Collective Housing Transformation - HSP debate
On the 11th of October HSP organized a debate on Collective Housing Transformation. Find the program here.
Presentation Collective Housing Transformation Report- Chloé Serme-Morin/FEANTSA
The report on Upcycling Buildings is the result of a collaboration of FEANTSA, the Abbé Pierre Foundation (FAP), and the Council European Development Bank (CEB).
Why? (1)For the past 10 years, we see rising housing exclusion and homelessness in Europe. (2) The pandemic exacerbated the consequences of bad, overcrowded or no housing at all (for those living on the street). Being deprived of proper housing or living in overcrowded spaces strongly increased the risk of infection with COVID-19. People in poverty and marginalised groups were also much more impacted by the economic consequences of the pandemic. In this context, protective emergency policies were put in place, including the transformation of existing buildings into homeless accommodation. However, these have mostly remained temporary solutions. (3) The pandemic has changed the ways we (don’t) use some buildings, such as empty hotels, offices, etc. (4) A diversity of practices has been developed in the conversion of accommodations into housing e.g. hotels into housing in the US, offices into housing in Brussels, and Housing First in Finland where congregate emergency accommodation was converted into long term housing on a big scale.
What benefits? First of all, converting congregate accommodation into permanent housing has, above all, social and humanitarian benefits; increase residential stability, improvement of health, wellbeing, social inclusion. Secondly, benefits are also economic, as the establishment of more permanent and long-term housing allows to reduce emergency accommodation which is very costly.
How? The 3 steps of collective housing transformation are the following: (1) Set objectives, assess feasibility of transformation. (2) Analyse financial/technical/administrative risks. (3) Assess building’s potential in addressing the future residents’ needs.
The 3 criteria for success are: (1) Strong partnerships and coherent housing policies. (2) Financial feasibility. (3) Focus on the needs of beneficiaries.
The 3 main challenges are: (1) Overcoming legal and technical barriers. (2) Risks of deregulation, ensuring transformation into high quality housing. (3) Social obstacles (reluctant neighbours).
Responses by experts – thematic panels
Panel 1: Partitioner perspectives
Mauro Striano, Bruss'help (organisation in charge of developing solutions for people in homelessness in the Brussels region)
Bruss’help coordinated the placement of people experiencing homelessness in hotels converted into accommodation during the pandemic. At the peak of the crisis, 11 hotels were providing accommodation to 900 people. There are around 200 people currently in these hostels.
Bruss’help made the following reaction to the report: Their experience showed that hotels are a better-quality solution than emergency accommodation as they provide more privacy, feeling of security, stability, autonomy, etc.
- First, given their cost, it seems difficult to see how these emergency measures can be sustained: Indeed, the costs are relatively high: 60-80€/day/person due to the staff, management costs, rent of hotels, etc. This would be a major barrier to making these projects more permanent.
- Second, in the Brussels context, turning hotels and other buildings into permanent housing solutions would not meet the needs of a large part of the homeless population. Undocumented migrants, with no access to social housing or to income, could not benefit from such housing. Furthermore, this kind of congregate setting might be unsuitable for people with serious health problem or addictions that don’t fit in a community environment.
Concerns: (1) So, for who is it? (2) Are public authorities willing to invest a big budget to convert hotels into housing for people who contribute little (if at all) to tax revenue?
Donal McManus, CEO Irish Council for Social Housing (IE)
Ireland: different target groups, different means, long experience. Ireland has a 20 year of experience in collective housing transformation. These projects do not only target homeless people but various vulnerable populations. The “repurposed” homes come from different types of buildings, from convents to commercial buildings, cinemas, coast guard stations and even a bank.
Diffusion of the practice with the COVID-19 crisis. During the COVID-19 crisis, a few housing associations took over the management of hotels to allow homeless people to isolate (short-term), which were transformed into long term accommodation.
Lessons from the Irish experience to mainstream collective housing transformation: (1) implement ad-hoc projects, (2) housing organizations should lead transformation projects, with support from local municipalities and the government (getting elected members and councillors on board considerably reduces obstacles at local level), (3) adapt the project to the context (all projects are unique and hard to replicate), (4) exercise due diligence.
Reasons for optimism: As the COVID-19 crisis is changing the economy, it has an impact on tourism and the way people work, which may be opportunities for collective housing conversions.
Arnaud De Broca, General Delegate at the French Union of Supported Housing Providers (UNAFO).
Example of the “Pensions de famille” in France. These correspond to housing for isolated people (mostly men but also women), most of them lived on the street. The “Pensions de famille’ are communities of 20-30 housing units of around 20-25 m2 each with access to collective spaces and provision of support to tenants (with the administrative tasks and in the design of possible collective initiatives).
