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24TH ENHR CONFERENCE. Lillehammer June 2012.

 HOUSING: LOCAL WELFARE AND LOCAL MARKETS IN A GLOBALISED WORLD.

PLENARY 2A: GLOBAL IMPACTS ON NATIONAL AND LOCAL HOUSING MARKETS

   SOCIAL IMPACTS OF FINANCIAL AND REAL ESTATE TURMOIL:
   A NON EXISTING TOPIC OF THE SPANISH POLITICAL AGENDA.

                       Javier Burón Cuadrado
                    Urbania ZH Gestión. Partner.
               Researcher at Ekiten Thinking UPV – EHU.
       Ex-Cuatrecasas Gonçalves Pereira Public Law Department.
       Ex-Vice Counselor for Housing of the Basque Government.
“SOCIAL IMPACTS OF FINANCIAL AND REAL ESTATE TURMOIL:
          A NON EXISTING TOPIC OF THE SPANISH POLITICAL AGENDA.




MY APPROACH TO THESE TOPICS:
   •   I’M NOT A POLITICIAN (ANY MORE).
   •   I’M NOT A (PROFESSIONAL) ACADEMIC.
   •   I USED TO WORK AS A LEGAL COUNCELOR FOR ADMINISTRATIONS AND
       PRIVATE COMPANIES.
   •   RIGHT NOW I’M A BUSINESS MAN IN THE FIELD OF PUBLIC PRIVATE
       PARTNERSHIP.
   •   LACK OF ACADEMIC DISCIPLINE: A BIT OF LAW, ECONOMICS, POLITICS,
       BUSINESS, SOCIOLOGY, ETC.
   •   I DON’T HAVE ANY TECHNICAL (ARCHITECTURE, ENGINEERING, BIOLOGY, ETC)
       BACKGROUND.
   •   MY PRESENTATION IS VERY MUCH DOMESTIC (REFERING TO SPANISH TOPICS).




                                                                              2
“SOCIAL IMPACTS OF FINANCIAL AND REAL ESTATE TURMOIL:
         A NON EXISTING TOPIC OF THE SPANISH POLITICAL AGENDA.




•   SUMMARY :


    1. SPANISH HOUSING POLICIES IN THE LAST DECADES.


    2. CURRENT EVENTS IN SPANISH HOUSING POLICIES.


    3. A PROPOSAL FOR FUTURE YEARS.




                                                                 3
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES




                                               4
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.



 FROM THE 60’ TO CURRENT TIMES, IN SPAIN, HOUSING PUBLIC POLICIES HAVE BEEN
MAINLY GEARED TOWARDS ENHANCING ACCESS ON A PROPERTY SCHEME, BASED ON
TAX DEDUCTIONS AND FINANCIAL PUBLIC SUBSIDIES. AT THE SAME TIME, PUBLIC
BUDGET RESOURCES FOR ACTIVE HOUSING POLICIES HAVE BEEN MARGINAL.

    • SUBSIDIZED INTEREST RATES (“SUBSIDIACION DE TIPOS DE INTERES”).
    • FISCAL TAX BREAKS ON PURCHASE (DEDUCCIÓN DE LA COMPRA DE VIVIENDA).
    • DE-CLASIFIABLE SOCIALLY SUBSIDIZED PRIVATELY OWNED HOUSING (“VIVIENDA
    PROTEGIDA”).


 ECONOMIC GROWTH AND EMPLOYMENT, RATHER THAN EQUITY AND ENHANCING
ACCESS FOR MIDDLE AND LOW INCOME FAMILIES, HAVE BEEN THE MAIN FOCUS OF
HOUSING POLICIES


 IN RECENT YEARS, THREE DEBATES HAVE ENTERED (AT LEAST NOMINALY) THE
PUBLIC AGENDA:

    • THE EFECTIVE APPLICATION OF THE CONSTITUTIONAL RIGHT TO HOUSING (ART 47
    OF THE SPANISH CONSTITUTION AND REGIONAL HOUSING LAWS).

    • THE NEED TO CONVERGE WITH EUROPEAN HOUSING PUBLIC POLICIES (PUBLIC
    INTERVENTION, RENTAL STOCK, SOCIAL HOUSING, REHABILITATION, ETC).

    • SUSTAINABILITY CONSIDERATIONS OF REAL ESTATE ACTIVITY.                5
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.

 DESPITE THESE FACTS, MOST PRIVATE AND PUBLIC AGENTS IN SPAIN CONSIDER THE
MARKET (LATELY, REMARKABLY THE FINANCIAL MARKET) AS THE PRIMARY AGENT IN
HOUSING PROVISION.

 MOST PUBLIC INTERVENTION HAS FOLLOWED THE LOGIC OF ACTIVE INVOLVEMENT IN
“ROUGH TIMES AND LOCATIONS” (SOCIALIZATION OF PRIVATE LOSSES) AND WITHDRAWAL IN
“FAVOURABLE TIMES AND LOCATIONS” (PRIVATIZATION OF BENEFITS).

 IN SPAIN, THESE TRENDS EVOLVED ALONG WITH PROCESSES OF SPANISH EUROPEAN
INTEGRATION AND GLOBALIZATION.

     • IN FLOW OF CAPITAL ATTRACTED BY HIGH SHORT-TERM PROFITS IN REAL ESTATE AND
     INFRAESTRUCTURE SECTORS.
     • ALMOST ILIMITED LIQUIDITY-CREDIT WITH MINIMAL OR EVEN NO-RISK EXAM.
     • SUICIDAL LENDING AND BORROWING PRACTICES INVOLVING PRIVATE AND PUBLIC,
     DOMESTIC AND EUROPEAN, AGENTS.

   AND IN A VERY PECULIAR URBAN LEGAL FRAMEWORK.

     •   SPECULATIVE FUTURE LAND VALUE GUARANTEED BY LAW TO OWNERS, IN
         ADVANCE, AND WITHOUT ANY INVESTMENT/RISK.
     •   HISTORICAL LINK BETWEEN LAND OWNERS AND PRIVATE BANKING SYSTEM AND
         ABSENCE OF PUBLIC BANKING.
     •   LACK OF PRIVATE PROFESSIONAL ENTREPENEURS IN THE FIELD OF URBANIZATION-
         CONSTRUCTION.
     •   WEAK PUBLIC INTERVENTION IN THE HOUSING MARKET.
     •   MODEST PUBLIC-VALUE CAPTURING IN THE URBANIZATION PROCESS.           6
     •   DEREGULATION OF THE MORTGAGE MARKET.
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.

