Coping with Berlin’s Housing

Challenge:

New Strategies and Policies

29th November 2013

Dirk Böttcher

Senate Department for Urban Development

and the Environment /

Housing Coordination Centre

| |

Berlin – A Growing City, Housing in Berlin

Housing in Berlin Strategy | Outline

Outline

1. Starting Point

2. City Development Plan Living 2025

3. Housing in Berlin Strategy

3.1 Housing Policy Partners

3.2 Portfolio Policy

3.3 Reframing Property Policy

3.4 New Building Policy

3.5 Dialogue with Urban Society

3.6 Integrated Neighbourhood Development

4. Conclusion

Housing in Berlin Strategy | 1. Starting point

+ 254,000

people

(growth 2011-2030)

Population Trends up to 2030

Demographic development in Berlin 1991 – 2030

Development in real terms up to 2011, three variant prognoses after 2012

An extra 254,000 people by 2030

Housing in Berlin Strategy| 1. Starting Point

Housing in Berlin Strategy| 1. Starting Point

5.54 Euro

(+ 3.1 % per year)

2013

Increased Pressure on the Housing Market

Development of Rents 2000 – 2013 (Rental Index)

Urban Development Plan Housing 2025

Academic basis, definition of spatial housing policy, aims and guidelines

• Part of an integrated urban development

policy

• Basis for planning new building and

developing existing properties to 2025

• Spatial aspects of housing policy models,

aims, tools and measures

Housing in Berlin Strategy| 2. UDP Housing 2025

Need for New Building by 2025

137,000 new homes needed 10,000 homes per year

Housing in Berlin Strategy| 2. UDP Housing 2025

Logging Potential Land Area Homes

Potential land in areas ≥ 1 ha, “land monitoring”* 101,000

Potential land in the “Inner City Master Plan” ** 13,800

Potential land in gaps between city centre buildings

“infill management” (IFM) 6,100

Potential for increasing density in the suburbs

(calculated on the basis of “floor area ratio”

difference)***

100,000

Total 220,900

* Continual land area logging via “land monitoring” ** Potential land in the “Inner City Master Plan” excl. area in “land monitoring” *** Calculated on the basis of difference betw. current FAR and theoretically poss. FAR, 50%.

Determining Potential Land

Housing in Berlin Strategy| 2. UDP Housing 2025

Housing Policy Partners

• Senate Department

• Liegenschaftsfond (state-owned company)

• District offices in the 12 districts

• State-owned housing associations

• Housing co-operatives

• Owner-occupier construction groups & joint building ventures, co-housing

• Community projects geared towards rented housing

• Studentenwerk (Students’ Union), and others

• Local, regional, national housing associations

• Independent housing industry, private developers, organisations

By acting together we can safeguard existing homes and

build new affordable housing

Housing in Berlin Strategy| 3.1 Housing Policy Partners

Housing Coordination Centre

Promoting new house building by capitalising on land, speeding up procedures

Housing in Berlin Strategy| 3.1 Housing Policy Partners

State Secretary

Ephraim Gothe

Grit Schade Dirk Böttcher

Portfolio Policy

• Stock of just under 1.9M homes: 86% rented accommodation

• 6 municipal housing associations with c. 285,000 homes (c. 15% of rented property): degewo, GEWOBAG, HOWOGE, STADT UND LAND, GESOBAU and WBM

• c. 80 housing cooperatives with c. 186,000 homes (c. 11% of rented property)

• Joint building ventures and housing projects

• Key partners for social housing and urban development

Berlin is a city of tenants

Housing in Berlin Strategy| 3.2 Portfolio Policy

Damping rent increases

• Alliance for social housing policy and affordable rents with city housing associations

• Activating controlled tenancies in social housing construction

• Capping

• Extending protection against dismissal for owners’ need

Next steps

• Misappropriation act

Portfolio Policy

Housing in Berlin Strategy| 3.2 Portfolio Policy

Expanding the Portfolio of the 6 City Housing Associations

Purchases by the city housing associations since autumn 2011 (As at: 07/13)

