The challenges of a new tenure structure
UNECE assesses Armenia's housing sector
How to help homeowners make the most of their biggest financial asset? This
question is on the minds of many policy makers in Armenia. Almost every Armenian
has become a homeowner. Thanks to the wholesale privatization of housing in
the 1990s, 96% of Armenia's housing stock is now in private hands. However,
plummeting incomes have made it impossible for many to fully enjoy the benefits
of homeownership and to meet the obligations arising from it.
This is one of the findings of the Country profile on the
housing sector of Armenia, a study which the United Nations Economic Commission
for Europe (UNECE) is preparing for publication in early 2004.
Dilapidated stock and poor owners
Armenia's housing sector has faced huge challenges since independence. The
sharp drop in income means few people invest in home improvements. Together
with the impact of severe winters, this has led to a massive deterioration
of the housing stock. Many apartment buildings no longer have entrance doors
because the inhabitants have used them as heating material in the winter.
Window frames in common areas and the handrails of stairwells have been removed
for the same reason. The provision of utilities has worsened. The situation
is particularly bad for heating: today only 9% of households have access to
central or individual heating systems. Current fees for maintenance, repair
and utilities are only a fraction of what is needed. Moreover, few people
actually pay up. Collection rates can be as low as 25%. The drop in income
affected not only the existing housing stock but also new housing. Construction
has plunged: in 2001 it stood at merely one tenth of its 1991 level (see graph).
Natural disasters have made matters worse. The 1988 Spitak
earthquake left half a million people homeless. The victims of the earthquake
needed shelter, as did the many refugees who came into the country in the
1990s. 15 years after the Spitak earthquake and 12 years after independence,
the Government of Armenia, with the help of international donors, has certainly
made progress in facing up to the most pressing challenges. Many of the most
vulnerable, in particular the victims of the earthquake, now have a roof over
their heads. However, more fundamental challenges remain. How to help Armenia's
many "poor owners" - those homeowners who cannot afford the upkeep of their
homes? How to facilitate access to the housing market for those who would
like to improve their housing situation and are able to do so unaided? And
how to continue to help the most vulnerable - including those with special
needs such as the elderly and young families?
Management of apartment buildings in disarray
These are only some of the questions the team of international
experts who prepared the country profile tried to address. Finding ways to
solve the problems of the existing housing stock was at the heart of their
analysis. As money is scarce, raising homeowners' awareness of the rights
and responsibilities connected with private property, in particular in regard
to the common spaces in multi-apartment buildings, such as stairwells and
lifts, is ever more important. A recent survey indicates that only 20% of
the 600 homeowners' associations which have been established so far in Armenia
are active. Homeowners need help in organizing the management of their property.
The Government and all other actors, including NGOs, have an important role
to play in the capacity-building process.
No social housing left
The transition affected some population groups more adversely
than others. To protect the most vulnerable from despair and social isolation,
a social safety net is needed for those households who are unable to solve
their housing problems on their own. The team of international experts discussed
alternatives for the provision of housing assistance to vulnerable population
groups and recommended that the Government should gradually build up its stock
of social housing.
The challenges of Armenia's housing sector are very complex
and integrated. Legal challenges with regard to private property, for example,
cannot be resolved without taking into account the needs of the most vulnerable
population groups. There are many interlinkages between housing and other
policy areas. The cohesion of Armenia's society cannot be seen independently
from its housing situation. An integrated and encompassing approach to Armenia's
housing sector is therefore needed and it is hoped that the Country Profile
will encourage the Government to develop such an approach.
New construction
For more information, please contact:
Sylta PAYSEN
UNECE Environment and Human Settlements Division
Palais des Nations, office 311
CH - 1211 Geneva 10, Switzerland
Telephone: + 41 (0) 22 917 26 82
Fax: + 41 (0) 22 917 01 07
E-mail: [email protected]
Web site: http://www.unece.org/env/hs/welcome.html
Ref: ECE/ENV/03/N02