 THESE SET OF VALUES AND POLICIES WERE IN PLACE FOR SEVERAL DECADES, FIRST
DURING THE DICTATORSHIP REGIME AND LATER ON DURING THE EUROPEAN INTEGRATION AND
GLOBALIZATION PHASES. IT LED SPAIN TO THE FOLLOWING SITUATION:

1)   HOUSING OVER-PRODUCTION (2.5/20/45 NEW UNITS PER 1000 INHABITANS vs. 2-6 IN MAIN EU
     MEMBER STATES).

      •   47 MILLION INHABITANTS; 25.5 MILLION HOUSING UNITS; AROUND 550 UNITS/1000
          INHABITANTS (ONE OF THE HIGHEST AMONG EU MMSS).
      •   MORE THAN 20% VACANT UNITS (2/3/6 MILLION, PLUS 15% SECONDARY HOMES).

2)   SEVERE LAND CONSUMPTION AND ECOLOGICAL FOOTPRINT: 0.4 MILLION HECTARES OF
     ARTIFICIALIZED LAND (1987-2010); IN THE PREVIOUS 12.000 YEARS 0.8.

      •   6/25.5 MILLION NEW HOUSING UNITS IN THE LAST DECADE.
      •   PLUS, LAND ALREADY PURCHASED FOR PROSPECTIVE BUILDING OF 2.8 MILLION
          ADDITIONAL HOUSING UNITS. HALF OF THESE, ALMOST IMPOSSIBLE TO DEVELOP IN
          FOLLOWING YEARS.
      •   “URBANIZED DESERTS”: LARGE INFRASTRUCTURES RESTING UNUSED.
      •   AVERAGE CONSUMPTION OF 20 TON OF BUILDING MATERIALS PER CAPITA vs. 15 EU
          AVERAGE.

3)   SOCIO-ECONOMIC INACCESSIBILITY TO HOUSING:

      •   1997-2007: HOUSING PRICES UP ABOVE 200% ON AVERAGE. LAND MORE THAN 500%.
      •   2007-2012: HOUSING PRICES DECLINE NO MORE 20% ON AVERAGE. LAND 80%.
      •   7-9 ANNUAL SALARIES REQUIRED TO BUY A UNIT (EVEN NOW); MAIN EU MMSS 3-4.
                                                                                   7
      •   SOCIO-SPATIAL SEGMENTATION AND HOUSING NEEDS UNADRESSED BY STATE/MARKET.
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.



4)   RISE OF UNEMPLOYMENT: FROM 10% IN THE LAST DECADE TO OVER PLUS 20%
     CURRENTLY, VERY MUCH RELATED TO CHANGING REAL ESTATE DINAMICS.
5)   OWNERSHIP IMPOSED CULTURE:
      •   MORE THAN 80% OF OWNERS; LESS THAN 10% OF TENANTS; ONLY 125.000 SOCIAL
          RENTAL UNITS (LESS THAN 0.5%).
      •   IN THE 60’s MORE THAN HALF OF THE POPULATION LIVED ON RENTAL UNITS.
      •   “TO RENT IS A WASTE OF MONEY” (“ALQUILAR ES TIRAR EL DINERO”) + MARKET AND
          STATE PROMOTION OF OWNERSHIP.
6)   FAMILY HYPERLEVERAGE AND DEBT EMERGENCY:
      •   MILLIONS OF OVER-MORTGAGED FAMILIES.
      •   MILLIONS OF UNDER WATER MORTGAGES.
      •   300.000 FORCED EVICTIONS OF OWNERS AND TENANTS.
      •   HEADING TO 6 MILLION UNEMPLOYED AND 0.5 MILLION EVICTED FAMILIES.
7)   SYSTEMIC ECONOMIC RISK DUE TO FINANCIAL IRRESPONSABILITY: 200.000 MILLION (2
     BILLION - short scale - 109 ) IN REAL ESTATE “DOMESTIC” TOXIC ASSETS (20% SPANISH DGP).
8)   STILL DEPENDENT ON REAL ESTATE SOCIO-ECONOMIC “COLLECTIVE DRUG”: 60% OF BANK
     CREDIT FOR PRODUCTIVE ACTIVITIES GOES TO REAL ESTATE; TODAY REFINANCING OLD
     PROJECTS RATHER THAN FINANCING NEW URBAN DEVELOPMENTS OR OTHER (MORE)
     PRODUCTIVE ACTIVITIES.



                                                                                        8
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.



            HYPERPRODUCTION




    SOURCE: JULIO RODRIGUEZ LOPEZ CYT 161-162 - 2009   9
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.




SPAIN AND CHINA WERE WORLD LEADERS IN CRANE CONSUMPTION
                                                          10
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.




LAND NOT SUITABLE FOR URBANIZATION: DETACHED HOUSES SALE
                                                           11
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.




DUE TO ITS SIZE, IT’S MORE A EUROPEAN PROBLEM THAT JUST A SPANISH ONE.
                                                                         12
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.



SOCIO-ECONOMIC INACCESSIBILITY TO HOUSING




     SOURCE: JULIO RODRIGUEZ LOPEZ CYT 161-162 - 2009   13
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.



   SOCIO-ECONOMIC INACCESSIBILITY TO HOUSING




SOURCE: THE SPANISH CONFEDERATION OF SAVINGS BANKS (CECA) 2012.   14
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.




ONLY TWO OR THREE YEARS AGO IT WAS A TABU: THERE WAS NO NEED TO
   DOWNSIZE THE HOUSING BUBBLE, BECAUSE WE DIDN’T HAVE ONE.       15
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.




SALARIES AND HOUSING PRICES DIVERGE TO AN UNSUSTAINABLE LEVEL
                                                                16
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.

HYPERPRODUCTION IN SPAIN = RISE ON HOUSING PRICES




         APPARENTLY, WE WERE NOT ALONE …
                                                       17
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.




   FIRST (QUIET) ROUND OF SOCIAL DISCONTENT         18
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.




ONLY A FEW URBAN PROFESSIONALS CHALLENGED THE CONSENSUS   19
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.


      SPAIN HOUSING SITUATION ATTRACTED INTERNATIONAL ATTENTION




MILOON KOTHARI (UN)                                 MARGRETE AUKEN (EP)




                        RAQUEL ROLNIK (UN)                         20
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.




SECOND (CONSIDERABLE) ROUND OF SOCIAL DISCONTENT: VERY MUCH
 FOCUSED ON HOUSING, EVICTIONS AND PUBLIC BAIL OUT OF BANKS   21
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.




