Affordable habitation to young family

Young families in Moscow can rent apartments from the city on preferential terms, live in and save money to purchase the apartments for their own. All this due to a Moscow Government’s program "Affordable habitation to a young family" is carrying out by the capital. Now, at the third developmental stage of the program (2009 — 2011) there have been planned tasks up to 2015 and summed up: for three years more than 36 thousand young people have improved their living conditions.

The government has developed three ways of interaction with young families. The first concept of the help is non-subvention. The young family rent an apartment from the city on preferential terms for the period from five till ten years and at the same time saves money for their own apartment in a housing savings system. Having saved the necessary sum, the family can receive the budgetary grant to buy an apartment in Moscow or the Moscow area. And that apartment which family was lettable from the city transferred the next tenants who have joined the program. In such a way 385 families have already got habitation. Such factors as a real estate price rise, certainly, reduce young families’ opportunity to participate in any housing savings system. And a plenty of apartments for participants of this program is beyond the city boundary, where the prices are lower than in Moscow.

The second way is in great demand. This is apartments purchase from the city on preferential terms. The first payment for such an apartment is 10 — 20 % from its cost, depending on quantity of children in family. Payments by instalments under 10 % are extended for 10 years. At the suggestion of Moscow Mayor since 2007 there is an opportunity to improve living conditions not only who were not thirty years yet, but also the families with total age of spouses less than 70 years. As 2008 has been declared in Russia a Year of Family, the age qualification for the families with infants has been generally removed. Essential project achievement is what if the child was born in a family the part of outstanding debts should be subject to write-off (up to 30 % of debt). In participant families were already born 2220 children. And the help to such families has exceeded 300 million roubles. The city supports also young families having many children, releasing them from 30 % payment of an apartment cost.

The third part of the program allows by 2013 provide apartments to young families which have stood in queue to obtain a habitation. Today the quantity of potential participants of this program constitutes almost 37 thousand families. Standing in queue families file an application for the participation in the program in the administrative district, then a district prefect makes a decision, who from them can take part in the program. In the further it is planned to start improving the living conditions of the needy families. It not only those citizens who live in Moscow for 10 years with less than 10 square meters of total acres, but also are needy. Their quantity has increased because of the needy condition is removed. Thus, those who require improvement of life quality, and also young employees of social sphere, state employees and young scientists can count to the city’s aid. According to the rent contract the city has already given young teachers, doctors, social workers, talented scientists 527 apartments. Program participants can also become those young families one of which spouses has no constant registration in Moscow.

The problem of the third stage of the program consists of providing with habitationby 2013 to all young families amongst ones registered in queue till the 1st of March 2005.

Those who participate in the social mortgage also have privileges. The square meter price under the social mortgage’s apartment is not a market price, but the sale price established by the Government. The interest rate established by bank is also less than in the market.

The Department of housing policy and housing resources Moscow plans to create wide non-subvention housing network affordable for standing in queue people and for other muscovites who need inexpensive habitation. This network should keep Moscow city the affordable housing in possession, not transferring it.

World practice of construction on preferential terms counts not one decade. In Northern America and in the Western Europe the first so-called "social houses" have appeared already after the First World War: workers with the families lived in these houses with low payment for rent and municipal services. After the Second World War social construction boomed all over the world. For example, in Britain there were settlements with single- or two-family houses with small ground sites. Then as the need for habitation grew it got profitable to build multi-storey houses for needy citizens. Inhabitants of social houses could redeem the habitation on beneficial terms: at a discount up to 60 % for the houses, 70 % for the apartments. Now houses for poor citizens in Britain are in the competence of local authorities and housing associations (the independent noncommercial organizations with special registration). Local authorities have not the right to interfere with their activity without any significant reasons; however housing associations report them about the work on a regular basis.

Nearby 1.3 million American tenants live in public houses, operating by the Housing Associations too. The Most of public houses belongs straight to authorities, other — to commercial structures on a contractual basis. In America citizens have the right to social habitation, if their revenue is under average income in this state. At desire the citizen (family) can receive the housing certificate (voucher) and, looking for independently suitable habitation to lodge in any place of the country where housing certificates are accepted. As a rule, 30% of rental charge is paid with the owner of the voucher, and 70 % are compensated by the Housing Association.

In France social habitation are so-called "HLM" (HLM — Habitation á loyer modere, habitation with the affordable rent). In France local authorities defined for a long time how many apartments build due to the state. Therefore in France there are areas where it is a lot of "HLM", but there are places where they practically are not present because the local authorities have preferred not to build them. According to the republican law from 2000 if there is less than 20 % social habitation in settlement, its authorities fined by the state. Now the average "HLM" is 4 rooms apartment nearby 80 square metres in which 2—3 persons live. If French family monthly revenue is less than certain salary level, it can file an application to municipality and to queue up to "HLM". Wait in queue is usually 6—7 years. Now more than one million families are standing in queue to HLM in France. Every year it is necessary to confirm queue, besides "HLMs" are lack for every one and an apartment can be given to other family if during the expectation time many children were born there. Approximately 5 thousand tenants a year redeem the "HLM" from the owner organizations.

Now CECODHAS (European Liaison Committee for Social Housing — the organization which is engaged housing problems in the European Union (EU)) defines social habitation as affordable and decent habitation for wide population strata. Traditionally huge attention gives the social habitation in Northern America and the Western Europe. In the countries of the Western Europe it is spent from 0.1—0.3 % of gross national product (Italy, Greece) up to 1.2—1.4 % of gross national product (Finland, Denmark, Austria) for social housing projects. In France this parameter is 1.9 % of gross national product. In a part of the real estate structure the EU countries (old members) most of all public houses it is constructed in Holland — almost third of all available housing. Further follow Austria, Denmark, Britain, France, Finland and Sweden with 19—23 % from all funds. In Belgium and Germany its share is insignificant — less than 7 %. In Denmark, France and Britain more quarters of all families lives in social houses, i.e. in one or other way people get the state support by habitation rent and payment for housing-and-municipal services.