Habitat for Humanity The Global Housing Policy Indicators. Survey Instrument

Transcription

1 Date Conducted: Country: Romania State/Province: Region: Bucharest City: Bucharest First Name: SORIN Family Name: IONITA Organization: Address: Habitat for Humanity The Global Housing Policy Indicators Survey Instrument Revised May 23, 2011 Originally designed and tested by Shlomo Angel and Lucy Gitlin City: Bucharest Zip Code: Jun-12 Information about the Field Researcher: EFOR (Expert Forum, independent think tank) Aurel Vlaicu 87, sector 1, Bucharest Country: Romania Address: Telephone: (40) Fax: INTRODUCTION: Habitat for Humanity (HFH) has built, rehabilitated, repaired, or improved more than 400,000 affordable housing units worldwide since While this is clearly a laudatory achievement, the organization has come to realize that it can never meet its prime objective of decent housing for all through its own building efforts. It is now gradually moving towards an advocacy role, where it aims to influence overall housing policy and practice in the more than 100 countries in which it has a presence. To this effect, Habitat for Humanity seeks to generate reliable and comparable information on the global housing policy environment. The organization seeks to do so by collecting housing policy data in a large number of countries on a regular basis, and using this data for two complementary purposes: (a) to maintain a web-based housing policy clearinghouse with the up-to-date information on housing policy environment in each country; and (b) to arm advocates with factual data to influence housing policy. The collection of data for the pilot study is structured in five sections: 1. The Property Rights Regime; 2. The Housing Finance Regime; 3. The Housing Subsidies Regime; 4. Residential Infrastructure; and 5. The Regulatory Regime. It is expected that the actual time required for collecting the data necessary for completing all sections is of the order of 20 full working days over a 2-months period. Data collection will involve interviews with informants, examination of documents, and field observations. In some cases, it may be necessary to interview more than one informant to complete the data collection. In some cases, it may be necessary to obtain the information from documents, rather than from interviews. It is the responsibility of the interviewer to evaluate the data collected and to use the best possible data source for obtaining the information. In evaluating the data collected, it may be important to consult knowledgeable persons in the field and to make sure that the results are sensible and can withstand close scrutiny. It is important to note here that in attempting to find out what is the official housing policy in the country, three different and complementary approaches to understanding housing policy should be pursued: (1) the policy intentions of officials; (2) the policy prescriptions as they are articulated in writing in published documents, regulations, laws, and decrees; and (3) the actual practices of those engaged in carrying out official policy. Needless to say, the three are not always identical. Please use this spreadsheet form to collect and record the data for the survey and send it to Jane Katz, Director of International Affairs & Programs, Government Relations and Advocacy with Habitat for Humanity (jkatz@habitat.org) when it is complete. Instructions and definitions are provided with this survey instrument. Any questions or comments you may have concerning the information or its source should be written down in the sections provided for comments. Please provide an explanation for any unanswered question in the comments section indicating why the information could not be obtained.

2 THE INTERVIEWS: Obtaining information for completing the survey will necessarily involve interviews. All interviews should be conducted in the metropolitan area of the capital city or an alternative large city in the country. The interviews may include meetings with officials in the national housing agency, the provincial or state government in which the capital is located, and the municipal offices of a city on the fringe of the metropolitan area. They may also include interviews with private sector and civic sector informants. The following is a partial list of informants who may be interviewed to collect the data for the survey: 1. A policy official (National Housing Agency); 2. A program official (National Housing Agency); 3. A budget official (National Housing Agency); 4. A housing program official (Provincial/State Government); 5. A housing budget official Provincial/State Government; 6. A municipal regulator; 7. A municipal infrastructure official; 8. A municipal official familiar with evictions and demolitions; 9. A municipal housing official; 10. A municipal budget official; 11. A commercial bank mortgage officer; 12. A real estate agent; 13. A land subdivision developer; 14. A housing advocate; and 15. A legal expert. If the suggested informant listed above cannot provide the required information, it will be up to the local consultant to find a way to obtain the information from other sources. Similarly, if information obtained does not seem to be accurate or trustworthy, it may be necessary to obtain it from more than one source so as to ensure that it is correct. COMMENT SECTION: Please list all sources of information used to obtain the answer in the comment section, for example list the name, title, and organization of each person interviewed. There are additional questions in the instruction section that need to be addressed in the comment section. Read through the instructions carefully and give thorough responses to these open-ended questions. Add as many details or additional information you might have in the comments section, as this will help add a bigger picture explanation to the quantitative answers. QUESTIONING THE SURVEY INSTRUMENT: Before starting the survey, please review the survey instrument carefully. If you have any question regarding a definition of a concept or a method for gathering the information, please write it down in the comment section attached to each individual question. Then send your questions to jkatz@habitat.org. We will then respond directly to your questions. Please do that as soon as possible, so as not to waste time. But in the meantime, you can start collecting data on those items that you understand and have no questions about. You can keep sending us questions throughout the period when you are collecting the data. If you are using an official definition, please include the definition in the comments section. SENDING THE QUESTIONS IN ADVANCE TO INFORMANTS: Many of the questions require quantitative or specific information, which may not be available to informants at the time of the interview. You may find it useful to send the questions to the informants in advance, together with an introductory letter introducing you and explaining what you are doing and why you need the information. We will provide a template letter to the Habitat for Humanity point person in your region that will be responsible for your work, and he/she can provide you with such an introductory letter. If you plan to send the interview information in advance, please make sure that you give the interviewee adequate time to prepare the materials. * * * Thank you!

