012 Source: http://www.statistics.gr/portal/page/portal/ ESYE (accessed on June 27th, 2013)

Greece was also ranked third in EU based on the reduction of construction activity within the five year period 2007 and 2011. The decline 10 amounted to 75%, versus 86% decline in Ireland and 89% in Spain. According to the annual European survey on the housing market of RICS (Royal Institute of Chartered Surveyors), the tightening of lending standards by banks has significantly reduced demand on the European housing market, but the fall in prices was similar. . Moreover, the situation in the housing construction sector, which was previously self-financed, changed. The increased housing prices in the era of a United Europe, the housing production, held mainly by the private sector, and the lack of social housing policy, resulted in full dependence of the construction sector on the banking system. The housing market is financed mostly by bank loans and the houses are often used, as the main guarantee for getting them. It is widely known, that, over the last two decades in Greece, the procedure for housing loan acquisition was too simple with the contribution of the bank, especially the period between 2000 and 2008. Today, the lending capacity of banks is 10

The only European country with a positive sign was Switzerland with an increase of 36%.

The case of Thessaloniki, Greece

considerably shrunk, due to the global financial crisis. Banks do not give more than the minimum housing mortgages. Additionally, because of the crisis, many people are unable to pay their loan installments, resulting in being at risk of losing their homes, while banks are unable to get their money back. However, the State attempts to protect the owners, through the implementation of a specific law until the end of 2013, which prohibits debt auctions for less than 200,000 euros, owed to banks. In these cases, the property is confiscated, but the debtor continues to live in it, receiving, at the same time and in many cases, intense psychological pressure from the side of the bank. This measure provides a 48 month period to borrowers, during which they must pay a low installment, equal to 30% of their monthly income. This measure is mostly addressed to employees, pensioners and unemployed people, who accumulated unpaid installments and, due to their salaries’ cuts, cannot afford their loan repayment. However, this law does not include debts for housing loans to other individuals or organization, which means that plenty of foreclosures have not stopped. The most affected social group in Greece by the economic crisis is considered to be the middle class. For instance, the ratio of housing operating expenses compared to the monthly income for an average four-membered family in Greece, with only one of the two parents working, especially after the sharp increase in unemployment range, would be around 50%. Furthermore, in recent reports and articles 11, it is mentioned that data in housing market have changed and the trend of homeownership is coming to an end, although this rate in Greece is among the highest in the world. Harbinger of this evolution is the sharp decrease in rates of purchasing the first residence, mass housing auctions that banks and the Troika 12 press to start immediately, and the worsening demographics. This is expected to lead to increased demand for rental housing, instead of homeownership. Already a new phenomenon that has occurred in a few cases is the rental property, without rent to be required. Shops or old apartments, which have been left by the wayside, are provided for free accommodation by their owners, as long as tenants retain them in good condition, pay all related expenses and taxes and do not allow foreigners or other outsiders to live in for a long time. Figure 4.5: Caricature: “The Troika: Don’t worry. She will recover!”, talking about Greek economy.

Source: http://pavlidiscartoons.com/ blog/?cat=1&paged=7 (accessed on June 28th, 2013)

11 12

http://www.symbolaia.gr/site/news/details.php?id=008228CC3E (accessed on July 26th, 2013) The troika is the committee that represents European Union’s external relations, related to the Common Foreign and Security Policy.

When the State has no more money Looking for qualitative affordable housing models

| | | 4.3 Defining housing typology and quality in Greece | | | | 4.3.1 Short historical review of housing sector

Figure 4.6: Mansions in the mainland, Siatista, Greece Source: http://www.travelstyle.gr/portal/photos/ articles/396_193_DSC_7972edit.jpg (accessed on June 27th, 2013)

A short historical review in the Greek housing typology is considered to be essential in order to give a clear picture of the housing quality standards in the Greek context. The term ‘Greek traditional house’ is referred to all dwellings, built after the Fall of Constantinople (1453) until the liberation from the Ottoman Empire in 1821. In general, there are two main categories: the houses of the islands and those in the mainland. Depending on the social class, they are also classified in folk houses (λαϊκά), middle-class houses (μεσαία) and mansions (αρχοντικά). The main characteristics of all categories are presented in the following Table: Table 4.6: Main housing categories in Greece Location in Greece

Folk houses

Middle-class houses Mansions

In islands

Single room-house (μονόσπιτο): Orthogonal flat roof, made by soil (δώμα); Furniture, used as a bed and storage space (σοφάς); Fireplace

Two-story house: Orthogonal; Stables and storerooms on Big houses with special the ground floor decoration or tower(κατώι); Living in houses in countryside the first floor (ανώι); Courtyards and terraces (ηλιακοί)

In the mainland

Same type with tile roof

Figure 4.7: Folk houses in fishing village, Klima, Milos Island, Greece

Source: http://www.cycladia.com/uploaded/milos/ travel_guides/slideshow/4-milos-klima.jpg (accessed on June 27th, 2013)

Same type with balcony connected with the roof (χαγιάτι)

Same type with enclosed wooden balcony in upper floors (σαχνισιά); Lobby with low windows and colored glass skylights (ηλιακός); Decoration with woodcarvings and frescos

The case of Thessaloniki, Greece

Figure 4.8: Illegal refugee housing in Athens in the 1930s

Source: http://2.bp.blogspot.com/_K7W7tLX9RRc/ S1MhK7ndHtI/AAAAAAAAAes/7-N2FVpJs6I/ s1600-h/5w.jpg (accessed on June 27th, 2013)

Turning point in history of housing quality of Greece was the massive influx of Greek refugees from Asia Minor in 1922. Most of them were directed to big cities, looking for better and more employment opportunities. As a consequence, the phenomenon of urbanization appeared, while the next years, it was even more intensified. Around 1930, the first blocks of flats were built in big urban centers, starting transforming the urban landscapes. Since 1950 a turbulent era in the history of Greece ends and the flowering in all sectors began. One of the most significant growth was the reconstruction bust of big cities. 13 The new form of construction, the block of flats (πολυκατοικία) 14 was based on imported standards and eliminated almost completely the residential identity of these cities, as for instance of Athens, Thessaloniki, and Patra. The institutional framework, which allowed the massive construction of this building type was governed by the law ‘about horizontal property’ (περι οριζοντίου ιδιοκτησίας). According to this law, the percentage of the landownership corresponded to a relative share of the new building. Thus, already in 1929, the construction method of antiparochi was institutionalized. This method allowed the construction company to exchange land for built space of equal value. In this way, contractors could avoid the costs of land purchase and invest money only for the building construction. Of course, this was also very convenient for households with low incomes, who had a plot, but not enough money to build. On the other side, the State housing policy lied mainly on the land supply and the provision of urban regulations, aiming at favorable building terms. The absence of social housing policy was substituted by a number of regulations from the State with clear social character, in order to facilitate autonomous housing practices. 15 These regulations, with a tolerance for informality, allowed to raise building regulations, include suburban informal settlements in the urban plan with favorable conditions 16 and make exceptions in the fragmentation of small plots. Additionally, before 2008 and their abolishment, there were tax measures, which exempted the a household’s first residence from transferring taxes or taxes on the interest payment. Interest subsidies for housing loans were also given in cases of first-time buyers. As it is apparent from the literature (Maroutas, 1990; Mantouvalou and Mavridis, 1993; Emmanouil, 2006; Mantouvalou, Mavridis and Vaios, 2006; Polizos, Minetos and Tsiotas, 2012; Kalama, 2013), the researchers of housing policy in Greece characterize the Greek social housing policy as rudimentary and inadequate, or even nonexistent. This position, as many believe, was by its own, a State housing policy. It is also worth mentioning, the phenomenon of homeownership in Greece. Homeownership, through the commercialization of housing, became the most desirable tenure and was loaded with social and cultural values. Greek homeowners desired not 13 Zambouni, Elina. Approach to the Typolog y of Urban Residence from 19th Century to the Present. Study of Greek Housing Models. (Προσέγγιση στην Τυπολογία της Αστικής Κατοικίας από το 19ο Αιώνα Μέχρι Σήμερα. Μελέτη των Ελληνικών Μοντέλων Κατοικιών.) Paper, MA Interior Architectural Design, Vakalo Art and Design College and University of Derby, February, 2008, 36 14 The Greek term polukatoikia refers to multi-storey building, up to 7 floors, consisting mainly of residences. It has a core, which is constituted by a common entrance, stairwell and elevator. (Zambouni, 2008, 37) 15 Emmanouil, D. The social housing policy in Greece: The dimensions of an absence. (Η κοινωνική πολιτική κατοικίας στην Ελλάδα: Οι διαστάσεις μιας απουσίας). Review of Social Research. Issue. 120, 2006, 3-35 16 Favorable conditions may be zero contributions of land and money to the State.

When the State has no more money Looking for qualitative affordable housing models

only financial security, but also personal and social security. On the same ground, governmental policies supported this type of tenure, since it enhances social stability, security, control and cohesion. The result was that in 2011, 75.9% of households owned their home, which is one of the highest rates of home ownership worldwide.

Figure 4.9: Blocks of flats in Athens Source: http://www.enet.gr/?i=news. el.article&id=88095 (accessed on June 27th, 2013)

However, the use of ‘antiparochi system’ had lots of negative impacts in housing and urban quality. First of all, during the Second World War, this system was dominant and caused the commercialization of housing. Subsequently, the form of the dwellings were simplified, acquiring a neutral and colorless character, addressed to the average citizen. Secondly, the lack of large plots and at the same time the great division of the existing land, rose sharply the percentage of density in the urban centers. Because of the abundance of small plots and in combination with the low manufacturing cost and ‘antiparochi system’, many small and medium sized construction companies produced an impressively large number of housing developments. These companies were profited, charging each buyer. The result was that, in 2011 43.2% of Greek population lived in densely-populated areas. 17 Thirdly, another problem, caused by this commercialization of housing was the lack of materials’ technology. Expertise and research towards this direction required private initiatives and funding, which never came from the local and for-profit construction companies. As a consequence, the local construction technology remained limited in specific materials, such as concrete, brick and aluminum. 18 Another negative impact on the housing quality was the fact that the residents were eliminated from the whole housing design process. Architectural studies were also degraded to such a degree that they were used as simple technical guides by untrained contractors or they were just serving in covering formal obligations, imposed by the institutional framework. The architect had a secondary role in housing developments and important design standards were disregarded. In such a way, the user lost the relation to the property and could not define by himself his own identity, but he accepted a prescribed model of lifestyle. Thus, inhabitants had to adapt his housing life in the building and not the other way around. Even worse, after a point, residents lost their capacity to recognize the basic characteristics of a house that would meet the most their own real needs. To make this phenomenon more understandable for the reader, an example is following. According to Zambouni (2008, 41), many studies are concerned about the separation of the living space into two basic parts: the one that is addressed to the visitors and the one that is addressed to the permanent residents. The first one consists of the dining and living room, and a small toilet, which open only for the visitors. This part of the house remains closed most of the time for the family, in order to be ready, clear and tidy to welcome visitors at any time. The daily common activities of the family, such as discussing, eating, cooking, watching television, are limited in the kitchen around the eating table. In this way the kitchen gains importance and should be spacious enough to receive all these activities. Thus, in the apartment there are two lives, 17 http://appsso.eurostat.ec.europa.eu/nui/submitViewTableAction.do (accessed on June 24th, 2013) 18 Zambouni, Elina. Approach to the Typolog y of Urban Residence from 19th Century to the Present. Study of Greek Housing Models. (Προσέγγιση στην Τυπολογία της Αστικής Κατοικίας από το 19ο Αιώνα Μέχρι Σήμερα. Μελέτη των Ελληνικών Μοντέλων Κατοικιών.) Paper, MA Interior Architectural Design, Vakalo Art and Design College and University of Derby, February, 2008, 37-39

The case of Thessaloniki, Greece

the private and the official. This official part of the house, although is visited not in the same frequency as the private part, is the most carefully and expensively decorated and occupies the majority of the housing surface. To conclude with, as presented in this example, the family has to be adapted in a specific lifestyle and the users tend to lose their identification with their homes. One of the main reasons for that is the increased mobility. Except for the commercialization of housing and the poor architectural design of many cases, the modern citizen has to change more than one places in his whole life, due to employment or other reasons. 19 In this way, people perceive their residence, not any more as a place, where they could spend their whole lives, but as an ephemeral base, until they transfer to the next one. 20 Figure 4.10: Kifisias Avenue, first blocks of flats in the 1930s

Source: http://www.agelioforos.gr/default. asp?pid=7&ct=1&artid=166874 (accessed on June 27th, 2013)

| | | | 4.3.2 The architecture of housing in Greece and a review in housing quality As reported by a survey of the National Centre for Social Research in Greece, presented in 1996, there are nine different types of residences, illustrated in the following Table.

19 In line with the European Foundation for the Improvement of Living and Working Conditions (2009), 32% of the population in USA changed at least one time their living geographical location, while in EU this percentage reaches 22%. [European Foundation for the Improvement of Living and Working Conditions. Mobility in Europe- The way forward. (Η κινητικότητα στην Ευρώπη- Η πορεία προς τα εμπρός.) Dublin: Foundation Findings. 2009, 4] 20 Zambouni, Elina. Approach to the Typolog y of Urban Residence from 19th Century to the Present. Study of Greek Housing Models. (Προσέγγιση στην Τυπολογία της Αστικής Κατοικίας από το 19ο Αιώνα Μέχρι Σήμερα. Μελέτη των Ελληνικών Μοντέλων Κατοικιών.) Paper, MA Interior Architectural Design, Vakalo Art and Design College and University of Derby, February, 2008, 44

When the State has no more money Looking for qualitative affordable housing models

Table 4.7: Housing typologies in Greece (Figures 4.11 - 4.19) Type 1st: Old small one-family house with significant problems, which usually are informal

Small or middle-sized one-family house

Tenure type/ Provision

Location

Self-built housing Ground floor

Advantages

Disadvantages

Small yard

Many serious quality problems (lack of water heater, central heating or even bathroom)

2nd: Ground floor or basement Apartments apartment with one or two with one or rooms two rooms

Rent

Ground or Easy access to first floor, public transport Central and shopping centers

Low quality living conditions, high density and pollution, poor natural ventilation and light

3rd: Particularly problematic, Small, lowinformal, old, small houses ceiling buildings with one or two rooms

Inheritance or self-built, moving in after eviction

In deprived Low rent areas

Complete absence of incremental comforts, (Lack of household equipment, auxiliary spaces and even bathroom or kitchen)

4th: Modern apartment in a new building with pilotis, located in suburb

Homeownership, In suburbs bought when the building was still under construction

Garden, pilotis, built in large plots, ample kitchen equipment, open space parking, elevator, central heating, balconies, terraces, good natural light and ventilation, view

Indirect access to public transport and shopping centers

Homeownership In urban through selfplan construction or inheritance

Medium quality

High density problem, lack of auxiliary spaces, garage, open spaces, central heating, narrow balconies

Apartments in new four to five-storey buildings

5th: One or two-family house Small or in a district medium sized buildings with floor apartments, apartment in ground floor

The case of Thessaloniki, Greece

Residents

Level of satisfaction

Habitation Legal perspective status

Construction period and other data

Pensioners or low-income multimember families

Lack of space They do not for children intend to move out, due to financial reasons

Informal and over the years they were legalized

Built in the period between Second World Wide War and 1965

Low income employees and students

Medium, Privileged location, low living quality

Residence for two years

Formal within urban plan

Elderly with very low income

Low, unacceptable living conditions

They cannot Informal move out, due to financial reasons

Built before Second World Wide War

High-income households, highly educated families

Adequate

They do Formal not want to move out

Built after 1975

Low and mediumincome families with particularly low educational level

Medium, wish for more space for children

Conventional Formal Built between 1966 living, felling within and 1975 familiar with urban plan the neighborhood

Image

When the State has no more money Looking for qualitative affordable housing models

Type

Tenure type/ Provision

Location

Advantages

Disadvantages

6th: Apartment in a common block of flats

Most common and major type in large urban centers, small or medium-sized plots with 11 to 15 apartments, with 3 to 4 rooms each, small shops in ground floor

Homeownership Central through purchase or â&#x20AC;&#x153;antiparochiâ&#x20AC;? system, bought when the building was under construction

Satisfactory quality, above average, good construction, common terrace and open space (not used)

Lack of view, gardens, narrow balconies (used as storage), open green spaces, pollution, highly density, bad relationship with the neighbors

7th: Spacious one or twofamily house in suburbs or in provincial town

2/3 of them are one or two-family houses with 4 to 5 rooms each, in small plots of 300m2

Homeownership Outlying through selfareas built, the initial plot was bought in low price, inheritance

High quality, bright, often in corner of the block, good natural light and ventilation, without noise pollution, modern kitchen equipment, open green spaces

1/3 of them lacks in central heating, no basement

8th: Small apartment in problematic building

Small apartments in small or mediumsized plots, small shops in ground floor

Rent of low value

Central or deprived areas

Adequate basic comforts, easy access to public transport and shopping centers

High density, narrow balconies used as storage, common terrace and open space (not used), low construction quality

9th: Comfortable and modern apartment or one-family house

Spacious houses with 4 or more rooms each, 10% of them are villas

Homeownership through purchase or selfbuilt, financed by individual savings or bank loan

District High quality hous- with easy ing, open green access to spaces, gardens, public terraces, sufficient transport construction and shopping centers, many green open spaces, lack of pollution

The case of Thessaloniki, Greece

Residents

Level of satisfaction

Habitation Legal perspective status

Construction period and other data

One or twoAdequate, member houselack of space holds, elderly (above 65 years old) highly educated, some families with one or two children

They will not move out, due to financial reasons and satisfactory level or quality

35 to 64 years old Positive people, families evaluation with one or two children, medium or highly educated

They do not Formal intend to move out

Built between 1945 and 1965

Families with children

Satisfied with They want Formal the location to move as but not with soon as they the pollution, can afford it the high density and the lack of green open spaces

Built between 1966 and 1975

Mostly fourmember family, high income, highly educated

High

Built after 1975

They do not want to move out

Formal Built after 1966 within urban plan

Formal within urban plan

Image

When the State has no more money Looking for qualitative affordable housing models

| | | | 4.3.3 Review and conclusions on quality of main Greek housing typologies First of all, it should be noted that these housing types were the results of a research, which was published 17 years ago. Subsequently, some data have nowadays changed. The possible differences are that in some dwellings of first, fifth or seventh type the lack of central heating should have been installed by now, and their kitchen equipment and comforts should have been enhanced. However, there are no alterations in building structure and design. Moreover, in all urban centers and big or smaller cities, all these types can be easily noticed. The first three types (22%) could be classified in the same category, where the living conditions are below average. Meanwhile, the rest five types could all be included in another category, where the living conditions are above average. The majority of urban houses (78%) are mainly apartments in block of flats or two-storey buildings. They are characterized by medium to very satisfactory housing quality and they are located in urban plan with building permit. Figure 4.20: Housing typologies in Greece

Source: Edited by the author based on data from Zambouni (2008, 48)

The first and the third type show many similarities, which could even encompass them in the same category. Both of them lack in basic technical equipment and will not be further analyzed, since they describe houses, which were self-constructed without any architectural design. However, the second type reveals many characteristics of the mentality of Greek real estate market in the middle and end of the last century. It refers to ground floor or basement apartment, which offer low quality living conditions, due to high density, pollution, and lack of natural light and ventilation. These apartments often suffer even from intense moisture in walls and floors. From the beginning, garages could be in the place of these apartments, which would contribute to solving a significant problem of Greek urban landscapes, with plenty of cars parked on pavements and pedestrian walkways. Instead of this, houses were placed on purpose at basements of block of flats by contractors, aiming at maximizing the living space on the altar of profit and under the supervision and approval of the State.

