Project „Par Project „Partici ticipat pative ive Hous Housing ing Refo Reforms rms – inc increas reasing ing citi citizens zens´´ par partici ticipati pation on in loca locall housin hou sing g ref reforms orms’’ imp impleme lementat ntation ion thr throug ough h stre strengt ngthen hening ing the their ir cap capacit acities, ies, impr improvin oving g access acc ess to info informat rmation ion and fac facilit ilitatin ating g dial dialogu ogue e with loca locall auth authorit orities” ies”
Analysis of the Housing Market in Belarus: Stak Stakeh ehol olde ders rs’’ Role Role and and Conc Concer erns ns
Prepared within the framework of the Analytical Project Phase by the International Founda Foundati tion on “Livin “Living g Partne Partnersh rship” ip” with with contr contribu ibutio tion n of all all proje project ct partn partners ers
August August 2009 2009
T he he P ro ro je je ct ct i s c oo- fi fi na na nc nc ed ed b y t he he E ur ur op op ea ea n U ni ni on on
ANALY ANALYSIS SIS OF THE HOUSIN HOUSING G MARKE MARKET T IN BELARU BELARUS: S: STAKEH STAKEHOLD OLDER ERS’ S’ ROLE ROLE AND CONCER CONCERNS NS
Tabl Table e of Cont Conten entt
1.
Relevance of the study of actors’ roles and concerns in housing and utility relation relationship shipss
3
2.
Methodology of the analysis
3
3.
Description of the subject under analysis
4
4.
Results of the SWOT analysis
5
5.
Summary o off tth he SW SWOT an analysis an and ex expert re reviews
11
6.
Conclusions and suggestions
13
PARTICIPATIVE HOUSING REFORMS
2
ANALY ANALYSIS SIS OF THE HOUSIN HOUSING G MARKE MARKET T IN BELARU BELARUS: S: STAKEH STAKEHOLD OLDER ERS’ S’ ROLE ROLE AND CONCER CONCERNS NS
1. Relevance of the study of actors’ roles and concerns in housing and utility relationships Stud Studyi ying ng of the the role roless and and conc concer erns ns of the the hous housin ing g mark market et acto actors rs (wit (with h resp respec ectt to its its oper operat atio ion n and develo developme pment) nt) is essent essential ial for creati creating ng of approp appropria riate te organi organizat zation ional al and legal legal envir environm onment ent that that woul would d secu secure re cond condit itio ions ns for for effe effect ctiv ive e deve develo lopm pmen entt of the the hous housin ing g and and util utilit ity y sphe sphere ress both both at the the nati nation onal al leve levell and and in its its indi indivi vidu dual al regi region onss or smal smalle lerr loca locall comm commun unit itie ies. s.
The The anal nalysi ysis of part partiicipa cipant ntss in housing and and uti utility ity relati ationshi nship ps enabl nablees to reveal eal incr increa easse points of progressive progressive initiatives, initiatives, occurrence and conditions conditions for initiative initiative mechanism mechanism in hou housing maintenance nce and and util tiliti ities. es. At the same time, it is impor portant ant to identify the kee keenest nest problems problems hampering hampering developm developm ent of balanced relationships relationships among market actors. This info inform rmat atio ion n can can be used used for for a stra strate tegy gy and and tech techni niqu que e elab elabor orat atio ion n to sol solve curr curren entt prob proble lems ms,, ident identify ifying ing conseq consequen uence ce and specif specific ic forms forms of action actionss for for this this purpos purpose. e. This This issu issue e is insu insuff ffic icie ient ntly ly rese resear arch ched ed in the the Repub epubli lic c of Bela Belaru russ nowa nowada days ys.. The The anal analys ysis is is main mainly ly limi limite ted d to inte interp rpre reta tati tion on of some some stat statis isti tics cs (for (for inst instan ance ce,, quan quanti tity ty and and stru struct ctur ure e of the the housing stock). The reviews of the state and development dynamics of various forms of hou housing and mainte ntenance comp ompanies nies and organi ganizzations ons are the clos closes estt ones nes to the the subj subjec ectt consi conside dere red. d. Rese Resear arch cher erss paid paid atte attent ntio ion n also also to instit instituti utiona onall (legal (legal and organi organizat zation ional) al) as well well as to fina financ ncia iall and and econ econom omic ic aspe aspect ctss of this this prob proble lem m to some some exte extent nt.. Howe Howeve ver, r, soci social al and and beha behavi viou oura rall aspe aspect ctss of the the prob proble lem m rema remain ined ed out out of rese resear arch cher ers’ s’ sigh sightt nam namely ely such such impo import rtan antt anal analys ysis is aspe aspect ctss as how how hous housin ing g mark market et acto actors rs perc percei eive ve the the situ situat atio ion n existing, and, consequently, their benchmarks to the choice of preferable development scen scenar ario ioss and and solu soluti tion onss for for prob proble lems ms occu occurr rrin ing. g. This This circ circum umst stan ance ce did did not not allow llow taki taking ng into into account in full a number of important conditions playing an essential role in such an “ideo “ideolo logi gize zed” d” sphe sphere re as hous housin ing g maint maintena enance nce and and utili utiliti ties. es. Thus, Thus, promot promotio ion n of parti particip cipat ation ion,, development of a dialogue and partnership based on the principles of transparency and and awareness of the partners’ positions revealing of which is a constituent element of this his analysis. 2. Meth Method odol olog ogy y of the the anal analys ysis is
The The condi ondittions ons ment entioned above ove have defined ned the the choic oice of such uch tool ools for this anal nalysis as 1 expert expert poll, poll, brains brainstor tormin ming g and SWOT SWOT analys analysis is that that prov proved ed to be effi effici cien entt in stud studyi ying ng of loca locall comm commun unit itie ies’ s’ deve develo lopm pmen ent. t. The The poll poll and and SW SWOT OT anal analys ysis is invo involv lved ed repr repres esen enta tati tive vess of publi public c and privat private e organi organizat zation ions, s, co-oper co-operati atives ves,, condomi condominium niums. s. When When the summar summary y SWOT SWOT analys analysis is docum document ent was was elabo elabora rated ted the proces processs involv involved ed 20 expert experts. s. The quest question ionnai naire re form form submi submitt tted ed by respondents respondents is presented bellow.