3 Property Rights Regime 10/22/2013 Property Rights Regime Question Score Instructions Comments 0.67 P1 Barriers to land ownership are removed P1.1 P1.2 P1.3 P1.4 Can women legally own or inherit land? (Yes=1/No=0) 1 In practice, do women own or inherit land? (Yes=1/No=0) 1 Can land be jointly owned by husband and wife? (Yes=1/No=0) 1 For the following six questions, please consult a person familiar with property law. Please indicate whether this includes inheritance from parents, husband, or both in the comment section. If the answer is yes, please comment whether this occurs in practice. Does the law recognize the customary or tribal land rights of indigenous people? (Yes=1/No=0 or 100 if no indigenous people) 100 If yes, please describe in comments section. No restrictions, equal treatment Both from parents and husband; Roman law applies It is the normal practice in marriages No indigenous people exist, in the proper sense of the word. A situation closest to this notion is that of the Rroma community, but they are usually regarded as "latecomers", not indigenous. In some cases their "uninterupted use" for a few decades was indeed recognized as a property right, but these cases are exceptions P1.5 P1.6 P2 Are immigrants, refugees and non-citizens allowed to own land? (Yes=1/No=0) 0 Is it common for residents to hold land through a long-term lease? (Yes=1/No=0) 1 All residential land has registered titles and/or incremental tenure documents 0.90 If the answer is no, please indicate whether this constitutes a large portion of the population. Please describe the method of holding land in the comment section - i.e. is land owned collectively, is land leased short or long-term, or can be owned individually? Ownership is not restricted on buildings, but not regarding the land beneath: only EU citizens can buy land and only for residential purpose. After 7 years from Romania's accession (in 2014) EU citizens will be able to buy agro / forested land too, but also with some restrictions. On the other hand there are relatively few immigrants or refugees in Romania. It is common and even encouraged in the countryside, with the aim of consolidating small plots into larger agro exploitations, without changing the ownership. EU agro subsidies also encourage this. P2.1 Is there an operating program to register titles or incremental tenure documents? (Yes=1/No=0) 1 Please examine recent government policy documents. Specify in comments whether the policy/program is implemented by the national or local government. "Incremental tenure documents" refer to any document that protects resident against eviction. The registration of property titles in done by the judiciary and the national cadaster office, subordinated to the Ministry of Interior 3

4 Property Rights Regime 10/22/2013 Question Score Instructions Comments P2.2 Estimated percent of all the properties in the greater municipality that have their title properly registered. (%) 90 Please consult persons working in the agency that registers property titles. Difficult to tell, due to unresolved / conflciting claims following the string of property restitution laws (to former, pre-communist owners) passed between Moreover properties which have never been transacted after 1990 may not yet be registered on the new cadaster system. P2.3 Are titles updated regularly when property is transferred? (Yes=1/No=0) 1 Please consult persons working in the agency that registers property titles. Please indicate in the comments whether the practice is different towards female headed versus male headed households. Yes, without exception 4

5 Property Rights Regime 10/22/2013 P3 Question Score Instructions Comments Titles and/or alternative property documents are given to long-term residents of informal settlements P3.2a P3.2b P3.3 P3.4 P4 Is there a policy or program that supports the regularization of titles or alternative documents in established informal settlements? (Yes=1/No=0) 1 Number of households living in informal settlements in the greater municipality. 750 Number of households living in informal settlements in the greater municipality who have titles provided by a regularization program. 0 Is the occupation of public land tolerated? (Yes=1, No=0) 0 Is there a process or program to recognize occupancy of public land? For example, certificates of occupancy, street addressing, or other official documents are given to informal settlers. (Yes=1/No=0) 0 Evictions are minimized and, when the occur, they are legal and involve just compensation or resettlement To answer this question, please consult a member of the housing agency leadership. Please specify in the comments whether the policy/program is implemented by the national or local government. Please indicate in the comments whether there are special efforts to reach out to female headed households. Please consult official documents. Make sure the estimate of total number of squatter households is realistic by asking several experts Please consult official documents. Make sure the estimate of informal settlements is realistic by asking several experts. If there is no regularization program or no informal settlements enter 0 and make a note in the comments section. If the number of female headed households is known, please add to comment section. Please consult person familiar with land law, particularly with homesteading or with adverse possession. Please consult person familiar with land law, particularly with homesteading or with adverse possession. Not an explicit national program, but there was systematic action through the offices of the Prefects in cases when local governments won EU-funded infrastructure projects, and there was an informal settlement in the muncipality (usually, a Roma community). In such cases, and if there was no post-communist restitution claim on the land, their tenure was formalized to be able to equip the land with public infrastructure. Most often this happens in rural areas. Difficult to estimate as there are few informal communities in the Bucharest city area. There was no regularization of titles in large cities such as Bucharest as most of the land was subject to restitution claims (pre-communist owners). When something is done, it is usually through re-location into municipal social housing (project houses) households. In general not, with very rare exceptions. No, see P3.2b: regularization typically occurs by moving the squatters into social houses owned by the municipality P4.1 The number of persons evicted in the largest mass eviction that took place in the greater municipality in the last three years. 120 Please obtain reliable estimates from media, from government agency engaged in the eviction, or from organizations working with evictees. Please provide references and elaborate the situation in comments section. Mostly in connection with the rehabilitation of the historical center of Bucharest, where many families were squatting in old buildings with uncertain status / absentee landlords. This situation predates the transition period and had occurred gradually as old buildinhs fell into disrepair. A large rehabilitation project (infrastructure) made the area trendy and led to the eviction of some, though not all, families from the area. 5

