News

07.07.202607.07.2026 News

Strasbourg, 6 July 2026 – The Council of Europe Commissioner for Human Rights, Michael O’Flaherty, conducted a visit to Bulgaria from 29 June to 3 July 2026.

The visit focused on the human rights of older persons living in long-term care facilities, as part of the Commissioner’s broader engagement on this issue across Council of Europe member states.

The Commissioner also examined issues concerning the housing rights of Roma communities.

 

Photo: Trust for Social Achievement

Continuing reforms in long-term care

The Commissioner welcomes the dedication of staff working in long-term care facilities and commends the authorities’ efforts to modernise residential institutions and improve compliance with quality standards. He also welcomes the ongoing reform of the long-term care system, supported by policy and legislative developments designed to address population ageing and the growing demand for long-term care services.

However, persistent staff shortages remain a significant challenge. The Commissioner notes concerns about the decline in geriatric expertise following the discontinuation of geriatrics as a specific medical specialisation. He was also informed of the limited availability of specialised dementia care and the lengthy waiting lists for persons requiring such services.

To address these gaps, the Commissioner encourages the authorities to:

• Strengthen specialist geriatric expertise and expand dementia care 
• continue addressing workforce shortages by improving working conditions, enhancing training opportunities and making the care professions more attractive to boost staff retention.

The Commissioner observes that residential care facilities face challenges n appropriately integrating the medical and social models of care, which can at times lead to a less personalised living environment for residents. He encourages the authorities to strengthen coordination between healthcare and social care services to ensure a more integrated, person-centred approach that promotes residents’ well-being in their daily lives.

Addressing gaps in the protection of residents’ rights

The Commissioner welcomes the measures adopted in response to serious violations in unlicensed and private care institutions. These include legislative amendments to tighten quality standards and inspections, the creation of reporting channels for residents, and a reinforced criminal law response to abuse.

The need remains for further measures to ensure adequate safety standards, including in terms of fire safety.

Efforts are also needed to strengthen independent monitoring of long-term care facilities, including by facilitating the relevant work of civil society organisations. Effective investigations into allegations of abuse, neglect and other violations of residents’ rights remain essential, together with the delivery of criminal accountability for those responsible.

Reforming guardianship legislation

The Commissioner observes that many individuals are still deprived of their legal capacity and placed under plenary guardianship, despite the authorities acknowledging the outdated nature of the legal framework. He encourages the authorities to introduce supported decision-making arrangements that fully respect the autonomy, dignity and rights of the individuals concerned.

Ensuring that housing policies adequately address the situation of Roma communities

The Commissioner welcomes progress in promoting Roma inclusion, particularly regarding poverty reduction, social exclusion, and improved access to education and employment. He commends the successful work of Roma health mediators and welcomes legislative amendments enabling homeless persons and people living in informal dwellings to obtain address registration and identity documents.

He remains concerned by the incidence of forced evictions, such as those affecting residents of the Zaharna Fabrika neighbourhood in Sofia in April 2025, an issue on which he has previously engaged with the Bulgarian authorities.

While the Commissioner welcomes the authorities’ efforts to implement judgments of the European Court of Human Rights, including in the case of Yordanova and Others v. Bulgaria, important issues remain unresolved. In particular, the absence of specific legislative provisions addressing proportionality assessment before evictions contributes to inconsistent administrative and judicial practice.

The Commissioner encourages the authorities to:

• ensure that the National Housing Strategy currently under preparation adequately addresses the specific housing situation of Roma communities, including those living in informal settlements.
• introduce explicit proportionality requirements for evictions and demolitions in legislation.
• intensify efforts to combat antigypsyism and consider replicating the successful model of Roma mediators in the housing sector.

During the visit, the Commissioner met with the Minister of Foreign Affairs, Velislava Petrova; the Minister of Justice, Nikolay Naydenov; the Minister of Labour and Social Policy, Nataliya Efremova; the Minister of Health, Katya Ivkova; the Deputy Ministers of Regional Development and Public Works, Pavleta Pelovska and Desislava Georgieva; members of the National Delegation of Bulgaria to the Parliamentary Assembly of the Council of Europe and of the Commission on Human Rights, Religions and Citizens’ Complaints of the National Assembly; the Ombudsman, Velislava Deltcheva; the Committee for Protection Against Discrimination; healthcare and social care professionals and civil society organisations, including Mincho Benov, National Director of Habitat for Humanity Bulgaria. He also met with the Mayor of Varna, Blagomir Kotsev, and visited three long-term care facilities in and around Varna, where he met with residents and staff members and representatives of the local authorities. He thanks all his interlocutors for their openness, and constructive engagement.