100

The case of Thessaloniki, Greece

The fourth and the ninth type are mostly addressed to high-income and highly educated people, who corresponded only to 19% of the total population. The housing quality of these residences is also high, as well as the living cost. On the other side, many middle-income households live in houses with inadequate technical equipment, and improper interior layout and design standards. Almost 36% of these houses are located in central areas, characterized by lack of open green spaces, noise and air pollution and high building density. At the same time, inhabitants do not use semi-private open spaces, such as the common terrace and the unglazed areas, since they feel that they do not belong personally to them. They belong to the building community, which unfortunately most of the times are not willing to collaborate, due to impersonal or bad relationships. Meanwhile, many of the private open spaces, such as balconies, are used as storage spaces, because of their wrong design of the long and narrow shape. To sum up, the majority of the houses, addressed to middle-income households, have inefficient internal design, which is also proved by the fact that when the household income is increased, then a bigger residence is preferred. The explanation of this problem lies in the mean of housing production, which was the method of ‘antiparochi’. Through this method the participation of the future inhabitants in the designing process was absent, turning the houses in profitable products for the construction companies. | | | 4.4 Selection criteria of Thessaloniki Thessaloniki is selected as a representative case study for Greece, for financial reasons and considering its demographic characteristics. First of all, as a middle size city, it maintains the characteristics of both a large urban center and a provincial town. Secondly, the regions of Macedonia and more specifically, Thessaloniki, play a continuously increasing important role in the country’s economic development. This area influences about one quarter of the total Greek GDP, whilst a substantial part of the county’s agricultural and industrial production is initiated there. Thessaloniki is also a significant export base of the country and is linked in a privileged economic level with the rest of Balkan countries, which are in geographical proximity. As a consequence, the importance of Thessaloniki in the domestic economy and in country’s further development, composes the major reason for its selection for further analysis. 21

21 BANK OF GREECE. Eurosystem, Thessaloniki Branch. Bulletin of Regional Conjunctural Indicators for Macedonia- Thrace. Number 80, July 2012. www.bankofgreece.gr. (accessed on March 17th, 2013), vii

101

When the State has no more money Looking for qualitative affordable housing models

Figure 4.21: View to Thessaloniki from the Sheikh-Sou forest

Source: http://www.seleo.gr/index.php?option=com_ content&view=article&id=69108:----------12&catid=68:2011-01-29-16-33-39&Itemid=102 (accessed on June 27th, 2013)

Figure 4.22: Thessaloniki downtown Source: http://www.agelioforos.gr/default. asp?pid=7&ct=1&artid=166874 (accessed on June 27th, 2013)

Figure 4.23: Coastal front of Thessaloniki

Source: http://butterflydiary.com/wp-content/ uploads/2011/05/thessaloniki.jpg (accessed on June 27th, 2013)

102

The case of Thessaloniki, Greece

| | | 4.5 Administrative Structure of Thessaloniki In accordance with the Program Kallikratis of the Law 3852/2010, the administrative structure of the Prefecture of Thessaloniki constitutes of 45 Municipalities. Seven of these Municipalities constitute the urban agglomeration of Thessaloniki.

Figure 4.24: Thessaloniki, Greece Source: The author

Figure 4.25: Municipalities of the Prefecture of Thessaloniki Source: The author

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When the State has no more money Looking for qualitative affordable housing models

| | | 4.6 Society and demographics of Thessaloniki In accordance with the last census of 2011, the population of the Municipality of Thessaloniki declined steadily. 22 In Table 4.8, the development of the legal population is presented for the Prefecture of Thessaloniki and for some main districts. Table 4.8: Permanent population of Prefecture of Thessaloniki 1981

1991

2001

2011

Change (%), 2001-2011

Municipality of Thessaloniki

406,413

383,967

363,987

322,240

-11.5

West districts

221,246

241,501

300,937

336,050

+11,7

East districts

78,521

125,580

135,840

131,480

+18,8

Prefecture of Thessaloniki

706,180

749,048

800,764

819,770

+2,4

In line with the Table 4.8, the population of the Municipality of Thessaloniki in 2011 is reduced by 11.5% in comparison to 2001, whilst for the Prefecture of Thessaloniki, it shows an increase of 2.4%. 23 This happened, as a consequence of the phenomenon of suburbanization, which continues in Thessaloniki. Although the center of the city loses gradually its permanent population, the function of housing has not receded alarmingly, since new demographic groups, such as immigrants or mostly students, are covering this gab. Regarding the immigrants, it is worth mentioning that 7.2% of Albanian immigrants and 13.2% of Bulgarian immigrants of Greece, live in the Prefecture of Thessaloniki. 24 According to the census of 2001 of the Hellenic Statistical Authority, this number reaches 68.848 foreign citizens. The Figure 4.26, illustrates the dispersion of the non-European citizens in the Municipalities of Thessaloniki. As it is seen, the more central the location is in comparison to the city center, the higher density of immigrants is presented, with a particularly high concentration in the western Municipality of Lagkada, which is typified by an industrial character and low housing prices.

22 23 24

The permanent population is not identified with the legal population, which refers to the registered residents. http://www.statistics.gr/portal/page/portal/ESYE (accessed on June 20th, 2013) Chatziprokopiou, Arion. Immigration and the changing urban space: from Balkans to Thessaloniki. Sussex European Institute. Ε2Κ085, 2

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Figure 4.26: Non-European citizens in Thessaloniki Source: The author

| | | 4.7 Economy of Thessaloniki There is a dramatic change the last years, in the economic profile of Thessaloniki, and especially after the launch of the economic crisis in 2008. Characteristically, the economic development of the city can be described through the unemployment rate, which remains in high levels in comparison to the rest of the country. More specifically, in 2005 this rate was 11.4% of the active population, while in the end of 2012, it reached 28.9%. This fact classifies Thessaloniki, as the first city among the urban areas of Greece, regarding the unemployment rate. Moreover, Thessaloniki’s financial structure is dominated by the tertiary sector, which the last years presented a continuous increase. Especially, many manufacturing activities are concentrated in the city, such as enterprises of food and drinks, clothing and fashion, energy, construction materials and housing technical equipment, metals and electronics, electrical devices and computers and communication technologies. Additionally, urban tourism plays a significant role in city’s financial activity, reaching 8% of the local GDP. Urban tourism of Thessaloniki is mostly internal (65%) and its types are tourism for exhibition, conference or museum, since the city has important cultural inheritance. 25

25 Koutsari, Maria. Creative economy and urban transformation. The example of Thessaloniki. Athens: Diploma thesis. Interdisciplinary Program of Master Studies. National University of Athens, 2013, 68

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However, according to a research held in Thessaloniki in 2012, 91.3% of the interviewees in manufacturing sector and 94.1% in tertiary sector, admitted that the last year, their enterprises either remained stable or declined. Their income was also decreased by 28% and 24.5% respectively. At the same time, the prices in housing sector were reduced 26 by 7% to 18%, depending on the area. This fact, in combination with the sharp incomes’ fall, reveals the housing affordability problem in Thessaloniki. | | | 4.8 Housing in the urban context of Thessaloniki | | | | 4.8.1 Short historical review The presentation of the urban and housing development of Thessaloniki has a double objective. Its first goal is to provide the reader with an overall picture of the city’s history and evolution through the centuries. Secondly, through this knowledge of the past, it aims at enabling a deeper understanding of the nowadays’ political, economic and administrative city structures. The social relations that shaped the city space in each particular historic moment, had a direct impact not only on the urban context, but also on housing development and social interactions. Thessaloniki is one of the oldest cities in Europe, founded in 316 BC. 27 Since then, it became the capital of Macedonia, whilst in Roman times, it was the largest port in the region. Due to its geographical position on the junction of the great road from the north and the main east-west artery, Thessaloniki was always a city of major importance. For twenty-two centuries, it was spatially limited in the place that was defined by its walls. Figure 4.27: Urban development in Thessaloniki Source: Adulterated Memory (2012, 111)

1850

1900

1917

When Thessaloniki was founded, it had like most cities and colonies of that era, urban grid of Hippodamos’ layout. However, the ancient rectangular grid gradually began to be altered, already since the Byzantine Empire by labyrinthine narrow streets, due to residents’ perception of daily life and lifestyle. 28 Big fires played a decisive role in this formation of urban space. The multiple and multicolored elements that highlighted the oriental character of the city wiped out, while the districts were established based on the national and religious origins of inhabitants. 26 Rousanoglou, Nikos. Thessaloniki “champion” of the crisis in the housing market. H KATHIMERINH, March 23, 2013 27 It was founded in 316 BC in the site of a prehistoric settlement, dating back to 2300 BC, by Cassander, the King of Macedonia, and took the name of his wife and sister of Alexander the Great. 28 More specifically, the street and their homes did not differ in their perception in terms of use and legal status. The prevailing culture was defining that every road belonged to inhabitants and it was shared to each one of them based on the central axis of the street.

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During Byzantine times, Thessaloniki remained a center of culture and arts, second, after Constantinople, in the Byzantine Empire, with many historical religious monuments being built that period. 29 In 1430, Thessaloniki was conquered by Ottomans and remained in the Turkish dominion about five centuries (1430-1912), developing at the same time, a multinational character.

Figure 4.28: Plan and the quarters of Thessaloniki before 1917

Source: Edited by the author based on http://www. macedonian-heritage.gr/HellenicMacedonia/en/ C3.1.1.html (accessed on June 27th, 2013)

Thus, in the beginning of 19th century, Thessaloniki was counting around 30 thousands Muslins (Turks, Doenmes, Albans), 16 thousands Greeks and 12 thousands Jews. 30 During the Ottoman Empire, Muslims resided in the highest part of the city, which was the most privileged with fresh air and nice view to the sea, Jewish population lived under the Via Egnatia to the sea and the Orthodox inhabitants were scattered in various areas along the Via Egnatia and alongside the eastern wall of the city. Regarding the social structure of the Turkish quarters, there were mostly houses, without a particular commercial center, a character that the Upper City maintains until today. Basically, in this quarter there were no people of middle class, as the majority of the population was either very rich or very poor. The housing architecture of this period is described as homogeneous and similar to the Balkan architecture. The houses were two to three-storey buildings, with symmetric facades and sometimes with some decorative elements of classical architecture. 31 The 19th century was eminently the period of State, municipal, community, and private-public building construction. Thessaloniki, as a commercial center, acquired rapidly an industrial character. Result of the expansion of trade was the doubling of city’s population between 1830 and 1910.

Figure 4.29: Street layout after the fire of 1890

Important fact of this period was the fire in 1880 that destroyed a large part of Thessaloniki, resulting in the demolition of the eastern and sea wall. In this way, the city started extending to the east. It should be noted that the planning intervention resulted in displacing the attention from the traditional neighborhood districts, which as organizational, architectural, historical and social units were forming the urban fabric for centuries, to the building blocks and the road network, which consisted henceforth the substantial structural grid of the new urban fabric. This fundamental change in the spatial organizational unit indicated the changes in the level of social relationships. Since then, people were disengaged from the traditional area of the community and started choosing their residence location, based on affordability.

Source: Adulterated Memory (2012, 134)

In the west part of the city, commercial uses were concentrated, because of the installation of the first railway station in 1880, the port, and the direct contact with the shopping center. Next to them a degraded urban district for the lowest class was developed. On the other side, special attention should also be put in eastern region of the city. It exhibited the so-called ‘district of Towers or Countrysides’ (συνοικία

29 Around 1535 the symbol of Thessaloniki, the White Tower, was constructed, being used as a prison. [Liontis, Kostis. The architecture of Thessaloniki (Η αρχιτεκτονική της Θεσσαλονίκης). I KATHIMERINI, March 30, 1997, 5] 30 Kambouri, Maria. Post-Byzantine architecture (Η Μεταβυζαντινή αρχιτεκτονική). Part of article: The architecture of Thessaloniki. (Η αρχιτεκτονική της Θεσσαλονίκης). I KATHIMERINI, March 30, 1997, 6 31 Anastasiadis, Agis. The Upper City (Η Άνω Πόλη). Part of article: The architecture of Thessaloniki. (Η αρχιτεκτονική της Θεσσαλονίκης) I KATHIMERINI, March 30, 1997, 9

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Figure 4.30: Aerial view of the fire in Thessaloniki in 1917

Source: http://www.macedonian-heritage.gr/ (accessed on June 30th, 2013)

Figure 4.31: The burned zone in 1917. Aerial photo of Thessaloniki Source: http://upload.wikimedia.org/wikipedia/ el/6/65/Thessaloniki_Fire_1917_Aero.jpg (accessed on June 30th, 2013)

Figure 4.32: The burned zone in 1917 Source: Adulterated Memory (2012, 138)

των Πύργων ή Εξοχών) 32 with famous seaside summer villas and later on, permanent homes of wealthy citizens. According to a census of 1913, the population of this quarter was 25.593 people. 33 The majority of the population were people of high class or dignitaries. They relocated from the unhealthy old city center, looking for better living quality in the suburbs of Thessaloniki. This was basically the first move of suburbanization in Thessaloniki, a clear social character, which overcame the, until then, homogeneously ethnic or religious districts of the old city. The social formulation of the region was maintained for at least half a century, and only after the arrival of refugees in 1922, its first character was deteriorated. 34 In the early 20th century, Thessaloniki, due to flourishing trade, industry, and new social lifestyles acquired rapidly a European character. The period after 1912 highlighted the city as an industrial center of Northern Greece. The first massive industrial buildings with the typical chimney and monumental character, created new reference points in the city image. 35 Nevertheless, the reality was that, in spite of the cosmopolitan and socialistic character, the communities of Thessaloniki remained still, deeply divided. In this context of growing nationalism, maintained by the expected collapse of the Ottoman Empire, the traditional and religious bonds were equally strong, as any economic or class interests. 36 Turning point in Thessaloniki’s urban development and structure was the fire that broke out in August 1917. 37 The devastation that it caused, was great, burning 120 hectares of the city center and leaving about 70,000 people homeless (Christians, Muslins and mainly Jews). The fire and its disasters prompted the Greek government to modernize the urban fabric with a more Hellenistic character. The International Planning Committee was established under the direction of the French urban planner and archeologist, Ernest Hébrard. 38 They established a number of special construction terms, and a rectangular layout was applied, supplemented by axial perspectives and diagonal alignments. Moreover, functional zones and regular building blocks were planned, which replaced the introverted building islets. Generally, Hébrard’s urban plan represented a late example of the neoclassical design tradition, combined with the rationalism of the 20th century and some early applications of certain principles of the upcoming modernism.

32 The district derived its name ‘Countrysides’ from the limited structuring in the quarter, the great presence of rural land and the semi-permanent character of the dwellings. About the name ‘Towers’, it should be mentioned that they were buildings of little value and extent. They also had some kind of fortifying construction and arrangement, while they were used as summer residences and for the accommodation of the workers in the family farms. [Kolonas, Vasilis. The district of Countrysides. (H συνοικία των εξοχών). Part of article: The architecture of Thessaloniki (Η αρχιτεκτονική της Θεσσαλονίκης). I KATHIMERINI, March 30, 1997, 16] 33 In line with the census of 1913, 49% of the population of the ‘district of Towers or Countrysides’ were Greeks (12,593), 23% Jews (5,838), 17.6% Ottomans (4,462), 4.3% Bulgarians (1,103), and 5.7% foreigners (1,445). [Dimitriadis, V. The population of Thessaloniki and the Greek community around 1913 (Ο πληθυσμός τςη Θεσσαλονίκης και η ελληνική κοινότητα κατά το 1913). Thessaloniki: Macedonika KC’, 1983, 93-96] 34 Adulterated Memory. Thessaloniki 100 years of Greece, patriarchy, capitalism are enough (Θεσσαλονίκη. 100 χρόνια Ελλάδας, πατριαρχίας, καπιταλισμού είναι αρκετά). Thessaloniki: 2012, 10 35 Traganou-Deligianni, Olga. Industrial buildings and blocks (Βιομηχανικά κτίρια και σύνολα). Part of article: The architecture of Thessaloniki. (Η αρχιτεκτονική της Θεσσαλονίκης) I KATHIMERINI, March 30, 1997, 21 36 Adulterated Memory. Thessaloniki 100 years of Greece, patriarchy, capitalism are enough (Θεσσαλονίκη. 100 χρόνια Ελλάδας, πατριαρχίας, καπιταλισμού είναι αρκετά). Thessaloniki: 2012, 11-13 37 It is speculated that in 1917 the fire started from the kitchen of a refugee house on the northwest side of the city. The fire spread rapidly, due to the terrible drought, which was prevailing in the city that period (it had not rained since June 29), the strong wind, Vardar, who blew those days, the lack of water, most of which was supplied to the allied camps and finally, the absence of organized fire service. 38 Other members of the International Planning Committee were the urban planner Thomas Mawson, the architect Joseph Pleyber, two known Greek architect, Aristotle Zachos and Konstantinos Kitsikis, the chef of Polytechnic University, Aggelos Ginis and the Mayor Konstantinos Aggelakis.

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Figure 4.33: Hébrard’s plan in 1917 Source: Adulterated Memory (2012, 139)

It is also worth mentioning, the mechanisms that developed by the authorities, in order for the burn land to be distributed to the new or old residents of the center. The land titles in many cases could not be given directly to the former owners, since official papers of house or land ownership, were burned in the fire or did not even exist in first place. Through various political and financial forces, the disposal of the old land titles was allowed, which concluded in speculative trading of the land. At the same time, the land value were not determined by the State, but it was decided through open auctions. The profits from the auctions were also used for financing the real estate market of the privileged plots. As a consequence and after four years of profitable auctions, only 56% of the land titles were purchased and used for new construction, while it is not known which percentage of this number corresponds to the former owners. The 18.5% was redeemed, while the rest 25.5% remained unutilized by the owners, who in this way lost completely their property. 39 To sum up the consequences of the fire in the land properties, the profits of space redistribution favored the new owners, mostly citizens of the upper class, who bought the most privileged plots. On the other side, the rest of the people, who did not afford waiting the five years of the land distribution, or they were excluded from the procedure of auctions from the beginning, where forced to move out from the city center. The city was also expanded to its southeastern and northwestern part that period, where new settlements were created, and the reconstruction with the system of antiparochi began. The result was that former inhabitants of the city center or people of low and middle class relocated to the suburbs, living their place to the financially highly hierarchized, society.

39 Gerolumpou- Karadimou, Aleka. Thessaloniki, before and after Ernest Hébrard (H Θεσσαλονίκη, πριν και μετά από τον Ερνέστ Εμπράρ). Thessaloniki: Aristotle University of Thessaloniki, 2007, 11-12

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Eventually, Hébrard’s plan was not entirely implemented, because of the massive influx of refugees in 1922, after the Asia Minor catastrophe, which created an immediate need for housing for the increased population. The impressive public buildings, which the plan proposed, were not constructed, due to the financial and political crisis in the 1930s and the period of German occupation and civil war, which followed. The only part of the project, which was actually carried out, was Hébrard’s proposal for the street layout of the center and the partition of the land. Figure 4.34: Refugee camp in Thessaloniki during the period 1914-1918.

