The Urban Dimensionin Hungarian Operational Plans

- an overview

QeC-ERAN conferencePrague, 18-19 March 2009

Content

• Framework, urban dimension in the regional operational programmes

• Types of rehabilitation: social urban regeneration

• Manual on Urban Development, Integrated Urban Development Strategy

System of development documents

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National Development Policy Concept (NDPC)Overall objectives - 2020

New Hungary Development Plan(National Strategic

Reference Framework)2007-2013

ERDF + ESF + CF

Regional Operational

Programmes (7)ERDF

Sectoral Operational

Programmes (8)ESF + CF

EU strategies and policies

Other national strategies and

policies

National Development Programmes

New Hungary Rural Development Strategic

Plan2007-2013

EAFRD + EAGF + EFF

New Hungary Rural Development Programme

EAFRD + EAGF + EFF

PoPo

Po

St St

Po

St St St St

EU FundsEU Funds

National Development Plan (NDP) I. 2004-2006: 2.9 billion euro

New Hungary Development Plan - National Strategic Reference Framework (NHDP) 2007-2013: 22,4 billion euro (approx. HUF 7000 billion) NDP II: 1/3 Cohesion Fund + 2/3 Structural Funds Structural Funds: 78% ERDF + 22% ESF

ERDF: 50% regional + 50 % sectoral 15 % national co-financing + European Agricultural and Rural Development Fund (3.8

billion euro at current prices) + European Fisheries Fund (34. 3 million euro)

Operational programmes Fund

Total(at current

prices, euro) Ratio

Economic Development OP (GOP) ERDF 2 495 769 115 10,17%

Transport OP (KÖZOP) CA+ERDF 6 223 429 149 25,35%

Environment and Energy OP (KEOP) CA+ERDF 4 178 846 341 17,02%

Social Renewal OP (TAMOP) ESF 3 482 518 044 14,19%

Social Infrastructure OP (TIOP) ERDF 1 948 922 941 7,94%

State Reform OP (ÁROP) ESF 146 570 507 0,60%

Electronic Public Administration OP (EKOP) ERDF 358 445 113 1,46%

RegionalOPs

Western Transdanubia OP

ERDF

463 752 893 1,89%

Central Transdanubia OP 507 919 836 2,07%

South Transdanubia OP 705 136 988 2,87%

South Great Plain OP 748 714 608 3,05%

North Great Plain OP 975 070 186 3,97%

North HUngary OP 903 723 589 3,68%

Central Hungary OP 1 467 196 353 5,98%

Implementation OP (VOP) CA 315 132 937 1,28%

NHDP Total   24 547 728 765 100,00%

Indicative financial allocation plan of operational programmes

Decentralization and regionalismDecentralization and regionalism 7 regional operational programmes (ROP) between

2007-2013 – regional specific elements 7 ROPs under convergence objective, 1 ROP under the

regional competitiveness and employment objective (Central Hungary)

Role of the regions has been strengthened: proposals participation in programming participation in assessment and decision

Development policy and the portfolio of regional development belong to the same ministry (Ministry for National Development and Economy)

Urban dimension within the ROP

ROPs

Indicative allocation of funds (m euro)

Financial ratio of urban

development within the ROP

Funds for urban and settlement

development for 7 years

Funds for regions for 7 years (based on the

NHDP) (including 15% co-financing)

South Great Plain ROP 108,27 861,03 12,57%

South Transdanubia ROP (together with the ECC) 189,23 810,92

23,34%

North Great Plain ROP 149,45 1121,33 13,33%

North Hungary ROP 202,95 1039,30 19,53%

Central Transdanubia ROP 85,46 584,10 14,63%

Central Hungary ROP 252,77 1687,27 14,98%

West Transdanubia ROP 77,49 533,32 14,53%

Total 1065,61 6637,27 16,05%

  Source: ROP action plans Source: NHDP

Urban development interventions in the ROPs

Objective → solving concentrated social-economic problems in an integrated and sustainable way