Resource: Bulgaria can go further to enhance long-term care for older people and secure housing for Roma communities

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Press contact:
Gaëlle Bausson – gaelle.bausson@coe.int – +33 (0)6 66 27 24 41

Office of the Commissioner for Human Rights
Communication unit: press.commissioner@coe.int

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Michael O’Flaherty began his six-year term as the Council of Europe Commissioner for Human Rights in April 2024. He promotes awareness of and fosters the effective observance of human rights across the organisation’s 46 member states.

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29.04.202629.04.2026 News

April 21–23, 2026, Bulgaria–Romania: Institutions and municipalities exchanged best practices for transforming informal settlements into sustainable and safe communities. How can unregulated neighborhoods be turned into secure and dignified places to live? And how can national and local authorities join forces to break the long-standing cycle of poverty?

These questions were at the heart of an international working visit to Romania, involving a Bulgarian delegation of representatives from national and local authorities. The visit was organized by Habitat Bulgaria as part of the project “Home Equals – Improving Housing Conditions in Informal Settlements” and focused on the need for sustainable and coordinated solutions to one of the most serious social challenges in the region – housing poverty and the inclusion of communities living in informal and illegal settlements.

The project is being implemented from July 2025 to June 2027 in the municipalities of Kyustendil and Berkovitsa. It aims to drive policy change through pilot measures for housing legalization, improvement of basic infrastructure, and the creation of a sustainable model for social integration and development of affected communities. It is part of the global Home Equals campaign, which seeks to improve living conditions in informal settlements worldwide.

In this context, the visit to Romania went beyond an exchange of experience and became a practical platform for discussing real policies and solutions in the fields of housing and social inclusion.

The Bulgarian delegation was represented at a high institutional level, including the Minister of Regional Development and Public Works, Nikolay Naydenov; representatives of the Ministry of Regional Development and Public Works; Eng. Lilyana Petrova, Director of the National Construction Control Directorate; Daniela Ushatova, Head of the “Local Policies and Finance” Team at the National Association of Municipalities in the Republic of Bulgaria; Radko Vlaykov, Ambassador Extraordinary and Plenipotentiary of Bulgaria to Romania; Georgi Iliev, Mayor of Slatina District; as well as representatives of the municipalities of Kyustendil and Berkovitsa.

Minister Naydenov emphasized that it is “imperative to begin work on a new national housing strategy that responds to real needs and contemporary challenges.”

He stressed that the document should be based on reliable data, in-depth analysis, and international experience so that it reflects the real picture of housing needs in the country. According to him, housing policy should be viewed as an integrated system, covering social housing, support for vulnerable groups, challenges related to informal settlements, and improvements to the living environment. He added that sustainable solutions require coordinated institutional efforts and consistent long-term policies aimed at reducing social inequalities and ensuring access to adequate housing.

On the Romanian side, participation was also at a high institutional and expert level, including representatives from key institutions responsible for regional development, social policy, and the management and coordination of EU funds. These included the Ministry of Development, Public Works and Administration; the Ministry of Investments and European Projects; the Ministry of Labour, Family, Youth and Social Solidarity; as well as experts from the Association of Romanian Municipalities, the National Union of County Councils of Romania, the National Agency for Roma, ROMACT, Habitat Romania, and the NGO Make Better (MKBT).

The Romanian experience shows that sustainable solutions begin with a clear and detailed understanding of the problem:

» A key focus was Romania’s model for systematic mapping and analysis of informal settlements, introduced in 2019 through amendments to spatial planning legislation. This approach is based on collecting and processing detailed data, including:

• settlement locations
• population size
• land ownership status
• cadastral mapping of existing buildings
• assessment of their condition
• infrastructure improvement potential
• or, where necessary, relocation options

» A digital tool for mapping and monitoring informal settlements has been developed as part of an interoperable settlement data platform. It has identified 393 informal settlements in Romania, with 71,965 residents. In 2022, Romania adopted a National Housing Strategy with a horizon to 2050, prioritizing improved housing conditions for vulnerable groups, including those in informal settlements.Administrative-territorial units where the following are identified:
🟠 informal settlements and marginalized communities; 🟡 marginalized communities; 🟢 informal settlements

» Discussions also highlighted the clearly structured distribution of responsibilities between institutions in Romania. Local authorities play a leading role on the ground and in direct engagement with communities, while national institutions provide the legal framework, funding, and strategic coordination. This effective multilevel coordination was identified as a key factor for achieving sustainable results.