1
SWOT analys analysis is is an analysis method appli plied as a rule rule in the form of gro group work or unit unitin ing g the the resu resullts of indi indivi vidu dual al work work into into one one summ summar ary y docu docume ment nt.. The The SW SWOT OT abbr abbrev evia iati tion on owes owes its its name name to four four Engl Englis ish h word words: s: streng strength, th, weakne weakness, ss, opport opportuni unitie tiess and threat threats. s. Thes These e very very attrib attribute utess of the subj subjec ectt or phen phenom omen enon on anal analyz yzed ed are fixed fixed and and eval evalua uate ted d in the the proc proces esss of the the SW SWOT OT anal analysi ysis. s.
PARTICIPATIVE HOUSING REFORMS
3
ANALY ANALYSIS SIS OF THE HOUSIN HOUSING G MARKE MARKET T IN BELARU BELARUS: S: STAKEH STAKEHOLD OLDER ERS’ S’ ROLE ROLE AND CONCER CONCERNS NS
SWO SWOT anal analys ysis is of th the e hous housin ing g mark market et acto actors rs (the (the tabl table e is to be fill filled ed in by the the proj projec ectt part partic icip ipan ants ts,, expe expert rtss as well well as othe other r repr repres esen enta tati tive vess of loca locall comm commun unit ity y – as far far as poss possib ible le,, expe expert rt leve level) l) Strengths Weaknesses
Opportunities
Threats
Note: the table is to be filled in separately for the following types of companies and organizations: organizations: 1. Public housing housing maintenance maintenance and utility utility companies companies 2. Private housing housing maintenance maintenance and utility utility companies companies 3. Condomi Condominiu niums ms 3. Desc Descri ript ptio ion n of the the subj subjec ectt un unde der r anal analys ysis is
The pres presen entt stru struct ctur ure e of subj subjec ects ts servi serving ng housi housing ng stock stock is chara charact cter eriz ized ed by the the foll follow owin ing g data data in Bela Belaru russ (see (see the the diag diagra ram) m).. At the the same same time time,, ther there e are are diff differ eren ence cess betw betwee een n the the regi region onss and and the city of Minsk; however, they are not not so important for the purpose of this analysis. It is typi typica call that that abou aboutt 50% 50% hous housin ing g stoc stock k is main mainta tain ined ed by indi indivi vidu dual alss them themse selv lves es (the (they y are, are, as a rul rule, owner wnerss of singl ngle-f e-fami amily hou houses ses) and over over 30% 30% hous ousing stoc stock k is maint aintaained by publ public ic housing housing maintena maintenance nce and utility utility organiza organization tions. s. Housing stock stock maintenance (Grod (Grodnenska nenska oblast oblast,, 2008) 2008) Private Private housing maintenance maintenance Other c ompanies and
organizations;
organizations;
2,6%
10,5%
Public housing mainte maintenance nance organizations; Natural perso ns thems elves ;
33,2%
49,4% Condominiums, Condominiums, housing associations; 4,3%
Abou Aboutt 10% 10% hous housin ing g is the the so call called ed serv servic ice e hous housin ing g stoc stock k and and only only 7% hous housin ing g is main mainta tain ined ed by non-state organizations, organizations, including condominiums, condominiums, housing associations associations and private housing maintenance maintenance organizations. organizations. Such Such pict pictur ure e show showss subs substa tant ntia iall grow growth th pote potent ntia iall of the the hous housin ing g segm segmen entt main mainta tain ined ed by nonnongove govern rnme ment ntal al orga organi niza zati tion onss of diff differ eren entt type types. s. Such Such grow growth th is caus caused ed by redu reduce ce of the the hous housin ing g share share mainta maintaine ined d by public public organi organizat zation ionss and natura naturall person personss themse themselve lves. s. Taking Taking into into accoun accountt this tendency relevant for the most countries of the world economically developed is impo import rtan antt to defi define ne stat state e poli policy cy in this this sphe sphere re.. Thus Thus,, it is poss possib ible le to avoi avoid d unre unreas ason onab able le stat state e cost costss in this this sphe sphere re..
PARTICIPA PARTICIPATIVE TIVE HOUSING HOUSING REFORMS REFORMS
4
ANALY ANALYSIS SIS OF THE HOUSIN HOUSING G MARKE MARKET T IN BELARU BELARUS: S: STAKEH STAKEHOLD OLDER ERS’ S’ ROLE ROLE AND CONCER CONCERNS NS
4. Resu Result ltss of the the SWOT SWOT anal analys ysis is Tabl Table e 1 SWOT SWOT anal analys ysis is Public Public housing housing maintenanc maintenancee organizatio organizations ns Strengths
1.
2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
12.
Stat State e supp support ort (subsi (subsidi dies es and and gran grants) ts),, suppo support rt with within in enfor enforce ceme ment nt proce proceed edin ings gs.. Prom Prompt pt prob proble lem m solv solvin ing g due due to the the line line of comm comman and d and and appl applyi ying ng of administrat administrative ive methods methods Avai Availa labi bili lity ty of emer emerge genc ncy y repai repairr reser reserve ve (+ expe expens nsiv ive e equi equipm pmen ent) t) Loya Loyalt lty y of auth author orit itie iess and and thei theirr inte intere rest st in good good imag image e Cont Contro roll llab abil ilit ity y Lack Lack of real real comp compet etit itio ion n from from the the part part of priv privat ate e main mainte tena nanc nce e comp compan anie iess Abil Abilit ity y to cent central rally ly allo alloca cate te subst substan anti tial al finan financi cial al fund fundss for for impro improve veme ment nts, s, const constru ructi ction on of play playgro groun unds ds,, capit capital al repai repairs rs Avai Availa labi bili lity ty of suff suffic icie ient nt skil skille led d staf stafff Big comp compan any y can can serv serve e more ore clie client ntss Low Low paym paymen entt leve levell for for tech techni nica call main mainte tena nanc nce e Paym Paymen entt cent centre ress of hous housin ing g main mainte tena nanc nce e depa departm rtmen entt Cons Consum umer erss of the the hous housin ing g main mainte tena nanc nce e and and util utilit ity y depa depart rtme ment nt do not not asso associ ciat ate e thei theirr oper operat atio ion n with with any any pers person on,, and and if ther there e is a conf confli lict ct it occu occurs rs at the the leve levell of cons consum umer er – hous housin ing g main mainte tena nanc nce e serv servic ice e and and not not at the the leve levell – chie chieff of the the housing housing maintenanc maintenancee service service Psyc Psycho holo logi gica call depe depend nden ence ce of the the majo majori rity ty of popu popula lati tion on
PARTICIPA PARTICIPATIVE TIVE HOUSING HOUSING REFORMS REFORMS
Number Number of matches matches within within responses responses
6 2
5
ANALY ANALYSIS SIS OF THE HOUSIN HOUSING G MARKE MARKET T IN BELARU BELARUS: S: STAKEH STAKEHOLD OLDER ERS’ S’ ROLE ROLE AND CONCER CONCERNS NS
Weaknesses
1. 2. 3. 4.