6 Property Rights Regime 10/22/2013 Question Score Instructions Comments P4.1a Did the eviction follow an established legal guidelines for evictions? (Yes=1/No=0, or 100 if no eviction) 1 Please consult person familiar with legal framework for eviction. By law such evictions cannot be carried out until alternative housing is found for the persons with valid IDs for Bucharest. If they are residents elsewhere, such support is not provided. 6

7 Property Rights Regime 10/22/2013 P4.1b P4.1c Question Score Instructions Comments How long in advance of the actual eviction were people first informed? (months) Please enter 100 if no eviction. 1 Was violence involved? (Yes=1/No=0, or 100 if no eviction) 1 Please consult organization working with evictees. Please consult media or organization working with evictees. The practice varies a lot, as the evictions are made by the local government authorities. Sometimes the people are notified according to the law; but it is also true that in some locations there is a high turnover of people without documents, so proper information is objectively difficult In general not; some verbal confrontation may occur P4.1d P5 The percent of people who were resettled or given compensation roughly equivalent to the value of their homes. (%) Please enter 100 if no eviction. 100 Clearance of low-income communities to replace them with more profitable development is minimized Please consult organization working with evictees. Please indicate in comments whether there was any difference in compensation between female-led and maleled households. By law they cannot be evicted unless they are resettled / compensated. In most cases their new (social) housing is more appropriate for living than the old one; however the people may be displeased because theyr are moved from "interesting" places downtown towards the margins of the city. Arguably some cases of spatial segregation did occur, however not in Bucharest city area. There is no difference in treatment between male / femaleled households P5.1 Slum clearance and redevelopment is an established policy of the national or local housing agency. (Yes=1,No=0) 0 Please consult person working in national housing agency as well as advocates for slum dwellers. Please identify whether the policy is at the national or local level in the comments section. No, the national housing agency has always build on free land. The situation is different in the few redevelopment projects which rehabilitated historical parts of the cities - most visibily in the last few years, in Bucharest. A number of old private houses listed as patrimony had been indeed occupied by squats. Redevelopment has implied clarifying property rights (which the poor people occupying them did not have) and relocation of the families into social housing, away from the historical area. But there was no slum clearance proper, as nothing was demolished. P5.2 P6 The government has torn down existing lowincome neighborhoods and transferred the vacant lands to the private sector for development of new commercial, infrastructure or higher-end residential. (Yes=1/No=0) 1 The public housing stock is privatized, and restrictions on the sale of units are minimized "Government" can refer to national, provincial or municipal governments. It is important to find out if the government is using its powers, such as eminent domain, to demolish existing housing against residents' will. It happened in Bucharest in the past 2-3 years, in the controversial project to enlarge a boulevard passing through an old part of the city which was partly derelict and occupied by poor people (some of them forming compact Roma communities). The project was opposed by NGOs and architects, not so much on social grounds, but rather with patrimony conservation arguments P6.1a The estimated share of the housing stock that is publicly owned. (%) 2 Please consult the agency that manages or is familiar with public housing stock. 97.7% of the housing stock in Romania is occupied by the owners, according to the 2011 census. This is due to the mass privatization of socialist apartments which occurred in Very little public property has been built meanwhile. Renting is not at all popular, even from private owners. 7