Housing in Berlin Strategy| 3.2 Portfolio Policy

Reframing Property Policy

Housing in Berlin Strategy| 3.3 Property Policy

Awarding state-owned properties:

Direct awards to city housing associations • Intrinsic value deposit • Acquisition at market value

Prerequisites: convincing ideas for use, socially responsible rents

Concept-based process not selling to highest bidder Evaluation:

• c. 30% purchase price • c. 70% urban development policy criteria

Aims incl. functional and social diversity

Building long-term, strategic portfolio management

New Building Policy

• New building by city housing associations

• Planning permission for 380 student flats

• New building competition for cooperatives

Next steps

• Accelerate building regulatory procedures

• Housing subsidy programme

• Living space information system

• “Alliance for New House Building” with associations

Housing in Berlin Strategy| 3.4 New Building Policy

New Building by City Housing Associations

Balanced social mix, socially responsible rents

Housing in Berlin Strategy| 3.4 New Building Policy

2012 New Building Competition for Cooperatives

Creating contemporary and affordable accommodation

Housing in Berlin Strategy| 3.4 New Building Policy

Revolving Building Fund

Housing figures: funding for 1,000 homes per year

Funding: Promoting social housing (WoFG) with agreed rent and controlled tenancy.

Entitlement: up to 120 or 140% of the income limit under section 9, para. 2 WoFG

Rent: income dependent, rents of 6.00 – 7.50 EUR/m²

Rent increases: every 2 years 0.20 EUR/m²

Form of financing: building loan and income-dependent subsidies

Commitment period: 20 years + 10 years effective time limit

Promoting Social Housing in the State of Berlin after 2014

Housing in Berlin Strategy| 3.4 New Building Policy

Accelerating Building Regulatory Procedures

• Alliance with district authorities

• Notified bonus payment of €500/approved home

• Increased staff capacity in district building authorities, announced as up to 6 people per district office

• Offer to districts – creating development plans for house building

• Increased staff capacity at the Senate Department for Urban Development and the Environment

Housing in Berlin Strategy| 3.4 New Building Policy

Urban Development Contracts

• Precondition: lacking / insufficient planning law

• Concluding urban development contracts as part of urban land use

planning, absorbing planning-related increases in land value (1/3 remains

with the investor / owner)

• Regulates involvement of investors in costs arising from developing

building land:

Necessary development

Building proposals create need for social infrastructure

Proportional to construction of affordable housing

Designing open spaces, …

• Model contract for districts

Involving investors in infrastructure costs, creating affordable living spaces

Housing in Berlin Strategy| 3.4 New Building Policy

Dialogue with Urban Society

Multi-level communication

- Information events - Workshops for residents - Expert group, advisory group - Housing Coordination Centre as

point of contact for all involved - Events / conferences - Press and media relations

Next steps

- Living space information system - “Housing Forum” – dialogue with key housing market players - Conversations with residents, groups etc.

Housing in Berlin Strategy| 3.5 Dialogue with Urban Society

Handling Land Use Conflicts

• District offices are key partners

Culture of good cooperation

• Participation needs to be on a local level

• Funding programme helps gain

acceptance for raising proportion of

affordable housing

• Promoting social and functional

diversity in areas of new building

Housing in Berlin Strategy| 3.5 Dialogue with Urban Society

Balancing Construction and the Environment

Goals: By continuing to develop our compact, urban, liveable city, Berlin can combine economical land use with environmentally friendly and socially responsible density. Measures: Additional residential space can be complemented by simultaneously developing new parks and open spaces to guarantee and improve quality of housing supply and quality of life in the long term.

Housing in Berlin Strategy| 3.6 Integrated Neighbourhood Development

Integrated Neighbourhood Development

Targeted upgrading of the residential environment

Housing in Berlin Strategy| 3.6 Integrated Neighbourhood Development

31

Summary

Living in Berlin Strategy –

Keeping Berlin what it is:

a liveable, forward-looking city and a

good place to live!

Housing in Berlin Strategy| 5. Summary

32

Thank you for your attention!

http://www.stadtentwicklung.berlin.de/index_en.

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