It is conceivable to think of this model by transforming hotels. The hotels are often well located, placed near transportations, which is a necessary condition for pensions de famille which aim at (re-)integrating people.
Barriers to action: (1) Some hotels have accumulated debts due to the COVID-19 crisis, (2) the buildings are not always fit, the rooms are often small. The objective of the pension de famille is to guarantee that the families can stay there as long as they want to, and hotels often only provide temporary solutions. (3) Local objections (and “NIMBYism’): projects need to take care of the community and proactively manage local objections among neighbours.
Michael Monte, CEO of the Champlain Housing Trust, the biggest community land trust in Vermont, USA.
Since 2013 Champlain Housing Trust purchased 8 motels, 5 in the past years during the COVID-19 crisis
Steps for launching a transformation project:
1- Building condition and zoning: Does the building meet local building standards? Does it meet local land use regulations? Based upon the size of the motel, what number of apartments can be created? Either choose suite motels with kitchen already or look at combining 2 rooms (a bathroom becoming a kitchen for example). Is access to electricity satisfactory?
2- Purchase value: The duration of the transformation must be quick (no more than 6 months) and present low costs (the cost per unit is as half the price of a new construction).
3- Fundings: The sources of funding come from capital placements from funders (and even a medical centre).
4- Communication: Be in constant communication with founders to find opportunities. Be in constant communication with local communities, including political leaders, to reduce barriers.
Overall, the 3 most important factors to consider are: (1) Supply: is it a good project/capital investment, (2) subsidy: is there another source of funding to support tenants paying rents, (3) services: is there enough money flowing from the property to pay for the services.
Q1: What are the profiles of people housed in the Pensions de famille?
A1 (Arnaud de Broca): In Pension de famille we find mainly people who were rough sleepers or who were accommodated in emergency housing, single people with low income (minimum income needed to pay for the rent), male, who deal with social services. We also see that these groups are aging.
Q2: Are hotels are better suited than offices or other buildings?
Q2: (Michael Monte): If you ensure checking the size, price, and location, then yes. (Mauro Striano): There are a lot of empty housing units or unused social housing in Brussels, which are a real alternative to hotels, that is a reason why governments prefer investments to such commodities instead of transforming hotels. (Arnaud de Broca): We have examples of other places (military barracks, hospitals) that can be used.
Hotel converted in permanent housing in California, Louisa Gouliamaki, Getty Images
Panel 2: Financing perspectives
Michelle Norris, Chair of Irish Housing Finance Agency, which provides loans for housing purposes to local authorities and other voluntary housing bodies
We have a labour shortage in the construction industry in Ireland, so the reuse of building is an option to consider creating more housing and is also environmentally friendly.
Hotels have key practical advantages (sufficient plumbing, bathrooms, kitchens) …but there’s also risks the use of hotels is unpredictable due to the evolution of tourism, and there is a socio-spatial segregation of homeless services in certain cities like Dublin that need to be solved in other to ensure nearby access to support services.
The reconversion of shops into housing units would help. There are a lot of vacant space above shops and in shops that can be used. Using them would help to add small units to the social housing stock (60% of existing social housing in Ireland is 3- or 4-bedrooms dwellings, which are mainly suitable for families while most homeless people live on their own or in couples, and hence struggle to access affordable social housing). Furthermore, we see a potential to convert existing buildings into long-term social housing.
“The main challenges don’t come from the number of regulations, but from the administrative burden of trying to manage all the different regulations simultaneously”. One idea to combat this could be a "one-stop shop" for local authorities and organisations to help them with the administrative burden.
Jarmo Linden, Director of ARA, the Housing Finance and Development Centre in Finland
The example of Finland: In 2008, Finland changed the ideology of homeless policies with Housing First and converted emergency accommodations and hostels into permanent housing. Helsinki went from 600 beds in emergency accommodations at that time to 50 beds nowadays. The government decided to invest in the renovation of emergency accommodations. The Salvation Army hostel in Helsinki, which proposed 250 beds was turned into 81 apartments.
What funding? 45% of the expenditures were government subsidy grants and 55% were interest subsidy loans with government guarantee.
What plan? The aim was to rehouse people permanently through personal rental contracts. Residents apply for social benefits and pay their rent (350€ rent), and if the benefits are not enough, apply for social assistance. If tenants still cannot pay, they would ask ARA to pay the landlord directly. (Finland uses 2,5 Billion euros to subsidize rental housing rents directly to the tenants, and 15% of the population has housing benefits).
Samir Kulenovic, advisor on housing and urban development at the Council of Europe Development Bank (CEB)
In this process it is important to focus on the needs of the users to overcome technical and legal barriers, and social obstacles. The CEB choses to finance a project if the