Source: http://www.faath.org.gr/index. php?page=1871---1932 (accessed on June 27th, 2013)

Figure 4.35: Allatini mill, the largest mill of the East in early 20th century Source: Adulterated Memory (2012, 162)

As mentioned before, the period between 1922 and 1925 a massive exchange of populations followed the catastrophic defeat of the Greek army in Asia Minor. Even before the population, who were affected by the fire of 1917, was rehabilitated, over 100,000 Greeks of Asia Minor arrived. At the same time, in line with the agreement of Lausanne, 30,000 Muslims were evicted out of the city. Thousands of refugees arrived to Thessaloniki and the first refuge slums and neighborhoods in city suburbs were developed. The Greek refugees inhabited in the center, in public spaces, and in slums in city suburbs. 40 Moreover, refugees settled in the Upper Town (Άνω Πόλη) and in homes abandoned by Turks and Doenmes, resulting in the beginning of the dense layout of the area, which prevails until today. Furthermore, agreements, between the Greek government and the National Bank were ratified, so as to grant loans to organized groups of refugees. Expropriations of rural and urban land also started. The result was that, between 1922 and 1932, 15,000 buildings were erected in Thessaloniki, 2,200 of which were located in the center, more than 3,000 in the eastern region and 9,000 were addressed to refugees. 41 At the same time, the dominant population, characterized by the Greek and Christian element, displaced, literally and metaphorically, in the periphery, the few left Muslims and the declining Jewish community. Whatever remained from the Ottoman Empire was demolished, in order for a new national homogenized city to be built. 42 The period following the Second World Wide War was characterized by intense urbanization and domestic migration to Thessaloniki. The postwar growth transformed the city into the unique urban center in Greece that could counterbalance Athens’ supremacy. Generally, the second half of 20th century was a time of recovery, while city’s infrastructure was completed (port, airport, transport, universities). Nonetheless, in the city, there were hardly distinguished any signs of spatial urban planning and structure. The trend of informal and uncontrolled housing development that began in the interwar period, in the suburbs and with the refugee settlements, was intensified and supplemented by the dense construction, caused by the universal implementation of the model of urban apartment building (πολυκατοικία) 40 In 1923, according to an American Board of Rehabilitation’s report, 110,000 refugees were housed in commandeered rooms, in quarantine station of the Small Kara-Bournou, in the English camp of Kalamaria, in the old Turkish Agricultural School, in the French hospital Charilaos, in the camp of Lebed, in the English hospital Charmankioi and in 116 other places in the city. Additionally, the Muslim cemetery, which was extended beyond the walls of the district Vardar to the camp Zeitenlik, was destroyed and in its place a refugee settlement was developed. Slums and shantytowns were also erected in the areas of new Varna, Osia Xeni, Sukies, Polychni, Municipality of Triandria, and Xirokrini. 41 Adulterated Memory. Thessaloniki 100 years of Greece, patriarchy, capitalism are enough (Θεσσαλονίκη. 100 χρόνια Ελλάδας, πατριαρχίας, καπιταλισμού είναι αρκετά). Thessaloniki: 2012, 14 42 More specifically, the municipality decided, almost immediately after the liberation of Thessaloniki form the Turks, to demolish all the minarets, which had given a particular character to the urban skyline. After this decision, out of 47 minarets in 1910, today only one in Rotunda has remained.

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and the high building coefficients. Thus, plenty of prewar houses were demolished and in their place multistory buildings were erected. These new buildings occupied more of the open space, resulting in intense traffic congestion. As a consequence, within almost three decades a parallel unification and fragmentation of urban space occurred. This unification was caused by the generalization of the anonymous multistory apartment building, whilst the uncontrolled urban sprawl without corresponding local centers and administrations, led in fragmentation of the urban space. 43

Figure 4.36 - 4.37: Τhe ‘district of Towers or Countrysides’ beginning 20th century and today

Source: http://www.parallaximag.gr/sites/default/ files/3jpg_9.jpg and http://www.thessaloniki360. com/map/ (accessed on June 29th, 2013)

At this point it should be also mentioned, the evolution of two characteristic districts of Thessaloniki, the ‘district of Towers or Countrysides’ and the district of the Upper city. First of all, in the ‘district of Towers or Countrysides’ and over the last years, only some of the magnificent villas managed to survive the demolitions. Within several years, the legislation for the protection of the architectural heritage was applied and the remained mansions were converted into cultural, educational, administrative or recreational buildings. Only a few of them are still used as dwellings. The rest of the buildings in this district were replaced by eight to ten-storey buildings, which are used primarily for retail in the ground floor and residences and offices in the upper floors. In addition to this, this area turned to be one of the most densely populated areas of Thessaloniki with people of middle class. Secondly, in the Upper city is one of the most characteristic examples of degradation and deterioration of a traditional urban core, integrated in a constantly growing urban center. However, the district maintained its traditional character mainly for two reasons. The first reason lied on the building terms instituted in Thessaloniki after the Second World Wide War, which could not be implemented for this particular area. The difficulties in building exploitation were faced, as a result of the steep slope and the rocky ground of the area, the inability of opening and widening roads, and the small size and the blurring boundaries of the properties. Secondly, the building regulations of 1979 did not allow many changes in the traditional character of the houses. Concluding this historical review, it is worth mentioning that despite the hardships and circumstances, Thessaloniki continued playing an important role in the Greek State with significant political, economic and cultural activities. It was also particularly benefited in 1997, by becoming the Cultural Capital of Europe. On this occasion, a large part of city’s historical heritage was restored, while many new important cultural buildings were built. |

| | |

Synopsis of Thessaloniki’s evolution

After this short historical review, nowadays Thessaloniki has the image of a modern city with several, mainly spatial, problems and with some obvious signs of the glorious past of national and cultural pluralism that this city hosted for many centuries. The transformations that took place in Thessaloniki, were linked to broader social 43 Kalogirou, Nikos. The first postwar period (Η πρώτη μεταπολεμική περίοδος). Part of article: The architecture of Thessaloniki (Η αρχιτεκτονική της Θεσσαλονίκης). I KATHIMERINI, March 30, 1997, 30

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and economic trends in the Ottoman Empire and in the subsequent nationalist aspirations of the Greek State. The emergence of capitalism in the Balkans was also associated with the formation of a new urban environment, while the traditional port cities were the first to be reformed, such as Istanbul, Thessaloniki, Izmir, Sofia, Fillipoupoli, and Adrianople. The sequence from Hippodamos’ layout to the labyrinthine streets, from the central urban planning to the illegal construction, and from the large open areas to the dense structure are important turning points in the history of urban planning of the city. The gender, the race, and the social class, in relation to economic wealth, were the substantial factors that influenced the city’s structure and form. Thessaloniki, despite the uncontrolled, and without the essential planning, development until the Second World Wide War, continued to be based on the city plan, proposed after the fire of 1917. Hébrard’s plan, in spite of the alterations, changed irrevocably the previous image of the old city center and presented with aspiration, plans of urban expansion. The city center acquired a specific character. The mixed uses, the presence of historic monuments and their relationship with the urban fabric, the variations in the layout of open spaces and the direct experiential relationship with the sea, are advantages that just a few cities have. Figure 4.38 - 4.39: Ano Poli, 1911 and today Source: http://users.auth.gr/~marrep/LESSONS/ ERGASTIRI/NEW_TECHNOLOGY/2.1.htm and http://upload.wikimedia.org/wikipedia/commons/5/54/Street_in_Thessaloniki’s_Old_Town_ Ano_Poli_July_2006.jpg (accessed on June 27th, 2013)

Figure 4.40: Aerial view of Ano Poli

Source: http://wikimapia.org/1471980/el/Άνω-ΠόληΚάστρα (accessed on June 30th, 2013)

However, Hébrard’s plan proved to be insufficient to resolve the problem, created by the large number of immigrants. The sudden arrival of refugees in 1922 (due to the exchange of populations between Greece and Turkey), and the immigration wave of 1950-1970 due to urbanization trend, caused many problems, since the city had planned to accommodate a maximum of 350,000 inhabitants and turned out to accommodate 1.5 million within a period of 50 years from the completion of the project. On the other side, although Thessaloniki was confronted by many problems, not all of them were caused by the overpopulation. The city was spread out of the old historical center, to the east and west suburbs that pre-existed, creating an entirely uneven contemporary urban fabric. Large blocks were built in place of old buildings, as a result of the rapidly increased need for housing. This fact caused critical changes in the spatial organization of the city. Thus, with this prevailing logic, the city lost its opportunity to have a modern human physiognomy and at the same time to meet the citizens needs of the modern lifestyle. The current image of the city does not differ notably from the other Greek cities. As Liontis (1997) stated, the city was expanded in height and width. Nowadays, in order for the traffic problem to be solved, public and private open spaces are sacrificed. 44 To sum up, Thessaloniki, despite its glorious, majestic, multicultural and turbulent past, it turned to be a city, which is inadequate in offering high living quality to its citizens. The current city suffers from noise and air pollution, high population

Liontis, Kostis. The architecture of Thessaloniki (Η αρχιτεκτονική της Θεσσαλονίκης). I KATHIMERINI, March 30, 1997, 2

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density and lack of open public spaces. Not to mention the fact that plenty of public buildings remains unexploited, a fact which could show the way to new perspectives for urban regeneration and consolidation. | | | | 4.8.2 Density and empty areas The population density of the Prefecture of Thessaloniki was calculated 299.90 people per km 2 in 2011 from the Hellenic Statistical Authority, while the average population density for the whole Greece was 81.75 people per km 2 . As indicated in the map below, the closer at the center of Thessaloniki a region is, the higher its population density is. Subsequently, Municipality of Thessaloniki has one of the highest population density in Greece, reaching 16,703.3 people per km 2 . Figure 4.41: Population density in the Prefecture of Thessaloniki Source: The author

As reported by recent research papers (Tsapi and Prokopiou, 2012), there is a considerable number of empty properties and neglected urban areas in Thessaloniki. They are abandoned industrial areas, military camps, quarries and neglected streams. Some of these areas could be exploited for housing developments, while other could be utilized for enhancing the urban natural environment of Thessaloniki and improving at the same time not only aesthetically the city, but also the living quality of residents.

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Figure 4.42: Degraded areas in Thessaloniki

Source: Edited by the author based on data from Papalioura, Eudoksia. The degraded urban and suburban landscape and its retrieval. Application example in the city of Thessaloniki. http://www.ntua.gr/MIRC/5th_conference/ergasies/53%20ΠΑΠΑΛΙΟΥΡΑ%20ΕΥΔΟΞΙΑ. pdf (accessed on June 26th, 2013)

| | | | 4.8.3 Land uses As illustrated in Figure 4.43, Thessaloniki has specific and unchangeable, southwestern and northeastern limits, due to its direct proximity to the sea and to the Sheikh-Sou forest. For this reason, the residential extensions of the city and the extension, due to other new uses, transform constantly and gradually the urban fabric, from a compact city to a more diffuse model. Traditional financial activities, such as trade and services, which were previously mainly sited in the city center, are today scattered to the suburban areas, with a significant preference of the western districts. Another important fact is the prevailing housing character of the city. Open green spaces are scarce, while the problem of the over-constructed urban space, with the lack of an organized network of open spaces, are revealed. This fact, undoubtfully, affects and determines to some extent, the living quality of citizens of Thessaloniki.

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Figure 4.43: Land uses in Thessaloniki Source: Edited by the author based on data from Kostoglou and Mitsi (2011, 19)

| | | | 4.8.4 The current situation of the housing market_ Facing the crisis The housing problem in Thessaloniki is compounded by the general lack of affordable housing, as well as, by the end of formal and planned assistance of the State to improve this phenomenon. In February 2012, after Greek Parliament’s decision, as part of austerity measures, the immediate closure of the Workers’ Housing Organization (OEK) was announced. According to Mr. Kontogiannidis 45, financial journalist, concentrated the last 10 year in the property market of Thessaloniki, since the beginning of the crisis in 2008, a considerable decline has been noticed in real estate values and in property transactions. Additionally, the prices of the properties have been significantly decreased. For example, if in 2009 a house cost 180,000 to 200,000 euros, today its price may have been dropped even to 100,000 euros and still it is not able to be sold. Similarly, rental rates are declining, in the range from 70 euros to 100 euros for a medium-sized apartment. Furthermore, Mr. Kontogiannidis stated that the new government measures aim at increasing the properties’ objective values, while there are 20 new laws related to property taxes, which constitute another hit for the recovery of the sector. In several areas of Thessaloniki commercial value of properties is falling, while the objec45

Interviewed by the author on November 8th 2012, in Thessaloniki.

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tive values are increasing and, consequently, their taxation. As far as Mr. Kontogiannidis is concerned, the adjustment of height of properties’ objective values is one measure that could be taken by the government, aiming at forming the values at lower levels and at the same time turning the property transactions to a more affordable option Moreover, Mr. Gogos, fellow of the Royal Institution of Chartered Surveyors (RICS) Hellas Board, stated 46 that the properties that are mostly affected by the crisis are the recently built, many of which remain unsold, and residences with more than 100m 2 . More than 6,000 residences remain unsold. 47 On the other side, smaller dwellings or high quality houses do not present a considerable problem in transactions, since the price of the first ones has felt significantly, while the seconds, are addressed to high-income households, who still have some financial comfort. Thus, the areas with high land values, such as Panorama and Nikis Avenue, are less affected by the crisis, in contrast to the rest of the city. Real estate agencies in the center of Thessaloniki claim that a lot of properties remain empty and utilized in traditionally densely populated areas. Areas around University campus of Thessaloniki, professional spaces, not renovated apartments, underground flats or in the ground floor, and plots out of the city plan are the properties, which stay unused and undeveloped the last 3 years. At the same time, contractors have stopped construction activities due to lack of liquidity. Unemployment growth is vertical in the field of construction, as it is estimated that one out of two, who worked in the construction sector in 2008, is currently unemployed, equivalent to approximately 188,000 former employees. Many contractors in the past who were the main producers of residential complexes, have now turned to commercial spaces’ exploitation or created entertainment venues, such as cafes or bars. In addition to this, the dependence of the construction sector on banks, in combination with the inability of the seconds to provide housing mortgages, has directly affected the real estate transactions. In the past housing mortgages might cover 70% to 100% of the construction cost, while today they reach 50 to 60%. 48 Properties quickly and easily changed owners and real estate agencies of Thessaloniki sold up to 5 properties per month. In contrast to this, today this number is limited down to one in the year. Nowadays, as Mr. Kontogiannidis mentioned, someone, who had bought a house 200,000 euro with the help of a housing loan, probably would manage to sell it for 120,000 euros and must continue paying off the loan to the bank. To conclude with, in line with the interviewed experts on Thessaloniki’s real estate market, one of the most significant problems of the housing sector in the city is the surplus of houses, addressed to middle and high income groups, while there is a need for qualitative affordable housing for vulnerable groups. The lack of housing quality, parking areas and open green urban spaces are also major problems, regarding the housing sector, which affect directly the living quality in Thessaloniki. 46 47 48

Interviewed by the author on January 10th 2012, in Thessaloniki. Diamantidis, Dimitris. 6,000-8,000 the unsold homes in Thessaloniki. HMERISIA. Ferbruary 11, 2011 Gogos, Giorgos. Interviewed by the author on January 10th 2012, in Thessaloniki.

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| | | 4.9 Administrative housing models in Greece and Thessaloniki | | | | 4.9.1 Institutionalized housing In contrast to the rest of EU countries, Greece has no social rental sector for lowincome groups. 49 Social housing provision was held only by the Workers’ Housing Organization (O.E.K.), which was an autonomous and self-financing body. 50 It was coordinated by the Ministry of Labor and Social Security and was managed by an independent board. The target group was low-income workers and employees in private or public sector, who made contributions into OEK. Financial immigrants and pensioners of these categories were also not excluded from beneficiaries group. Thus, OEK delivered about 150,065 housing units annually, being until 2009, asso 51 Figure 4.44 - 4.45: Worker’s housing in ciated with 95% of annual construction activity of public sector. The most common housing programs of OEK contributed towards the purchase of Phoenix, Thessaloniki Source: http://www.panoramio.com/ manufactured residences low-priced 52 and with interest free mortgages. The buildphoto/67585683 and http://www.panoramio.com/ photo/72713277?tag=Razionalismo (accessed on June ing dwellings ranged in size from 20 to 2,500 housing units. Social housing policies, 30th, 2013) the organization of the construction of dwellings and the provision of lending programs for construction, repair, enlargement and completion of a household’s first residence, were also some of the main OEK’s activities. Moreover, they provided financial and constructive resources, grants for the rent payment, and pilot and special programs for large families, people with special needs, victims of natural catastrophes and inhabitants of sensitive frontier areas. The acquisition of land was retrieved from public and municipal authorities, the Greek Church or private owners. In the first case, public land was acquired for free, while municipal land was given to OEK in exchange of some housing units. Regarding purchasing private land, the law of public bid procedure 53 was applied. Nevertheless, OEK was terminated in 2012 after the decision of the Greek government, aiming at reducing public spending. Since then, the government announced the retaining of some of the important social activities of OEK, from the Manpower Employment Organization (O.A.E.D.), without much success 54. In Thessaloniki, there are some significant social housing projects by OEK located mostly out of the Municipality of Thessaloniki. This lies on the fact that the land acquisition in mediocre prices was easier in the suburbs of the city. However, this fact did not lead to residents’ segregation, since large private investors and contractors were attracted in the surroundings areas, resulting in the extension and then integration of these areas to the main urban plan. 49 The lack of social rental sector in combination with the reduced production of affordable housing units, has a negative impact in affordable housing sector of Greece. This lies in the fact that every time, a housing unit is sold, the affordability gab for potential future residents widens. 50 The main funding resource of OEK, was the monthly contributions of workers’ and employees’ of private sectors, equal to 1% of their salaries. The employers had also to contribute with 0.75% of their wage bill to the organization. (Needham, Barrie and de Kam, George. Land for social housing. Nijmegen/Hilversum: CECODHAS. 2000, 22) 51 http://www.housingeurope.eu (accessed on April 26th, 2013) 52 OEK was providing dwellings in about the half of the commercial value in the free market to beneficiaries, which was equal to the cost of construction. 53 After publishing OEK’s intention for acquisition of private land, offers were presented in the special committee. The offer with the best combination of quality and price was selected. 54 As stated in an article of ‘Eleutheros Typos’, over 60,000 people, who took a bank loan, assisted by an interest subsidy form OEK, are in danger of being blamed for outstanding debts, due to OAED’s inability to pay off this subsidies to the corresponded banks. This fact reveals the urgent need for intervention and administrative restructure by the State. (Katikos, Kostas. In the air 100,000 borrowers of OEK. Eleftheros Typos. April 23, 2013)

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Figure 4.46: Social housing by OEK in Thessaloniki Source: The author

Moreover, it is worth mentioning that State’s intervention in cases of emergency, such as floods and earthquakes disasters, or special housing problems, such as rehabilitation and financial assistance, of repatriated Greeks or other special groups (for example Roma) were made, without a structured framework of social housing policy. These interventions could be characterized as occasional and insignificant, in number and size, measures, since they were outside of a general policy framework.

Figure 4.47 - 4.48: The housing complex “Politeia”

Source: http://akea2011.wordpress.com/2012/07/08/ gekternamenemeni/ (accessed on June 28th, 2013)

In addition to this, another significant example of institutionalized housing in Greece is the case of the housing complex “Politeia” in Municipality of Menemeni, in Thessaloniki. Although the inclusion of enterprises in the affordable housing sector has not many applied examples in Greece, this project was built in 2005, through a public-private partnership, with the construction company GEK-Terna. The company bought the land with favorable tax conditions and constructed the complex, in line with the older and most favorable building terms, bypassing the current ones. The State gave loans to repatriates for the purchase of housing from the private company, many of which were also hired as construction laborers for the competition of the project. Critical point in achieving this project was the bypassing of the existing legislation for 40% land contribution to the State, with the approval of the Municipality. The land contribution was much less, according to older legislation. However, the State had prevented OEK to erect in the same area social housing, owing to the restrictive building regulations, providing in this way the production of social housing to private companies.