Comp Compli licat cated ed acti activi vity ty plan planni ning ng and and deci decisio sion n maki making ng syst system em (admi (admini nist strat ratio ion n bureaucracy) bureaucracy) Lack Lack of moti motiva vati tion on in solv solvin ing g of inha inhabi bita tant nts’ s’ prob proble lems ms,, impr improv ovin ing g of serv servic ice e qual qualit ity y and and volu volume mess Lack Lack of pers person onal al resp respon onsi sibi bili lity ty befo before re inha inhabi bita tant ntss Inability of flexible responding to changes within market trends Inab Inabil ilit ity y to plan plan acti activi viti ties es resp respon ondi ding ng to oppo opport rtun unit itie iess as well well as dema demand nd and and proposition proposition available available
5. 6.
Doub Double le subo subordi rdina nati tion on of hous housin ing g mini minist stry ry and and loca locall admi admini nist strat ratio ion n Nece Necess ssit ity y to supp supply ly publ public ic util utilit itie iess and and othe otherr serv servic ices es for for sign signif ific ican antt soci social al facil facilit itie iess unab unable le to pay pay for thes these e servi service cess
7. 8. 9.
Obso Obsole lete te housi ousing ng stoc stock k Depe Depend nden ence ce on budg budget et subs subsid idie iess agai agains nstt thei theirr axe axe Lack Lack of info inform rmat atio ion n for for flat flat owne owners rs and and inha inhabi bita tant ntss – fina financ ncia iall (ann (annua uall acco accoun unts ts and and plan plans), s), tech techni nica call (dil (dilap apid idat atio ion n and and energ energy y cons consum umpt ptio ion n of each each indi indivi vidu dual al house) Tran Transf sfer er of paym paymen ents ts to a sing single le fund fund and and not to each each of ledg ledger er acco accoun unts ts,, lack lack of ince incent ntiv ives es for home homeow owne ners rs to accu accumu mula late te such such paym paymen ents ts,, maki making ng repai repairs rs when when fund fundss are coll collec ecte ted d from from popu popula lati tion on and and allo alloca cati tion onss from from the the state state budg budget et and and not not acco accordi rding ng to norm normat ativ ive e perio periods ds lead leadss to unsat unsatis isfac facto tory ry stat state e of the the housi housing ng stoc stock k and and publ public ic util utilit ity y infra infrastr struc uctu ture re
10.
11.
12. 13. 14. 15.
4. 5. 6. 7. 8. 9.
4 2 2
An aver averag age e rate rate of tech techni nica call serv servic ice e and and capi capita tall repa repair irss of one one squa square re mete meterr of tota totall area area excl exclud udin ing g indi indivi vidu dual al chara charact cteri erist stic icss of housi housing ng and and real real rate rate of depreciation Impo Imposi sing ng func functi tion onss on comp compan anie iess that that are are not not rele releva vant nt,, as for for inst instan ance ce to exec execut ute e a scrap scrap pape paperr and and meta metall coll collec ecti ting ng plan plan,, and and charg chargea eabl ble e dome domest stic ic servi service cess Ever Everyt ythi hing ng is base based d on subc subcon ontr trac acts ts with with thir thirds ds part partie iess Sala Salari ries es of the the admi admini nist stra rati tion on do not not depe depend nd on qual qualit ity y of serv servic ices es prov provid ided ed Lack Lack of init initia iati tive vess from from the the part part of inha inhabi bita tant nts. s. They They have have lead leadin ingg-st stri ring ngss ment mental alit ity: y: «Mak «Make e us good good and and prefe preferab rably ly free free of charg charge» e» Opportunities
1. 2. 3.
Number Number of matches matches within within responses responses
Inter Interact actio ion n with with publ public ic auth authori oriti ties es and and struc structu ture ress of all all owne ownersh rship ip forms forms Esta Establ blis ishi hing ng of all all rule ruless and and cond condit itio ions ns of serv servic ices es supp supply ly Prov Provis isio ion n of a wide wide rang range e of serv servic ices es and and abil abilit ity y to serv serve e a quan quanti tity ty of apar apartm tmen entt houses Usin Using g of the the avai availa labl ble e mate materi rial al and and tech techni nica call reso resour urce cess Extr Extra a fina financ ncin ing g from from rent rent of nonnon-re resi side dent ntia iall prem premis ises es with withou outt cons consen entt of the the memb member erss of inha inhabi bita tant ntry ry in comm common on (bas (basin inss and and etc.) etc.) Cont Contro roll over over fulf fulfil illm lmen entt of obli obliga gati tion onss by the the comp compan any y Grea Greatt oppo opport rtun unit itie iess are are cont contai aine ned d in the the char charte terr of such such an orga organi niza zati tion on The The best best expe expert rtss work work in buil buildi ding ng comp compan anie iess that that pay pay them them more more Due Due to the the lack lack of by hous house e acco accoun unti ting ng of fund fundss they they may may real reallo loca cate te accu accumu mula lati tion onss direc directi ting ng fund fundss to a spec specifi ific c proje project ct
PARTICIPATIVE HOUSING REFORMS
Number Number of matches matches within within responses responses
2
6
ANALY ANALYSIS SIS OF THE HOUSIN HOUSING G MARKE MARKET T IN BELARU BELARUS: S: STAKEH STAKEHOLD OLDER ERS’ S’ ROLE ROLE AND CONCER CONCERNS NS
Threats
1.
2. 3. 4. 5. 6.