8 Property Rights Regime 10/22/2013 Question Score Instructions Comments P6.1b P6.2 The estimated share of the public housing stock that is being or has been privatized. (%) 10 Is the public housing stock generally well maintained? (Yes=1/No=0 or 100 if no public housing stock) 1 Please consult documents of agency directly engaged in public housing privatization. Indicate the year(s) privatization process occurred. Enter 0 if there is no publicly owned housing. Please visit public housing site and use your best visual assessment or consult a reliable resident of public housing or an organization that works with public housing residents. The number of public units which were privatized in the last years is very small - probably in low hundreds - because there has been very little public property after , when the "big giveaway" was completed (see above). The tenants living in apartments built by the National Housing Agency (ANL) after 2000, mostly for young families, obtained in 2008 the right to buy them. Even though the conditions are favorable very few did this, as it was exactly the moment when the crisis made the real estate market collapse altogether. Reasonably well, given the budget constraints local governments face. But most of these residential buildings, in general blocks of flats, are rather new, being built after The cost was determinant in the ANL project, so quality problems have appeared early on; there are already signs these buildings do not age very well. P6.3 A national or local housing policy is in place to support the privatization of the public housing stock. (Yes=1/No=0 or 100 if no public housing stock) 1 Please examine recent documents of housing agency or consult person familiar with the views of the housing agency leadership. If possible, examine recent housing policy documents or texts of recent speeches. Starting with 2008 the tenants in the ANL project (a large scheme financed by the Bank of Development of the Council of Europe) which build around apartments in the last decade, are allowed to buy their flats. The price is determined by the Agency and there is intermediation by the same Agency so that tenants get credit in preferential conditions. However the scheme is not very popular because it was set in place exactly when the real estate market collapsed, so that there is plenty of alternative: better, bigger apartments, in better locations, in case the young families would have money for the downpayment - which most don't. In general, the privatization of public housing stock is a non-issue in Romania, as there is so little of it. It is more of an issue to actually increase the public stock, to be used for social purposes. 8

9 Housing Finance Regime 10/22/2013 Housing Finance Regime F 0.89 F1 Conditions support mortgage lending F1.1 The inflation rate last year. (%) 3 Obtain from Central Bank documents, in local currency. If the inflation rate for the last year is not typical of previous years, please clarify in the comment section. CPI was 3.14% in 2011 F1.2 Residential mortgage debt as percentage of GDP. (last year) 3 Are there ceilings on interest rates for bank F1.3 deposits? (Yes=1/No=0) 0 F2 Mortgage lending is liberalized Information usually available from Superintendent of Banks or Central Bank. Note: if last year is not available, please use the most recent year available and add the year to the comment section. Please consult a manager of a commercial bank. 3.7% of the GDP in But other forms of "soft credits" for individuals are much more important (over 13% of the GDP) and they might have been used too for real estate investments in the pre-2008 boom As a national policy? No, there aren't F2.1 F2.2 F2.3 F2.4 Are private housing finance institutions (commercial banks) allowed to engage in mortgage lending? (Yes=1/No=0) 1 Can private housing finance institutions make mortgage loans in any geographical region inside the country? (Yes=1/No=0, or if no mortgage Information for this section is usually available from commercial bank managers involved in mortgage lending. Both commercial banks proper and non-banking institutions (credit cooperatives, etc) are allowed to extend mortgage loans, under strict supervision by the Central Bank. The conditions are not very favourable these days, however lending=100) 1 " Yes, there are no restrictions Is mortgage lending available for both newly-built There is no difference between the types of housing as far as and existing houses? (Yes=1/No=0, or newly-built mortgage loans are concerned. It is each bank's (or IFI) policy only =0.5, existing only=0.5) 1 " what and how do they finance Is mortgage lending available for the construction of rental housing? (Yes=1/No=0) 1 " There is no difference between the types of housing as far as mortgage loans are concerned. It is each bank's (or IFI) policy what and how do they finance. Before 2008 it was quite common to finance private projects aimed for rental F2.5 F3 Is construction lending for residential development (infrastructure and housing) allowed? (Yes=1/No=0) 1 " Mortgage interest-rate subsidies are eliminated If the land is private, the financing can cover anything which is built on it: house, networks and infrastructure, etc. Separately, commercial banks can lend money to municipalities for public infrastructure projects, in various forms. Both types of credit (private and municipal) shot up in the boom years before 2008, though not exactly at Spanish levels. 9

10 Housing Finance Regime 10/22/2013 F3.1 The government has a public housing bank or Information for this section is usually available agency that lends directly to borrowers. from commercial bank managers involved in (Yes=1/No=0) 0 mortgage lending. There is no such public bank; other schemes are used, see below F3.2 What is the difference between the interest rate on a mortgage given by a private housing finance institution and an interest rate on a mortgage given by a government agency? (%) Enter 100 if there are no private housing finance institutions. Enter 0 if government agency does not give mortgages. 0 F3.3 Are there mortgages given at subsidized interest rates? (Yes=1/No=0) 0 Mortgage lending is protected from undue F4 risk You may calculate this difference yourself from data on mortgage interest rates in commercial banks and in the government mortgage bank. You may also consult officials at the government mortgage bank or agency providing the subsidy. Please describe who the beneficiaries are for the subsidized rates. No direct interest rate subsidy No direct interest rate subsidy F4.1 Private housing finance institutions are required to investigate borrower credit using independent credit agencies. (Yes=1/No=0) 0 Information for this section is usually available from commercial bank managers involved in mortgage lending. No, they do it in-house according to own rules, but these rules are subject to strict supervision by the Central Bank, especially after In general the default position of the Central Bank has been to act very conservatively and restrict, rather than encourage, all forms of credit. See also below F4.2 Private housing finance institutions are required to assess the value of collateral using an independent third party. (Yes=1/No=0) 1 " Yes, and they employ independent evaluators; however the final decision about the value belongs to the bank F4.3 Is there a legal upper limit to the loan-to-value ratios for bank mortgage loans? (Yes=1/No=0) 1 " Yes, such criteria are imposed uniformly by the Central Bank F4.4 Is there a legal upper limit on the loan payment-tomonthly income ratio for bank mortgage loans? (Yes=1/No=0) 1 " Yes, such criteria are imposed uniformly by the Central Bank F4.5 Does government guarantee individual mortgage loans for housing? (Yes=1/No=0) 1 " Yes, such a scheme was introduced by the government in 2009 and renewed each year since. It is called "The First House" and guarantees the credit for young clients who buy a house for the first time, under certain conditions: ceiling on the purchase value, size and type of housing. In general, small 2-3 bedroom flats qualify, with an average value of euro. About guarantees were extended by mid-2011 with a total value of 1.5 bn euro F4.6 Banks that provide mortgage lending are required to have annual audits. (Yes=1/No=0) 1 " Yes, such criteria are imposed uniformly by the Central Bank 10