                (DON’T STAY HOME, YOU COULD LOSE IT)
15M MOVEMENT DOES NOT TALK ONLY ABOUT HOUSING, BUT DOES IT VERY MUCH   22
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.



   STATE (AND EU) OVER PROTECTION OF THE REAL ESTATE AND FINANCIAL
     COMPLEX, REVOLVING DOOR AND THE CAPTURE OF THE REGULATOR




EVICTIONS IS ONLY A PERIFERIC CONCERN FOR POLITICAL AND FINANCIAL ESTABLISHMENT
                                                                            23
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.




MARTINSA FADESA: THE LARGEST BANKRUPTCY IN SPANISH HISTORY


                                                             24
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.




BANKIA: THE LARGEST BANK NATIONALIZATION IN SPANISH HISTORY … SO FAR …
                                                                         25
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.




CABINET CHANGES THAT DON’T CHANGE PUBLIC HOUSING AND URBAN POLICIES
                                                                      26
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.




HOUSING BUBBLE PIONERS ARE IN CHARGE AGAIN …
                                                    27
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.

                          WELFARE STATE?




 NATIONALIZED BANKIA (“LEADER” IN BAIL OUT, EMPTY HOUSES AND
EVICTIONS), FACES POPULAR DEMOSTRATIONS AGAINST EVICTIONS,
                  PROTECTED BY THE POLICE.
                                                               28
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.


                           WELFARE STATE?




 SPAIN: A COUNTRY WITH MILLIONS WITHOUT A HOME; BANKS,
 SUPPORTED WITH PUBLIC FUNDS, WITH MILLIONS OF EMPTY
HOUSES IN THEIR BOOKS; RIGID PRICES; AND MEANINGLESS AND
            DECLINING HOUSING PUBLIC POLICIES.                29
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.


               URBANIZED DESERTS




“CITY” OF VALDELUZ (GUADALAJARA – CASTILLA LA MANCHA)   30
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.




            URBANIZED DESERTS




  “CITY” OF SESEÑA (TOLEDO – CASTILLA LA MANCHA)
                                                    31
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.


            URBANIZED DESERTS




        “MARINA” (LAREDO - CANTABRIA)               32
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.


            URBANIZED DESERTS




       “AIRPORT” (CASTELLON - VALENCIA)             33
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.


              URBANIZED DESERTS




THE CITY OF CULTURE (SANTIAGO DE COMPOSTELA – GALICIA)   34
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.


            URBANIZED DESERTS




            “HIGHWAY” (RADIALES MADRID)
                                                    35
1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.


 THE SAME DISFUNCTIONAL LEGAL FRAMEWORK PRODUCES, HOWEVER, VERY DISTINCT
OUTCOMES ACROSS THE REGIONS (CCAA).


 SO, HAND IN HAND WITH EXTERNALITIES, WE CAN FIND CRITICAL GOOD PRACTICES.

    • “RESERVAS DE SUELO PARA VIVIENDA PROTEGIDA” (LEGAL RESERVES FOR
    AFFORDABLE HOUSING).

    • “CALIFICACION INDEFINIDA DE LA VIVIENDA PROTEGIDA EN PROPIEDAD” (TERTIUM
    GENIUS BETWEEN SOCIAL RENTAL HOUSING AND PRIVATE OWNERSHIP GEARED
    TOWARDS GENERAL INTEREST).

    • BIZIGUNE (VACANT PRIVATE HOUSING REORIENED TO SOCIAL RENTAL HOUSING).

    • “DERECHO DE SUPERFICIE” (RIGH TO USE PUBLIC HOUSING UNITS FOR A LONG
    PERIOD OF TIME).

    • “VIVIENDAS DOTACIONALES EN ALQUILER” (NON MARKET RENTAL STOCK).

    • “OBJETIVOS DE COHESION SOCIAL Y SOLIDARIDAD URBANA (PARQUE DE ALQUILER
    ASEQUIBLE)”. AFFORDABLE RENTAL HOUSING STOCK OBLIGATIONS FOR THE LOCAL
    ADMIINSTRATIONS.


 THERE IS NO HOMOGENEOUS HOUSING MODEL IN SPAIN. THE REGIONAL SCOPE
MATTERS.                                                           36
2.- CURRENT EVENTS IN SPANISH HOUSING POLICIES




                                             37
2.- CURRENT EVENTS IN SPANISH HOUSING POLICIES




    PROFOUND SOCIO-ECONOMIC AND URBAN AUTISM

   THE DECLARED OBJETIVE OF THE NEW SPANISH CABINET IS, ONCE “FINANCIAL REFORM” IS
    COMPLETED (SOCIALIZATION OF REAL ESTATE LOSSES OF THE PRIVATE BANKING
    SYSTEM), TO RESUME HOUSING PRODUCTION (MONOPRODUCTION OF NEW HOUSING
    UNITS FOR PRIVATE OWNERSHIP) AS A CORE SECTOR OF OUR ECONOMY AND A HEALTHY
    SOURCE OF EMPLOYMENT.


     •   RECENT CALLS OF SENIOR OFFICIALS TO A RETURN TO THE “SPANISH MIRACLE”
         TIMES …

     •   CALLS FOR THE NEED TO FLEXIBILIZE OUR “HARD” COSTS LEGISLATION IN ORDER TO
         PROMOTE “DEVELOPMENT” …

     •   TO THE CONVENIENCE OF DISREGARDING SUSTAINABLE DEVELOMENT EFFORTS,
         SINCE THIS IS A SO-CALLED “FALSE” CONCEPT …

     •   TO THE BENEFITS OF THE POSITIVE HOUSING BUBBLE ...




                                                                               38
2.- CURRENT EVENTS IN SPANISH HOUSING POLICIES



    PROFOUND SOCIO-ECONOMIC AND URBAN AUTISM
   WITHIN THIS FRAMEWORK WE CAN LIST THE FOLLOWING EVENTS:

     •   ADJUSTMENT BY QUANTITY AND NOT BY PRICE.

     •   STOCK PROBLEM:

          •   FROM DEVELOPERS TO BANKS
          •   FROM BANKS TO PUBLIC DEFICIT AND DEBT
          •   FROM THE PRIVATE SECTOR TO CUTS IN THE PUBLIC SECTOR AND SOCIAL
              RIGHTS
          •   FROM DENIAL TO BAIL OUT AND EU-IMF INTERVENTION.

     •   TAX GASOLINE OVER THE EXTINGUISHED REAL ESTATE FIRE (REINFORCEMENT OF
         TAX DEDUCTIONS FOR OWNERSHIP, REDUCE VAT FOR HOUSE SALES AND ONLY
         NOMINAL FISCAL AIDS FOR RENTAL OR RENEWAL).