Phys Physic ical al and and mora morall wear wear of the the hous housin ing g stoc stock, k, incr increa ease se of buil buildi ding ngss numb number er operate operated d after after termin terminati ation on of the deprec depreciat iation ion period, period, deterio deteriorati ration on in reliabi reliabilit lity, y, econ econom omy y and and safet safety y of thei theirr oper operat atio ion n + unwi unwill llin ingn gness ess to chan change ge the the situ situat atio ion n The The exis existi ting ng fina financ nces es and and acco accoun unti ting ng syst system em do not not prev preven entt from from actu actual al plundering plundering of consumers’ consumers’ funds Dela Delays ys in paym paymen ents ts for for publ public ic util utilit itie iess lead leadss to incr increa ease se of comp compan anie ies’ s’ loss loss rati ratio o Avai Availa labi bili lity ty of large large work work volu volume mess exce exceed edin ing g avai availa labl ble e resou resource rcess lead leadss to reduc reduce e in quali quality ty of servi service cess suppl supplie ied d Inco Incomp mple lete tene ness ss of repa repair irss Ineffi Ineffici cien entt mana manage geme ment nt due due to replac replacem emen entt impo impossi ssibi bili lity ty at the the initi initiat ativ ive e of flat flat owners (managemen (managementt monopoly). monopoly).
7.
Debt Debtss of the the stat state e for for capi capita tall repa repair irss to home homeow owne ners rs do not not allo allow w to main mainta tain in effecti effectivel vely y the houses houses
8.
They They are are actu actual ally ly bank bankru rupt ptss that that can can beco become me a lega legall fact fact
Number Number of matches matches within within responses responses
2 2 1
Tabl Table e 2 SWOT SWOT anal analys ysis is Privat Private e housin housing g mainte maintenan nance ce compan companies ies
Strengths
1. 2. 3. 4. 5. 6. 7.
High High qual qualit ity y of hous housin ing g main mainte tena nanc nce e (foc (focus used ed on inha inhabi bita tant nts’ s’ need needs) s) + more more skill skilled ed staff staff (mot (motiv ivat ated ed to work work)) Inde Indepe pend nden ence ce from from the the stat state e budg budget et and and in deci decisi sion on maki making ng Clos Close e cont contac actt with with cons consum umer erss as well well as high high qual qualit ity y dial dialog ogue ue with with them them and and active partnership partnership Dire Direct ct cont contro roll over over serv servic ice e qual qualit ity y No depa depart rtme ment ntal al affi affili liat atio ion n Work Workin ing g flexi flexibi bili lity ty,, respo respond ndin ing g abil abilit ity y over over chan change gess in marke markett situa situati tion on Enti Entitl tled ed to take take part part in a tend tender er for for any any coll collec ecti tive ve home homeow owne ners rshi hip p mana manage geme ment nt
PARTICIPATIVE HOUSING REFORMS
Number Number of matches matches within within responses responses
4 3 2
7
ANALY ANALYSIS SIS OF THE HOUSIN HOUSING G MARKE MARKET T IN BELARU BELARUS: S: STAKEH STAKEHOLD OLDER ERS’ S’ ROLE ROLE AND CONCER CONCERNS NS
Weaknesses
1. 2.
Lack Lack of adeq adequ uate ate laws laws + no stat state e supp suppor ortt Low Low buyi buying ng capa capaci city ty of expe expens nsiv ive e equi equipm pmen entt (lack (lack of profit profitab abil ilit ity) y)
3. 4.
Pure Pure comm commer erci cial al inte intere rest st Poor Poor expe experi rien ence ce exch exchan ange ge due due to imma immatu turi rity ty of such such a home homeow owne ners rshi hip p management management form Isol Isolat atio ion n of such such stru struct ctur ures es due due to comm commer erci cial al inte intere rest stss Have Have no righ rightt to cut cut off off elec electr tric icit ity, y, wate water, r, heat heatin ing g when when ther there e are are defa defaul ulte ters rs in a hous house e
5. 6. 7.
8. 9. 10.
2. 3. 4. 5. 6. 7. 8. 9.
3 2
Fund Fundss paid paid by inha inhabi bita tant ntss for for main mainte tena nanc nce e and and repa repair irs, s, publ public ic util utilit itie iess are are accu accumu mula late ted d on the the settl settlem emen entt acco accoun untt of the the comp compan any, y, thus thus it is comp compli lica cate ted d for for inha inhabi bita tant ntss to cont control rol the the costs costs.. High High staf stafff cost costss and and expe expens nsiv ive e skil skille led d expe expert rtss Inab Inabil ilit ity y to prov provid ide e a wide wide rang range e of serv servic ices es and and to main mainta tain in many many hous houses es Depe Depend nden ence ce on the the numb number er of cond condom omin iniu iums ms and and hous housin ing g asso associ ciat atio ion n that that are are custom customers ers of the privat privatee housin housing g manage managemen mentt compan companies ies
Opportunities
1.
Number Number of matches matches within within responses responses
Good Good mate materi rial al and and tech techni nica call reso resour urce cess enab enable le to prov provid ide e high high qual qualit ity y serv servic ices es to hous houses, es, to high high skill skilled ed mana manage geme ment nt and and main mainte tena nanc nce e staff staff They They are are will willin ing g to make make them themse selv lves es over over to cons consum umer erss in the the issu issues es of serv servic ice e provision, provision, availability availability of consumable consumable products products and etc. (planning (planning of volumes) volumes) Cons Consta tant nt stri strivi ving ng for for serv servic ice e qual qualit ity y impr improv ovin ing g and and sear search ch of new new doma domain ins. s. Will Willin ing g to deve develo lop p a sphe sphere re that that seem seemss to be pers perspe pect ctiv ive e
Number Number of matches matches within within responses responses
2 2 2
Esta Establ blis ishi hing ng of an effe effect ctiv ive e asso associ ciat atio ion n (tru (trust st and and othe others rs)) Forei Foreign gn partn partners ers inte intere rest sted ed in deve develo lopm pmen entt Cont Contro roll over over fulf fulfil illm lmen entt of comm commit itme ment ntss by the the comp compan any y Acti Activi vity ty matc matchi hing ng depe depend ndin ing g on the the dema demand nd and and prop proposi ositi tion on Efficiency Prom Prompt pt deve develo lopm pmen entt in case case the the cros crosss subs subsid idiz izin ing g is canc cancel elle led d
PARTICIPATIVE HOUSING REFORMS
8
ANALY ANALYSIS SIS OF THE HOUSIN HOUSING G MARKE MARKET T IN BELARU BELARUS: S: STAKEH STAKEHOLD OLDER ERS’ S’ ROLE ROLE AND CONCER CONCERNS NS
Threats
1.