» The issue of lack of address registration was also emphasized as a major barrier to social inclusion. Without an official address, many people in vulnerable communities remain excluded from social protection, healthcare, education, and employment systems. The Bulgarian side presented its practice of issuing administrative addresses as a potential basis for broader policy development.

» In Romania, social housing is treated as part of a comprehensive support system rather than a standalone measure. Managed at the municipal level, it targets the most vulnerable groups and is combined with social services and complementary inclusion measures. In this way, housing is seen not only as a physical asset but as a foundation for social stability and long-term inclusion.

The delegation also visited the Municipality of Reșița, where concrete examples of integrated approaches to housing poverty and informal settlements were presented. Romanian practice demonstrates a combination of infrastructure interventions and active social policies aimed at sustainable improvements in living conditions and community integration.

For Bulgaria, the visit highlighted both challenges and concrete opportunities, particularly the need for systematic data collection and use, improved institutional coordination, and the development of a long-term national housing strategy. At the same time, it emphasized that existing experience and best practices can be further developed through closer cooperation between state institutions, municipalities, and civil society, leading to more effective and sustainable solutions.

The Mayor of Slatina District, Georgi Iliev, stressed that assembling teams of architects, urban planners, surveyors, district experts, and community representatives would provide sustainable solutions and progress in addressing informal settlements.

The Home Equals campaign reinforces the understanding that access to adequate housing is a fundamental human right. Habitat Bulgaria continues to develop platforms for dialogue among institutions, municipalities, and experts aimed at creating practical housing policy solutions. The visit to Romania clearly demonstrated that housing poverty is not an unsolvable problem, but a complex challenge that can be addressed through long-term vision, political will, coordinated action at all levels of governance, and sustainable partnerships between the state, local authorities, and civil society.

Presentations:

1. Ministry of Development, Public Works and Administration: Housing policies and strategies. The situation of informal settlements 
2. ROMACT: Informal Settlements in Romania
3. Make Better (MKBT): Legislative and operational framework for recognizing and improving living conditions in informal settlements in Romania
4. Habitat Bulgaria: Habitat for Humanity Bulgaria
5. Ministry of Labour, Family, Youth and Social Solidarity: Стратегически проект Румъния (automatic translation into Bulgarian)
6. Ministry of Labour, Family, Youth and Social Solidarity: Proiect strategic Rоmania (in Romanian)

Additional information in Bulgarian:

1. Minister Nikolay Naydenov: It is imperative to immediately begin work on a new National Housing Strategy
2. Minister Naydenov discussed connectivity, cooperation, and housing policy with Minister Attila Cseke during his visit to Romania

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22.04.202614.07.2026 News

The elaboration of the new national housing strategy of Bulgaria is to be commissioned. In the assignment for this strategy, we will focus on the problems regarding social housing and neighbourhoods, defined by data and research – socio-economic, statistical, spatial, territorial-structural, sociological, financial and successful practices. This was announced by the Minister of Regional Development and Public Works Nikolay Naydenov. In Bucharest, Romania, the Minister participated in a meeting on the implementation of the Law on the Planning of the Territory of our Neighbouring Country, which also regulates the planning of informal settlements.

Naydenov pointed out that the Bulgarian Spatial Planning Act regulates both the structural rules for the settlement of marginalized urban structures and the so-called social housing with reduced norms. However, he expressed dissatisfaction with the pace and manner in which these settlements are developing. He added that more effort was needed.

During the meeting, experts from different departments of Romania presented the country’s experience with the structure of informal settlements and work on improving housing conditions for socially vulnerable groups.

It became clear that over the past 10 years, serious efforts have been made in Romania to create legal norms that would also include informal settlements. According to initial data, 72,000 people live in such settlements. Due to difficulties in identifying them, the number is expected to be higher. Experts pointed out that it is necessary to collect sufficient data, because first it is necessary to determine what the measures should be and then to implement them. For this purpose, a digital platform is made about the different territories of Romania, in which a separate part is about informal settlements.

The term informal settlements in Romania was introduced in the Law on Spatial Planning in 2019, and in 2020 the norms for its implementation were published. It distinguishes between informal settlements and illegal construction, because the goal is to help the vulnerable part of the population, and not to those who were looking for a way to avoid the law. In our neighboring country, the term “housing of a social nature” has also been introduced. The minimum necessary living area for one person of 15.33 square meters is also regulated.