     •   LONG TERM MORTAGES AND LOW LTV ARE BACK IN THE MARKET.

     •   PUBLIC PROGRAMS TO SUSTAIN THE BANKING SECTOR HAVE BEING INMENSE AND
         USELESS (FAAF, FROB I, FROB II, NATIONALIZATIONS, PUBLIC GUARANTEES, LIQUIDITY
         FACILITIES, CAPITAL INYECTIONS, SACRIFICE OF THE SAVING BANKS SYSTEM, ETC =
         MORE THAN 15% SPAIN GDP … SO FAR).

                                                                                  39
2.- CURRENT EVENTS IN SPANISH HOUSING POLICIES


                PROFOUND SOCIO-URBAN AUTISM
   WITHIN THIS FRAMEWORK WE CAN LIST THE FOLLOWING EVENTS:

     •   PUBLIC PROGRAMS TO EASE MORTAGE RISK HAVE BEING SO FAR RAQUITIC AND
         USELESS.

     •   THE ADMINISTRATION PROMOTING THE SALES OF OWNER PRIVATE HOUSES …
         BECAUSE “THE PRICES CAN’T GO DOWN ANY MORE”.

     •   EXPANSIVE URBAN PLANNING IN DRAFTING PROCESS, WAITING FOR THE RETURN OF
         “GOOD TIMES”.

     •   DERROGATION OF LEGAL OBLIGATIONS OF DEVELOPERS (IMPOSED ON BEHALF OF
         PUBLIC INTEREST) IN ORDER TO REVITALIZE THE MARKET.

     •   MAKING THE RENTAL MARKET STRONGER THROUGH A FAST EVICTION PROCESS?

     •   PUBLIC AIDS TO RENEWAL ALMOST UNUSED.

     •   SELLING RESIDUAL SOCIAL RENTAL (AND THE RIGHT OF USE) PUBLIC STOCK.

     •   ALLOCATION OF SOCIAL HOUSING ONLY TO FINANCIALY SOLID APPLICANTS.

     •   PUBLIC RENTAL AGENCIES AIDING THE PRIVATE SECTOR TO SELL PRIVATE
         PROPERTY HOUSING.                                            40
2.- CURRENT EVENTS IN SPANISH HOUSING POLICIES



                PROFOUND SOCIO-URBAN AUTISM
   WITHIN THIS FRAMEWORK WE CAN LIST THE FOLLOWING EVENTS:

     •   SEVERE BUDGETARY REDUCTION FOR THE PUBLIC HOUSING POLICIES.

     •   EXTINCTION OF RELEVANT FEDERAL HOUSING POLICY INSTRUMENTS: “RENTA
         BASICA DE EMANCIPACION” (PUBLIC DIRECT AID FOR RENTAL MONTHLY PAYMENTS),
         “SOCIEDAD PÚBLICA DE ALQUILER” (FEDERAL RENT AGENCY), HOUSING MINISTER …

     •   THE SAME PROCESS IN MOST CCAA (REGIONAL ADMINISTRATION).

     •   ABORGATION OF FEDERAL AND REGIONAL LAWS ON RIGHT TO ADECUATE HOUSING,
         SOCIAL COHESION IN THE URBAN SPHERE, PUBLIC RENTAL STOCK, HOUSING PUBLIC
         SERVICE, ETC.

     •   RESIDENTIAL EMERGENCY (FORCE EVICTIONS AND NONRECOURSE MORTAGES)
         ADRESS ONLY WITH A VOLUNTARY CODE OF GOOD PRACTICES FOR THE (PARTILLY
         NATIONALIZED) BANKING SYSTEM.

     •   DEVELOPERS’ LOBBIES DEMANDING THE CONSTRUCTION OF 3 MILLIONS OF NEW
         HOUSING UNITS IN A COUNTRY WITH 6 MILLION VACANT HOUSES AND A DEPRIVED
         DEMAND.

     •   BEN BERNANKE'S SOLUTIONS TO TE (US) HOUSING CRISIS: RENTING FORECLOSED
         HOMES. NOT EVEN TAKEN INTO ACCOUNT BY SPANISH OFFICIALS AND BUSINESS
                                                                            41
         COMMUNITY.
3.- A PROPOSAL FOR THE FUTURE YEARS




                                      42
3.- A PROPOSAL FOR THE FUTURE YEARS

   SPANISH URBANISM NEEDS NEW STATEHOLDERS WILLING TO MAKE POSSIBLE:

     MORATORIUM - CEASEFIRE: SUSPEND NEW HOUSING
DEVELOPMENTS, UNTIL A RELEVANT PART OF THE VACANT STOCK IS ALLOCATED AND
RENEWAL NEEDS ARE FULFILLED. WITH ONLY A FEW LOCALLY JUSTIFIED EXCEPTIONS.

                               REDIRECT
                                VACANT
                               HOUSING
                   PPP ON VACANT STOCK:
      MARKET - MODERATE – SOCIAL RENTAL PROGRAMMES RUN BY BANKS,
      ADMINISTRATION, PROFESIONAL MANAGERS AND LOCAL COMMUNITIES.




                 RENTAL                        RENEWAL
                                                                     43
3.- A PROPOSAL FOR THE FUTURE YEARS


SPANISH URBANISM NEEDS NEW STATEHOLDERS WILLING TO MAKE POSSIBLE:

      MEANWHILE … ADAPTATIVE URBANISM


                           CO
                                      RE
•   URBAN HARDWARE (PHYSICAL ARTIFACTS) vs. (KNOW HOW AND RELATIONAL
    NETWORKS) SOCIAL SOFTWARE.
•   RENTAL + REHABILITACION + REGENERATION + RENEWAL + RETHINK + REUSE +
    ETC.
•   NON FINANCIAL OR ADMINSTRATIVE URBANISM: THE NEED OF A NEW
    INVOLVEMENT OF CITIZENS, COMMUNITIES, NGOs, ADMINISTRATION AND
    BUSINESS PEOPLE.
                                                                  44
•   URBAN SERVICES vs. REAL ESTATE PRODUCTS
3.- A PROPOSAL FOR THE FUTURE YEARS




ALL OF THIS IT’S OBVIOUS
    (SELF-EVIDENT FOR A LONG TERM
  AND GENERAL INTEREST PERSPECTIVE)



BUT, I’M AFFRAID, THAT IT
    WON’T BE DONE
       (DUE TO MARKET, POLITICAL
          AND SOCIAL FACTORS
   OF THE CURRENT POWER BALANCE)

                                             45
BLOG LEOLO

     FACEBOOK JAVIER BURÓN CUADRADO

           TWITTER JAVIERBURONC

          SLIDESHARE JAVIER BURON

FACEBOOK DEBATE GROUP VIVIENDA PUBLICA YA

 EKITEN THINKING http//www.ekitenthinking.org

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ENHR 2012 LILEHAMMER: SOCIAL IMPACTS OF FINANCIAL AND REAL ESTATE TURMOIL: A NON EXISTING TOPIC OF THE SPANISH POLITICAL AGENDA.