2.
3. 4. 5. 6.
Comp Compet etit itio ion n with with publ public ic comp compan anie ies. s. «Adm «Admin inist istra rati tive ve righ right» t» of the the publ public ic author authority ity to assign assign manage managemen mentt functio functions ns to public public mainte maintenan nance ce compan companies, ies, i.e. «Housing «Housing maintenance maintenance departments» departments» Not Not secu secure red d from from bank bankru rupt ptcy cy (wor (work k with with rate ratess lowe lowerr than than the the cost cost valu value e may may lead lead to losse losses; s; work work with with mark market et rate ratess lead leadss to dema demand nd decr decrea ease) se) and and thus thus,, popu popula latio tion n is not not prot protec ecte ted d from from the the cons conseq eque uenc nces es of this this Shor Shortc tcom omin ing g and and inco incomp mpet eten ence ce of the the mana manage geme ment nt staff staff.. Dish Dishon ones esty ty of management Unde Underr subs subsid idy y cond condit itio ions ns unwi unwill llin ing g to inve invest st much much fund fundss Tran Transf sfer er of hous housin ing g main mainte tena nanc nce e coun counci cils ls’’ work workin ing g meth method odss by the the staf stafff hire hired d Publ Public ic auth author orit itie iess will will force force up solv solvin ing g of nonnon-co comm mmerc ercia iall probl problem emss and and issue issuess (social, (social, public) public)
Number Number of matches matches within responses responses
3
2
Table Table 3 SWOT-an SWOT-analy alysis sis Condominiums Strengths
Inte Intern rnal al mana manage geme ment nt (inde (indepe pend nden entt in deci decisi sion on maki making ng:: deci decisio sions ns are made made on the the basi basiss of the the gene general ral home homeow owne ners rs meet meetin ing, g, cond condom omin iniu iums ms plan plan repai repairr works works and their their sequen sequence ce themse themselve lves) s) Indepe Independe ndence nce from the state state budget budget 2. High High qualit quality y of housin housing g mainte maintenan nance ce 3. Does Does not not pay pay VAT, VAT, estat estate e tax, tax, profi profitt tax. tax. Conc Conces essio sion n tax tax treat treatme ment nt and and priv privil ileg eged ed 4. regi regime me of dedu deduct ctio ions ns to the the soci social al fund fund May found found commer commercia ciall structu structural ral depart departmen ments ts 5. Finance Financess transpa transparen rency. cy. Every Every condom condomini inium um member member may exercis exercisee control control over over 6. expenditures Cond Condit itio ions ns were were creat created ed for for atti attitu tude de of care care to comm common on prop propert erty, y, comm common on use use of 7. premises, premises, economicall economically y motivated motivated willingness willingness to preserve common common property property Are aware aware of homeow homeowner nershi ship p proble problems ms 8. Reli Reliev eve e the the state state from from solvi solving ng of many many socia sociall probl problem emss 9. Applying ng capaci capacitie tiess of indivi individua duall condom condomini inium um member memberss for common common goals goals 10. Applyi Inhabitant antss are interes interested ted 11. Inhabit
Number Number of matches matches within within responses responses
1.
PARTICIPATIVE HOUSING REFORMS
5 3 3 2 2 2 2
9
ANALY ANALYSIS SIS OF THE HOUSIN HOUSING G MARKE MARKET T IN BELARU BELARUS: S: STAKEH STAKEHOLD OLDER ERS’ S’ ROLE ROLE AND CONCER CONCERNS NS
Weaknesses
1. 2. 3.
Limi Limite ted d supp suppor ortt from from the the part part of the the stat state, e, defi defici cien entt lega legall basi basis, s, comp compli lica cate ted d regis registra trati tion on proce procedu dure res, s, for inst instan ance ce in the the old old hous houses es Lack Lack of rele releva vant nt numb number er of skil skille led d mana manage gers rs and and cons consci cion onab able le spec specia iali list st in repai repairs rs Lack Lack of infor informa mati tion on on book book keep keepin ing, g, lack lack of inve investi stiga gate ted d acco accoun unti ting ng speci specifi fics, cs, comp compli licat catio ions ns with with setti setting ng of obli obliga gato tory ry paym paymen entt rates rates
4. 5.
Lack Lack of prem premis ises es to acco accomm mmod odat ate e staf stafff Publ Public ic util utilit itie iess not not alwa always ys perc perceiv eive e cond condom omin iniu iums ms as an indi indivi vidu dual al lega legall enti entity ty
6. 7. 8.
Low Low fina financ ncia ial, l, mate materia riall and and tech techni nica call capa capaci citi ties es High staff costs sts Weak We ak comp competi etiti tion on syst system em of main mainte tena nanc nce e organ organiz izat atio ion n lead leadss to prob proble lems ms in cont contrac ractt conc conclu lusi sion onss and and time timely ly provi provisio sion n of servi service cess of prob proble lems ms solv solvin ing g Lack Lack of capi capita tall repa repair irss arra arrang ngin ing g expe experi rien ence ce Lack Lack of priv privat ate e main mainte tena nanc nce e comp compan anie iess in the the most most of Bela Belaru russ citi cities es and and cons conseq eque uent nt need need to form form own own mana manage geme ment nt and and oper operat atio iona nall staff staff in each each condom condomini inium, um, high high admini administra strativ tivee costs costs in condom condomini iniums ums with with smalle smallerr area The The most most memb member erss of cond condom omin iniu iums ms lack lack posi positi tive ve expe experi rien ence ce of livi living ng in othe otherr cond condom omin iniu iums ms (i.e. (i.e. as a rule, rule, 98% 98% home homeow owne ners rs have have no “bac “backg kgro roun und” d”,, it is thei theirr first experience) experience) Are Are not not enti entitl tled ed to take take part part in the the tend tender erss of othe otherr coll collec ecti tive ve home homeow owne ners rshi hip p management Lack Lack of inte intere rest st in main mainte tena nanc nce e of thei theirr shar share e with within in comm common on prop proper erty ty of the the majo majorr part part of inha inhabi bita tant ntss
9. 10.
11.
12. 13.
Opportunities
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
12.
