RESPONDER. LINKING SCP AND GROWTH DEBATES  MULTINATIONAL KNOWLEDGE BROKERAGE EVENT IN THE AREA OF SUSTAINABLE HOUSING. 28-30 MARCH 2012, BARCELONA (ES)

1. RESPONDER. LINKING SCP AND GROWTH DEBATES
MULTINATIONAL KNOWLEDGE BROKERAGE EVENT IN THE AREA OF SUSTAINABLE
HOUSING. 28-30 MARCH 2012, BARCELONA (ES)
“BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN,
STILL FAR AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
Javier Burón Cuadrado
Cuatrecasas Gonçalves Pereira Public Law Department
Ex-Vice Counselor for Housing of the Basque Government
Researcher at Ekiten Thinking UPV – EHU

2. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
MY APPROACH TO THESES TOPICS:
• I’M NOT A POLITICIAN (ANY MORE). I’M NOT A
(PROFESSIONAL) ACADEMIC. I’M NOT A BUSINESS MAN (BUT I
WORK WITH/FOR THEM).
• MULTIDISCIPLINAR FOCUS: LAW, ECONOMICS, POLITICS,
BUSINESS, SOCIOLOGY, ETC.
• I DON’T HAVE ANY TECHNICAL (ARCHITECTURE,
ENGINEERING, BIOLOGY, ETC) BACKGROUND.
• SUMMARY :
1. SPANISH HOUSING POLICIES IN THE LAST DECADES
2. BASQUE HOUSING POLICIES IN THE LAST DECADES
3. CURRENT EVENTS IN SPANISH HOUSING POLICIES
4. A PROPOSAL FOR FUTURE YEARS. 2

3. 1.- SPANISH HOUSING POLICIES IN THE LAST DECADES
3

4. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
 FROM THE 60’ TO CURRENT TIMES, IN SPAIN, HOUSING PUBLIC POLICIES ARE MAINLY
DEVOTED TO PROPERTY ACCESS BY THE USE OF TAX DEDUCTIONS AND FINANCIAL
PUBLIC AIDS, WITH ONLY MARGINAL PUBLIC BUDGETS FOR ACTIVE HOUSING POLICIES.
(“TIPOS DE INTERÉS SUBSIDIADOS POR EL ESTADO”, “DEDUCCIONES FISCALES A LA
COMPRA” AND “VPO EN PROPIEDAD DESCALIFICABLE”, ).
 THE OBJETIVE TO ACHIVE IS ECONOMIC GROWTH AND EMPLOYMENT, RATHER THAN
TO EASE SOCIO-ECONOMICALY THE ACCESS TO ADEQUATE HOUSING FOR MIDDLE AND
LOW INCOME FAMILIES. SOCIO-SPATIAL BALANCE AND URBAN FOOTPRINT ARE ALMOST
NOT TAKEN INTO ACCOUNT.
 IN RECENT YEARS THREE DEBATES HAVE BEING (AT LEAST NOMINALY) INCLUDED IN
THE PUBLIC AGENDA:
• THE EFFECTIVENESS OF THE CONSTITUCIONAL RIGHT TO ADEQUATE HOUSING.
• THE NEED TO CONVERT WITH EUROPEAN HOUSING PUBLIC POLICIES (PUBLIC
INTERVENTION, RENTAL STOCK, SOCIAL HOUSING, REHABILITATION, ETC).
• THE ENVIROMENTAL ISSUES RELATED TO REAL ESTATE ACTIVITY.
 DESPITE THESE FACTS, MOST AGENTS IN SPAIN CONSIDER THAT ONLY THE MARKET
(LATELY, REMARKABLY THE FINANTIAL MARKET) HAS THE TASK TO PROVIDE HOUSING TO
THE PEOPLE.
 PUBLIC INTERVENTION IS CONSIDERED NECESSARY IN THE “BAD TIMES AND PLACES”
(SOCIALIZATION OF PRIVATE LOSSES) AND INCONVENIENT IN THE “GOOD TIMES AND
PLACES” (PRIVATIZATION OF BENEFITS). 4

5. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
 THESE SET OF VALUES AND POLICIES SUSTAINED DURING SEVERAL DECADES, FIRST IN
RELATIVE AUTARKY (DICTATORSHIP) AND AFTER WITHIN THE EUROPEAN UNION AND
GLOBALIZATION PROCESS HAVE LEAD US TO THE FOLLOWING SITUATION:
1) HYPERPRODUCTION (2.5/20/45 NEW UNITS PER 1000 INHABITANS vs. 2-6 IN MAIN EU
MEMBER STATES).
• 47 MILLIONS OF INHABITANTS; 25.5 MILLONS OF HOUSING UNITS; AROUND 550
UNITS/1000 INHABITANTS (THE HIGHEST AMONG BIG EU MMSS).
• MORE THAN 20% OF VACANT UNITS (2/3/6 MILLIONS, PLUS 15% OF SECOND HOMES).
2) SEVERE LAND CONSUMPTION: 0.4 MILLIONS OF HECTARES OF ARTIFICIALIZED LAND (1987-
2010); IN THE PREVIOUS 12.000 YEARS 0.8.
• LAND ACQUIRED FOR 2.8 MILLION HOUSING UNITS WAITING TO BE PROCESSED. HALF
OF IT, ALMOST IMPOSIBLE TO DEVELOP IN THE COMING YEARS.
• “URBANIZED DESERTS “, INFRASTRUCTURES WITH NO USE AND SOCIO-SPATIAL
SEGMENTATION.
3) SOCIO-ECONOMIC INACCESSIBILITY TO HOUSING:
• 1997-2007: HOUSING PRICES RISE MORE THAN 200% ON AVERAGE. LAND MORE THAN
500%.
• 2007-2012: HOUSING PRICES DECLINE 20% ON AVERAGE. LAND 80%
• 7-9 ANNUAL SALARIES NECESSARY TO BUY A HOUSE, EVEN NOW IN CRISIS TIMES;
MAIN EU MMSS 3-4. 5
.

6. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
HYPERPRODUCTION
JULIO RODRIGUEZ LOPEZ CYT 161-162 - 2009 6

7. 7

8. 8

9. 9

10. 10

11. 11

12. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
SOCIO-ECONOMIC INACCESSIBILITY TO HOUSING
JULIO RODRIGUEZ LOPEZ CYT 161-162 - 2009 12

13. 13

14. 14

15. MILOON KOTHARI (UN) MARGRETE AUKEN (EP)
RAQUEL ROLNIK (UN) 15

16. 16

17. 17

18. STATE OVER PROTECTION OF THE REAL ESTATE AND FINANCIAL
COMPLEX, REVOLVING DOOR AND THE CAPTURE OF THE REGULATOR
18

19. 19

20. 20

21. 21

22. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
URBANIZED DESERTS
“CITY” OF VALDELUZ (GUADALAJARA – CASTILLA LA MANCHA) 22

23. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
URBANIZED DESERTS
“CITY” OF SESEÑA (TOLEDO – CASTILLA LA MANCHA) 23

24. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
URBANIZED DESERTS
“MARINA” (LAREDO - CANTABRIA) 24

25. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
URBANIZED DESERTS
“AIRPORT” (CASTELLON - VALENCIA) 25

26. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
URBANIZED DESERTS
THE CITY OF CULTURE (SANTIAGO DE COMPOSTELA – GALICIA) 26

27. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
URBANIZED DESERTS
“HIGHWAY” (RADIALES MADRID) 27

28. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
 THESE SET OF VALUES AND POLICIES SUSTAIN DURING SEVERAL DECADES, FIRST IN RELATIVE AUTARKY
AND AFTER WITHIN THE EUROPEAN UNION AND GOLBALIZATION PROCCESS HAVE LEAD US TO THE
FOLLOWING SITUATION:
4) RISE OF UNEMPLOYMENT: FROM 10% IN THE LAST DECADE TO MORE THAN 20% IN CRISIS,
PARTIALLY DUE TO REAL ESTATE DINAMICS.
5) OWNERSHIP IMPOSED CULTURE:
• MORE THAN 80% OF OWNERS; NO MORE 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.
• “TO RENT IS A WASTE OF MONEY” (“ALQUILAR ES TIRAR EL DINERO”) + MARKET AND
STATE PROMOTION OF OWNERSHIP.
6) FAMILY HYPERLEVERAGE AND RESIDENTIAL EMERGENCY:
• MILLIONS OF OVERMORTGAGED FAMILIES.
• MILLIONS OF UNDER WATER MORTGAGES.
• 300.000 FORCE EVICTIONS (MORTGAGES), PLUS EVITED TENANTS. HEADING TO 6
MILLIONS OF UNAPLOYED PEOPLE AND 0.5 MILLIION EVITED FAMILIES.
7) SYSTEMIC ECONOMIC RISK DUE TO FINANCIAL IRRESPONSABILITY: 150.000 MILLIONS (1.5
BILLION - short scale - 109 ) IN REAL ESTATE “DOMESTIC” TOXIC ASSETS (15% SPANISH DGP).
8) STILL DEPENDANT ON REAL ESTATE SOCIO-ECONOMIC “COLLECTIVE DRUG”: 60% OF
BANK CREDIT FOR PRODUCTIVE ACTIVITIES GOES TO REAL ESTATE; TODAY REFINANCING,
RATHER THAN FINANCING NEW URBAN DEVELOPMENTS OR OTHER PRODUCTIVE
28
ACTIVITIES.

29. 2.- BASQUE HOUSING POLICIES IN THE LAST DECADES
29

30. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
 IN THE LAST TWO DECADES THE BASQUE COUNTRY HAS DEVELOPED ITS OWN PUBLIC
HOUSING POLICY MODEL BASED ON THE FOLLOWING PRINCIPLES:
1) STRONG PUBLIC INTERVENTION
2) AIMED TO SOCIO-ECONOMIC ACCESIBILITY TO HOUSING
3) UNDENIABLE PRODUCTIVIST DRIVE. IN THE PUBLIC SECTOR = BUILDING NEW HOUSING
UNITS, MOST OF THEM DEDICATED TO PUBLIC RENTAL (ORUBIDE, VISESA AND
ALOKABIDE).
• BUT, DIFFERENT MARKET BEHAVIOR IN RELATION TO THE REST OF SPAIN: 7 NEW
HOUSING UNITS PER 1000 HABITANTS AND YEAR (20-40).
• LEGAL LAND RESERVES FOR PUBLIC HOUSING = DEFENSE WALL AGAINST HOUSE
PRODUCTIVISIM, LAND CONSUMPTION, SPECULATION AND MARKET CYCLES.
4) THE FIRST REGION TO SET A PUBLIC PROGRAMME FOR VACANT HOUSING STOCK:
BIZIGUNE (MOVILIZE VACANT STOCK TO SOCIAL RENTAL).
5) URBAN RENEWAL: MODERATE EFFORTS, VERY MUCH CONCENTRATED IN SEVERAL
PROBLEMATIC SPOTS (BILBAO LA VIEJA, SESTAOBERRI, PASAJES, ETC).
6) NEW PUBLIC TENURE FORMS: RIGHT OF SURFACE AND RENTAL, BESIDES OWNERSHIP.
LACKI OF CO-HOUSING AND COOPERATIVE METHODOLOGIES.
7) FIGHT AGAINST PUBLIC HOUSING FRAUD: PUBLIC CONTROL OF A DEMANDED AND LIMITED
30
SOCIAL HOUSING STOCK.

31. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
NEW HOUSING UNITS PER YEAR (2000-2011)
0-100% … 50%-50%
31

32. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
NEW PUBLIC HOUSING UNITS PER YEAR (2000-2011)
0 - 65.000 (25.000)
32

33. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
NEW PUBLIC RENTAL HOUSING UNITS PER YEAR (1982-2011)
0 - 20.000 (40.0000)
33

34. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
MOVILIZED VACANT HOUSING UNITS (2003-2010)
0 - 5.000
34

35. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
 THESE GUIDE LINES AND MEANS WERE DIRECTED TO SEVERAL FUNDAMENTAL PUBLIC
OBJETIVES:
1. HOUSING AS A RIGHT AND NOT ONLY AS AN INVESTMENT.
2. KEY ROLE OF PUBLIC RENTAL STOCK (FROM ALMOST ZERO TO 20.000 / 40.000 RENTAL
UNITS IN LESS THAN A DECADE).
3. MULTIFUNTIONAL PUBLIC HOUSING STOCK. FIRST STEEPS TO A HOUSING PUBLIC SERVICE
• 65.000 FAMILIES WITH 30-50% AVERAGES HOUSING EXPENDITURE
• BUILDING OF A PUBLIC HOUSING STOCK
• ANTICYCLE INFLUENCE OF PUBLIC HOUSING STOCK IN PRIVATE MARKET HOSUING
PRICES.
4. INSUFICIENT EFFORT IN SUSTAINABILITY
• PRODUTIVIST DRIVE, RATHER THAN “RE” APPROACH (REHABILITATION,
REGENERATION, RENEWAL, ETC).
• BIZIGUNE
• INDIVIDUAL REHABILITATION PUBLIC AIDS.
• HIRIBER (BASQUE GOVERNMENT AIDS TO URBAN REGENERATION PLANS).
• ERAIKUNE AND INDUSTRALIZATION OF THE BUILDING AND REHABILITATION PROCESS.
35

36. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
 THE SEVERE CRISIS IS CHANGING BASQUE HOUSING POLICIES VERY MUCH IN A SHORT
PERIOD OF TIME:
1. THE SEARCH FOR BUYERS, REGARDLESS SOCIAL CONSIDERATIONS, EVEN WITHIN THE
PUBLIC SECTOR.
2. INTERRUPTION OF PRODUCTIVE ACTIONS, DUE TO PUBLIC BUDGETARY CUTS.
3. DENIAL OF THE VACANT HOUSING PROBLEM IN THE BASQUE COUNTRY.
4. SELLING PUBLIC HOUSING ASSETS: LAND, HOUSING UNITS, BUILDINGS, PUBLIC COMPANIES,
ETC.
5. FROM BIZIGUNE (SOCIAL RENTAL OF PRIVATE VACANT HOUSING UNITS) TO PROGRAMA DE
INTERMEDIACION INMOBILIARIA (PUBLIC INSURANCE FOR RENTAL OF PRIVATE HOUSING
UNITS AT MARKET PRICES).
6. UDALEKIN (BASQUE GOVERNMENT AIDS TO TOWNS FOR THE DEVELOPMENT OF VACANT
PRIVATE LAND PLOTS … IN ORTHER TO RESUME PRODUCTION OF NEW HOUSING PRIVATE
PROJETS).
7. LEGISLATIVE OBJETIVE: TO REDUCE THE COSTS OF PRIVATE LAND DEVELOPERS AND TO
DECREASE THE LEGAL RESERVES OF LAND FOR PUBLIC HOUSING (75%-40%)
+ PERMANENT LEGAL PUBLIC REGIME.
8. POLITICAL LOGIC: THE PUBLIC INTERVENTION IS THE PROBLEM AND THE MARKET THE
SOLUTION. 36