11 Housing Finance Regime 10/22/2013 The volume and size distribution of mortgages is reported annually to the regulatory agency. F4.7 (Yes=1/No=0) 1 " Yes, to the Central Bank F4.8 Please indicate the percentage of the mortgage lending portfolio that is in default (60-days past due). (%) 1 If a different standard is used to define default (more or less than 60 days past due), please describe in comments section. Around 6% at the end of But it is believed to be underreported by banks, which are more eager to re-finance than admit their clients are insolvent F5 Lender's interest in the collateral is protected F5.1 Percentage of residential properties with mortgages that have legal titles. (%) 100 Information is typically available in the land/property registry. If the answer is less than 100%, please list what is generally used for collateral in the comments section. All mortgage lending is backed with property collateral, in some exceptions going above 100% of the value (additional property put as collateral) F5.2 Private housing finance institutions view property titles or long-term lease agreements as sufficient collateral and do not require personal guarantees (Yes=1/No=0, or no mortgage lending = 100) 1 Information for questions F5.2-F5.4 is usually available from commercial bank managers involved in mortgage lending. If answer is No, please list what is generally used for collateral in the comments section. In the vast majority of cases no personal guarantee is required; this may apply in special cases when the loan is for rehabilitation of an old, classified building, for example, which cannot be easily executed F5.3 F5.4 The number of months required for a bank to register a lien on a property used for collateral (Months) (no mortgage lending=100) 1 If less than 1 month, enter zero. Around one month The number of months required to foreclose on a mortgage and transfer the property to the bank (Months) (If no foreclosures or no mortgage lending=100) 3 If less than 1 month, enter zero. F6 Secondary mortgage markets are operational Around 2-3 months, but it can be more if a court case is initiated by either party F6.1 Has legislation passed for the creation of a secondary mortgage market? (Yes=1/No=0) 1 Information for this section may be available from a person in the banking sector familiar with plans for programs concerning the secondary-mortgage market. Yes, mortgages can be traded F6.2 F6.3 Government liabilities in support of secondary mortgage markets are transparent and have a sunset clause (Yes=1/No=0, or no secondary mortgage market =100) 0 Some information may be available from the Superintendency of Banks or the Central Bank. No government liability in relation to the secondary mortgage market - or I don't understand what the question refers to Are mortgages standardized? (Yes=1/No=0, or no mortgage lending=100) 0 " No, although there have been attempts before the crisis. F6.4 Is mortgage insurance is readily available? (Yes=1/No=0, or no mortgage lending=100) 1 " Unclear: the banks can insure their mortgage portfolio; the clients have in general the obligation to insure the property when they sign the mortgage contract. Otherwise, no other instrument exists 11