Will Willin ing g and and able able to maxi maxima mall lly y invo involv lve e inha inhabi bita tant ntss into into solv solvin ing g of comm common on problems problems with minimum minimum costs To have have extr extra a inco income me from from leas lease e out out of nonnon-re resi side dent ntia iall prem premis ises es To accu accumu mula late te grad gradua uall lly y fina financ nces es for for capi capita tall repa repair irss as well well as to plan plan and and allo alloca cate te join jointl tly y fund fundss coll collec ecte ted d for for repai repairs rs and and impro improve veme ment ntss Able Able to crea create te a safe safety ty zone zone arou around nd home homeow owne ners rshi hip p May May take take an acti active ve part part in loca locall self self-g -gov over erna nanc nce e May May init initia iate te the the proce rocess ss of loca locall summ summon on 21 as the the most most inte intere rest sted ed ones ones in this this
Number Number of matches matches within within responses responses
4 4 3 2
Number Number of matches matches within within responses responses
3 2 2
To use use effi effici cien entl tly y the the land land lot lot Choi Choice ce of mana manage geme ment nt and and main mainte tena nanc nce e comp compan any y Join Jointt plan planni ning ng of comm common on use use prem premis ises es and and yard yard area area Sett Settin ing g up of join jointt comp compan anie ies, s, entry entry into into unio unions ns and and assoc associa iati tion ons, s, inte interna rnati tion onal al non-governm non-governmental ental organizatio organizations ns Esta Establ blis ishi hing ng of own own mass mass medi media a and and comm commun unic icat atio ion n tool tools, s, data data tran transf sfer er netw networ orks ks,, home homepa page ges, s, part part in soci social al life life of civil civil soci societ ety y with withou outt appr approv oval al of department departmental al organization organization Pote Potent ntial ially ly the the cond condom omin iniu ium m must must take take upon upon itse itself lf mana manage geme ment nt,, finan finances ces,, order order and improvi improving, ng, and housin housing g operati operation on depart departmen mentt – special special engine engineerin ering g maintenance.
PARTICIPATIVE HOUSING REFORMS
10
ANALY ANALYSIS SIS OF THE HOUSIN HOUSING G MARKE MARKET T IN BELARU BELARUS: S: STAKEH STAKEHOLD OLDER ERS’ S’ ROLE ROLE AND CONCER CONCERNS NS
Threats
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
As any any new new form form it is stra strang nge e for for majo majori rity ty inha inhabi bita tant ntss (lac (lack k of guar guaran ante tees es)) Oppo Opposi siti tion on of certa certain in cond condom omin iniu ium m memb member erss (mani (manifol fold d soci social al comp compos osit itio ion n of owners owners – condom condomini inium um member memberss hinders hinders consol consolida idated ted decisi decision on making making)) Lack Lack of supp suppor ortt from from the the part part of publ public ic auth author orit itie iess (pub (publi lic c auth author orit itie iess havi having ng high high capa capaci city ty pote potent ntia iall may may destr destruc uctt acti activi vity ty of such such a struc structu ture re from from insi inside de)) Lack Lack of moti motiva vati tion on of a mana manage gerr may may resu result lt in dise diseco cono nomy my Mone Money y can can be lost lost if a manag anager er is dish dishon ones estt In case case of inde indebt bted edne ness ss all all inha inhabi bita tant ntss must must pay pay Tax auth authori oriti ties es perce perceiv ive e cond condom omin iniu iums ms as comm commer erci cial al organ organiz izat atio ions ns Defi Defici cien entt orga organi niza zati tion on of fund fundss coll collec ecti tion on from from owne owners rs can can lead lead to shor shorta tage ge of funds funds for for hous housin ing g repai repairr and and main mainte tena nanc nce e Lack Lack of priv privat ate e mana manage geme ment nt comp compan anie iess and and abil abilit ity y to choo choose se,, repl replac ace e them them that that does does not not moti motiva vate te home homeow owne ners rs to found found cond condom omin iniu iums ms in old old hous houses es It is nece necess ssar ary y to obli oblige ge lega legall lly y to obse observ rve e righ rights ts of othe others rs incl includ udin ing g condomini condominiums ums managemen managementt
Number Number of matches matches within within responses responses
2 2
5. Su Summ mmar ary y of the the SWOT SWOT anal analys ysis is and and expe expert rt revi review ewss
The The anal analys ysis is of data data in the the tabl tables es abov above e show showss that that info inform rmat atio ion n gath gather ered ed cove covers rs inst instit itut utio iona nall (lega (legall and and orga organi niza zati tion onal al)) as well well as financ financial ial,, econom economic ic,, social social and behavi behaviour our aspect aspectss of the acti activi vity ty of the the main main stak stakeh ehol olde ders rs of the the mark market et of mult multip iple le dwel dwelli ling ng.. This This enab enable less us to have have a gen general pic pictur ture of pri priorit rities both oth as to the proble blems and poss possiible ble dev develo elopmen pmentt trend ends as a system of housing market in general as its individual components. The Leipzig chart of sust sustai aina nabl ble e Euro Europe pean an city city (200 (2007) 7) stat states es that that «citi cities es will will mana manage ge to fulf fulfil illl thei theirr func functi tion onss of public progress bearers … only in case of preserving preserving of social balance inside the cities and amon among g them them,, secu securi ring ng of thei theirr cult cultur ural al vari variet ety y and and achi achiev evin ing g of high high crea creati tive ve,, buil buildi ding ng and and envi enviro ronm nmen enta tall qual qualit ity» y».. This This stat statem emen entt fully ully refe refers rs to the the syst system em of mult multip iple le hous housin ing. g. The The gene genera rall conc conclu lusi sion onss stat stated ed bell bellow ow have have been been draw drawn n on the the basi basiss of the the SW SWOT OT anal analys ysis is carr carrie ied d out takin taking g into into accou account nt extr extra a inte interv rvie iews ws with with proj project ect partn partner erss invol involved ved,, publi public c admin adminis istr trat atio ion n repre represen senta tati tives ves,, inform informal al leader leaderss of civil civil socie society, ty, expert experts: s: While While asse assess ssin ing g stre strengt ngths hs of publ public ic and priv privat ate e housi housing ng main mainte tenan nance ce orga organi niza zati tion onss as well well as con condomi ominiums subs substtant antial disti stincti ctions were reveal vealeed among thes hese organi ganizzati ations. ns. Thus Thus,, stre streng ngth thss of publ public ic hous housin ing g maint ainten enan