Housing policy between concept and practice - Case study sheet

The usefulness of a policy resides in the integration of the measures carried out by the specialized central public administration in order to solve the sectoral public policy problems, identified in order to ensure the necessary development in the field of housing, taking into account both the housing (construction/building) and the measures necessary to preserve and strengthen a social mix at urban level and to promote social integration through housing.

Source: Ministry of Regional Development and Public Administration

Directorate General for Regional Development and Infrastructure

www.mdrap.ro

In Romania, the Ministry of Regional Development and Public ^{Administration1} is the institution responsible for implementing government policy in the fields of building discipline, spatial planning, urban planning and architecture, housing, housing, residential buildings, thermal rehabilitation of buildings, real estate and infrastructure management and development, public works, construction.

With regard to the implementation of housing policy, we have to take into account the complexity of the institutional framework made up of the 3,179 local public administration authorities (320 municipalities and cities, 2,859 communes, plus the 6 sectors of the Municipality of Bucharest). In accordance with the existing legislative framework, the Local Council ensures, according to its competences and under the conditions of the law, the necessary framework for the provision of public services of local interest concerning social housing and other housing units owned or managed by the administrative-territorial unit and approves the construction of social housing, the criteria for the allocation of social housing and housing utilities owned or managed by ^it2.

As far as social housing is concerned, it belongs to the public domain of the administrative-territorial units, which control and are responsible for the social housing stock located on their own territory, according to art. 38 in conjunction with art. 39 of the Housing Law no. 114/1996, as amended and supplemented.

Given the large number of public institutions implementing the housing policy, cooperation, coordination of actions and communication are key elements for its successful implementation, all the more so since, unlike in other EU Member States, the percentage of privately owned housing is overwhelmingly high (about 98% of the housing stock is privately owned), which makes it difficult for public institutions to intervene on the housing stock.

However, in recent years, both central and local public authorities have substantially supported housing construction through funding programs such as: Programme on the construction of rental housing by attracting private capital; Programme on the construction of privately-owned housing through mortgage loans; Programme on the construction of rental housing for young ^people3 (all three carried out through the National Housing Agency, an institution operating under the authority of the Ministry of Regional Development and Public Administration); Programme on the construction of social housing for tenants evicted from nationalized houses, carried out under GEO no. 74/2007 on the provision of the social housing fund for tenants evicted or to be evicted from houses retroceded to former owners; Social housing construction program, carried out on the basis of Housing Law no. 114/1996; Housing construction program, carried out on the basis of OG no. 19/1994 on the stimulation of investments for the realization of public works and housing construction; the Program on the provision of state premiums for saving and lending in collective system, carried out under GEO no. 99/2006 on credit institutions and capital ^adequacy4; the National Program for the support of the construction of personal ownership housing, carried out under GEO no. 51/2006 for the approval of the National Program for the support of the construction of personal ownership housing.

1 Art. 1 para. (2) of GD no. 1/2013 on the organization and functioning of the Ministry of Regional Development and Public Administration.

2 Art. 36 para. (6) of Local Public Administration Law no. 215/2001, as amended and supplemented.

3 Programs carried out under Law no. 152/1998 on the establishment of the National Housing Agency.

4 Title II - Housing saving and lending banks of GEO 99/2006 on credit institutions and capital adequacy.

The usefulness of a policy resides in the integration of the actions taken by the specialized central public administration with a view to solving the sectorial public policy issues, identified in order to ensure the necessary development of the housing field, considering both the housing unit - construction/ building - and the measures for preserving and consolidating the social mix at urban level, and to promote social integration through housing.

Source: Ministry of Regional Development and Public Administration

Directorate General Regional Development and Infrastructure

www.mdrap.ro

In Romania, the institution responsible for implementing the governmental policy in fields such such as discipline in construction works, land management, urban planning and architecture, habitation, housing, residential buildings, thermal upgrade of buildings, management and development of public infrastructure, public works, constructions etc. is the Ministry of Regional Development and Public ^{Administration1}.

Regarding the implementation of the housing policy, we need to keep in mind the complexity of the institutional framework, consisting of 3,179 local public administration authorities (320 cities and towns, 2,859 communes, plus the 6 districts of Bucharest). In accordance with the existing legislative framework, the local council, according to its competences and in accordance with the law, shall ensure the necessary framework for the provision of public services of local interest regarding the social housing and the other dwelling units in the ownership of the administrative-territorial unit or under its administration and shall approve the construction of social housing and the criteria for the allocation of social housing and of the dwelling units in its ownership or under its administration^.2

As regards social housing, they fall in the public domain of the administrative-territorial units, which they control and are responsible for the social housing fund on their own territory, according to Art. 38 in conjunction with Art. 39 of Housing Law No. 114/1996, as subsequently amended and supplemented.

Considering the large number of public institutions which implement the housing policy, cooperation, coordination of actions and communication are key elements for ensuring the success of its implementation, even more so as, unlike the other Member States of the European Union, Romania evinces an extremely high percentage of privately-owned dwellings (approximately 98% of the housing stock), which encumbers the intervention of public institutions on the housing stock.

However, during the last years, the central and local public administration authorities have granted substantial support to housing construction by means of financing programs such as: the Program regarding the construction of rental housing units by attracting private capital, the Program for the construction of mortgage-financed dwellings, and the Program for the construction of housing units to be rented to young ^people3 - all three, carried out through the National Housing Agency (Agenția Națională Housing Agency), an institution operating under the authority of the Ministry of Regional Development and Public Administration; the Program regarding the construction of social housing units for the tenants evicted from nationalized houses, carried out under Government Emergency Ordinance no. 74/2007 on ensuring the social housing fund to the tenants who were or are to be evicted from the dwellings returned to their former owners; the Program regarding the construction of social housing, carried out under Housing Law no. 114/1996; the Housing construction program, carried out under Government Ordinance no. 19/1994 on encouraging the investments in public works and housing construction; the Program for the provision of State premiums for collective-based savings and crediting, carried out under Government Emergency Ordinance no. 99/2006 on credit institutions and capital ^adequacy4; the National Program for supporting the construction of privately-owned housing units, carried out under Government Emergency Ordinance No. 51/2006 approving the National Program for supporting the construction of privately-owned housing units.

1 Art. 1 para. (2) of Government Decision no. 1/2013 on the organization and operation of the Ministry of Regional Development and Public Administration.

2 Art. 36 para. (6) of the Law of local public administration no. 215/2001, as subsequently amended and supplemented.

3 Programs carried out under Law No. 152/1998 on the establishment of the National Housing Agency.

4 Title II - Savings and crediting banks in the housing field, of Government Emergency Ordinance no. 99/2006 on credit institutions and capital adequacy.