12 Housing Finance Regime 10/22/2013 F6.5 F6.6 Have banks issued mortgage bonds? (Yes=1/No=0) 0 " Are mortgages traded in a secondary market (i.e. mortgage-backed securities)? (Yes=1/No=0) 0 F7 Microcredit for housing is available F7.1 Is there a ceiling on lending interest rates for microcredit? (Yes=1/No=0, or microcredit for housing is not available = 100) 0 Please elaborate in comments section on the types of instruments used in the secondary mortgage market and how long they have been traded. Information should be obtained from any institution providing microcredit for housing. No, not significantly, the market is not mature enough for such instruments. There were some pilot attempts before the real estate crisis but they were abandoned No secondary market exists yet, the sector is not mature enough, has not reached this stage. No such ceiling exists F7.2 Organizations providing microcredit for housing are licensed and require annual auditing (Yes=1/No=0, or no microcredit available = 100) 1 " Yes, they are under the supervision of the Central Bank, though by a different set of rules than commercial banks F7.3 F7.4 The volume and size distribution of microloans for housing is reported annually to a regulatory agency or other association. (Yes=1/No=0, or no microcredit available = 100) 1 " They are reported to the Central Bank Private money lenders, individuals, or private companies provide unregulated credit (Very common=3, Somewhat common=2, Rarely=1, Never=0) 1 F8 General financing questions F8.1 The typical loan term (number of years of mortgage loans by private housing finance institutions) for mortgage lending The typical interest rates (annual nominal rate by private housing finance institutions) for mortgage F8.2 lending. 6-11% The typical loan term (number of years of mortgage loans by private housing finance F8.3 institutions) for micro-credit. 5.0 The typical interest rates (annual nominal rate by private housing finance institutions) for microcredit. F % F8.5 Are mortgages tied to an index? Information should be based on personal experience or obtained from institutions providing microcredit for housing. Information should be obtained from any institution providing mortgage lending for housing. Information should be obtained from any institution providing mortgage lending for housing. Information should be obtained from any institution providing micro-credit for housing. Information should be obtained from any institution providing micro-credit for housing. Information should be obtained from any institution providing mortgage lending for housing. It may happen, but mostly among relatives, otherwise it is highly unusual. Shark lenders do exist, but they are commonly regarded as being associated with criminal activities and avoided by all normal borrowers Anywhere between 10 and 25 years, but the bulk tends to be towards the lower end, as this is a young market that didn't get mature enough before the crisis Currently it is 6-7% in Euro and 9-11% in the national currency (RON) 4-5 years, but these are mostly small credits for refurbishment or extension Like item F8.2, but it can be up to 1.5% higher No reliable index exists yet, for mortgages -- or the whole real estate market, in fact. Large real estate brokers publish some price indicators occasionally, but they are regarded as distorted and / or manipulated 12

13 Housing Finance Regime 10/22/2013 F8.6 Are there other sources of funding for the housing sector? For example, this could include remittances, co-ops, savings clubs. Consult private construction company or home-builder. Remittances had played an important role, especially before the crisis, as many Romanian blue collars went to work abroad after 2002 (when EU visas were abolished) and most of the money sent home were invested in real estate. The trend has abated to some extent after 2009 due to the crisis. Other than that, various municipal subzidization schemes exist, going up to 100%, for thermal insulation of old units 13

14 Housing Subsidies Regime 10/22/2013 The Housing Subsidies Regime S 0.54 S1 Housing subsidies are an important share of the national government budget. 0.7 S1.1 S1.2 S1.3 Housing was one of the ten highest priorities in the platform of the national government. (Yes=1/No=0). 0 Please consult platform documents and policy papers of national government. Is there a ministry or department of housing in the national government (Yes=1/No=0) 1 Please consult national government. What is the housing budget as a percentage of the total national government budget in the last year? (0-100%) 0 100*(last year housing budget/last year total government budget). If more than one entity has budget for activities related to housing, enumerate in the housing budget. Please specify numbers used for calculation in the comments section. Hard to say, as there is no clear prioritization in the typical strategies of Romanian governments. With a declining population (aging, emigration), the housing issue is not so salient in Romania. This is part of the mandate of the Ministry of Regional Development & Tourism. A National Housing Agency (ANL) exists to implement a national scheme targeting young families and professionals in remote municipalities Around 0.06% in However this does not include the social subsidies associated with housing (income support, heating subsidy) which are substantial S1.4 S1.5 What is the estimated share of the housing budget at the national level that finances the production of completed housing units or housing improvements this year? (%) 87 What is the estimated share of the housing budget at the national level that was given in rent vouchers, direct demand subsidies (housing allowances, vouchers or subsidies for a down payment), interest-rate subsidies, grants given directly to beneficiaries or slum-upgrading in low income communities, this year? (%) 12 Consult budget office of the national agency that is concerned with housing, or published budget documents of the agency. Consult budget office of the national agency that is concerned with housing, or published budget documents of the agency. Please include details of each program in the subsidy worksheet. 87% in It is included in the sum above. This sum was used for (i) building new units in the ANL program; (ii) for thermal insulation of old Socialist condominiums; and (iii) for the "Green House" program - subsidies for replacing heating systems with new ones based on renewable energies Around 12%, mostly in the form of invstments in the social housing 14