ance ce orga organi niza zati tion onss are are base based d on thei theirr supp suppor ortt (fin (finan anci cial al and admi dministrati ative) of the state tate unde nder absence nce of real eal comp ompeti etition from the part part of pri private vate mai maintenan nance org organi anizat zations ons and at “habi habittualne lness” ss” of such hou housing manage nageme ment nt form for for population. population. The main strengths of private housing housing maintenance maintenance organizations organizations and cond condom omiiniums ums are high qual qualiity of ser servic vices pro provided ded, indepe depend ndeence, nce, self-suf -suffficiency and and flexibility in decision making and management. While when analyzing private housing main mainte tena nanc nce e orga organi niza zati tions ons and condom condomin iniu iums ms new new stre strengt ngths hs sour sources ces are are revea reveale led d as conta contact ctss wit with cons consum umer erss (inh (inhab abit itan ants ts)) and and the the dial dialog ogue ue with with them hem as well ell as to crea create te cond condit itiions ons for for efficien efficientt utilizat utilization ion of resource resources. s. Mai Main weak weakne ness sses es of publ public ic hous housiing main mainte tena nanc nce e orga organi niza zati tion onss are are rela relate ted d to mana manage geme ment nt bureaucracy, weak motivation motivation for service quality improving, improving, old housing stock. Weaknesses of priv privat ate e hous housin ing g main mainte tena nanc nce e orga organi niza zati tion onss and and cond condom omin iniu iums ms are are diff differ eren ent. t. The They are are – unde underrdeve develloped ped legis gislatio tion, lack of stat state e supp suppor ortt, short ortage age of ski skilled led sta staff and and isol solati ation of simila similarr non-gove non-governme rnmental ntal structur structures. es. 1. Deve Develo lopm pmen entt oppo opport rtun unit itie iess for for publ public ic hous housin ing g main mainte tena nanc nce e comp compan anie iess lie lie in econ econom omic ic liber beraliz lization and inte nteraction with ith non-go -gover vernment ental org organi anizat zations. ons. Devel evelo opme pment reserves of pri private housing maintenance companies are referred to expanding and PARTICIPATIVE HOUSING REFORMS
11
ANALY ANALYSIS SIS OF THE HOUSIN HOUSING G MARKE MARKET T IN BELARU BELARUS: S: STAKEH STAKEHOLD OLDER ERS’ S’ ROLE ROLE AND CONCER CONCERNS NS
2.
3.
4.
5.
impr improv ovin ing g of serv servic ice e qual qualit ity y as well well as impr improv ovin ing g thei theirr mate materi rial al and and tech techni nica call reso resour urce ces. s. Condo Condomi miniu niums ms see (from (from the expert experts’ s’ points points of view) view) their their opport opportuni uniti ties es in devel developm opment ent of part artner nershi ships with dwe dweller llers, s, inve nvestigat gation of extr extra a earnin ning oppo opporrtuni unities ies as well as (comp ompletely ely new vis vision not not typical for publ ublic housing mai maintenan nance com compani paniees!) in spre spread adin ing g thei theirr impa impact ct beyo beyond nd the the limi limits ts of hous house e area areass thro throug ugh h part partic icip ipat atio ion n in loca locall sel self-go f-gove vern rnan ance ce,, elab elabor orat atio ion n of terr territ itor ory y deve develo lopm pmen entt stra strate tegi gies es (lo (local cal agen agenda da – 21), 21), establis establishmen hmentt of non-gover non-governmen nmental tal organiz organizatio ations. ns. the the main thre threat at for for publ public ic hous housiing main mainte tena nanc nce e orga organi niza zati tion onss is agei ageing ng of the the hous housin ing g stick and ineff neffiicient ent finance schemes. Activities of the pri private housi using main aintenan enancce orga organi niza zati tion on thre threat aten ened ed by stif stiffe feni ning ng of admi admini nist stra rati tive ve meth method odss of stat state e infl influe uenc nce e and and preference to similar public companies. But condominiums are the mostly threatened in a diff differ eren entt thing hing – lack ack of cond condom omin iniu ium m memb member ers’ s’ soli solida dari rity ty,, weak weak unde unders rsta tand ndin ing g of common homeo meowner nership syst ystem ess essenc ence by the the members and popu popullati ation, on, as well as financia financiall risks. risks. passivity passivity of inhabitants inhabitants – flat owners in multiple dwelling, dwelling, their unwillingness unwillingness to take part in real estate management of common homeownership is also one of the reasons for low low temp tempos os of cond condom omin iniu iums ms esta establ blis ishm hmen entt in Bela Belaru rus. s. As one one of the the reas reason onss for for such such a situation experts consider lack of information and explanatory activities on cond condom omin iniu ium ms adva advant ntag ages es with with demo demons nstr trat atio ion n of succ succes essf sful ul exam exampl ples es of the the exis existi ting ng condominiums. Population has no economic incentives to pass to new housing stock management syst system em,, as expe expert rtss cons consid ider er,, due due to non non-tra -trans nspa pare renc ncy y of the the paym paymen entt coll collec ecttion ion syst system em for public utilities (when people do not know what they pay for), as well as due to existi existing ng subsid subsidizi izing ng practi practice ce to public public organi organizat zation ionss supply supplying ing housin housing g mainte maintenan nance ce and public utilities. Often this subsidizing is hidden and covert and is realized, for instance, thro throug ugh h rent ent syst system em for for the the stat state e prem premis ises es prov provid ided ed.. Under nder such uch cond condit itio ions ns popu popula lati tion on has has impr impres essi sion on that that tran transf sfer er to selfelf-de depe pend nden entt mana manage geme ment nt of hous housiing main mainte tena nanc nce e is unfavour unfavourable able for them. them. At the the same same time time,, publ public ic auth author orit itie iess in many many citi cities es and and dist distri rict cts, s, as expe expert rtss supp suppos ose, e, have have not realized economic and social advantages of housing stock management dive divers rsif ific icat atio ion, n, esta establ blis ishi hing ng of cond condom omiinium niumss and and priv privat ate e mai mainten ntenan ance ce comp compan anie ies. s. Thereb Thereby, y, they they (loca (locall author authorit ities ies)) do not show show intere interest st toward towardss parti particip cipati ation on of popula populatio tion n in housing management (an in more general context – in town, village and quarter admi admini nist stra rati tion on)) in thei theirr loca locall hous housin ing g poli policy cy,, and and some someti time mess even even hind hinder er init initia iati tive vess in this this sphere. sphere.