37. 3.- CURRENT EVENTS IN SPANISH HOUSING POLICIES
37

38. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
PROFOUND URBANISTIC AUTISM
 THE DECLARE OBJETIVE OF THE NEW SPANISH CABINET IS, ONCE “FINANCIAL REFORM” IS
COMPLETED (SOCIALIZATION OF THE REAL ESTATE LOSSES OF THE PRIVATE BANKS), 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 APELATIONS OF SENIOR OFFICIALS TO THE RETURN TO THE “SPANISH
MIRACLE” TIMES.
• THE NEED TO FLEXIBILIZE OUR “HARD” COSTS LEGISLATION IN ORDER TO PROMOTE
“DEVELOPMENT”
• THE CONVINIENCE TO AVOID SUSTAINABLE DEVELOMENT EFFORTS, SINCE THIS IS A
“FALSE” CONCEPT.
• THE ABUSE OF TAX DEDUCTIONS FOR OWNERSHIP AND THE ALMOST NONEXISTENCE
FISCAL AIDS FOR RENTAL OR RENEWAL.
• THE “SOCIEDAD PUBLICA DE ALQUILER” AND THE “RENTA BASICA DE EMANCIPACION”
HAVE BEEN CANCELLED, BECAUSE PUBLIC RENTAL STOCKS OR AIDS TO MODERATE
PRIVATE RENTS ARE “RUINOUS” BUSINESS AND PUBLIC POLICIES.
38

39. “BASQUE PUBLIC HOUSING POLICIES, A DIFFERENTIAL MODEL WITHIN SPAIN, STILL FAR
AWAY FROM CENTRAL AND NORTHERN EUROPE TRADITIONS”
39

40. 4.- A PROPOSAL FOR THE FUTURE YEARS
40

41. 3.- PERSPECTIVAS DE FUTURO: SI TODO PERMANECE IGUAL, VOLVERA A PASAR LO MISMO …
PERO ES POSIBLE NO CAER DE NUEVO EN LA MISMA PIEDRA
SPANISH URBANISM NEED NEW STATEHOLDERS WILLING TO MAKE POSSIBLE:
MORATORIUM - CEASEFIRE: SUSPEND NEW HOUSING
DEVELOPMENTS, UNTIL VACANT STOCK IS ALLOCATED AND RENEWAL NEEDS ARE
FULFILLED. WITH ONLY A FEW LOCALLY JUSTIFIED EXCEPTIONS.
VACANT
HOUSING
MOVILIZATION
PPP ON VACANT STOCK:
MARKET - MODERATE –SOCIAL RENTAL PROGRAMMES MANAGED BY BANKS,
ADMINISTRATION, PROFESIONAL MANAGERS AND LOCAL COMMUNITIES.
RENTAL RENEWAL
41

42. 3.- PERSPECTIVAS DE FUTURO: SI TODO PERMANECE IGUAL, VOLVERA A PASAR LO MISMO …
PERO ES POSIBLE NO CAER DE NUEVO EN LA MISMA PIEDRA
SPANISH URBANISM NEED NEW STATEHOLDERS WILLING TO MAKE POSSIBLE:
MEANWHILE … ADAPTATIVE URBANISM
CO
RE
• URBAN HARDWARE (PHYSICAL ARTIFACTS) vs. (KNOWLEDGE AND
RELATIONS) SOCIAL SOFTWARE.
• RENTAL + REHABILITACION + REGENERATION + RENEWAL + RETHINK +
REUSE + ETC.
• NON FINANCIAL OR ADMINSTRATIVE URBANISM:
THE NEED OF A NEW INVOLVEMENT OF CITIZENS, COMMUNITIES, NGOs,
42
ADMINISTRATION AND BUSINESS PEOPLE.

43. 3.- PERSPECTIVAS DE FUTURO: SI TODO PERMANECE IGUAL, VOLVERA A PASAR LO MISMO …
PERO ES POSIBLE NO CAER DE NUEVO EN LA MISMA PIEDRA
ALL OF THIS IS OBVIOUS
(SELF-EVIDENT FOR A LONG TERM
AND GENERAL INTEREST PERSPECTIVE)
BUT, I’M AFFRAID, THAT IT
WON’T BE DONE
(DUE TO CULTURAL, MARKET, POLITICAL
AND SOCIAL CURRENT BALANCE)
43

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