This document discusses the impact of EU legislation on affordable housing in Rotterdam. It describes how EU state aid rules only allow subsidies for housing for socially disadvantaged households, limiting Dutch housing associations. A program in Rotterdam called NPRZ aims to renovate housing and stop segregation in the low-income south bank area. Research showed the biggest affordability problems were for families with two parents and two kids or singles under 65. The document calls for more flexible SGEI rules set by cities and removing the requirement to only help disadvantaged households.

1. Eurocities
Affordable housing
Rotterdam
Kicki Söderhjelm

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Content
 Legislation and state aid
- South Bank Rotterdam / NPRZ
- Strong markets
 Research affordable housing

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EU legislation State Aid
 State aid is only permitted for SGEI (Housing act 2015)
 EU added to the SGEI rule "only for social disadvantaged
households".
 Dutch government accepted the limitation to the low
incomes
 Since then Dutch legislation is adjusted accordingly:
 Housing associations must separate SGEI and non-SGEI
propety
 Exception: HA are allowed to non-SGEI development if
proven that commercial developers aren't interested. –
under condition that SGEI benefits from the profit
Result: complications and restrictions for social housing

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Impact EU legislation - South Bank of Rotterdam - NL
 The population of Rotterdam on average:
o Is low educated
o Has a low income
 The river is separating the city. The poor condition of the
housing stock on the South Bank has led to an
accumulation of problems.

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National Program Rotterdam South Bank - NPRZ
Integrated approach
 education
 employment
 quality housing
Housing program
 Partners: Municipality and Housing Associations and others
 Program: renovation, demolition and new construction
 To stop segregation there are two main needs:
- better quality social housing (rent under € 710)
- but also housing attractive for higher incomes
Services of General Economic Interest (SGEI)
and non-SGEI
NPRZ is bigger
than Rotterdam

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Impact EU legislation – strong markets
Rules SGEI in strong markets
 The market doesn’t supply middle priced houses, because
expensive houses are more profitable
 The middle incomes (teachers, nurses, policeman..) are
forced out of the inner cities
 The middle incomes have the biggest problems
 Another sort of segregation
Solution
 Cancelling the "only for social disadvantaged households"-
clause in the State aid rules gives
o the EU cities position to decide the rules around their SGEI
o oppertunity to the Netherlands to start revising its laws

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Affordable housing for target groups and others
 Research – Rotterdam Region
 Real income compared with minimal budget
 Which households have potentially problems? That is when
real costs are higher than income
Looking for the effects:
- on the (primary) target group for Housing Associations
- of the housing allowance (tax surcharge)
At the end of my money
I always have left some days of the month

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Outcome research affordability
Percentage of tenants of housing associations from the primary target group with a
possible problem with affordability, household type, incl. social participation
Single 18 – 65
Single 65+
Pair 18 – 65
Pair 65+
Family (1 parent)
Family (2+2)

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Outcome research affordability
Possiblities municipality
 exclude lower incomes from local taxes
 Performance agreements with Housing Associations
Biggest problems for
1. family's with two parents with two kids
2. singles up to 65 years
In Rotterdam the lowest incomes don't have the biggest
problems with affordability
 Much attention/ Extra set free of surcharges/ Extra profits
 The assistance fall

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Last words
1. SGEI rules are to precise
2. Give the European cities oppertunity to formulate
their rules fitting their situation
3. Cancel “only for disadvantaged households”
About research
Keep an open mind – allow yourself a surprice

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Thanks for your attention