PARTICIPA PARTICIPATIVE TIVE HOUSING HOUSING REFORMS REFORMS
12
ANALY ANALYSIS SIS OF THE HOUSIN HOUSING G MARKE MARKET T IN BELARU BELARUS: S: STAKEH STAKEHOLD OLDER ERS’ S’ ROLE ROLE AND CONCER CONCERNS NS
6. Conclusi Conclusions ons and suggesti suggestions ons
The The regu regula lari riti ties es reve reveal aled ed enab enable le to iden identi tify fy the the foll follow owin ing g (wea (weakl kly y util utiliz ized ed by now) now) tren trends ds of hous housin ing g and and publ public ic util utilit ity y sphe sphere re deve develo lopm pmen entt in the the Repu Republ blic ic of Bela Belaru rus: s: 1. to inte intens nsif ify y stat state e suppor supportt to cond condom omin iniu iums ms and and priv privat ate e hous housin ing g main mainte tena nanc nce e comp compan anie ies, s, firstl firstly, y, via creati creating ng of sustai sustainabl nable e legisl legislati ative ve framew frameworks orks and organiz organizati ational onal enviro environme nment nt for their their developm development; ent; 2. to encour encourage age cooper cooperati ation on of nonnon-gov gover ernm nmen enta tall stake stakeho hold lder erss of housi housing ng and and main mainte tena nanc nce e sect sector or,, crea creati ting ng of net net mode modells for for thei theirr inte intera ract ctio ion n in orde orderr to incr increa ease se effi effici cien ency cy of thei theirr concer concerns ns advoca advocacy cy and lobby lobbying ing of decis decision ionss needed needed,, experi experienc ence e exchan exchange; ge; 3. to arrange awar warenes enesss raising sing camp ampaign in mass media in orde orderr to cons conso olidat date posi positi tive ve imag image e of cond condom omin iniu iums ms and and priv privat ate e hous housin ing g main mainte tena nanc nce e comp compan anie ies, s, demo demons nstr trat atio ion n of their achievements; achievements; 4. to expand awareness raising and educational work with public on the issues of participation participation in housing housing management, management, including including common homeownership homeownership.. According According to exper xpertts (A. (A.D. Sido Sidorrenko enko)) it is necess essary to raise the the issue of up-to p-to-d -daate housing cult cultur ure e form formiing desi design gned ed to chang hange e the the exis existi ting ng owne owners rs’’ beha behavi viou ourr ster stereo eoty type pe orie orient ntin ing g them them to acti active ve part partic icip ipat atio ion n in mult multip iple le dwel dwelli ling ng mana manage geme ment nt and and assu assumi ming ng of resp respon onsi sibi bili lity ty for for thei theirr stat state. e. It is sugg sugges este ted d to solv solve e this this prob proble lem m on prog progra ramm mme e basi basiss at stat state e leve level. l. 5. to crea create te a syst system em of trai traini ning ng and and prof profes essi sion onal al deve develo lopm pmen entt of staf stafff for for cond condom omin iniu iums ms,, first first of all, all, manag managers ers and accoun accountan tants; ts; 6. to favo favour ur risk riskss insu insura ranc nce e syst system em deve develo lopm pmen entt in comm common on home homeow owne ners rshi hip, p, spre spread adin ing g of not expens expensive ive reli reliabl able e sourc sources es of borrow borrowed ed funds funds for for condom condomin inium iums; s; 7. to rende renderr targe targete ted d suppo support rt (con (consu sult ltan ancy cy,, lega legal, l, orga organi niza zati tion onal al,, reso resour urce ce)) to loca locall execu executi tive ve bodies and inhabitants’ inhabitants’ associations associations (condominiums, (condominiums, committees committees of public selfgove govern rnan ance ce), ), town towns, s, quar quarte ters rs and yard yardss head headin ing g for for expa expans nsio ion n of publ public ic part partic icip ipat atio ion n in housing stock management. To form pilot model sites and territories demonstrating adva advant ntag ages es and and achi achiev evin ing g of hous housin ing g stoc stock k mana manage geme ment nt form formss with with publ public ic invo involv lvem emen ent. t. To envi envisag sage e crea creati ting ng of reso resourc urce e (inf (infor orma mati tion on)) cent centre ress as an infr infras astr truct uctur ural al comp compone onent nt of such sites dedicated to the topic of housing stock maintenance and sustainable developm development ent of local local communit communities. ies. 8. to carr carry y out out in-d in-dep epth th scie scient ntif ific ic rese resear arch ches es of mark market et stak stakeh ehol olde ders rs of mult multip iple le dwel dwelli ling ng with with extension of analytical work sphere by including of building companies, banks and educational institutions, local authorities, new public structures (condominiums asso associ ciat atio ions ns,, comm commit itte tees es of terr territ itor oria iall publ public ic self self-g -gov over ernm nmen ent, t, loca locall deve develo lopm pmen entt fund funds, s, “Loc “Local al agen agenda da – 21” 21” offi office cess and and othe others rs). ). To run run scie scient ntif ific ic and and rese resear arch ch work work of such such kind kind by staff members including including representatives representatives of different scientific scientific disciplines: disciplines: building scie scienc nce e and and arch archit itec ectu ture re,, econ econom omy, y, law, psyc psycho holo logy gy,, ecol ecolog ogy y and and etc. etc.)) in orde orderr to secu secure re comp comple lex x appr approa oach ch to the the prob proble lem. m. An inte intern rnat atio iona nall proj projec ectt deve develo lopm pmen entt is poss possib ible le on this this subject. Agai Again n from from the the Leip Leipzi zig g char chartt (200 (2007) 7):: «We «We need need more more inte integr gral al stra strate tegi gies es and and conc concer erte ted d acti action onss of all all enti entiti ties es and and inst instit itut utio ions ns invo involv lved ed in the the proc proces esss of urba urban n deve develo lopm pmen ent» t»;; «in «in orde orderr to find find opti optima mall solu soluti tion onss for for each each quar quarte terr of the the city city acti active ve publ public ic invo involv lvem emen entt is nece necess ssar ary y as well well as expand expandin ing g of a dialog dialogue ue betwe between en repre represen sentat tative ivess of policy policy,, econom economy y and inhabi inhabitan tants ts ».
PARTICIPATIVE HOUSING REFORMS
13