Types:• Social urban regeneration of deteriorated urban areas

aim: improving the quality of life and chances of the local disadvantaged population, decreasing segregation

• Function-enhancing urban rehabilitation – extension/reinforcement of the functions of city centres or sub-centres aim: ensuring quality environment for the population and businesses; extending efficient urban functions, public services;renewal of economic activities

• Small—scale („spot-like”) urban rehabilitation projects – aim: solving of a specific problem, does not require an integrated approach

Integrated social rehabilitation

• Social: targeting economically and socially deteriorated urban areas

• Integrated: using various set of tools, cross-sectoral approach to a complex problem

• Aim: improving the quality of life and chances of the local disadvantaged population, decreasing segregation on the action area

• Wide-range international experiences: URBAN program

Socially sensitive renewal - features• It is implemented at delimited action areas according to a set of

criteria(3 criteria)• Aim of the intervention: decreasing segregation (anti-segregation

plan)• Target areas:

housing estates constructed by industrial technology; traditionally built declining city districts including colonies inhabited by

Roma population• Means:

– Physical interventions: renovation of common parts of condominiums, rehabilitation of buildings owned by local governments, rehabilitation of public space

– Social-type interventions (ESF): community development, social work, programmes for employment, education and training, support for local SMSs

Eligibility criteria and indicators

• Areas over 1000 population (except for Roma estates: areas over 150-250 residents)

• The share of units demolished or built since 2001 cannot exceed the 20% of the current housing stock

• Indicators: Census 2001, and municipal data• Difficulties: lack of data for a specific area of the city

(target area, defined by the bordering streets)• Most of the indicators are from the Census 2001 –

critics: these data are too old• Separate indicators for the housing estates and for the

old urban areas

Indicators 1.Traditional urban areas

Housing estates

Low education level

Share of maximum elementary school education among the active aged (15-59) people higher than

(28%)

30%

20%

The share of people with university/college diploma among people over 24 year old lower than

(8%)

10%

14%

Low economic activity

People with low prestige job among the employed population

30% 28%

Share of inactive people 65% 60%

High unemployment

Share of long-term unemployed higher than 3-7% 2-6.5%

Share of unemployed higher than 9-14% 7-14%

Indicators 2.Traditional urban areas

Housing estates

High level of poverty and exclusion

Share of those active aged people whose income was only social benefits higher than

9-15% 7-13%

Share of housing units owned by the municipality higher than

10%

(20%)

8%

Distributed municipal social allowances by housing units higher than

the city average by 1.5 times

the city average by 1.3 times

Share of cars 3 year- old or younger is maximum

60% compared to the number of housing units

65% compared to the number of housing units

Indicators 3.Traditional urban areas

Housing estates

Deteriorated environment

Share of substandard housing units higher than 25% -

Share of one-room units higher than 20%, 30% -

Share of units located in buildings over 5 floors is higher than Only in cities with population more than 50 thousand people

- 60%

Share of units located in buildings with more than 40 units is higher than Only in cities with population less than 50 thousand people

- 50%

Low level of energy efficiency of the buildings

Share of units located in buildings built before 1983 is higher than

- (70%)

50%

Calls for applications

1. No tender for projects of strategic importance - for cities of county rank, (submission is continous; one social rehabilitation project is necessary; IUDP needed; urban development company is compulsory)

2. Two-round call process- for cities with inhabitants of 6-8 thousand (opened in February 2008 (first round); assessment till January 2009; project development in the second round; subsidy contract till the end of 2009)

3. One-step call – for small towns less than 6 thousand people (small budget, spot-like; decisions already taken; no IUDP needed)

Manual on Urban Renewal• Methodological support for cities in elaborating their

integrated development strategies and action plans, also a guide for applying successfully for the calls, October 2007