  • 1. 24TH ENHR CONFERENCE. Lillehammer June 2012. HOUSING: LOCAL WELFARE AND LOCAL MARKETS IN A GLOBALISED WORLD. PLENARY 2A: GLOBAL IMPACTS ON NATIONAL AND LOCAL HOUSING MARKETS SOCIAL IMPACTS OF FINANCIAL AND REAL ESTATE TURMOIL: A NON EXISTING TOPIC OF THE SPANISH POLITICAL AGENDA. Javier Burón Cuadrado Urbania ZH Gestión. Partner. Researcher at Ekiten Thinking UPV – EHU. Ex-Cuatrecasas Gonçalves Pereira Public Law Department. Ex-Vice Counselor for Housing of the Basque Government.
  • 2. “SOCIAL IMPACTS OF FINANCIAL AND REAL ESTATE TURMOIL: A NON EXISTING TOPIC OF THE SPANISH POLITICAL AGENDA. MY APPROACH TO THESE TOPICS: • I’M NOT A POLITICIAN (ANY MORE). • I’M NOT A (PROFESSIONAL) ACADEMIC. • I USED TO WORK AS A LEGAL COUNCELOR FOR ADMINISTRATIONS AND PRIVATE COMPANIES. • RIGHT NOW I’M A BUSINESS MAN IN THE FIELD OF PUBLIC PRIVATE PARTNERSHIP. • LACK OF ACADEMIC DISCIPLINE: A BIT OF LAW, ECONOMICS, POLITICS, BUSINESS, SOCIOLOGY, ETC. • I DON’T HAVE ANY TECHNICAL (ARCHITECTURE, ENGINEERING, BIOLOGY, ETC) BACKGROUND. • MY PRESENTATION IS VERY MUCH DOMESTIC (REFERING TO SPANISH TOPICS). 2
  • 3. “SOCIAL IMPACTS OF FINANCIAL AND REAL ESTATE TURMOIL: A NON EXISTING TOPIC OF THE SPANISH POLITICAL AGENDA. • SUMMARY : 1. SPANISH HOUSING POLICIES IN THE LAST DECADES. 2. CURRENT EVENTS IN SPANISH HOUSING POLICIES. 3. A PROPOSAL FOR FUTURE YEARS. 3
  • 4. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES 4
  • 5. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.  FROM THE 60’ TO CURRENT TIMES, IN SPAIN, HOUSING PUBLIC POLICIES HAVE BEEN MAINLY GEARED TOWARDS ENHANCING ACCESS ON A PROPERTY SCHEME, BASED ON TAX DEDUCTIONS AND FINANCIAL PUBLIC SUBSIDIES. AT THE SAME TIME, PUBLIC BUDGET RESOURCES FOR ACTIVE HOUSING POLICIES HAVE BEEN MARGINAL. • SUBSIDIZED INTEREST RATES (“SUBSIDIACION DE TIPOS DE INTERES”). • FISCAL TAX BREAKS ON PURCHASE (DEDUCCIÓN DE LA COMPRA DE VIVIENDA). • DE-CLASIFIABLE SOCIALLY SUBSIDIZED PRIVATELY OWNED HOUSING (“VIVIENDA PROTEGIDA”).  ECONOMIC GROWTH AND EMPLOYMENT, RATHER THAN EQUITY AND ENHANCING ACCESS FOR MIDDLE AND LOW INCOME FAMILIES, HAVE BEEN THE MAIN FOCUS OF HOUSING POLICIES  IN RECENT YEARS, THREE DEBATES HAVE ENTERED (AT LEAST NOMINALY) THE PUBLIC AGENDA: • THE EFECTIVE APPLICATION OF THE CONSTITUTIONAL RIGHT TO HOUSING (ART 47 OF THE SPANISH CONSTITUTION AND REGIONAL HOUSING LAWS). • THE NEED TO CONVERGE WITH EUROPEAN HOUSING PUBLIC POLICIES (PUBLIC INTERVENTION, RENTAL STOCK, SOCIAL HOUSING, REHABILITATION, ETC). • SUSTAINABILITY CONSIDERATIONS OF REAL ESTATE ACTIVITY. 5
  • 6. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.  DESPITE THESE FACTS, MOST PRIVATE AND PUBLIC AGENTS IN SPAIN CONSIDER THE MARKET (LATELY, REMARKABLY THE FINANCIAL MARKET) AS THE PRIMARY AGENT IN HOUSING PROVISION.  MOST PUBLIC INTERVENTION HAS FOLLOWED THE LOGIC OF ACTIVE INVOLVEMENT IN “ROUGH TIMES AND LOCATIONS” (SOCIALIZATION OF PRIVATE LOSSES) AND WITHDRAWAL IN “FAVOURABLE TIMES AND LOCATIONS” (PRIVATIZATION OF BENEFITS).  IN SPAIN, THESE TRENDS EVOLVED ALONG WITH PROCESSES OF SPANISH EUROPEAN INTEGRATION AND GLOBALIZATION. • IN FLOW OF CAPITAL ATTRACTED BY HIGH SHORT-TERM PROFITS IN REAL ESTATE AND INFRAESTRUCTURE SECTORS. • ALMOST ILIMITED LIQUIDITY-CREDIT WITH MINIMAL OR EVEN NO-RISK EXAM. • SUICIDAL LENDING AND BORROWING PRACTICES INVOLVING PRIVATE AND PUBLIC, DOMESTIC AND EUROPEAN, AGENTS.  AND IN A VERY PECULIAR URBAN LEGAL FRAMEWORK. • SPECULATIVE FUTURE LAND VALUE GUARANTEED BY LAW TO OWNERS, IN ADVANCE, AND WITHOUT ANY INVESTMENT/RISK. • HISTORICAL LINK BETWEEN LAND OWNERS AND PRIVATE BANKING SYSTEM AND ABSENCE OF PUBLIC BANKING. • LACK OF PRIVATE PROFESSIONAL ENTREPENEURS IN THE FIELD OF URBANIZATION- CONSTRUCTION. • WEAK PUBLIC INTERVENTION IN THE HOUSING MARKET. • MODEST PUBLIC-VALUE CAPTURING IN THE URBANIZATION PROCESS. 6 • DEREGULATION OF THE MORTGAGE MARKET.