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| | | | 4.9.2 Housing co-operatives According to the Greek planning legislation, housing co-operative is each association that declares in its statutes that its sole purpose is the provision to its members, housing in urban or resort areas, or the general reforming, renovation and rehabilitation or residential areas for the benefit of its members only. 55 Housing co-operatives in Greece are divided into urban and holiday. In this research, only the urban housing co-operatives are presented, which are planned to provide to their members, their first residence or even to reconstruct, renovate or enhance housing areas. The ways of residence acquisition, referred to the relevant article 56 of the planning legislation are:

• Housing construction by a single construction entity • Distribution of independent plots for self-construction housing by the members • Direct purchase of ready residences • A combination of the above cases

The State, in order to promote the establishment of housing co-operatives, has set some incentives 57, which are:

• The possibility of determining the minimum rates of land contribution • The cadastral survey may be provided by the State • The competent services of Ministry of Environment and Climate Change (Y.PE.K.A.), local authorities or Public Enterprise of City Planning and Housing (D.E.PO.S.) may develop the urban planning. • The housing co-operative development has priority in connecting with public infrastructure • The location of housing co-operative development may be classified in zoning of special incentives. • The provision of tax reliefs

The surveillance of co-operatives operation is coordinated by the Ministry of Finance, according to Law 1667/1986 (article 196). The Y.PE.K.A. supervises cooperatives only on issues of its competence, such as procedures of planning, urbanization, setting terms and building construction restrictions, environmental impact and energy issues. 58 A prerequisite for the establishment of a housing co-operative is to issue a certificate of the competent Directorate of the Y.PE.K.A. that the proposed residential area belongs to a specifically regulated zone. 59 The urban infrastructure for these projects must be completed within a deadline of ten years, since the approval of the planning study. 60

55 56 57 58 59 60

PD/14-7-99 FEK-580/D/27-7-99, Part II / Chapter I / Article 125 PD/14-7-99 FEK-580/D/27-7-99, Part II / Chapter I / Article 126 PD/14-7-99 FEK-580/D/27-7-99, Part II / Chapter I / Article 145 FEK 249/25-11-2011, Law 4030, Article 31. 3.α, Sheet No. 79 FEK 249/25-11-2011, Law 4030, Article 39. 2 FEK 79/9-4-2012, Law 4067, Article 39

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Figure 4.49: Procedure for creating a housing co-operative in Greece Source: The author

Conditions, restrictions and procedures for creating housing cooperative, set by Presidential decrees of the Ministry of Environment and Climate Change (Y.PE.K.A.) Informing citizens by Municipatily

Study of geological and geotechnical suitability of the land

Informing citizens by Y.PE.K.A.

Horizontal-graphic and altitude mapping of the plot

General Assembly about the desired development mode

Application at least 25 people Certificate of Ephorate of Classical and Prehistoric Antiquities and Ephorate of Byzantine Antiquitie

Legislative drafting of the statute Statute adoption by the Ministry Spatial planning for housing cooperative

Approval of residential suitability

Urban planning for housing cooperative

Approval by Y.PE.K.A.

Plan implementation

Infrastructure project

Distribution of dwellings

Distribution of plots

Certificate of the Forestry service and Prefect

Certificate of the local authority to (meet the water supply and sanitation)

Report of the prefectural Committee on spatial planning and environment for the residential use of the area

Decision of the Ministry of Agriculture for the authorization of land acquisition Allocation of 30 to 40% of land to local authority for communal, charitable and special use areas

Development of urban planning

Determining suitable land for planning

In Greece, there are 213 approved housing co-operatives and 230 unapproved, due to various problems. In Thessaloniki, there are 21 housing co-operatives, which occupy and area of 6,268m 2 and list 3,300 members.

Figure 4.50: Housing co-operatives in Thessaloniki, categorized by land acquisition (in hectares) and by their number Source: Edited by the author based on Petropoulos, 2009, 54

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The case of Thessaloniki, Greece

However, many housing co-operatives in Greece are hindered from utilizing their land, due to a legislative change on building construction in 1985. Although, they owned legally land already before 1985, after regulations’ change, many of these plots were not included in those regulated zones or were characterized, as forest or woodland. Hence, housing construction cannot be developed there. Other problems of co-operatives are the expropriation of land from the archaeological service or the State, land in suburban green zones or wetlands or illegal housing constructions, outside the urban plan. Additionally, there are many cases of unauthorized co-operatives’ requests, because they lack approved spatial framework for their plots or a uniform plot, or their sites are smaller than 50 acres. Recently, after the European court action of some co-operatives, which did not manage to utilize their land for year, after its characterization as a forest, the Supreme Court of Greece and the State Council issued a decision vindicating the members. The State is obligated to compensate the owners through compulsory acquisition of property or exchange the disputed forest areas for other public land, allowed to be constructed and of equal value. 61 To sum up, although the procedure of establishing and organizing a housing cooperative in Greece is time-consuming and with high bureaucracy, it is considered to be necessary to follow all the preconditions for well-developed residential areas, respecting the natural and built environment. Taking into account the incentives provided by the law, for the establishment of housing co-operatives, it should be noted that this benefits and is more advantageous for citizens, than selecting an individual housing building project. | | | | 4.9.3 Self-help housing After the Second World War, Greece was a country devastated and without financial resources. Internal migrations and urbanization caused phenomena of illegal construction, mostly in suburban areas. Thus, housing production in postwar period flourished, based both on the ‘antiparochi’ system, which ensured access to housing to owners of small urban land at relatively low-cost, and on self-help housing practices of low social groups, who could not purchase already built homes. 62 The theory of Burgess interprets the problem of illegal construction, as self-help housing, because of social exclusion and unequal income distribution among social groups, while Alonso, as a reaction of socially excluded groups, who are unable to obtain housing through legal procedures. 63 Illegal construction in Greece meets the basic characteristics of self-help housing, but differs from the two main types that prevailed internationally: the organized and aided self-help housing, which was the axis of social policy residence in indus61 http://stereosi.blogspot.gr/2012/03/blog-post_29.html (accessed on June 19, 2013) 62 Kalama, Vaso. The housing crisis in downtown Athens. (Η κρίση κατοικίας στο κέντρο της Αθήνας). Master thesis. School of Architecture. National University of Athens. 2013 63 Polizos, S., Minetos, D. and Tsiotas, D. The illegal construction in Greece: Determinants and evolutionary patterns. (H αυθαίρετη δόμηση στην Ελλάδα: Προσδιοριστικοί παράγοντες και εξελικτικά πρότυπα.) Prime, Vol 5, 2012, 115-131.

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trially developed countries, and self-built housing, through which urbanized populations constructed by themselves their homes in the rest of the countries. 64 The Greek State accepted illegal construction and proceeded in integration of the illegal settlements in the urban plan, through legislation amendments, which followed one another, over the years. The legalization of the new settlements resulted in their conversion to urban areas and in residents’ integration in city life, who were former internal migrants and often at risk of poverty. This way of urban development contributed also to exploit individual’s capacities and savings of low-income groups, who, in this way, acquired the title of small landowners and the pattern of consumption and lifestyle of the middle class. Furthermore, this system of housing production in Greece, assisted in the creation of an urban fabric, without major socio-spatial contrasts. Thus, a wide range of social groups coexist in the same areas or even in the same block of flats, enabling subsequently, a kind of social cohesion. 65 On the other hand, the State was benefited, because it provided the minimum resources for urban infrastructure and housing of working class, while it received major taxes and financial contributions, due to the surplus value that was created in real estate market. 66

Figure 4.51: Housing settlement of Efxeinoupoli, Thessaloniki

Source: http://photos.wikimapia. org/p/00/01/04/20/88_big.jpg (accessed on June 21th, 2013)

Significant example of illegal residential area in Thessaloniki, is the case of Efxeinoupoli, which also points out the absence of an adequate housing policy by the Greek State. About 2,500 repatriated from former countries of the Soviet Union live in this housing settlement. The initial area was not included in the urban plan and consisted of agricultural plots, distributed by the Ministry of Agriculture in 1930 and 1931. This plots were spilt into smaller properties, where illegal housing and some industrial buildings were erected. Without official building regulations, the houses covered 80% to 90% of plots, resulting in complete lack of open green spaces. 67 The State was informed about the existence of this settlement in 1995 by the Ministry of Macedonia-Thrace. The Ministry also asked from the State to adjust the urban plan and provide a suitable area for the habilitation of repatriates. At the same time, the repatriates requested to be allowed to live in the area of Efxeinoupoli, since there was no other proposed area by official plans, and the construction of appropriate infrastructure for the settlement. As a consequence of these pressures and of the lack of available land within the urban plan, the settlement of Efxeinoupoli was legalized. However, the dense and disorderly reconstruction of agricultural fields and the lack of planning and design, created housing of mediocre quality, while this also contributed to uncontrolled spread of the urban fabric. On the other hand, it should be noted, that this case of self-help housing allowed the State to be exempted from providing organized social housing.

64 Mantouvalou, M. and Mavridou, M. Illegal construction: One-way to dead-end. (Αυθαίρετη Δόμηση: Μονόδρομος σε Αδιέξοδο). Press of Association of Architects, Issue: 7, 571-588 65 Kalama, Vaso. The housing crisis in downtown Athens. (Η κρίση κατοικίας στο κέντρο της Αθήνας). Master thesis. School of Architecture. National University of Athens. 2013 66 Mantouvalou, M. and Mavridou, M. Illegal construction: One-way to dead-end. (Αυθαίρετη Δόμηση: Μονόδρομος σε Αδιέξοδο). Press of Association of Architects, Issue: 7, 571-588 67 Vordoni, Evaggelia. Illegal construction due to the phenomenon of migration. Case Study: Efxeinoupoli in Thessaloniki. (Aυθαίρετη δόμηση λόγω του φαινομένου της μετανάστευσης. Μελέτη περίπτωσης: Ευξεινούπολη στη Θεσσαλονικη.) Athens: National University of Athens. 2008, 25-33

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Chapter 5 Proposals for qualitative affordable housing in Thessaloniki

Figure 5.1: The White Tower, Thessaloniki

Source: http://www.cityhotel.gr/uploaded/10-thessaloniki/city_hotel_thessaloniki_events_3.jpg (accessed on June 21th, 2013)

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| | 5 Proposals for qualitative affordable housing in Thessaloniki | | | 5.1 Concept elaboration The economic crisis of 2008 affected the social, financial and real estate sector of Greece. The impacts of this crisis are severe and the directly affected groups are trapped in a continuously worsening financial situation. The accumulation of unpaid loans and the risk of eviction for many low and middle-income households, put many people at risk of poverty and housing stress. In addition to this, mortgage benefits by the State are shrunk at the expense of the economically vulnerable groups. The result is that the effects of crisis on housing sector are exacerbated, with the elimination of tax exemptions for a household’s first residence, high taxes on real estate, rising costs of utility facilities and increased housing operating expenses (electricity, heating oil) and the abolition of OEK, the only organization in Greece that was responsible for ensuring social housing. As analyzed in the second chapter, housing affordability problems are the result of imbalanced relation between demand and supply. Each of these determinants is directly or indirectly affected by other factors, as for example households’ income, housing quality and applied policies, land availability, construction cost, personal resources and others. However, the key stakeholders in the supply of affordable housing in Greece are: • The State • Local authorities • Private development industry • Financial sector • Not-for-profit community housing sector • Religious organizations However, the main concept of proposals for qualitative affordable housing in Greece and Thessaloniki, does not include initiatives of public entities, since the case of social housing is not examined. As it is already mentioned, the termination of the Workers’ Housing Organization in Greece, brought an end in the provision of new social housing in Greece, since it was the main and only provider. Social rental housing policies never existed in Greece and the built projects are already allocated to the beneficiaries. For this reason, there is an immediate need for new affordable housing policies in Greece. Of course, it should be noted, that aiming at housing sector’s further improvement and development, some substantial preconditions should be met:

• Effective government: The State should cooperate with residents, aiming to the best housing improvements. Appropriate policies should also be set, in order for innovative and sustainable improvements to be made.

• Social capacity: It is required up to a level, so as the citizens to be engaged with planning processes and participate actively within housing improvements.

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Proposals for qualitative affordable housing in Thessaloniki

• Public-private partnerships (PPPs): The State, public and social organizations and private developers should play a vital role in the creation and maintenance of PPP. Only through the effectiveness of these partnerships, housing policies and approaches can be successfully implemented.

The following analysis and proposals are concentrated in various possibilities of fund raising and financial and administrative solutions, aiming at access to qualitative affordable housing for low and middle-income Greek households. | | | | 5.1.1 Self-help housing In countries, where the State cannot provide any financial assistance or a few resources, such as in Greece, partially aided self-help or mutual self-help housing can be one of the best solutions. Self-help housing is a bottom-up approach to housing affordability problems and has many impacts on both local authorities and beneficiaries. Municipality or other governmental or non-governmental institutions, should be part of interdisciplinary teams with some representatives. The self-help method should also be characterized by transparency and equity, regarding the funds administration and building material provision to beneficiaries, if that is the case. Moreover, local authorities and other involved associations can improve their managerial skills by participating in such housing programs. Self-help methods have also many advantages for beneficiaries. They are provided with qualitative affordable housing in safe locations and with appropriate infrastructure. Another important effect is the enhancement of participants’ self-esteem, since they actively participate in construction process. Women play also a significant role in the whole procedure, by constructing their houses, on an equal basis with men, or assuming leadership or managerial positions. Furthermore, through mutual self-help housing, the sense of cooperation and solidarity is enforced, whilst employment opportunities are created for the beneficiaries. Besides, new-urban developments, where service networks assist such methods, contribute to inhabitants’ integration into the local community. Last but not least, self-effort and mutual assistance cause social commitment and enthusiasm for improving not only their housing quality, but also the wider urban context. It is worth mentioning, that construction cost of each house that may be built in Greece, through a self-help housing program, should not overcome the officially published average price of housing building in the related area. More specifically, according to Article 41a of the Law 1249/1982, there are specified prices for minimum construction cost, in order for the State to tax properties around Greece. In Thessaloniki, the average construction cost for a house is 401 euro per m 2 and for a single-family house 571 euro per m 2 . Self-help housing methods should not overcome this limit. Thus, by keeping the construction cost equal or lower than these prices, the housing units are going to stay in the frame of affordability.

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Of course, prices range among the various Municipalities of the wider District of Thessaloniki, which are presented in Figure 5.2. As seen in this Figure and as it is expected, the more central a plot is located, the higher its price is. Exception is some highly valued areas near the city center, where high quality housing and urban environment are offered. Figure 5.2: Construction housing cost in Thessaloniki Source: Edited by the author based on http://www. tee.gr/online/afieromata/2000/2122/index.shtml (accessed on June 10th, 2013)

It should be also noted that these prices do not comprise the value of land, but they are configured only by the construction cost. The required urban infrastructure is supposed to be supplied by the respective local authorities. The labor force is also not included in these prices, since in self-help housing, this will be provided by the beneficiaries. Additionally, traditional locally produced materials can be provided for self-construction housing, enforcing in this way not only the communityâ&#x20AC;&#x2122;s self-esteem, but also the local market. The construction techniques should be simple and obtainable for residents-beneficiaries. In Figure 5.3, a general model for self-help housing by co-operatives, who can play a vital role in such methods, is presented. Moreover, another important factor that should be taken into consideration is the standard minimum surface area for Thessaloniki. In line with the Article 8 of the General Construction Regulation (G.O.K.) of the Law 1577/1985, 50m 2 is the

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Proposals for qualitative affordable housing in Thessaloniki

minimum surface 1 of a building, while as stated by the 2nd paragraph of Article 1 of the Ministerial Decision 44382/2451/1989, the minimum surface 2 for housing should not be less than 30m 2 per person. Figure 5.3: Proposal for general model for self-help housing by cooperatives

Housing co-operative

State

Land acquisition (public or private)

Source: The author

Funding resource (public or private) Non-for-profit organization (public or private) Education programs Organizational team Housing design and planning

Legislation, official urban planning decisions building regulations Architects/ Planners

Self-help housing

Last but not least, in order for the implementation of self-help methods, the beneficiaries should be properly trained and educated in construction techniques. This can be organized by the State, local authorities or other non-governmental organizations. A technical training center should be established, where residents can be educated. Their capacities and skills on building construction, on project planning and on self-management of resources can be developed or improved in this center by properly trained staff. Of course, it should be noted, that even for this method, a minimum amount of capital is required. The State, even if it cannot afford social housing projects, could provide technical aid, public infrastructure or land, credit assistance, or co-ordination personnel. | | | | 5.1.2 Exploitation of unutilized public property Public property is a significant and valuable national resource that can be used and exploited for the social and financial benefit of the community. The effective utilization of the Greek public property can have substantial direct and indirect effects on financial activity of real estate market, on GDP growth and on social welfare. The Tourist Estate Company (ETA) exemplifies the implementation of policies for the utilization of public property. ETA, established in 2000, is responsible for managing the property of the Hellenic Touristic Organization (EOT), counting 70,000 1 2

http://www.tee.gr/online/afieromata/2000/2122/index.shtml (accessed on June 10th, 2013) http://europa.eu/epso/apply/sample_test/pdf/trans_el_1.pdf (accessed on June 10th, 2013)

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Figure 5.4: Neglected building in Str. Delfon, Thessaloniki Source: http://tithess.blogspot.ch/2011/07/blogpost_11.html (accessed on June 17th, 2013)

Figure 5.5: Neglected building in Str. Eratosthenous, Thessaloniki

Source: http://www.panoramio.com/photo/27696808 (accessed on June 17th, 2013)

acres of land and 350 properties all over Greece. With appropriate policies, ETA is able to attract investments for the creation of modern touristic developments without the commitment of State resources and to achieve the best utilization of existing assets. Through this company, PPPs are promoted with the objective of public disengagement from direct entrepreneurial activity. Moreover, the Public Real Estate Corporation (KED) is another example of exploitation of public property. KED is the tactician public entity for the management of the public property, including 75,000 public housing of all categories all around Greece. Incomes from management and administration of the properties were the funding resources for social housing projects. Between 1998 and 2002, KED’s incomes reached 127 million euro from disposal and leasing of 1,500 public properties. KED contributed to address the housing demand of the market, without the State to bear construction costs or increasing the public debt. 3 Through these two public bodies, the possibility and need to exploit unutilized public property, is highlighted. ETA and KED could provide a percentage of the public property, including unutilized building stock or land for affordable housing developments. Regarding Thessaloniki, there are many neglected and abundant buildings, which are often occupied by homeless people or drug abusers. Thus, the areas of these occupied buildings become black spots on the urban fabric, often resulting in neighborhoods’ degradation. Especially the last years in Thessaloniki, there are no signs of restoration and exploitation of the existing building stock. Mr. Karaoglou, Minister of Macedonia and Thrace, declared that only in the city center there are 3,500 ramshackle buildings, while the building stock of the city is already characterized as aged, since 1983. For this reason, the refurbishment of these buildings by private companies, or co-operatives is substantial for the urban development and the State should promote such projects, aiming at affordable housing developments. | | | | 5.1.3 Refurbishment of low-quality houses

Figure 5.6: Neglected building in Str. Vasilissis Olgas, Thessaloniki

Source: http://halyvourgos.wordpress.com/χρήσιμαιστολόγια/θεσσαλονικη/η-πολη/ (accessed on June 17th, 2013)