• Valuable information in a unified framework, valid nation-wide

• Supplement the guides for applications (ROP), but does not substitute them

• Objective: change of approach – integrated view• Common learning process, continous evolution of

requirements (partnership) • → revision of the Manual after gaining experience

Manual on Urban Renewal

Breakthrough in Hungarian urban planning– Integrated approach, not only physical/technical – A step toward proactive urban development led by

municipalities – Forming the hierarchy of urban plans,– Encouraging municipalities to establish professional

urban management companies– Manual includes: integrated urban development

strategy; action area plan; urban development company

Integrated Urban Development Strategy (IUDS)

• Policy requirement for all cities having a complex structure• Proposal of the European Union, requirement for social

urban rehabilitation→ calls for proposals of ROP 2007-2013 - necessary for cities of county rank and for larger cities

• Medium term (7-8 years), strategic document, oriented to implementation

• Long-term goals and medium-term programmes• Necessary to revise it in every 2-3 years • To be discussed and approved by a resolution of the body

of representatives of the municipalities for ensuring legitimacy

1. Analysis (structure of the city, economy, society, environment of the settlement, public services, experience gained in respect of the developments of the previous period)

2. Strategy• The vision of the city• Development objectivs for the city and city districts• Interventions- designation of action areas• Sustainability aspects (environment, anti-segregation programme)• External and internal correlation of the strategy• Major risks in implementing the strategy3. Implementation tools• Municipal activities of non-investment nature serving the achievement of the

objective• Organisational requirements related to the implementation (company)• Mechanism for inter-settlement coordination• Elaboration of th ereal estate management concept• Partnership and monitoring

Chapters of the IUDP

Anti-segregation plan

Status assessment (included in the IUDS):• Delimitation of segregates and areas threatened by

segregation (indicator)• Status assessment of the delimited areas• Assessment of the segregational impacts of envisaged

developments and individual sectoral policiesAnti-segregation programmes (interventions)• Defines a vision for the degraded areas whether it will be

eliminated or will be integrated into the urban fabric by way of rehabilitation, determines the main directions of interventions

• Objectives: decreasing the degree of segregation and no increase of areas somewhere else as a result of intervention

• Complex system of tools: housing, education, social care, health care (soft programmes)

• Mobilisation programme: elaboration of guidelines

Revision of the Manual - January 2009• Experiences gained in 2007-2008 – no major change is

required, but improvements• 157 cities prepared Integrated Urban Development Strategy• There are needs for:

– Clarification, exhange of experience– Defining the role of the IUDS (not only a tool for the calls but

it is a general document serving urban development; but also defining it within the hierarhy of urban plans -legal legitimacy!)

• More emphasis on sustainability (environmental and social); on the role of the municipalities as initiators; on attracting different financial resources including private capital; on integrating sectoral and territorial strategies.

• Road show, worskshops to explain content in 2009 (eg. urban development company)

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Dél-Dunántúl Dél-Alföld Észak-Alföld Észak-Magyarország

Közép-Magyarország

Közép-Dunántúl

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Keretösszeg Igényelt támogatás Megítélt támogatás

Distribution of funds for social rehabilitation by regions

Source: National Development Agency

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Keretösszeg Igényelt támogatás

Distribution of funds for function-enhancing rehabilitation by regions

Source: National Development Agency

Experience as regards social rehabilitation

• Renewal of infrastructures and of institutions dominating• Low-scale housing component• Weakness of „soft” elements although they are

indispensable for the success of social rehabilitation• There is no real partnership with the inhabitants• The organisational background of implementation shoul

dbe strengthened- especially regarding the soft elements• Elaboration of programme is time consuming• Unflexible national and EU rules concerning housing –

view for post-2013 (renting, building social houses-roma)

Thank you for your attention!

Andrea IvánDepartment of Regional Development

Ministry for National Development and Economy

E-mail: ivan.andrea@nfgm.gov.hu