15 Housing Subsidies Regime 10/22/2013 S1.6 What is the estimated share of the housing agency's budget dedicated to all forms of homeless assistance? (%) - Social assistance for the poor (including homeless people) is the attribution of local governments, who also select the individuals / families entitled to social housing, according to a set of national criteria adapted locally. However social housing is quite scarce; Consult budget office of the national agency most of the assistance to poor comes in the form of income concerned with housing, or published budget support, free meals and free shelter. Income support is national documents of the agency. 'Homeless people' policy financed through a grant and may range from less than 1% refers to persons without any shelter at all. If the to 5% of the local budget, depending on the situation. The rest of issue of homelessness is taken care of by in-kind assistance amounts in general to less than 1% of the another agency, please indicate in the budget. Social housing is more difficult to estimate because the comments. Please obtain budget of that agency stock is unevenly distributed, but quite limited; and on the other and its domain of operation (municipal, hand not all the people entitled to social housing are actually provincial, national). homeless What is the estimated share of the housing agency's budget dedicated to upgrading homes S1.7 and infrastructure in low-income communities? (%) 70 Housing subsidies are serving low-income S2 households. 0.5 Consult budget office of national housing agency, or published budget documents of the agency. Around 70% of the sum at the line S.1.3, in the form of (ii) thermal insulation of old Socialist condomiuniums; and (iii) the "Green House" program. However these beneficiaries are not necessarily from the lowest-income communities in Romania S2.1 Housing agency provides demand side subsidies such as housing vouchers to beneficiaries to rent or purchase housing. (Yes=1/No=0) 0.0 Please do not include subsidies given to producers for infrastructure upgrading in lowincome communities as "supply side" subsidies. Consult a person reliably familiar with the views of the housing agency leadership. If yes, please reference specific subsidies in the subsidy worksheet. Is eligibility and the value of demand side subsidies (housing allowances, vouchers or subsidies for a down payment) determined by income level of the resident? (Yes = 1/No=0 or 100 S2.2 if no demand side subsidies) 100 Consult both national and local housing agency. Are there other criteria to target demand side Consult both national and local housing agency. subsidies? (Yes=1/No=0, or 100 if no demand side If answer is yes, please indicate the criteria in S2.3 subsidies) 100 the comment section. The government engagement in public housing S3 is limited 0.3 No such scheme exists in Romania, apart from utility & heating support vounchers No such scheme exists in Romania, apart from utility & heating support vounchers No such scheme exists in Romania, apart from utility & heating support vounchers S3.1 Does the government subsidize the construction of new housing for low-income residents? (Yes=1/No=0) 0 Consult person in operations department of national housing agency or municipality. The ANL scheme. National Housing apartments constructed in Bucharest. 15

16 Housing Subsidies Regime 10/22/2013 The private sector is engaged in carrying out government funded housing programs. (Very engaged=5/not engaged=1, or 100 if no S3.2 government housing program) 3 The civic sector is engaged in carrying out government funded housing programs. (Very engaged=5/not engaged=1, or 100 if no S3.3 government housing programs) 1 Down-payment assistance is provided in S4 conjunction with mortgage lending. 0.5 S4.1 S4.2 Is the government providing up-front subsidies in the form of a partial or full payment of a down payment for a mortgage loan. (Yes=1/No=0) 0 Subsidies were given in association with microloans for housing improvement last year. (Yes=1/No=0) 1 Consult person in operations department of national housing agency. Consult person in operations department of national housing agency. Consult person in operations department of national housing agency. Also answer "No" if there is no available mortgage lending. Consult person in operations department of national housing agency. Also answer "No" if there is no available micro-lending. Simply as contractors of the National Housing Agency (ANL), in the program to build social housing. Some genuine public-private partnerships started to appear in , in which private developers were to be issued building permits with the condition attached to provide a certain number of units as social housing. However the crisis depressed the real estate market and stopped such initiatives. Not engaged in carrying out government-funded programs, but rather implementing small-scale assistance programs (in kind benefits) at the local level. No Yes, but only through the national program for insulating / retrofitting old Socialist condominiums, where the works must be done on the whole building, so the contract is made with the association of owners. The total value of the subsidy was about 33 mil euro nationwide in

17 Housing Subsidies Regime 10/22/2013 S5 Other assistance related to housing is provided. 0.3 Subsidies for costs associated with land titling were provided by the national or local government to incentivize residents to obtain a land title. S5.1 (Yes=1/No=0 or 100 if everyone has land title) 0 The government has a slum upgrading program providing infrastructure improvements in lowincome settlements. (Yes=1/No=0 or 100 if no S5.2 slums) 1 The government has a sites-and-services program. S5.3 (Yes=1/No=0) 0 There are tax incentives for homeownership S6 and rental 0.5 Consult budget office of national housing agency or municipality, or published budget documents of the agency. No A national program for equipping with basic infrastucture exists, Consult budget office of national or municipal targeting around 120 Roma communities in rural villages. This is housing agency, or published budget documents a joint program with the World Bank, financing small projects up to of the agency. around euro each Consult budget office of municipal and national There is no "program" as such, but a general obligation by law housing agency, or published budget documents that local governments equip the buildable land on their territory of the agency. "Sites-and-services" refers to the with the necessary services. How the law is implemented with practice of providing serviced plots of land for limited budgets (how are the plots prioritized) has always been a redevelopment. discussion Are there tax deductions for constructing S6.1 affordable rental housing? (Yes=1, No=0) 0 Can mortgage interest payments be deducted from income tax calculation? (Yes=1/No=0 or 100 if not S6.2 applicable) 0 If so, is there a ceiling on the amount of mortgage interest that can be deducted? (Yes=1/No=0 or S if not applicable) 100 The housing subsidy system is transparent S7 and well-understood. 1.0 Does the government provide insurance for mortgages issued by the private sector at preferential rates? (Yes=1/No=0 or 100 if not S7.1 applicable) 0 S7.2 S7.3 S7.4 The estimated amount of tax exemptions to homeowners is documented and publicly available. (Yes=1/No=0 or 100 if not applicable) 0 If there is a government housing bank providing mortgages at below market rates, is this implicit subsidy being documented and made publicly available. (Yes=1/No=0 or 100 if not applicable) 100 The estimated amount of mortgage loans given by public agencies that are in default is known and published. (Yes=1/No=0 or 100 if not applicable) 100 Please consult a builder or developer engaged in the construction of affordable rental housing. Consult certified public accountant or lawyer familiar with tax law. Consult certified public accountant or lawyer familiar with tax law. Consult a person familiar with mortgage insurance. Consult budget office of national housing agency or published budget documents of the agency. Consult people working in the government housing bank. Consult budget office of national housing agency, or published budget documents of the agency. No No No No, there is no such scheme No, no such estimate exists There is no government housing bank, the banks are private companies. The only thing that exists is the credit guarantee scheme "First House", see F4.5 Not applicable 17