The approved Funding Programs of Green Fund 2013 4 are another possibility of funding resource for affordable housing. As stated on Article 1 of Law 1256/1982, these programs funds projects, established by the Ministry of Environment, Energy and Climate Change or other Ministries, authorized organizations local or nongovernmental authorities, legal public entities, or associations, which aim, in line with their statutory, at environmental protection, enhancement and restoration. 5 The objective of these programs is to design, promote and implement projects, activities or other interventions for the benefit of the natural and built environment. According to these programs, redevelopment housing projects can also be financed. Such projects have already started taking place in Greece. In this way, plenty of households, who meet the selection criteria, could refurbish their residence technical equipment, enhancing, consequently, their housing quality. Such 3 Chistodoulakis, Nikos. New Policy for the utilization of public property. Meeting. June 25, 2003. http://www3.mnec.gr/christ_int_250603. aspx (accessed on June 17th, 2013) 4 Revenues of the Green Fund 2013 are deprived from fines for illegal semi-open spaces and buildings, and contributions from the Internal Revenue Service (D.O.Y.), the Special Agency of Forests and from pollutants’ auctions. 5 http://www.prasinotameio.gr/index.php/el/programmata-kai-dikaiouxoi (accessed on May 5th, 2013)

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programs could play a crucial role in solving affordability problems, considering the fact that the reduction of energy consumption of a building can contribute in reducing the overall housing costs. | | | | 5.1.4 Proposals for housing debts Nowadays there are over 100,000 properties, which are in danger of auctions, because of the inability of owners to repay their housing loans to banks. Troika requests the auctions of these properties, in order for property prices and values to be reduced, which at the same time, will bring big changes 6 in real estate market. Not to mention the fact, that thousands of households will lose their property and by implication, their home. The last three years the properties, related to debts under 200,000 euro are protected. 7 Meanwhile, additional property acquisition burdens financially the banks, due to the considerably augmented property taxation. For this reason, some measures must be taken by the banks, aiming at ensuring the homeownership. First of all, the first proposed financial model for the property debts, could be extending or even doubling the repayment period for housing loans. In this way, the loan payment would be significantly reduced, reaching the levels of a monthly rent that someone could pay for house of equal value. Needless to say, that the borrowers should be able to reduce the repayment duration, in case of an improvement of their finances. Moreover, this measure would be better implemented in cases of low interest rates of loans, so as debtors to be less financially burdened. An alternative solution could be a version of property leasing. The borrowers could repay only the interests and not the whole loan, reducing in this way their monthly financial dose to the bank. The result in this case, would be that the homeownership would be taken by the bank, which however would allow the residents to continue living in their houses, since the repayment of the loan interests would have the character of a rent. Additionally, in an optimistic scenario that the inhabitants would come into a better economic situation they could repay even the initial capital, resulting in the acquisition of the property. Concluding, it should be noted that both of these proposals for housing debts, benefit financially banks, which is equitable, since they must receive their money back. The goal is that debtors will gain some time and even the possibility to maintain for some period or even keep in the end their property. | | | | 5.1.5 Home ownership through leasing On the same ground, an innovative housing policy that could unblock the problematic Greek real estate market can be the leasing of properties for homeownership. As the president of the Federation of Construction Industry of Greece declared, Mr. 6 According to an article of the newspaper TA NEA in 2012, a sharp decrease in properties prices would cause negative effects in real estate market. The value of the mortgage will be much higher than the actual value and properties that the Greek banks were secured in the past, and will have much lower value than the height of securitization. This means that it will be disadvantageous for the borrowers to continue repaying the remaining debt of their housing loan, since it will be much higher than the total value of their property. This scenario has already become a reality in the United States with the subprime mortgage crisis and in Spain, which led in the busting of the property bubble. [Pefanis, Dimitris. Troika’s plan for 100,000 homes under the hammer. TA NEA. August 11, 2012. http://www.tanea.gr/news/ economy/article/4744549/?iid=2 (accessed on May 10th, 2013)] 7 Government Gazette of the Hellenic Republic. Issue A, Number 246, December 18, 2012, 5915. www.et.gr (accessed on May 10th, 2013)

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Kapsimalis, the Greek construction industry is in a dramatic situation, with more and more contractors forced to rent out homes, which they did not manage to sell, since the beginning of the crisis. Besides, this method is widely common in Great Britain and USA. Property leasing is a method addressed for interested buyers, who cannot acquire neither their own house nor a housing loan from a bank, and rent temporarily a house. Firstly, these people give a deposit for the property, which reaches up to 20% of the total value of the house. Then, the interested buyers would stay in the house and pay a monthly amount of money, following the concept of an affordable monthly rent, with the difference that this money would be used for purchasing the property. The final payoff could be arranged after 5 or more years, given that, during this period, the potential purchaser would have the desired timeframe for savings or finding a loan with favorable terms. | | | | 5.1.6 Barter economy: an alternative way of fundraising in case of State’s bankruptcy This period of time is of crucial importance for Greece, since it experiences a major economic crisis. Real estate market and transactions are frozen, due to the lack of liquidity in the property market. Therefore, alternative ways of trading, based on solidarity between people, instead of money, were searched. Barter economy, a type, which, after the invention of currency, had almost disappeared, returned nowadays. The term ‘barter economy’ refers to the most primitive and basic economic theory. According to this financial theory, instead of currency, commodities and services are used, as means of all exchanges, since money do not exist in these economies. 8 It can be applied either in societies, which are not familiar with currency, or in countries that suffer from severe economic crisis. A great example, in which barter economy was applied, is the case of the small town of Wörgl in Austria. The idea of Silvio Gesell, who was an economist of the early 20th century, was based on the creation of a local currency in the form of a stamp scrip. In this way, he designed and stimulated the local economy in 1932 and contributed to unemployment solution. Public services and infrastructure were refurbished, while other new projects for the community were built by the locals, who got paid with the stamp scrip. This financial model also inspired many other neighboring cities to apply barter economy, resulting in its termination by Austria’s Central Bank in 1933. 9 Another example of this model is the case of Argentina. After the bankruptcy of 2001, half of the population experienced poverty and misery, while the State could not react and there was no fluidity in the markets. The result was that people became self-organized and started exchanging goods, services and coupons, applying, in this way, the model of barter economy. The model was spread in the whole 8 EconomyWatch. Barter Economy. October 14, 2010, http://www.economywatch.com/economy-articles/barter-economy.htm (accessed on June 7th, 2013) 9 Lietaer, Bernard. The Wörgl Experiment: Austria (1932-1933). Currency solutions for a Wiser World. March 27, 2010. http://www.lietaer. com/2010/03/the-worgl-experiment/ (accessed on June 07th, 2013)

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country, with the immediate reaction of both the International Monetary Fund and USA, who asked for its termination. The use of barter economy still continues in Buenos Aires, without the lights of publicity, in order not to provoke local authorities’ reaction. 10 The majority of people nowadays, have difficulties in imagining a modern society without the existence of money. However, it is a fact that the primitive method of exchanging goods and services is present in the current era of money and globalization, in several regions of the world, as for example in Latin America or in Europe, with the better known LETS (Local Exchange Trading System). The main cause is, on one hand, the economic crisis, and on the other hand, the humanity and solidarity among citizens in different countries. The case of Argentina showed that through barter economy, there is the possibility for communities to survive high unemployment and inflated national debt, even when citizens have by far surpassed their endurance. It is about a financial model that relies on healthy human relationships and its main characteristics are equality, collectivity, solidarity and cooperation. In recent years, barter economy appeared in many cities of Greece. Networks were built, so as to offer exchange goods and services. Their members motivate citizens to participate and become all prosumers (producers and consumers simultaneously). Locally organized networks of barter economy, exist today in major Greek cities, while new networks are consecutively established all around Greece. More specifically, according to Exchange and Solidarity Network of Magnesia, such a network is addressed to people, who have difficulties or are unable to afford the majority of their needs with their incomes. Nevertheless, they can repay them through offering some services, or some new or second-hand goods. 11 The advantages of this system are remarkable, as new employment possibilities are created, the local products are highlighted, families and microenterprises are assisted and supported to confront and overcome the financial crisis. The range of transactions is infinite and depends on the size of the network, and on the available offers in services and products. The members of the network agree in a context of transactions, where the Local Alternative Unit is used, as the alternative currency. Thus, each service or good is paid in X units and then with these units, other services or goods that are available in the network can be bought. Considering the problem of affordable housing provision, the model of barter economy can be a proposal for the acquisition of building materials and services. In line with internet adverts for barter economy in Greece, plots can be traded with houses, land or prefabricated homes with a boat or a car, an office in the province with an apartment in Thessaloniki. 12 Other examples are offering services in exchange for housing, staying in an apartment for renovating it, or accommodation 10 http://www.exandasdocumentaries.com/gr/documentaries/chronologically/2010-2011/184-to-peirama-tis-argentinis (accessed on June 07th, 2013) 11 http://www.tem-magnisia.gr/ (accessed on June 07th, 2013) 12 http://www.antallaktiki.gr (accessed on June 7th, 2013)

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for agricultural work. Moreover, some exchange services are related to specific construction work, such as plumbing work for roofing, carpentry, or electrical services, various construction work for clothing, architectural engineering work by a car. Considering all these adverts, a mass participation of citizens in such exchanging networks, could help them to acquire affordable housing, owned or rented, based on their economic status or personal property. In the region of Thessaloniki, there are three exchange networks, at the moment. Among them, one network, named ‘time for time’, collaborates with the Municipality of Pilea-Chortiati, the Municipality of Kalamaria and the Region of Thessaloniki. In its website, it is stated that the main idea is the exchange of time for time. Citizens should follow principles, such as social conscience, equality, fairness of transactions, confidence among them, respect of the process, consistency in supply, goodwill and honesty. It should be also noted that, each of these networks is a notfor-profit organization. In addition to this, the role of local authorities, is to provide citizens with the required infrastructure, expertise, and human resources, so as to play a catalytic role in facilitating practically citizens, to be organized for this purpose. As a consequence, the foundation of such networks could be the beginning of a new economic development, based on the power of citizens’ participation and solidarity. | | | 5.2 Implementation Process The implementation of any of the above mentioned proposals, requires an efficient and trustful network of relationships and cooperation among some factors of crucial importance for affordable housings. Thus, dynamic and effective communication must be developed among the State or public entities, financial sector, society, housing market, urban environment and citizens. Each of these factors plays a significant role in the determination of the rest of them. Each remarkable change in any factor, presents a direct impact on the rest. For example, financial growth affects the household income, which contributes towards better housing quality, growth in housing market, social cohesion, State prosperity and better environmental quality. Contrariwise, State’s inability to approach administratively affordable housing problems, could cause social incoherence, segregation of low-income households, instability in housing market, economic decline and low-quality urban environment. Figure 5.7: Network of relationships Source: The author

Urban environemnt

State/ Public entities

Economy

Society Housing market

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Individuals/ Housieholds

Proposals for qualitative affordable housing in Thessaloniki

For this reason, in this subchapter, the affordable housing proposals are approached from different perspectives. All of these parameters, depicted in the Figure 5.8, should be taken into consideration and be throughout examined, during the procedure of defining affordable housing proposals, in order for them to be realistic. Figure 5.8: Key factors for a new housing policy Source: The author

Social context

Spatial context

Affordable housing policy Administrative context

Financial context Legislative context

| | | | 5.2.1 Spatial context_ Land and building stock The main proposal for the spatial context is the provision of unutilized public land to individuals or co-operatives, with the goal of affordable housing developments. The State or local authorities could provide land to groups of people, following a financial model of leasing, i.e. with the obligation to pay a relatively small annual amount for several years, until they acquire full ownership. Otherwise, in consonance with arrangements between the State and citizens, they could use the land for an agreed period of time, as for example for 50 or even 90 years, and then return the property to the State. In another case, instead of plots, public entities could provide neglected buildings to co-operatives. Moreover, Municipality of Thessaloniki, local authorities or some non-for-profit organizations could restore this building stock and provide it as affordable housing for vulnerable social groups. On the same ground, low and middle-income families, who are confronted by housing affordability problems and low housing quality, could proceed with refurbishing their residence. By restoring its technical equipment, as for instance replacing the heating system for a, more effective and low cost, new one, they would reduce the monthly housing expenses and improve as well their housing quality. It is a practice that could be widely used in large urban centers of Greece, since the majority of the residences, addressed to middle and lower social class, suffer from many technical problems, owing to the old building constructions and the inexpensive poor-quality construction materials. In addition to this, there are many neglected private properties in Thessaloniki, of which the owners are not interested in utilizing them, due to the high maintenance cost, reaching in some cases up to 70% of the total cost that would be required for the erection of a new building in the same position.

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Hence, for such properties, a proposal would be that the owners would provide them to housing co-operatives, in exchange for paying the taxes, its restoration or even offering practices of barter economy. Another proposal for the spatial context is that the State could expand the urban plan. In this way, inexpensive land, located in the city suburbs, could become the breeding ground for affordable housing. Through city plan expansion these remote areas would acquire the required infrastructure, in order to receive housing projects and provide a qualitative urban environment to inhabitants. Last but not least, aiming at accomplishing the objective and function of housing co-operatives, the Greek State has to clarify the outstanding issues that it has with cooperatives. The blocked areas should be released, where this is possible, in order for the members to proceed with the housing developments. In cases, where cooperatives’ land includes forests, local authorities should exchange this land with other governmental developable land, so as not to act unfavorably against owners. In this way, co-operatives will be able to carry on with all the required procedures, being on hold. Then, land will be allocated to members, in accordance with the land titles they hold, in order to proceed with the self-help housing projects. The cooperatives should also educate their members for all the required procedures. | | | | 5.2.2 Financial context The real estate market has significant impacts on macroeconomic developments and financial stability of Greece. It is also one of the pillars of the Greek economy and as long as it remains frozen or declines, the economy will not flourish. For this reason, some structural decisions should be immediately taken about financial sector. The most important change that should be done, is the abolishment of the additional tax on properties, which was imposed recently for a household’s first house. For the majority of low and middle-income families, this is a measure, which raise their housing affordability problems. Plenty of people avoid acquiring a new house or try to sell the one they already have, in order to save their money from the high taxation. Another possible measure from the Greek State, could be the provision of tax reliefs to co-operatives, individuals or private sector developers, aiming at producing affordable housing units. Since the State in not able anymore to provide social housing, they could give incentive, at least, to other private entities, to proceed with bottom-up housing initiatives. Moreover, some governmental or ministerial funding or European recovery programs would be a remarkable financial assistance, especially for the cases for people, who lost their homeownership and cannot afford renting a home in market’s prices. Decisions towards a new social policy from the State and banks should be taken, who were strongly supported by financial programs of European Union and

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International Finance Corporation (IFC). Therefore, the State and banks could provide loans to low-income families for acquiring or renting affordable housing, aiming, in a long term, at country’s development. Last but not least, significant governmental measure would be a protective policy towards auctions from banks. As it was already analyzed, a financial model of property leasing could be the best solution for many families, who are in housing risk, prolonging in this way their stay in their own property, while paying an affordable monthly rent or loan tranche to banks. | | | | 5.2.3 Legislative context The State should take some substantial measures on legislative level towards facilitating affordable housing models. First of all, the procedures for creating a housing co-operative and the required steps for the approval of the residential suitability and of the urban planning, regarding the housing project of the co-operative, should be simplified. As presented in the previous chapter 13, these procedures are characterized by significant bureaucracy and are time-consuming, since it may need months, in order for all the required data to pass from one authority to the other. However, according to the recent Law 4019/2011, social co-operatives governed by a common goal should be promoted and facilitated by the State. However, at the moment the legal framework sets barriers to enable co-operative sector growth on a national level. This legislative context has to be adjust and promote social cooperative enterprises, aiming not only at the provision of affordable housing, but also at creating new employment possibilities. Another important legislative change should be the amendment of the law about the high taxation of the first house that someone owns. On the contrary, the State should motivate the citizens to acquire their own house through the establishment of co-operatives and self-help housing projects, since the social welfare on this topic is absent and inadequate. The best incentive towards this direction could be the provision of tax reliefs for this group of people. Furthermore, regarding self-help housing methods, and in line with the Ministerial Decision of the government 1434/A42/2004 317/V/11.2.2004, State housing assistance with interest-free loans and governmental support, is promoted for the cases of buildings with problematic structure, after a natural disaster, such as earthquake, flood, fire and landslide. 14 A proposal, in this case, would be the amendment of this law, by adding in the State assistance agenda, aid for self-help housing projects for low-income groups. In the existing law, it is stated that the contribution can be towards renovating the existing problematic building structure. Following the same concept, with the coordination of public entities, neglected building could be refurbished and reused by their owners or co-operatives, revitalizing in this way, entire neighborhoods.

13 14

See page 117-119. http://www.dsanet.gr/Epikairothta/Nomothesia/ya1434-a42_04.htm (accessed on June 12th, 2013)

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In conclusion, it should be mentioned, that regardless citizens’ initiatives, transparency and publicity in project commissioning and development, are crucial factors, in order to achieve successful, effective and qualitative affordable housing projects. | | | | 5.2.4 Social context The first step towards an appropriate social context, where new affordable housing policies could be implemented, is adjusting, to some extent, the Greek mentality about sharing, living and housing. In the past many low-income families functioned with the concept of today’s housing co-operatives. At this point, it should be noted that in the Greek culture, the members of a family surpass the first-degree relatives. Consequently, this whole family, after setting a common goal of acquiring homeownership, would construct a building, in many cases through self-help methods, where the main family would live in one apartment, the grandparents in another one, the aunts and cousins next to them and so on. Nowadays, this practice of homeownership is not so widely common, due to the strong urbanization trend of the previous decades. In addition to this, the Greek mentality lacks the notion of cooperation among people, who the only thing that they share is a common goal. It is worth noting, that the majority of Greek existing co-operatives are initiated by people of common labor sector. For this reason a more social approach in housing is required. The need for cooperatives, of which the members will serve common goals and confront united financial challenges, is particularly important in a country, that experiences economic crisis. By the same reasoning, Municipalities and local authorities should collaborate with the community and support the vulnerable groups. Besides, social cohesion is required, which at the same time through such housing practices, is enforced. As a consequence, citizens should be willing to set an effective communication network and participate in planning, organizational and construction procedures, aiming at self-help methods for acquiring affordable housing. Furthermore, in order for self-construction housing programs to be implemented by co-operatives and individuals, appropriate organization and education of the community is required. First of all, the beneficiaries should be organized in groups that will promote and facilitate mutual help. The group of beneficiaries, who are going to build their houses by themselves, should be properly informed, trained and strengthened on the building procedure. Secondly, a professional personnel should be responsible for educating them and participating in the construction phase. This personnel could be constituted by a social worker, an architect, a local government representative and some construction workers. Thirdly, all the required tasks, which except for constructional, may be managerial or other, should be properly distributed to each one of the participants. In this way, social unity, participation, cooperation, and solidarity are achieved, while concurrently, all the members of community contribute with all available means to the self-help housing program. The evaluation of the procedures and outcomes is also a substantial part of the selfhelp housing and should be part of interdisciplinary meetings, held by the coordination authorities. Through this feedback, successes, challenges and experiences can be discussed and improvement can be made to such future practices.