  • 7. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.  THESE SET OF VALUES AND POLICIES WERE IN PLACE FOR SEVERAL DECADES, FIRST DURING THE DICTATORSHIP REGIME AND LATER ON DURING THE EUROPEAN INTEGRATION AND GLOBALIZATION PHASES. IT LED SPAIN TO THE FOLLOWING SITUATION: 1) HOUSING OVER-PRODUCTION (2.5/20/45 NEW UNITS PER 1000 INHABITANS vs. 2-6 IN MAIN EU MEMBER STATES). • 47 MILLION INHABITANTS; 25.5 MILLION HOUSING UNITS; AROUND 550 UNITS/1000 INHABITANTS (ONE OF THE HIGHEST AMONG EU MMSS). • MORE THAN 20% VACANT UNITS (2/3/6 MILLION, PLUS 15% SECONDARY HOMES). 2) SEVERE LAND CONSUMPTION AND ECOLOGICAL FOOTPRINT: 0.4 MILLION HECTARES OF ARTIFICIALIZED LAND (1987-2010); IN THE PREVIOUS 12.000 YEARS 0.8. • 6/25.5 MILLION NEW HOUSING UNITS IN THE LAST DECADE. • PLUS, LAND ALREADY PURCHASED FOR PROSPECTIVE BUILDING OF 2.8 MILLION ADDITIONAL HOUSING UNITS. HALF OF THESE, ALMOST IMPOSSIBLE TO DEVELOP IN FOLLOWING YEARS. • “URBANIZED DESERTS”: LARGE INFRASTRUCTURES RESTING UNUSED. • AVERAGE CONSUMPTION OF 20 TON OF BUILDING MATERIALS PER CAPITA vs. 15 EU AVERAGE. 3) SOCIO-ECONOMIC INACCESSIBILITY TO HOUSING: • 1997-2007: HOUSING PRICES UP ABOVE 200% ON AVERAGE. LAND MORE THAN 500%. • 2007-2012: HOUSING PRICES DECLINE NO MORE 20% ON AVERAGE. LAND 80%. • 7-9 ANNUAL SALARIES REQUIRED TO BUY A UNIT (EVEN NOW); MAIN EU MMSS 3-4. 7 • SOCIO-SPATIAL SEGMENTATION AND HOUSING NEEDS UNADRESSED BY STATE/MARKET.
  • 8. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. 4) RISE OF UNEMPLOYMENT: FROM 10% IN THE LAST DECADE TO OVER PLUS 20% CURRENTLY, VERY MUCH RELATED TO CHANGING REAL ESTATE DINAMICS. 5) OWNERSHIP IMPOSED CULTURE: • MORE THAN 80% OF OWNERS; LESS THAN 10% OF TENANTS; ONLY 125.000 SOCIAL RENTAL UNITS (LESS THAN 0.5%). • IN THE 60’s MORE THAN HALF OF THE POPULATION LIVED ON RENTAL UNITS. • “TO RENT IS A WASTE OF MONEY” (“ALQUILAR ES TIRAR EL DINERO”) + MARKET AND STATE PROMOTION OF OWNERSHIP. 6) FAMILY HYPERLEVERAGE AND DEBT EMERGENCY: • MILLIONS OF OVER-MORTGAGED FAMILIES. • MILLIONS OF UNDER WATER MORTGAGES. • 300.000 FORCED EVICTIONS OF OWNERS AND TENANTS. • HEADING TO 6 MILLION UNEMPLOYED AND 0.5 MILLION EVICTED FAMILIES. 7) SYSTEMIC ECONOMIC RISK DUE TO FINANCIAL IRRESPONSABILITY: 200.000 MILLION (2 BILLION - short scale - 109 ) IN REAL ESTATE “DOMESTIC” TOXIC ASSETS (20% SPANISH DGP). 8) STILL DEPENDENT ON REAL ESTATE SOCIO-ECONOMIC “COLLECTIVE DRUG”: 60% OF BANK CREDIT FOR PRODUCTIVE ACTIVITIES GOES TO REAL ESTATE; TODAY REFINANCING OLD PROJECTS RATHER THAN FINANCING NEW URBAN DEVELOPMENTS OR OTHER (MORE) PRODUCTIVE ACTIVITIES. 8
  • 9. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. HYPERPRODUCTION SOURCE: JULIO RODRIGUEZ LOPEZ CYT 161-162 - 2009 9
  • 10. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. SPAIN AND CHINA WERE WORLD LEADERS IN CRANE CONSUMPTION 10
  • 11. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. LAND NOT SUITABLE FOR URBANIZATION: DETACHED HOUSES SALE 11
  • 12. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. DUE TO ITS SIZE, IT’S MORE A EUROPEAN PROBLEM THAT JUST A SPANISH ONE. 12
  • 13. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. SOCIO-ECONOMIC INACCESSIBILITY TO HOUSING SOURCE: JULIO RODRIGUEZ LOPEZ CYT 161-162 - 2009 13
  • 14. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. SOCIO-ECONOMIC INACCESSIBILITY TO HOUSING SOURCE: THE SPANISH CONFEDERATION OF SAVINGS BANKS (CECA) 2012. 14
  • 15. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. ONLY TWO OR THREE YEARS AGO IT WAS A TABU: THERE WAS NO NEED TO DOWNSIZE THE HOUSING BUBBLE, BECAUSE WE DIDN’T HAVE ONE. 15
  • 16. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. SALARIES AND HOUSING PRICES DIVERGE TO AN UNSUSTAINABLE LEVEL 16
  • 17. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. HYPERPRODUCTION IN SPAIN = RISE ON HOUSING PRICES APPARENTLY, WE WERE NOT ALONE … 17
  • 18. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. FIRST (QUIET) ROUND OF SOCIAL DISCONTENT 18
  • 19. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. ONLY A FEW URBAN PROFESSIONALS CHALLENGED THE CONSENSUS 19
  • 20. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. SPAIN HOUSING SITUATION ATTRACTED INTERNATIONAL ATTENTION MILOON KOTHARI (UN) MARGRETE AUKEN (EP) RAQUEL ROLNIK (UN) 20
  • 21. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. SECOND (CONSIDERABLE) ROUND OF SOCIAL DISCONTENT: VERY MUCH FOCUSED ON HOUSING, EVICTIONS AND PUBLIC BAIL OUT OF BANKS 21
