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HomeEconomyThe state needs a complete turnaround in its housing policy

The state needs a complete turnaround in its housing policy

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The state requires a comprehensive overhaul of its housing policy.

The cost of housing in Montenegro is prohibitively high for most citizens, prompting the government at both state and local levels to implement initiatives that will help families secure homes that align with their financial capabilities. Many new residential projects are oversized and constructed in violation of urban planning standards and globally accepted humane housing conditions, indicating a critical need for a reevaluation of residential planning and the urban revitalization of existing areas.

This situation is outlined in the assessments and guidelines for the housing sector included in the new Spatial Plan for Montenegro, which extends to 2040.

A primary development objective for Montenegro focuses on housing.

“Implement housing policy measures to enhance social, economic, and environmental sustainability; define financial mechanisms to serve the public interest in housing; and align with EU regulations, particularly regarding environmentally sustainable practices, energy-efficient building, and the establishment of better housing conditions,” the Plan articulates.

Standards Should Be Enforced since 2016

The section addressing existing challenges in planning and constructing new residential areas notes that recent standards in urban development have been lacking, especially in light of the human-centric goals outlined in the New Urban Agenda and the outcomes of the UN Habitat III Conference concerning urban development and housing.

The New Urban Agenda and Habitat III were adopted in 2016 and advocate for city development based on sustainable practices and healthy living conditions, which include ample greenery, parking facilities, playgrounds, communal infrastructure, and meeting other social and public needs. Nevertheless, the plan indicates that unhealthy and inhumane settlements populated by tightly clustered residential buildings have emerged in Montenegro, lacking sufficient green spaces, social facilities, parking, and essential utilities.

“The urban areas are experiencing a concerning concentration of buildings, particularly residential ones. Overdevelopment in specific zones is a result of oversized planning frameworks and poorly validated urban planning criteria. This mismanagement has led to urban zones where adequate traffic and utility infrastructure cannot be established, along with a lack of necessary public spaces that provide social amenities, parking options, and adequate green areas. Furthermore, in the coastal region, where seismic risks are pronounced, this presents a significant challenge for development,” the Spatial Plan remarks.

Fundamental Principles of Humane Urban Development Compromised

As a solution, it is proposed that future lower-level spatial and urban plans adhere to these established guidelines, emphasizing that “urban rehabilitation and city planning must align with principles of humane and quality-driven urban development.”

“In the past, the tenets of sustainable and humane urban development were often disregarded, illustrated by oversized construction parameters in certain areas and uncontrolled expansion of development zones. The architectural identity was not consistently maintained. Particularly concerning is the unequal application of standards in architecture and construction, which detrimentally impacts the aesthetic quality of the surroundings, the living experience, and the environment, hindering previous progress. Additionally, there is a noticeable deficiency in the equipment of public spaces and green areas in cities, as well as inadequate community facilities and poorly organized transport infrastructure in urban settings,” the Plan specifies.

According to the document, future spatial planning must prioritize quality and humane development in communities and promote green infrastructure.

The overarching vision for spatial planning development involves overseeing and enhancing urban development to ensure quality urban and public functions that adhere to humane principles and accepted European standards.

Urban Rehabilitation is Crucial

The architectural guidelines underline the necessity of “educating and informing the public about the significance of humane urban and rural development, the importance of humane housing, and the stewardship of public goods for the betterment of the entire community and individual citizens.”

In the guidelines for the capital’s territory, it is stressed that “urban rehabilitation and city planning congruent with the principles of humane and quality urban development are essential.”

The current state of the housing stock is noted as being unsatisfactory, leading to the ongoing development of a Housing Policy Strategy aimed at 2030, which will define a new framework to meet housing demands across all demographics.

Census data reveals an excess of housing units compared to households, with about 60% of apartments in Montenegro currently occupied.

“In light of the current circumstances in this sector, it is vital to enhance the housing sector by increasing social, economic, and environmental sustainability, along with establishing financial mechanisms for effectively realizing the public interest. Analysis shows a need for rational management of housing policy in the near future, focusing on the judicious planning of residential areas. This entails defining financial strategies, fortifying the institutional structure regulating housing development, enhancing the housing market, increasing governmental oversight in apartment construction, facilitating affordable housing options, and promoting eco-friendly solutions in home building. Specific objectives include tackling social housing issues, addressing illegal constructions, and ensuring energy-efficient housing solutions,” the Spatial Plan outlines.

Housing a Fundamental Human Right, Not Market-Dependent

The plan firmly asserts that the right to housing constitutes a basic human right intrinsic to the population’s survival and should not be left to market forces.

“Progress in housing, as a critical existential necessity, reflects the socio-economic condition of the state, where housing quality and availability serve as benchmarks for societal living standards. A key aspect of effective housing policy is recognizing the right to housing as a fundamental human right, as acknowledged in various international agreements, conventions, and directives,” the Plan states.

It further emphasizes the government’s role must include “creating a stable market that allows households to find housing proportions aligned with their incomes.”

“The market is failing to deliver adequate and affordable housing for all citizens, notably for vulnerable social groups, necessitating the establishment of a long-term strategy in this domain and the definition of viable models to enhance the housing sector’s situation,” the document continues.

A pronounced “problem exists concerning the resolution of housing issues for citizens, especially under reasonable or favorable conditions.”

In the context of EU integration, Montenegro must adopt best practices in housing policy.

“The vision for housing policy in the upcoming planning period aims to foster a society devoid of homelessness, where every resident is safeguarded against poverty and homelessness, ensuring that apartments are accessible, affordable, energy-efficient, and exhibit low carbon footprints, while also addressing the needs of vulnerable groups,” the Plan asserts.

To this end, numerous initiatives are proposed, including: advocating for the construction of affordable housing, implementing subsidies to resolve housing challenges, establishing a tenant registry and promoting rental policies within the private sector – ensuring adequate public-sector rental apartments; devising systems for sustainable financing of social housing projects; augmenting the housing inventory within state and municipal ownership for favorable transfers; and creating innovative state-owned housing models.

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