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| | | | 5.2.5 Administrative context The administrative approach for solving housing affordability problems in Greece should be initiated by the State, by adjusting the existing legislative context as mentioned before. In addition to this, all the empty unutilized public buildings both in Thessaloniki and in other large cities of Greece, should be recorded, in order to get a clear picture of the extent of the problem. Moreover, educational programs for citizens, addressing the need for cooperation and other housing policies have to be organized and coordinated by the State, local authorities or other public entities. Besides, Municipalities or local authorities should put responsibility on an interdisciplinary authority, which would co-ordinate the educational programs for self-help methods, organize PPPs for qualitative affordable housing projects among public entities and private sector companies or housing co-operatives, or run some social housing recovery programs for vulnerable groups. To conclude with, of course the State is its people and each individual, who deals with housing affordability problems should be in position to undertake organizational responsibilities and be part of bottom-up initiatives. People should think that through a housing associations, such as a co-operative, would be able to achieve meeting their needs, to a greater extent, than in the case that they would try that individually. Not to mention the fact, that in mutual self-help housing programs, a whole community could solve its housing problem. Furthermore, co-operatives in collaboration with enterprises, for example from construction industry, could achieve not only self-help housing, but also offering employment possibilities to vulnerable groups. | | | 5.3 Realization Scenarios Considering the instability of the Greek economy and the fact that transactions in real estate market are for now frozen, estimations, anticipations and prognoses on the development of the situation are ambiguous. For this reason three different scenarios are going to be examined and followed by the adjusted proposals:

• Scenario A: Economic recession or stagnation • Scenario B: Economic stagnation with external financial funding • Scenario C: Economic growth

The main differences in these scenarios are identified on the basis of land acquisition and funding resources. In each of the cases, the State and local authorities, the private sector and individuals or co-operatives, have different opportunities in acquiring land or provide financial resources for housing development. The main concept of forming the three different models for these three different scenarios, is that in the case of economic recession, housing investments are limited only for the cases of an urgent need, at the moment, when people reach the limit of poverty and lose their house. On the other hand, in the case of economic growth, investments are more possible to happen, but still governmental initiatives are not examined, giving their place in bottom-up approaches.

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In the following Table, assumptions for land acquisition and financial aid from each of the main factors in each of the three scenarios are presented. The qualitative affordable housing models of the below presented scenarios are based on these assumptions. Table 5.1: Concept of Scenarios Assumption/ Possibility:

No: ○ To a small degree: ● Yes: ●

Scenarios

Resources

Economic recession or stagnation

State

Private sector

Individuals

Land

●

Funds

○

Economic recession or stagnation with recovery funding programs

Land

●

Funds

●

○

Economic growth

Land

●

Funds

●

It should be also clarified, that in each one of the scenarios only private-public partnerships (PPP) are analyzed. These PPP may be between:

• the State or local authorities and a private sector company, examining institutionalized housing • the State or local authorities and a housing co-operative, referring to selforganized housing • or the State or local authorities and individuals, which is aided self-help or mutual help housing

| | | | 5.3.1 Scenario A The first Scenario presents proposals for the possibility of economic recession or stagnation. This prognosis is the one that the majority of Greek citizens believe. More specifically, in line with a research 15 held in Thessaloniki in 2012, 88.1% of the interviewees believe that Greek economy will start showing the first signs of recovery from the crisis, the earliest after 2015. Moreover, according to experts’ prediction, the situation in real estate market in Thessaloniki will not be improved for the next 3 to 4 years. As argued 16 by Mr. Zarogiannidis, administrator of the real estate agency ‘Kosmopolis’ in the center of Thessaloniki, the only possibility that the Greek economy could recover, is the entering of foreign investors, who could

15 INTERVIEW. Economic climate and its impact on Small and Medium Enterprises of Thessaloniki. January 2012 http://www.slideshare.net/ geopy/ss-11250324 (accessed on June 20th, 2013), 14 16 Interviewed by the author on November 7th 2012, in Thessaloniki.

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buy land and utilize it for housing developments. However, as he claimed, without these investments, the housing market of Greece, since it is depended on the Greek economy, may be able to recover after 5 or even 7 years. At this point, it is worth mentioning that such an opinion, which places economic growth in short-term only on foreign investors, poses serious risks in a long-term for the Greek economy and is not adopted 17. In addition to that, according to a survey of 2012, 55.4% of respondents believe that the crisis is in full swing, whilst 34.1% that it is still at an early stage. 18 Moreover, OECD and the Hellenic Statistical Authority presented negative predictions for Greece even by 2014. 19 Figure 5.9: The GDP growth of Greek economy, 2011-2013

Source: Edited by the author based on http:// www.oecd.org/eco/outlook/greeceeconomicforecastsummary.htm (accessed on June 11th, 2013)

Therefore, in scenario A, the population suffers from high unemployment rates and affordability problems. The majority of low and middle-income households live in low-quality housing, while they reach the poverty line and are in danger of losing their property. The main characteristic of this scenario is that the State has no money and can run no supportive programs for all these groups. For this reason, State’s funding could be limited in some tax reliefs, which will work, as motives for private sector companies to build and provide affordable housing or for individuals or co-operatives, to build their own houses, by themselves. Other form of incentive, could be the provision of public unutilized land or properties, for new housing developments and restoration, respectively. More specifically, in the first model of institutionalized housing a private sector company would have the possibility to acquire public land or neglected public buildings. With private funding and organization from a construction company, they would produce both qualitative affordable housing for low-income households and high quality housing for middle and high-income households. The State would give motives to these companies through tax reliefs, to build affordable housing. In this way, the gab of social housing absence would be covered with the minimum inter17 A representative example of the failure of this model, is the case of Turkish economy. The effects of the East Asian financial crisis in Turkey were followed by a mid-term growth strategy, relied on foreign capital inflows. However, after some years of financial growth, based on foreign investments, Turkey was once more hit by a crisis in 2008, since its economy was completely depended on banks and global economy. 18 Karametos, Filippos. Survey: What do the Greeks believe for the crisis? Zougkla. September 19, 2012 http://www.zougla.gr/greece/article/ erevna-ti-pistevoun-i-elines-gia-tin-krisi (accessed on June 11th, 2013) 19 http://www.oecd.org/eco/outlook/greeceeconomicforecastsummary.htm (accessed on June 11th, 2013)

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SCENARIO A

People/ Authority

Land Acquisition

Funding Source

Organization/ Construction

Public entity Private entity

Model 1 Institutionalized housing

Public land

Bank loan

Private sector company

Affordable housing for low-income households

Tax reliefs

Restoration of empty public building

Outcome

Private construction company

Housing for middle and high-income households

Public entity Private entity

Model 2 Co-operative housing

Public land Barter economy practices

Restoration of empty public building

Housing co-operative

Affordable housing for low and middle-income households

Private land

Leasing

Self-organized and self-build housing

Public entity

Barter economy practices

Restoration of empty public building

New affordable housing

Private land

Private entity

Model 3 Self-help housing

Public land

Individual

Leasing

Renovation of individualâ&#x20AC;&#x2122;s house

140

Self-organized and self-build housing

Affordable housing with improved housing quality

Proposals for qualitative affordable housing in Thessaloniki

vention of the State. The private sector would have to offer a percentage of housing to the State, in order to address to needs of vulnerable groups. According to the Article 13 of the Law 1337/83, housing projects in Thessaloniki, which are included in regeneration zones, should provide land contribution to the corresponding Municipality, equal to 40% of the total plot surface. This percentage could be also adjusted depending on the location of the project. Empty unutilized public property would also be exploited and points of incoherence in the urban fabric would be restored. The combination of low, middle and high-income groups would have a positive impact on the social network and on those groups’ integration, eliminating phenomena of gated high class districts or segregated neighborhoods. In the second model of scenario A, housing co-operatives could acquire public or private property and through self-organized and self-build methods, produce affordable housing for their members. The financial methods for the project funding could follow leasing or barter economy practices. In the case of leasing, the members could rent the property and might acquire it, after some years that they could have all the required money. In the case of barter economy practices, members could collaborate with another cooperative and exchange knowledge and skills. The third qualitative affordable housing model, refers to the case of individuals that have high housing needs and the minimum resources. For some reasons, these people did not manage to enter a housing co-operative and have to deal their affordability problem individually. The proposed model follows the same principles as the second one, with the difference that the renovation of individual’s house is proposed. In this way, these people will manage to improve their housing quality and reduce their housing cost, altering their existing problematic and unaffordable housing structure, into a qualitative and affordable dwelling. | | | | 5.3.2 Scenario B In this case, the prognosis of economic recession or stagnation, but with some recovery funding programs, is described. As stated 20 by Mr. Konaklidis, civil engineer and president of the Technical Chamber of Greece of the Section of Central Macedonia, the downward trend of the economy, which appeared with the launch of the crisis in 2008 will eventually stop. Until then, his prognosis is that in the end of 2013, Greece will reach the bottom level, since, until then, all the new determined austerity measures will be implemented. Beyond that point, the situation should be balanced and it will be the right moment for some new measures to pass into the implementation stage. Possible measures for affordable housing could be new housing projects with the support of recovery funding programs. Such programs could come from EU fund or from external private investors. In this Scenario, institutionalized housing starts from the State that sends invitations to tender. Private sector companies sent their plans and proposals for housing developments, part of which will be addressed to middle and high-income households, while the rest will be given to the State for social affordable housing. The 20

Interviewed by the author on January 9th 2012, in Thessaloniki.

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SCENARIO B

People/ Authority

Land Acquisition

Public entity Private entity

Model 1 Institutionalized housing

Public land State

Private sector company

Funding Source

Public funding programs

Restoration of empty public building

Private land

Organization/ Construction

Affordable housing for low-income households

Tax reliefs

Bank loan

Outcome

Private construction company

Housing for middle and high-income households

Public entity Private entity

Model 2 Co-operative housing

Public land Restoration of empty public building

Housing co-operative

Public funding programs Affordable housing for low and middle-income households Self-organized and self-build housing

Private land

Public entity

Public funding programs

Restoration of empty public building

New affordable housing

Private land

Private entity

Model 3 Self-help housing

Public land

Individual

Self-organized and self-build housing

Renovation of individualâ&#x20AC;&#x2122;s house

142

Affordable housing with improved housing quality

Proposals for qualitative affordable housing in Thessaloniki

funding resource could be a combination of a private loan with tax reliefs. In an alternative of this model, the land could be private and the funding, supported by a public funding recovery program. In the second model of this scenario, a housing co-operative could acquire public property or based on the private land of its members, produce self-organized and self-help housing for its low and middle-income members. The affordable housing project would be supported by public funding programs. The model of self-help housing from individuals follows the same principles as the model of co-operatives. The difference between the two models, is the proposal for renovating individual’s house with financial support from the State. | | | | 5.3.3 Scenario C The Scenario C refers to the case of economic growth. The Greek government estimates that the economy will be stabilized until the end of 2013, while in the first months of 2014, gradual recovery should be already noticed. In addition to this, the Prime Minister of Luxembourg and former President of the Eurogroup, Mr. Juncker, claimed 21 that Greek economy is going to recover during 2014. Moreover, “the next years we expect to see the beginning of an economic recovery across the Eurozone and Greece”, said the Dutch Financial Minister and Eurogroup President, Mr. Dijsselbloem. He also added 22 that there is the possibility for a new debt relief to be considered in 2014, and in combination with the decided measures, new avenues for enterprises and employment possibilities are going to be opened up. Subsequently, the models of the scenario of economic growth, are mostly financed by private or public funding, since both the private and the public sector will be in a better economic position and be able to invest more in housing sector. In the first model of institutionalized housing, housing projects of PPPs would be implemented with private of public property with private funding. The State would give tax reliefs, as incentives to private sector companies for producing affordable housing units, as part of bigger housing projects, addressed to middle and high class. In the second model, co-operatives would exploit unutilized public land or neglected public buildings with private funding and some tax reliefs. An alternative of this model would proposed the use of members’ private land with the support of a public funding program. In both of the cases, the organizational and constructional phase would be held with self-organized and build methods or in the case of more economically comfortable condition by a private contractor.

21 22

Tsioufos, Dimitris. Optimism of G. K. Juncker for recovery of the Greek economy. Newspaper: Hmerisia. June 6, 2013 Dijsselbloem, Jeroen. In April 2014 new debt relief will be considered. Newspaper: Ethnos. June 1, 2013

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SCENARIO C

People/ Authority

Land Acquisition

Funding Source

Organization/ Construction

Public entity Private entity

Model 1 Institutionalized housing

Public land State

Private sector company

Private land

Public entity Private entity Public entity

Tax reliefs

Self-organized and self-build housing or private construction company

Private land

Bank loan

Public land

Public funding programs

Restoration of empty public building

Individual

Renovation of individualâ&#x20AC;&#x2122;s house

Housing for middle and high-income households

Public funding programs

Restoration of empty public building

Housing co-operative

Private construction company

Bank loan

144

Affordable housing for low and middle-income households

New affordable housing

Tax reliefs

Private land

Private entity

Model 3 Self-help housing

Model 2 Co-operative housing

Public land

Affordable housing for low-income households

Tax reliefs

Restoration of empty public building

Outcome

Self-organized and self-build housing or private construction company

Affordable housing with improved housing quality

Proposals for qualitative affordable housing in Thessaloniki

Last but not least, the third model for the scenario of economic recession is proposed following the ideas of the previous model. However, here there is the possibility to renovate individual’s housing quality, aiming at improving simultaneously housing affordability. | | | 5.4 Proposals for housing typologies of the three different models Although this thesis has a more administrative and financial approach to research and proposals, it is worth presenting some ideas about the architectural typologies of the three different models, regardless of the scenarios and their economic context. The concept of proposals for housing typologies is formed by answering the question of the addressed group in each case and by the location of the housing project. First of all, considering institutionalized housing, the outcome would be either multifamily houses in suburbs of Thessaloniki or block of flats in a more central location. The private sector company would acquire the private or public land and produce houses both for low-income and high-income groups. Secondly, a housing co-operative would merge the capital of its members and acquire private or public land. The typology of the dwellings could be single family houses or one housing construction, addressing in both of the cases the members’ needs. Thirdly, in the case of individuals the result would be either a new single family house or the renovation either of an existing housing unit or an apartment. | | | 5.5 Final conclusion In 2008 the global economic crisis begun. Greece is a country that confronted it, with many negative impacts in the whole society. The dramatic course of the Greek economic crisis, according to the European Anti-Poverty Network of Greece (EARN) presented by Hanan (2012), opened also the door to many other European countries, like Portugal, Spain, France, Italy and Belgium, to follow with financial and social problems. 23 Thessaloniki, as the second largest urban center of Greece, was also confronted by the economic crisis. Since its beginning, a considerable decline was noticed in real estate values and property transactions, combined by a significant growth in unemployment rate, empty or unsold properties, and housing affordability problems. However, as stated by Edgar, Doherty and Meert, “access to adequate, secure and affordable housing is fundamental for the achievement of a socially cohesive and inclusive society.” 24 The last years, a European trend of withdrawing and declining State’s intervention on regulating and enforcing housing market, has been observed, as the private sector started playing a major role in housing supply. Therefore, housing cost were significantly increased, access to affordable housing became more 23 Hanan, Robin. The Social Impact of the Economic Crisis in Europe. July, 2012: Working Notes. Issue 69. http://www.workingnotes.ie/ index.php/item/the-social-impact-of-the-economic-crisis-in-europe (accessed in April 5, 2013), 16 24 Edgar, Bill, Doherty, Joe and Meert, Henk. Access to Housing. Homelessness and vulnerability in Europe. Great Britain: the Policy Press, 2012, 2

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difficult, and many low and middle-income households approached the poverty limit and were confronted by housing stress. Moreover, the gab of housing quality levels and distribution between low and high social groups became even wider. As a consequence of all these impacts, and in combination with the current financial crisis, Greece experiences a housing crisis, which requires immediate measures and solutions. It addition to this, it is worth mentioning, that during the 55 years of OEK operation, its role in the Greek housing market was remarkable, as it was the only established organization for the provision of social housing in Greece. Social housing is required in every country, so as to offer assistance to low-income households, since access to affordable housing is not always possible through the real estate market. For this reason, apart from the proposed qualitative affordable housing models for Greece and Thessaloniki, there is an obvious need for a non-profit housing association, of which the objective will be the provision of affordable housing to low and middle-income households that are not able to acquire their own house or pay the monthly rent. People living in unacceptable conditions, with low-quality housing or in remote areas, or proceeding to forced relocation, are led to segregation, affecting directly the social coherence. For this reason, this association should act and invest on housing developments, in order to address the market needs for housing affordability. In addition to this, housing co-operatives can play a crucial role in economic development of Greece. As stated by the director of co-operatives Europe, Mr. Niederländer, “there is clearly an immediate role for co-ops in Greece, where we’re seeing huge swathes of the Greek economy being sold off to the private sector at knockdown prices.” As far as he is concerned, a co-operative enterprise business model would benefit and contribute in a long-term to Greek financial recovery. 25 They could organize and produce housing units for their members, instead of external investors to exploit the available resources of Greece. Moreover, self-help housing methods, which are also proposed in this thesis, are included, in a way, in the Greek culture. For years, low-income groups constructed their dwellings informally and without any support from the State. Traditional architectural styles were transmitted through self-help housing, while uniformity was achieved through the diversity of the common Greek culture. Furthermore, inhabitants participated in the design process and built their own houses, according to their wishes, habits and lifestyle. However, in both of these proposed housing models, there are some questionings. In one side, so far co-operatives are mostly promoted among people with common employment. Thus, the question how the Greeks could establish a co-operative, governed by a common goal and to which extend this could be successful through some educational programs, is still to be answered.

25 Birch, Simon. Co-operation an alternative to austerity, says co-operative expert. Guardian. November 6, 2012. http://socialenterprise.guardian.co.uk/social-enterprise-network/2012/nov/06/co-operation-alternative-austerity (accessed on June 18th, 2013)

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On the other side, in the past aided self-help methods were not always productive. The economic situation of the beneficiaries got even worse and they did not manage to finish their homes or in other cases, they could not even started, even if they had taken the first installment for buying building materials. It is widely accepted, that self-construction with financial assistance is more time-consuming than conventional housing construction. Nevertheless, with the right co-ordination and the required people will for participation, this model have been and could be as well in the case of Greece, a successful model of rehabilitation of vulnerable groups, who deal with housing affordability problems. To conclude with, in Greece today, more than ever, there is a strong need for planning actions and an effective housing policy, which should aim at solving the problem of housing affordability, due to the ongoing crisis. In order to become reality for all, the obvious and constitutionally guaranteed right to housing, developmental policies are required, which will ensure access to employment and reduce social exclusion and impoverishment of vulnerable groups. These conditions are necessary for addressing homelessness and housing affordability problems, not as a form of charity, but as a part of an effective and efficiently organized housing policy. Only by creating new employment possibilities and improving a Stateâ&#x20AC;&#x2122;s economic situation, housing problems can be solved. This would be possible through social housing programs by the State, through public-private partnerships, or bottom-up initiatives by for-profit or non-for-profit organizations, or by the citizens themselves, who could contribute with self-help housing methods. Homelessness has its roots in the exclusion from the labor market and in financial misery. For this reason, only through the elimination of these factors could solve housing affordability problems, offering a decent house to everyone.

Figure 5.10: Economic growth Source: The author

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When the State has no more money Looking for qualitative affordable housing models

D-ARCH | ETH Wohnforum Professur Dietmar Eberle

When the State has no more money looking for qualitative affordable housing models Interview questionnaire: The expert is kindly requested to answer the questions below, based on his personal overall view on the topics. • Real estate market in Greece a. What are the current trends of the Greek real estate market? b. What are the housing strategies of banks and their position in the current crisis? • Real estate market in Thessaloniki a. What are the shortages in the housing sector of Thessaloniki? b. What is the unutilized building stock of Thessaloniki? • Housing affordability problems in Greece and Thessaloniki a. What is the relationship between households’ income and housing costs for the different social groups? b. Which social group, according to your opinion, is the most affected by the current eco nomic crisis and faces problems of homeownership and housing affordability? • Possible future financial scenarios a. What is, as far as you concerned, a prognosis for the financial situation and real estate market of Greece? • Proposals for qualitative affordable housing models a. What would it be your suggestions for qualitative affordable housing in Thessaloniki? b. Could the State help low-income households to gain access to affordable housing through some special measures and if so what could these be? c. Could housing co-operatives, aimed at low-cost housing projects, be a solution for af fordable housing in Thessaloniki?