  • 22. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. (DON’T STAY HOME, YOU COULD LOSE IT) 15M MOVEMENT DOES NOT TALK ONLY ABOUT HOUSING, BUT DOES IT VERY MUCH 22
  • 23. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. STATE (AND EU) OVER PROTECTION OF THE REAL ESTATE AND FINANCIAL COMPLEX, REVOLVING DOOR AND THE CAPTURE OF THE REGULATOR EVICTIONS IS ONLY A PERIFERIC CONCERN FOR POLITICAL AND FINANCIAL ESTABLISHMENT 23
  • 24. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. MARTINSA FADESA: THE LARGEST BANKRUPTCY IN SPANISH HISTORY 24
  • 25. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. BANKIA: THE LARGEST BANK NATIONALIZATION IN SPANISH HISTORY … SO FAR … 25
  • 26. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. CABINET CHANGES THAT DON’T CHANGE PUBLIC HOUSING AND URBAN POLICIES 26
  • 27. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. HOUSING BUBBLE PIONERS ARE IN CHARGE AGAIN … 27
  • 28. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. WELFARE STATE? NATIONALIZED BANKIA (“LEADER” IN BAIL OUT, EMPTY HOUSES AND EVICTIONS), FACES POPULAR DEMOSTRATIONS AGAINST EVICTIONS, PROTECTED BY THE POLICE. 28
  • 29. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. WELFARE STATE? SPAIN: A COUNTRY WITH MILLIONS WITHOUT A HOME; BANKS, SUPPORTED WITH PUBLIC FUNDS, WITH MILLIONS OF EMPTY HOUSES IN THEIR BOOKS; RIGID PRICES; AND MEANINGLESS AND DECLINING HOUSING PUBLIC POLICIES. 29
  • 30. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. URBANIZED DESERTS “CITY” OF VALDELUZ (GUADALAJARA – CASTILLA LA MANCHA) 30
  • 31. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. URBANIZED DESERTS “CITY” OF SESEÑA (TOLEDO – CASTILLA LA MANCHA) 31
  • 32. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. URBANIZED DESERTS “MARINA” (LAREDO - CANTABRIA) 32
  • 33. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. URBANIZED DESERTS “AIRPORT” (CASTELLON - VALENCIA) 33
  • 34. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. URBANIZED DESERTS THE CITY OF CULTURE (SANTIAGO DE COMPOSTELA – GALICIA) 34
  • 35. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES. URBANIZED DESERTS “HIGHWAY” (RADIALES MADRID) 35
  • 36. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES.  THE SAME DISFUNCTIONAL LEGAL FRAMEWORK PRODUCES, HOWEVER, VERY DISTINCT OUTCOMES ACROSS THE REGIONS (CCAA).  SO, HAND IN HAND WITH EXTERNALITIES, WE CAN FIND CRITICAL GOOD PRACTICES. • “RESERVAS DE SUELO PARA VIVIENDA PROTEGIDA” (LEGAL RESERVES FOR AFFORDABLE HOUSING). • “CALIFICACION INDEFINIDA DE LA VIVIENDA PROTEGIDA EN PROPIEDAD” (TERTIUM GENIUS BETWEEN SOCIAL RENTAL HOUSING AND PRIVATE OWNERSHIP GEARED TOWARDS GENERAL INTEREST). • BIZIGUNE (VACANT PRIVATE HOUSING REORIENED TO SOCIAL RENTAL HOUSING). • “DERECHO DE SUPERFICIE” (RIGH TO USE PUBLIC HOUSING UNITS FOR A LONG PERIOD OF TIME). • “VIVIENDAS DOTACIONALES EN ALQUILER” (NON MARKET RENTAL STOCK). • “OBJETIVOS DE COHESION SOCIAL Y SOLIDARIDAD URBANA (PARQUE DE ALQUILER ASEQUIBLE)”. AFFORDABLE RENTAL HOUSING STOCK OBLIGATIONS FOR THE LOCAL ADMIINSTRATIONS.  THERE IS NO HOMOGENEOUS HOUSING MODEL IN SPAIN. THE REGIONAL SCOPE MATTERS. 36
  • 37. 2.- CURRENT EVENTS IN SPANISH HOUSING POLICIES 37
  • 38. 2.- CURRENT EVENTS IN SPANISH HOUSING POLICIES PROFOUND SOCIO-ECONOMIC AND URBAN AUTISM  THE DECLARED OBJETIVE OF THE NEW SPANISH CABINET IS, ONCE “FINANCIAL REFORM” IS COMPLETED (SOCIALIZATION OF REAL ESTATE LOSSES OF THE PRIVATE BANKING SYSTEM), TO RESUME HOUSING PRODUCTION (MONOPRODUCTION OF NEW HOUSING UNITS FOR PRIVATE OWNERSHIP) AS A CORE SECTOR OF OUR ECONOMY AND A HEALTHY SOURCE OF EMPLOYMENT. • RECENT CALLS OF SENIOR OFFICIALS TO A RETURN TO THE “SPANISH MIRACLE” TIMES … • CALLS FOR THE NEED TO FLEXIBILIZE OUR “HARD” COSTS LEGISLATION IN ORDER TO PROMOTE “DEVELOPMENT” … • TO THE CONVENIENCE OF DISREGARDING SUSTAINABLE DEVELOMENT EFFORTS, SINCE THIS IS A SO-CALLED “FALSE” CONCEPT … • TO THE BENEFITS OF THE POSITIVE HOUSING BUBBLE ... 38