18 10/22/2013 SUBSIDY WORKSHEETS Please complete one worksheet per subsidy offered after consulting both national and local housing agencies, and others familiar with available housing subsidies. Subsidy Worksheet # 1 Subsidy Worksheet # 2 Subsidy Worksheet # 3 Name of Subsidy Heating subsidy Name of Subsidy The First House Name of Subsidy The Green House Supply-side Subsidy Demand-side Subsidy Other Supply-side Subsidy Demand-side Subsidy Other Supply-side Subsidy Demand-side Subsidy Other Date subsidy began (month/year) 1990 Date subsidy began (month/year) 2009 Date subsidy began (month/year) 2010 Please describe the subsidy in the space below Please describe the subsidy in the space below Please describe the subsidy in the space below Subsidizing residential heating is a policy inherited from the Communist State credit guarantees for young clients who buy a house for the first Subsidies for replacing old heating systems in residential buildings with regime, but the instruments / targeting have changed over time. In time, under certain conditions: ceiling on the purchase value, size and new ones, based on renewable energies. The subsidy is capped at: (i) general the price subsidy paid to suppliers was reduced and the type of housing. The commercial banks which want to take part in the 1400 euro for installing solar panels of biomass systems; (ii) 1800 euro targeted subsidy to home owners increased. In 2011 the total amount of scheme have to notify in advance the government. There are 3 ceilings for installing heating pumps. the subsidy (combined national + local) was around 155 mil euro and for the credit value ( euro) depending is the purchased there were about beneficiaries. The amount / beneficiary varies house is partly finished / new / or at least 2 beneficiaries form an according to : social situation of family / type of heating system association. Subsidy Targeting Subsidy Targeting Subsidy Targeting home-ownership rental housing What criteria is used to determine eligibility for the subsidy? (For example, is it based on income, household size, assets, etc) Family income and stock of potentially revenue-generating assets, as determined by the social evaluation of local inspectors home-ownership What criteria is used to determine eligibility for the subsidy? (For example, is it based on income, household size, assets, etc) First home ownership rental housing home-ownership rental housing What criteria is used to determine eligibility for the subsidy? (For example, is it based on income, household size, assets, etc) Only for physical persons with no overdue obligations to the state and local budgets What income group does the subsidy target? below 160/euro/capWhat income group does the subsidy target? no restrictions What income group does the subsidy target? no restriction How many households benefit from this subsidy? How many households benefit from this subsidy? guarantees How many households benefit from this subsidy? What is the typical household expenditure on housing for the targeted income group? (provide answer in local currency, indicate whether per month, year, or other) Around 100 euro / month, but it varies from one citiy to another What is the typical household expenditure on housing for the targeted income group? (provide answer in local currency, indicate whether per month, year, or other) Impossible to determine; the average for the typical households with district heating is about 100 euro/month What is the typical household expenditure on housing for the targeted income group? (provide answer in local currency, indicate whether per month, year, or other) Impossible to determine; the average for the typical households with district heating is about 100 euro/month Subsidy Administration Subsidy Administration Subsidy Administration Who administers the subsidy program? Who administers the subsidy program? Who administers the subsidy program? The local governments The central government and commercial banks enrolled in the program The National Environment Fund (part of the Ministry of Environment) Who provides funding for the subsidy program? Who provides funding for the subsidy program? Who provides funding for the subsidy program? Central government + local budgets There is a central guarantee fund which is a liability for the national The National Environment Fund (part of the Ministry of Environment) budget What is the total budget for the subsidy program? What is the total budget for the subsidy program? What is the total budget for the subsidy program? Around 155 mil euro in 2011 The total value of guarantees was 1.5 billion euro in mil euro in 2011 What is the cost of the subsidy per household? What is the cost of the subsidy per household? What is the cost of the subsidy per household? Around 100euro/month, which includes the general producer (price) The average credit which is covered by the program is around Around euro, depending on the type of project subsidy euro Is information about the cost and # of beneficiaries publicly available? Is information about the cost and # of beneficiaries publicly available? Is information about the cost and # of beneficiaries publicly available? 18