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| | 7 Bibliography | | | 7.1 Monographs, research papers and studies Adulterated Memory. Thessaloniki 100 years of Greece, patriarchy, capitalism are enough (Θεσσαλονίκη. 100 χρόνια Ελλάδας, πατριαρχίας, καπιταλισμού είναι αρκετά). Thessaloniki: 2012 Argentina Country Management Unit. Review of Argentina’s Housing Sector: Options for Affordable Housing Policy. Policy Research Working Paper. The World Bank, November, 2006, i-ii Auguste, Sebastián, Bebczuk, Ricardo and Moya, Ramiro. The Demand for Mortgages under Macro Volatility: The Argentine Case. Inter-America Development Bank, Department of Research king Paper. The World Bank, November, 2006 and Chief Economist, 2011 Balaban, Nazan Bedirhanoğlu. Global Economic Crisis and Turkey. New York: Binghamton University. Vol. 40, 2009 Balla, Evangelia, Mantouvalou, Maria and Vatavali, Fereniki. Housing production, ownership and globalization: social aspects of changes in Greece and Albania. Crete: Prese-nted in Seminar of the Aegean: Changing European Spaces: Winners and Losers, 2007 CECODHAS housing Europe. Financing social housing after the economic crisis. Brussels: Proceedings of the CECODHAS Seminar, September 10, 2009 Chatziprokopiou, Arion. Immigration and the changing urban space: from Balkans to Thessaloniki. Sussex European Institute. Ε2Κ085 Communities and Local Government. Delivering Affordable Housing. London: Communities and Local Government Publications, London, November, 2006 Correa, Elena. Preventive Resettlement of Populations at Risk of Disaster Experiences from Latin America. The International Bank for Reconstruction and Development, 2011 Coskun, Yener. Does re-design of the policies on housing finance and supply help to solve housing question of Turkey? Munich: 18th Annual ERES Conference, MPRA Paper No. 31729, June 21, 2011 David Cumberland Housing Regeneration Ltd. The Golden Triangle Affordable Hou-sing Project: Affordable Housing Good Practice Manual: Delivering Affordable Housing through Section 106 agreement. Cheshire: Housing Corporation, 2005 Davinson, N. M. and Malloy, R. P. Law, Property &Society: Affordable housing and PublicPrivate Partnerships. Great Britain: Ashgate, 2009 Davis, Sam. The Architecture of Affordable Housing. California: University of California Press, 1995 Department of Environment, Community and Local Government. Housing Policy Statement. Dublin: 2011 Dikmen, Nese, Elias-Ozkan, Soofia Tahira and Davidson, Colin. Comparison of post-disaster housing procurement methods in rural areas of Turkey. London: Open house international. Vol.37, No.1, March, 2012 Dimitriadis, V. The population of Thessaloniki and the Greek community around 1913 (Ο πληθυσμός τςη Θεσσαλονίκης και η ελληνική κοινότητα κατά το 1913). Thessaloniki: Macedonika KC’, 1983 Drury, Andrew, Watson, Jon, Broomfield, Richard, Levitt, Davit and Tetlow, Robin. Housing Space Standards. London: HATC Limited, Greater London Authority, 2006 Edgar, Bill, Doherty, Joe and Meert, Henk. Access to Housing. Homelessness and vulnerability in Europe. Great Britain: the Policy Press, 2012 Emmanouil, D. The social housing policy in Greece: The dimensions of an absence. (Η κοινωνική πολιτική κατοικίας στην Ελλάδα: Οι διαστάσεις μιας απουσίας). Review of Social Research. Issue. 120, 2006 Emmanouil, D., Velidis, S. and Strousopoulou, E. Housing for low-income in Greece. Athens: DEPOS, 1996 European commission. Announcement of Commission. Annual Growth Survey 2013. Brussels: COM, 2012, 750 final European Foundation for the Improvement of Living and Working Conditions. Mobility in Europe- The way forward. (Η κινητικότητα στην Ευρώπη- Η πορεία προς τα εμπρός.) Dublin: Foundation Findings. 2009 FEK 249/25-11-2011, Law 4030, Article 31.3, 39.2

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Agreed on the occasion of the Informal Ministerial Meeting of Urban Development and Territorial Cohesion, 2007 Needham, Barrie and de Kam, George. Land for social housing. Nijmegen/Hilversum: CECODHAS. 2000 Norris, Michelle and Fahey, Tony. From Asset Based Welfare to Welfare Housing: The Changing Meaning of Social Housing in Ireland. Dublin: UCD School of Applied Social Science, Working paper series, 2009 O’Donohoe, Seamus, O’Keeffe, Niall and Brennan, Kieron. Co-operative Alliance Ireland Yearbook. Dublin: 2012 International Year of Cooperatives, 2012 Office of the United Nations. High Commissioner for Human Rights. Human Rights. The Right to Adequate Housing. Fact sheet No. 21/ Rev.1. UNITED NATIONS, 1991 Özkan, Alper. A critical evaluation of housing co-operatives in Turkey within the framework of collective action theories: A case study in Ankara and Instabul. Ankara: Thesis, Graduate School of Natural and Applies Sciences of middle East Technical University, 2009 Papaioannou, I. & Vasilikioti, E. State activity. Residence in Greece. Athens: Technical Chamber of Greece, 1975 Papamichos, N., Dimikas, A., Dimitriadis, I. & Kotzampopoulos, A. Master Plan Update of Thessaloniki. Thessaloniki: Organization of Thessaloniki, 2009 Papanikolaou, Aikaterini and Taucer, Fabio. Review of Non-Engineered Houses in Latin America with Reference to Building Practices and Self-Construction Projects. Italy: Institute for the Protection and Security of the Citizen. European Laboratory for Structural Assessment (ELSA), I-21020 Ispra (VA), 2004 PD/14-7-99 FEK-580/D/27-7-99, Part II / Chapter I / Article 125, 126, 145 Petropoulos, P. Investigation of the issue of housing co-operatives in Greece. (Διερεύνηση του ζητήματος των οικοδομικών συνεταιρισμών στην Ελλάδα.) Athens: Thesis. School of Rural and Surveying Engineering, National Technical University of Athens, 2009 Pittini, A. and Laino, E. Housing Europe Review 2012. The nuts and bolts of European social housing systems. Belgium: CECODHAS Housing Europe’s Observatory, October, 2011 Plumb, Craig, Hassouni, Hicham and Sahyoum, Salah. Affordable Housing in MENA. Why Affordable Housing Matters? Jones Lang Lasalle. September, 2011 Polizos, S., Minetos, D. and Tsiotas, D. The illegal construction in Greece: Determinants and evolutionary patterns. (H αυθαίρετη δόμηση στην Ελλάδα: Προσδιοριστικοί παράγοντες και εξελικτικά πρότυπα.) Prime, Vol 5, 2012, 115-131 Potsiou, C. Informal Urban Development in Europe - Experiences from Albania and Greece. Kenya: United Nations Human Settlements Programme, 2010 Roche, Dick and Ahern, Noel. Delivering homes. Sustaining communities. Statement on housing policy. Dublin: Department of the Environment, Heritage and Local Government, 2007 Sampaniotis, T. The Greek Economy and its Real Estate Market as the Crisis Unfolds. (Η Ελληνική Οικονομία και η αγορά ακινήτων της καθώς ξετυλίγεται η κρίση.) Eurobank EFG Economic Research, Bank of Greece, 2nd Conference on the Real Estate Market, 2011 Sapounakis, A. State housing care in Greece: History, problems and prospects. Athens: National Technical University of Athens, 2011 Scheinsohn, Mariano and Cabrera, Cecilia. Social movements and the production of housing in Buenos Aires. When policies are effective. Sage Publications. International Institute for Environment and Development. Environment and Urbanization 2009 21: 109-125, 2009 Sfaellos, C., Romanos, A. & Anairousis, G. Residence in Greece. The embodiments of the private sector. Athens: Technical Chamber of Greece, 1975 Tsapi, A and Prokopiou, I. The impact of global economic crisis on Greek property market. The case of the center of Thessaloniki. (Οι επιπτώσεις της παγκόσμιας οικονομικής κρίσης στην ελληνική αγορά ακινήτων.) Η περίπτωση του κέντρου της Θεσσαλονίκης Thessaloniki: Thesis. Department of Surveying Engineering, Faculty of Engineering, Aristotle University of Thessaloniki, 2012 Threshold. Access to Housing for One-Person Households in Ireland. Dublin: Combat Poverty Agency, Working Paper Series 10/03, 2010 Vordoni, Evaggelia. Illegal construction due to the phenomenon of migration. Case Study: Efxeinoupoli in Thessaloniki. (Aυθαίρετη δόμηση λόγω του φαινομένου της μετανάστευσης. Μελέτη περίπτωσης: Ευξεινούπολη στη Θεσσαλονικη.) Athens: National University of

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Athens. 2008, 25-33 Voulgaris, Spiridon and Triantafyllopoulos, Nikolaos. The crisis in the subprime mortgage loans: the causes and mechanisms. (Η κρίση των ενυπόθηκων στεγαστικών δανείων υψηλού επιχειρηματικού κινδύνου: τα αίτια και οι μηχανισμοί της.) Volos: Department of Planning and Regional Development, Faculty of Engineering, University of Thessaly Series of Research Papers, 15 (12): 221-236, November, 2009 Wake, Tim. Review of best practices in affordable housing. Smart Growth BC, 2007 Yates, Judith, Milligan, Vivienne, Berry, Mike, Burke, Terry, Gabriel, Michelle, Phibbs, Peter, Pinnegar, Simon and Randolph, Bill. Housing affordability: a 21st century problem. National Research Venture 3: Housing affordability for lower income Australians. Sydney: Australian Housing and Urban Research Institute, September, 2007 Zambouni, Elina. Approach to the Typolog y of Urban Residence from 19th Century to the Present. Study of Greek Housing Models. (Προσέγγιση στην Τυπολογία της Αστικής Κατοικίας από το 19ο Αιώνα Μέχρι Σήμερα. Μελέτη των Ελληνικών Μοντέλων Κατοικιών.) Paper, MA Interior Architectural Design, Vakalo Art and Design College and University of Derby, February, 2008 Zeuli, Kimberly and Croop, Robert. Cooperatives: Principles and practices in the 21st century. Madison: University of Wisconsin Extension, Publication A1457, 1980

| | | 7.2 Press articles Astreinidou, Pelagia. Upper city of Thessaloniki: Zero Hour (Άνω Πολη Θεσσαλονίκης: ώρα μηδέν). Athens: Architectones. Journal of the Association of Greek Architects. Issue 5/6, Cycle A, December 1995/ January/ Febrouary 1996, 20-21 Birch, Simon. Co-operation an alternative to austerity, says co-operative expert. Newspaper: Guardian. November 6, 2012. http://socialenterprise.guard¬ian.co.uk/social-enterprise-network/2012/nov/06/co-operation-alternative-austerity (accessed on June 18th, 2013) Diamantidis, Dimitris. 6,000-8,000 the unsold homes in Thessaloniki. Newspaper: HMERISIA. Ferbruary 11, 2011 Dijsselbloem, Jeroen. In April 2014 new debt relief will be considered. Newspaper: Ethnos. June 1, 2013 Katikos, Kostas. In the air 100,000 borrowers of OEK. Newspaper: Eleftheros Typos. April 23, 2013 Liontis, Kostis. The architecture of Thessaloniki (Η αρχιτεκτονική της Θεσσαλονίκης). Newspaper: I KATHIMERINI, March 30, 1997 Pefanis, Dimitris. Troika’s plan for 100,000 homes under the hammer. Newspaper: TA NEA. August 11, 2012 Rousanoglou, N. Real Estate: Prices in Greece withstand. Newspaper: I KATHIMERINI. March 5, 2012 Rousanoglou, Nikos. Thessaloniki “champion” of the crisis in the housing market. Newspaper: I KATHIMERINH, March 23, 2013 Tan, Pelin. Populism as Conflict of Values. Newspaper: Noordkaap Times, September, 2011 Tsioufos, Dimitris. Optimism of G. K. Juncker for recovery of the Greek economy. Newspaper: Hmerisia. June 6, 2013

| | | 7.3 Internet-based documents Australians for Affordable Housing. Addressing Housing Affordability in Australia: A 4 point plan for the next 5 years. August, 2012: http://housingstressed.org.au/wp-content/ uploads/2011/09/Addressing-Housing-Affordability-v5-2.pdf (accessed on March 12th, 2013) BANK OF GREECE. Eurosystem, Thessaloniki Branch. Bulletin of Regional Conjunctural Indicators for Macedonia- Thrace. Number 80, July 2012. www.bankofgreece.gr. (accessed on March 17th, 2013) Chistodoulakis, Nikos. New Policy for the utilization of public property. Meeting. June 25, 2003. http://www3.mnec.gr/christ_int_250603. aspx (accessed on June 17th, 2013) Current NABCO leaflet. http://www.nabco.ie/_fileupload/Current%20NABCO%20 Leaflet.pdf (accessed on June 3rd, 2013)

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EconomyWatch. Barter Economy. October 14, 2010, http://www.economywatch.com/ economy-articles/barter-economy.htm (accessed on June 7th, 2013) Emmanouil, Dimitris. Social housing policy in Greece: The dimensions of an absence. (Η κοινωνική πολιτική κατοικίας στην Ελλάδα: Οι διαστάσεις μίας απουσίας) The Greek Review of Social Research, 120, 3-35. 2006. http://www.grsr.gr/preview.php?c_id=199 (accessed in April 23, 2013) europa.eu/epso/apply/sample_test/pdf/trans_el_1.pdf (accessed on June 10th, 2013) European commission. Europe 2020 Targets: Poverty and Social Exclusion. Active Inclusion Strategies http://ec.europa.eu/europe2020/pdf/themes/25_poverty_and_social_ inclusion.pdf (accessed on April 8th, 2013) European Foundation for the Improvement of Living and Working Conditions. Mobility in Europe- The way forward. (Η κινητικότητα στην Ευρώπη- Η πορεία προς τα εμπρός.) Dublin: Foundation Findings. 2009 www.eurofound.europa.eu/pubdocs/2007/03/ el/1/EF0703EL.pdf (accessed on April 13th, 2013) Goodwin, Craig and Jantrania, Anish. Solving the Affordable Housing Conundrum. NCS Wastewater Solutions. http://www.ncswastewater.com/ images/papers/SolvingHousingConudrum.pdf (accessed March 12, 2013). Government Gazette of the Hellenic Republic. Issue A, Number 246, December 18, 2012, 5915. www.et.gr (accessed on May 10th, 2013) Hanan, Robin. The Social Impact of the Economic Crisis in Europe. July, 2012: Working Notes. Issue 69. http://www.workingnotes.ie/index.php/item/the-social-impact-of-theeconomic-crisis-in-europe (accessed in April 5, 2013) Housing Co-operatives in Ireland. http://www.icahousing.coop/attachments/Housing%20 Co-operatives%20in%20Ireland.pdf (accessed on June 4th, 2013) ICA housing. Housing Co-operatives in Turkey. http://www.icahousing.coop/attachments/ Housing%20Co-ops%20in%20Turkey.pdf (accessed on May 24th, 2013) INTERVIEW. Economic climate and its impact on Small and Medium Enterprises of Thessaloniki. January 2012 http://www.slideshare.net/ geopy/ss-11250324 (accessed on June 20th, 2013) Johnson, Michael P. Planning models for the provision of affordable housing. Environment and Planning B: Planning and Design 2007, volume 34 (2007): 501- 523. http://works. bepress.com/michael_johnson/subject_areas.html (accessed in March 12, 2013). Karametos, Filippos. Survey: What do the Greeks believe for the crisis? Zougkla. September 19, 2012 http://www.zougla.gr/greece/article/erevna-ti-pistevoun-i-elines-gia-tin-krisi (accessed on June 11th, 2013) Kelly, Morgan. The Irish Property Bubble: Causes and Consequences. 2009 http://www. irisheconomy.ie/Crisis/KellyCrisis.pdf (accessed on June 3rd, 2013) Lambadarios, Constantinos. Private Public Partnerships. Athens: Lambadarios Law Firm, January 9, 2012 http://www.greeklawdigest.gr/topics/banking-system-financeinvestment/item/44-private-public-partnerships-law-3389-2005 (accessed on May 7th, 2013) Lietaer, Bernard. The Wörgl Experiment: Austria (1932-1933). Currency solutions for a Wiser World. March 27, 2010. http://www.lietaer.com/2010/03/the-worgl-experiment/ (accessed on June 07th, 2013) O’ Meara, Mary-Rain. Innovative Approaches to Housing Policy and Production in Latin America. Two Cases: Sao Paulo, Brazil and Buenos Aires, Argentina. 46th ISOCARP Congress 2010. http://www.isocarp.net/Data/case_studies/1713.pdf (accessed on March 17th, 2013) Office of Public and Indian Housing. A Good Place to Live! U.S. Department of Housing and Urban Development. http://www.hud.gov/offices/adm/hudclips/forms/ files/593pih.pdf (accessed in April 23, 2013) www.pi-schools.gr/books/gymnasio/oik_oikon_a/math/79_88.pdf (accessed on April 12th, 2013) PricewaterhouseCoopers. From Sao Paulo to Shanghai. New consumer dynamics: the impact on modern retailing. Argentina. 2006/2007, http://www.pwc.com/en_GX/gx/retail-consumer/pdf/from-sao-paulo-to-shanghai_low.pdf (accessed on May 17th, 2013) www.hud.gov/offices/adm/hudclips/forms/files/593pih.pdf (accessed in April 12, 2013) www.pi-schools.gr/books/gymnasio/oik_oikon_a/math/79_88.pdf (accessed in April 12, 2013)

154

Bibliography

| | | 7.4 Internet sites Centro de Estudios Distributivos, Laborales y Sociales Universidad National de La Plata: cedlas.econo.unlp.edu.ar The World Bank: data.worldbank.org European Commission statistics: epp.eurostat.ec.europa.eu International Co-operative Alliance: ica.coop/en/what-co-op/co-operative-identity-valuesprinciples Fastening. Civil Engineers: stereosi.blogspot.gr/2012/03/blog-post_29.html Barter Economy: www.antallaktiki.gr Apartment Theraphy: www.apartmenttherapy.com/ Beyciler Elveri. Assisted self-help housing project: www.beycilerevleri.org Central Intelligence Agency: www.cia.gov/library/publications/the-world-factbook Ministerial Decision: www.dsanet.gr/Epikairothta/Nomothesia/ya1434-a42_04.htm Exandas Documentaries: www.exandasdocumentaries.com/gr/documentaries/ chronologically/2010-2011/184-to-peirama-tis-argentinis Global Property Guide: www.globalpropertyguide.com/ CECODHAS housing Europe: www.housingeurope.eu International Blue Crescent Relief and Development Foundation: www.ibc.org.tr/en/sayfa.php? d=proje&icerik=47&sayfa=detay&baslik=BEYCILER-ASSISTED-SELF-HELPHOUSING-PROJECT www.indexmundi.com (accessed on May 17th, 2013) NABCo Co-operative Living: www.nabco.ie/Developing/Default.500.html OECD: www.oecd.org and www.oecdbetterlifeindex.org/ Green Funding Program: http://www.prasinotameio.gr/index.php/el/ Hellenic Statistical Authority: www.statistics.gr/portal/page/portal/ESYE Contracts: www.symbolaia.gr/site/news/details.php?id=008228CC3E Technical Chamber of Greece: www.tee.gr/online/afieromata/2000/2122/index.shtml Exchange and Solidarity Network of Magnesia www.tem-magnisia.gr UN-Habitat for a better urban future: www.unhabitat.org

| | | 7.5 List of Figures Figure 1.1: Housing crisis (For sale. Reduced price)