  • 39. 2.- CURRENT EVENTS IN SPANISH HOUSING POLICIES PROFOUND SOCIO-ECONOMIC AND URBAN AUTISM  WITHIN THIS FRAMEWORK WE CAN LIST THE FOLLOWING EVENTS: • ADJUSTMENT BY QUANTITY AND NOT BY PRICE. • STOCK PROBLEM: • FROM DEVELOPERS TO BANKS • FROM BANKS TO PUBLIC DEFICIT AND DEBT • FROM THE PRIVATE SECTOR TO CUTS IN THE PUBLIC SECTOR AND SOCIAL RIGHTS • FROM DENIAL TO BAIL OUT AND EU-IMF INTERVENTION. • TAX GASOLINE OVER THE EXTINGUISHED REAL ESTATE FIRE (REINFORCEMENT OF TAX DEDUCTIONS FOR OWNERSHIP, REDUCE VAT FOR HOUSE SALES AND ONLY NOMINAL FISCAL AIDS FOR RENTAL OR RENEWAL). • LONG TERM MORTAGES AND LOW LTV ARE BACK IN THE MARKET. • PUBLIC PROGRAMS TO SUSTAIN THE BANKING SECTOR HAVE BEING INMENSE AND USELESS (FAAF, FROB I, FROB II, NATIONALIZATIONS, PUBLIC GUARANTEES, LIQUIDITY FACILITIES, CAPITAL INYECTIONS, SACRIFICE OF THE SAVING BANKS SYSTEM, ETC = MORE THAN 15% SPAIN GDP … SO FAR). 39
  • 40. 2.- CURRENT EVENTS IN SPANISH HOUSING POLICIES PROFOUND SOCIO-URBAN AUTISM  WITHIN THIS FRAMEWORK WE CAN LIST THE FOLLOWING EVENTS: • PUBLIC PROGRAMS TO EASE MORTAGE RISK HAVE BEING SO FAR RAQUITIC AND USELESS. • THE ADMINISTRATION PROMOTING THE SALES OF OWNER PRIVATE HOUSES … BECAUSE “THE PRICES CAN’T GO DOWN ANY MORE”. • EXPANSIVE URBAN PLANNING IN DRAFTING PROCESS, WAITING FOR THE RETURN OF “GOOD TIMES”. • DERROGATION OF LEGAL OBLIGATIONS OF DEVELOPERS (IMPOSED ON BEHALF OF PUBLIC INTEREST) IN ORDER TO REVITALIZE THE MARKET. • MAKING THE RENTAL MARKET STRONGER THROUGH A FAST EVICTION PROCESS? • PUBLIC AIDS TO RENEWAL ALMOST UNUSED. • SELLING RESIDUAL SOCIAL RENTAL (AND THE RIGHT OF USE) PUBLIC STOCK. • ALLOCATION OF SOCIAL HOUSING ONLY TO FINANCIALY SOLID APPLICANTS. • PUBLIC RENTAL AGENCIES AIDING THE PRIVATE SECTOR TO SELL PRIVATE PROPERTY HOUSING. 40
  • 41. 2.- CURRENT EVENTS IN SPANISH HOUSING POLICIES PROFOUND SOCIO-URBAN AUTISM  WITHIN THIS FRAMEWORK WE CAN LIST THE FOLLOWING EVENTS: • SEVERE BUDGETARY REDUCTION FOR THE PUBLIC HOUSING POLICIES. • EXTINCTION OF RELEVANT FEDERAL HOUSING POLICY INSTRUMENTS: “RENTA BASICA DE EMANCIPACION” (PUBLIC DIRECT AID FOR RENTAL MONTHLY PAYMENTS), “SOCIEDAD PÚBLICA DE ALQUILER” (FEDERAL RENT AGENCY), HOUSING MINISTER … • THE SAME PROCESS IN MOST CCAA (REGIONAL ADMINISTRATION). • ABORGATION OF FEDERAL AND REGIONAL LAWS ON RIGHT TO ADECUATE HOUSING, SOCIAL COHESION IN THE URBAN SPHERE, PUBLIC RENTAL STOCK, HOUSING PUBLIC SERVICE, ETC. • RESIDENTIAL EMERGENCY (FORCE EVICTIONS AND NONRECOURSE MORTAGES) ADRESS ONLY WITH A VOLUNTARY CODE OF GOOD PRACTICES FOR THE (PARTILLY NATIONALIZED) BANKING SYSTEM. • DEVELOPERS’ LOBBIES DEMANDING THE CONSTRUCTION OF 3 MILLIONS OF NEW HOUSING UNITS IN A COUNTRY WITH 6 MILLION VACANT HOUSES AND A DEPRIVED DEMAND. • BEN BERNANKE'S SOLUTIONS TO TE (US) HOUSING CRISIS: RENTING FORECLOSED HOMES. NOT EVEN TAKEN INTO ACCOUNT BY SPANISH OFFICIALS AND BUSINESS 41 COMMUNITY.
  • 42. 3.- A PROPOSAL FOR THE FUTURE YEARS 42
  • 43. 3.- A PROPOSAL FOR THE FUTURE YEARS SPANISH URBANISM NEEDS NEW STATEHOLDERS WILLING TO MAKE POSSIBLE: MORATORIUM - CEASEFIRE: SUSPEND NEW HOUSING DEVELOPMENTS, UNTIL A RELEVANT PART OF THE VACANT STOCK IS ALLOCATED AND RENEWAL NEEDS ARE FULFILLED. WITH ONLY A FEW LOCALLY JUSTIFIED EXCEPTIONS. REDIRECT VACANT HOUSING PPP ON VACANT STOCK: MARKET - MODERATE – SOCIAL RENTAL PROGRAMMES RUN BY BANKS, ADMINISTRATION, PROFESIONAL MANAGERS AND LOCAL COMMUNITIES. RENTAL RENEWAL 43
  • 44. 3.- A PROPOSAL FOR THE FUTURE YEARS SPANISH URBANISM NEEDS NEW STATEHOLDERS WILLING TO MAKE POSSIBLE: MEANWHILE … ADAPTATIVE URBANISM CO RE • URBAN HARDWARE (PHYSICAL ARTIFACTS) vs. (KNOW HOW AND RELATIONAL NETWORKS) SOCIAL SOFTWARE. • RENTAL + REHABILITACION + REGENERATION + RENEWAL + RETHINK + REUSE + ETC. • NON FINANCIAL OR ADMINSTRATIVE URBANISM: THE NEED OF A NEW INVOLVEMENT OF CITIZENS, COMMUNITIES, NGOs, ADMINISTRATION AND BUSINESS PEOPLE. 44 • URBAN SERVICES vs. REAL ESTATE PRODUCTS
  • 45. 3.- A PROPOSAL FOR THE FUTURE YEARS ALL OF THIS IT’S OBVIOUS (SELF-EVIDENT FOR A LONG TERM AND GENERAL INTEREST PERSPECTIVE) BUT, I’M AFFRAID, THAT IT WON’T BE DONE (DUE TO MARKET, POLITICAL AND SOCIAL FACTORS OF THE CURRENT POWER BALANCE) 45
  • 46. BLOG LEOLO FACEBOOK JAVIER BURÓN CUADRADO TWITTER JAVIERBURONC SLIDESHARE JAVIER BURON FACEBOOK DEBATE GROUP VIVIENDA PUBLICA YA EKITEN THINKING http//www.ekitenthinking.org