Source: The author

Source: http://www.crackingace.com/is-it-necessary-for-everyone-to-have-a-job/ (accessed on April 8th, 2013)

Source: Edited by the author based on http://epp.eurostat.ec.europa.eu/ (accessed on April 8th, 2013)

Source: The author

Source: http://www.coastalhawaii.com/Affordable%20Housing.htm (accessed on March 12th, 2013)

Source: Edited by the author based on Hawtrey (2009, 9)

Source: Edited by the author based on Yates et al. (2007, 32)

Source: The author

Source: Edited by the author based on Yates et al. (2007, 40)

Source: Edited by the author based on Milligan (2010, 19)

Figure 1.2: The problem of high unemployment rates

9 12

Figure 1.3: Proportion of the population at risk of poverty or social exclusion, 2010 13 Figure 1.4: Flow diagram

Figure 2.1: Looking for qualitative (?) affordable housing

Figure 2.2: Cartoon by Dick Adair

Figure 2.3: Affordability spectrum of payback period

Figure 2.4: The risk cycle

Figure 2.5: Key determinants of housing affordability

Figure 2.6: Triangulation of affordable housing

Figure 2.7: Macro drivers of housing affordability outcomes

Figure 2.8: Financing an affordable housing project

Figure 2.9: Housing spectrum

Figure 2.10: Housing population spectrum

Source: Edited by the author based on Hawtrey (2009, 24)

Source: The author

Figure 2.11: Housing quality

Figure 2.12: Santorini, Greece

155

When the State has no more money Looking for qualitative affordable housing models

Source: http://www.winetoursantorini.com/the-experience/ (accessed on March 12th, 2013)

Source: http://www.urbanhypsteria.com/2013/01/08/cinque-terre/ (accessed on March 12th, 2013)

Source: The author

Source: http://www.livingneighborhoods.org/ht-0/santarosa.htm (accessed on May 31st, 2013)

Source: http://www.sumconsult.de/projects_4.htm (accessed on May 31st, 2013)

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Source: http://culturmedia.files.wordpress.com/2013/02/buenosaires_slum_for_lemonde-5.jpg (accessed on May 20th, 2013)

Source: Auguste, Bebczuk and Moya (2011, 9)

Source: Edited by the author based on http://arqa.com/gallery-page?id=7648 (accessed on March 19th, 2013)

Source: http://arqa.com/gallery-page?id=7648 (accessed on March 19th, 2013)

Figure 2.13: Cinque Terre, Italy

Figure 3.1: Co-operative housing

39 41

Figure 3.2: Families in Santa Rosa de Cabal, Colombia, constructing their dwellings with self-help method 48 Figure 3.3: A communities constructed with self-help housing, in Soweto, S.Africa.

Figure 3.4: Settlements rehabilitation in El Salvador, Construction phase

Figure 3.5: After settlements rehabilitation in El Salvador

Figure 3.6: Argentine Republic

Figure 3.7: National flag of Argentine Republic

Figure 3.8: Population pyramid of Argentina

Figure 3.9: Map of Argentina

Figure 3.10: Slums in Buenos Aires

Figure 3.11: Flow of housing state programs and bank housing mortgages, 1994 - 2008 (% of GDP)

Figure 3.12: Plan of Monteagudo Housing Project

Figure 3.13: Sections and view of Monteagudo Housing Project

Figure 3.14-3.16: Monteagudo Housing Project in Argentina

Figure 3.17: Turkey

Figure 3.18: National flag of Turkey

Figure 3.19: Population pyramid of Turkey, 2013

Figure 3.20: Housing supply in Turkey, 2005-2010

Figure 3.21: Turkish housing market supply, demand and surplus/deficit, 2004 - 2016E

Figure 3.22: Position of DĂźzce in Turkey

Figure 3.23: Participants of Beyciler assisted self-help housing project

Figure 3.24: Beyciler houses settlement plan

Figure 3.25: Affordable housing unit of Beyciler assisted self-help housing project

Figure 3.26: Female participatorâ&#x20AC;&#x2122;s success on construction works

Figure 3.27-3.29: Phases of construction of the Health center in Beyciler project

Figure 3.33: Ireland

Figure 3.34: National flag of Ireland

Figure 3.35: Population pyramid of Ireland, 2013

Figure 3.36: Map of Ireland

Figure 3.37: Irish housing prices

Source: http://www.worldhabitatawards.org/ (accessed on May 20th, 2013)

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Source: Edited by the author based on Sur (2012, 4)

Source: Edited by the author based on Sur (2012, 5)

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Source: http://www.ibc.org.tr/en/sayfa.php?d=proje&icerik=47&sayfa=detay&baslik=BEYCILER-ASSISTED-SELF-HELP HOUSING-PROJECT (accessed on May 28, 2013)

Source: Edited by the author based on http://www.ibc.org.tr/en/sayfa.php?d=proje&icerik=47&sayfa=detay&baslik=BEYCILERASSISTED-SELF-HELP-HOUSING-PROJECT (accessed on May 28th, 2013)

Source: http://www.ibc.org.tr/en/sayfa.php?d=proje&icerik=47&sayfa=detay&baslik=BEYCILER-ASSISTED-SELF-HELP- HOUSING-PROJECT (accessed on May 28th, 2013)

Source: http://www.beycilerevleri.org.tr/healthcenter.asp (accessed on May 28th, 2013)

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17, 2013)

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Source: Edited by the author based on Kelly, Morgan (2009, 5)

156

Bibliography

Figure 3.38-3.40: The half-finished large residential development at Dublin’s North City Fringe Source: CECODHAS housing Europe (2009, 73-74) Figure 3.41: Number of households by size in 2002

Source: Edited by the author based on Threshold (2010, 18)

Source: Edited by the author based on Thompson (2010, 4)

76 76

Figure 3.42: Membership structure and affiliations

Figure 3.43: Logo of National Association of Building Co-operatives

Figure 3.44: Plan of Greenlawns Co-operative housing project

Figure 3.45-3.46: Greenlawns Co-operative housing project

Figure 3.47: Argentine Republic

Figure 3.48: Turkey

Figure 3.49: Ireland

Figure 4.1: Greece

Figure 4.2: National flag of Greece

Figure 4.4: Evolution of prices in construction sector, 2009-2012

Figure 4.5: Caricature: “The Troika: Don’t worry. She will recover!”, taking about Greek economy.

Figure 4.6: Mansions in the mainland, Siatista, Greece

Figure 4.7: Folk houses in fishing village, Klima, Milos Island, Greece

Figure 4.8: Illegal refugee housing in Athens

Figure 4.9: Blocks of flats in Athens

Figure 4.10: Kifisias Avenue, first blocks of flats in the 1930s

Figure 4.11: Small-sized, one-family house

Figure 4.12: Ground floor apartment

Figure 4.13: Informal small house

Figure 4.14: Modern block of flats

Figure 4.15: Medium-sized house

Figure 4.16: Common block of flats

Figure 4.17: Spacious one-family house in suburbs

Figure 4.18: Problematic block of flats

Figure 4.19: Villa

Figure 4.20: Housing typologies in Greece

Source: http://www.nabco.ie/ (accessed on June 4th, 2013)

Source: Edited by the author based on http://www.nabco.ie/Developing/Default.500.html (accessed on June 4th, 2013)

Source: NABCO (2012, 4)

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013) Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17, 2013) Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Source: http://www.statistics.gr/portal/page/portal/ESYE (accessed on June 27th, 2013)

Source: http://pavlidiscartoons.com/blog/?cat=1&paged=7 (accessed on June 28th, 2013)

Source: http://www.travelstyle.gr/portal/photos/articles/396_193_DSC_7972edit.jpg (accessed on June 27th, 2013) Source: http://www.cycladia.com/uploaded/milos/travel_guides/slideshow/4-milos-klima.jpg (accessed on June 27th, 2013)

Source: http://2.bp.blogspot.com/_K7W7tLX9RRc/S1MhK7ndHtI/AAAAAAAAAes/7-N2FVpJs6I/s1600-h/5w.jpg (accessed on June 27th, 2013)

Source: http://www.enet.gr/?i=news.el.article&id=88095 (accessed on June 27th, 2013)

Source: http://www.agelioforos.gr/default.asp?pid=7&ct=1&artid=166874 (accessed on June 27th, 2013)

Source: http://pl-estate.gr/sale/παλιά-μονοκατοικία-100τμ-σε-οικόπεδο-350τμ/(accessed on June 27th, 2013) Source: http://www.paramithas.gr/2011/02/ (accessed on June 30th, 2013) Source: http://thessaloniki.olx.gr/iid-34575541 (accessed on June 30th, 2013) Source: http://www.confidence.gr/images/polukatoikies.jpg (accessed on June 30th, 2013) Source: http://en.wikigogo.org/en/298375/ (accessed on June 30th, 2013) Source: http://www.newsbeast.gr/greece/arthro/418860/to-petrelaio-vazei-fotia-stis-polukatoikies/ (accessed on June 30th, 2013) Source: http://commons.wikimedia.org/wiki/File:Παραδοσιακή_Βριλησσιώτικη_Κατοικία.jpg (accessed on June 30th, 2013) Source: http://commons.wikimedia.org/wiki/File:Condominium_in_Kypseli.jpg (accessed on June 30th, 2013) Source: http://www.aggelies-akiniton.eu/gr/real_estate/node/polyteli-monokatoikia-stin-varympompi (accessed on June 30th, 2013) S ource: Edited by the author based on data from Zambouni (2008, 48)

Figure 4.21: View to Thessaloniki from the Sheikh-Sou forest

100

Figure 4.22: Thessaloniki downtown

100

Figure 4.23: Coastal front of Thessaloniki

100

Figure 4.24: Thessaloniki, Greece

101

Figure 4.25: Municipalities of the Prefecture of Thessaloniki

101

Source: http://www.seleo.gr/index.php?option=com_content&view=article&id=69108:-----------12&catid=68 :2011-01-29-16-33-39&Itemid=102 (accessed on June 27th, 2013)

Source: http://www.agelioforos.gr/default.asp?pid=7&ct=1&artid=166874 (accessed on June 27th, 2013)

Source: http://butterflydiary.com/wp-content/uploads/2011/05/thessaloniki.jpg (accessed on June 27th, 2013)

Source: The author

157

When the State has no more money Looking for qualitative affordable housing models

Figure 4.26: Non-European citizens in Thessaloniki

103

Figure 4.27: Urban development in Thessaloniki

104

Figure 4.28: Plan and the quarters of Thessaloniki before 1917

105

Figure 4.29: Street layout after the fire of 1890

105

Figure 4.30: Aerial view of the fire in Thessaloniki in 1917

106

Figure 4.31: The burned zone in 1917. Aerial photo of Thessaloniki

106

Figure 4.32: The burned zone in 1917

106

Figure 4.33: Hébrard’s plan in 1917

107

Figure 4.34: Refugee camp in Thessaloniki during the period 1914-1918

108

Figure 4.35: Allatini mill, the largest mill of the East in early 20th century

108

Figure 4.36 - 4.37: Τhe ‘district of Towers or Countrysides’ beginning 20th century and today Source: http://www.parallaximag.gr/sites/default/files/3jpg_9.jpg and http://www.thessaloniki360.com/map/

109

Figure 4.38 - 4.39: Ano Poli, 1911 and today

110

Figure 4.40: Aerial view of Ano Poli

110

Source: The author

Source: Adulterated Memory (2012, 111)

Source: Edited by the author based on http://www.macedonian-heritage.gr/HellenicMacedonia/en/C3.1.1.html (accessed on June 27th, 2013) Source: Adulterated Memory (2012, 134)

Source: http://www.macedonian-heritage.gr/ (accessed on June 30th, 2013)

Source: http://upload.wikimedia.org/wikipedia/el/6/65/Thessaloniki_Fire_1917_Aero.jpg (accessed on June 30th, 2013)

Source: Adulterated Memory (2012, 138)

Source: Adulterated Memory (2012, 139)

Source: http://www.faath.org.gr/index.php?page=1871---1932 (accessed on June 27th, 2013)

Source: Adulterated Memory. Thessaloniki 100 years of Greece, patriarchy, capitalism are enough. Thessaloniki: 2012, 162

(accessed on June 29th, 2013)

Source: http://users.auth.gr/~marrep/LESSONS/ERGASTIRI/NEW_TECHNOLOGY/2.1.htm and http://upload.wikimedia. org/wikipedia/commons/5/54/Street_in_Thessaloniki’s_Old_Town_Ano_Poli_July_2006.jpg (accessed on June 27th, 2013) Source: http://wikimapia.org/1471980/el/Άνω-Πόλη-Κάστρα (accessed on June 30th, 2013)

Figure 4.41: Population density in the

Prefecture of Thessaloniki

Source: Edited by the author

Source: Edited by the author based on data from Papalioura

Source: Edited by the author based on data from Kostoglou and Mitsi (2011, 19)

111

Figure 4.42: Degraded areas in Thessaloniki

112

Figure 4.43: Land uses in Thessaloniki

113

Figure 4.44 - 4.45: Worker’s housing in Phoenix, Thessaloniki

115

Figure 4.46: Social housing by OEK in Thessaloniki

116

Figure 4.47 - 4.48: The housing complex “Politeia”

116

Figure 4.49: Procedure for creating a housing co-operative in Greece

118

Source: http://www.panoramio.com/photo/67585683 and http://www.panoramio.com/photo/72713277?tag=Razionalismo (accessed on June 30th, 2013)

Source: The author

Source: http://akea2011.wordpress.com/2012/07/08/gekternamenemeni/ (accessed on June 28th, 2013)

Source: The author

Figure 4.50: Housing co-operatives in Thessaloniki, categorized by land acquisition (in hectares) and by their number 118

Source: Edited by the author based on Petropoulos, 2009, 54

Figure 4.51: Housing settlement of Efxeinoupoli, Thessaloniki

120

Figure 5.1: The White Tower, Thessaloniki

121

Figure 5.2: Construction housing cost in Thessaloniki

124

Figure 5.3: Proposal for general model for self-help housing by co-operatives

125

Figure 5.4: Neglected building in Str. Delfon, Thessaloniki

126

Figure 5.5: Neglected building in Str. Eratosthenous, Thessaloniki

126

Figure 5.6: Neglected building in Str. Vasilissis Olgas, Thessaloniki

126

Figure 5.7: Network of relationships

130

Figure 5.8: Key factors for a new housing policy

131

Figure 5.9: The GDP growth of Greek economy, 2011-2013

137

Figure 5.10: Economic growth

145

Source: http://photos.wikimapia.org/p/00/01/04/20/88_big.jpg (accessed on June 21th, 2013)

Source: http://www.cityhotel.gr/uploaded/10-thessaloniki/city_hotel_thessaloniki_events_3.jpg (accessed on June 21th, 2013)

Source: Edited by the author based on http://www.tee.gr/online/afieromata/2000/2122/index.shtml (accessed on June 10th, 2013)

Source: The author

Source: http://tithess.blogspot.ch/2011/07/blog-post_11.html (accessed on June 17th, 2013)

Source: http://www.panoramio.com/photo/27696808 (accessed on June 17th, 2013)

Source: http://halyvourgos.wordpress.com/χρήσιμα-ιστολόγια/θεσσαλονικη/η-πολη/ (accessed on June 17th, 2013)

Source: The author

Source: Edited by the author based on http://www.oecd.org/ (accessed on June 11th, 2013)

Source: The author

158

Bibliography

| | | 7.6 List of Tables Table 3.1: Differences between top-down and bottom-up housing approach, placed on the various aspects of construction procedure.

Table 3.2: Principles of housing co-operatives

Table 3.3: Housing co-operative models

Table 3.4: Classification of self-help hosuing projects, based on type

Table 3.5: Classification of self-help hosuing projects, based on scale

Table 3.6: Geography of Argentine Republic

Table 3.7: Political outline of Argentine Republic

Table 3.8: Sociodemographics of Argentine Republic

Table 3.9: Economy of Argentine Republic

Table 3.10: Housing sector of Argentine Republic

Table 3.11: Argentina: Quantitative and Qualitative Deficits, 1980-2001

Table 3.12: Argentine main urban areas: tenure and type of dwellings

Table 3.13: Geography of Turkey

Table 3.14: Political outline of Turkey

Table 3.15: Sociodemographics of Turkey

Table 3.16: Economy of Turkey

Table 3.17: Housing sector of Turkey

Table 3.18: Geography of Ireland

Table 3.19: Political outline of Ireland

Table 3.20: Sociodemographics of Ireland

Table 3.21: Economy of Ireland

Table 3.22: Housing sector of Ireland

Table 3.23: Social and private housing units, 1980s-2007

Table 3.24: Applied qualitative affordable housing models of case studies

Table 4.1: Geography of Greece

Table 4.2: Political outline of Greece

Table 4.3: Sociodemographics of Greece

Table 4.4: Economy of Greece

Table 4.5: Housing sector of Greece

Table 4.6: Main housing categories in Greece

Table 4.7: Housing typologies in Greece

Source: Edited by the author based on Dikmen (2012, 37)

Source: http://ica.coop/en/what-co-op/co-operative-identity-values-principles (accessed on June 1th, 2013)

Source: Fu (2007)

Source: Papanikolaou and Taucer (2004, 61)

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Source: PricewaterhouseCoopers (2007, 24) and www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Source: http://cedlas.econo.unlp.edu.ar (accessed on May 17th, 2013) and McKinsey&Company (2012, 17)

Source: Auguste, Bebczuk, and Moya (2011, 7)

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Source: http://www.oecdbetterlifeindex.org/ (accessed on May 17th, 2013) and http://www.globalpropertyguide.com/ (accessed on May 17th, 2013) Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013) and http://www.indexmundi.com (accessed on May 17th, 2013)

Source: http://www.apartmenttherapy.com/ (accessed on May 17th, 2013) and http://www.globalpropertyguide.com (accessed on May 17th, 2013)

Source: Norris and Fahey (2009, 6)

Source: The author

Source: www.cia.gov/library/publications/the-world-factbook (accessed on May 17th, 2013)

Source: http://epp.eurostat.ec.europa.eu (accessed on May 17th, 2013) and http://data.worldbank.org (accessed on May 17th, 2013)

Source: http://cedlas.econo.unlp.edu.ar (accessed on May 17th, 2013) and http://www.globalpropertyguide.com/ (accessed on May 17th, 2013) and http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=ilc_lvho02&lang=en (accessed on June 24th, 2013)

Source: http://www.pi-schools.gr/books/gymnasio/oik_oikon_a/math/79_88.pdf (accessed on April 12th, 2013), 84-85

Source: Edited by the author based on data from Zambouni (2008, 48-63)

159

Table 4.8: P ermanent population of Greater Area of Thessaloniki

102

Table 5.1: Concept of Scenarios

136

Table 5.2: Scenario A

138

Table 5.3: Scenario B

140

Table 5.4: Scenario C

142

Source: http://www.statistics.gr/portal/page/portal/ESYE (accessed on June 20th, 2013)

Source: The author