During the conversation, it became clear that Romania started to address the topic of affordable housing, which is now relevant at EU level, in 2022. The country has adopted a National Housing Strategy 2050, which prioritises vulnerable populations, including informal settlements, and the provision of affordable housing for every citizen. There is an opportunity to buy social housing.

Separately, to enhance the role of local authorities, 42 strategies have been introduced at regional level, exclusively for cities and villages with over 20,000 inhabitants. 30 of these strategies have a social housing component of €22 million for purchase, renovation and modernisation. The goal is to provide living space for 550 people. In our northern neighbor there is a big difference between the supply and demand of social housing. There are serious problems in major‑ cities in Romania and approaches are being sought to activate empty housing due to migration.

The 2021-2027 housing, social inclusion and services programmes in Romania amount to a total of EUR 500 million. In order to speed up their implementation, the involvement of private organisations has been introduced. One of them envisages about EUR 100 million for the renovation, modernization and purchase of housing and about EUR 38 million for the regulation of informal settlements. These programs are being implemented in about 200 informal settlements, with the aim of helping about 70,000 people and increasing the housing stock so that it can be used by about 5,600 more people.

Another initiative will provide integrated social services in 2,000 settlements or 70% of rural territories in Romania over the next six months, including informal settlements. Teams of specialists in the health, education and social fields will work together on social assistance contracts at Community level. The Community aid package includes several criteria – improving living conditions, making small or urgent repairs for socially vulnerable people (small furniture sets for learning children, adapting spaces with kitchen or bathroom), helping to obtain personal documents and helping to find a job. The average investment amounted to €354,000 per community.

One of the challenges for the country is not to raise house prices because of the green transition. Another problem is access to public transport, one of the conditions for a decent life, alongside access to housing, education, healthcare and quality services. Among the most‑ important tasks for the next period is the experience gained to be developed and implemented even more‑ actively, in accordance with the next financial framework.

The experience-sharing meeting was organised by the Habitat Bulgaria. It was attended by the head of NCSD Eng. Lilyana Petrova, the Mayor of Slatina, Georgi Iliev, representatives of the municipalities of Kyustendil and Berkovitsa (working under the Home Equals project), the Director of Habitat Bulgaria, Mincho Benov, representatives of the foundation and the National Association of Municipalities in the Republic of Bulgaria. The experience of Romania was presented by representatives of the Ministries of Development, Public Works and Administration; investment and European projects; of work, family, youth and social solidarity; by the Association of Municipalities of Romania, Habitat Romania and others. As a result of the work done so far in Romania is already regulated the first informal settlement – Resica.

The renovation of informal neighbourhoods by 2030 is one of the leading sustainable development goals in UN Agenda 2030, also signed by Bulgaria. There are over 200,000 illegal homes in Bulgaria, mostly in neighbourhoods with a predominantly Roma population, with partial or no spatial planning. The project ‘Home Equals – Improving housing conditions in illegal neighbourhoods’ of Habitat Bulgaria, with pilot municipalities Kyustendil and Berkovitsa, aims to influence national policies related to informal neighbourhoods by taking concrete steps to ensure spatial planning and housing status in them and creating conditions for the construction of basic infrastructure. The project is part of the global Home Equals campaign aimed at improving living conditions in illegal neighborhoods around the world.

Resource: Minister Nikolay Naydenov: It is imperative to immediately start working on a new National Housing Strategy

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22.11.202426.11.2024 News

Action C8 of the LIFE BioBalance project and Activity AIII.1 of the BioJust project focused on demonstrating and evidencing solutions to increase the capacity and knowledge of low-income rural communities to reduce firewood-dependency.

The Action consisted of three main elements:
● Research on energy poverty and household biomass use – Fuel of the Poor study.
● Pilot projects to identify good practices that best fit the needs of low-income, firewood-dependent communities.
● Evaluation of the outcomes and assessment of their potential for upscaling – developing guidelines in light of the lessons learnt.
● The pilot projects were implemented across three countries – Bulgaria, Hungary, and Romania – in four municipalities with a high ratio of low-income households, as they are the most dependent on firewood: using biomass in the highest share and with the lowest efficiency.

Municipalities are in direct contact with fuel-wood-dependent households and therefore, have a large potential to instigate behavioral change, build awareness, and provide support. However, they often lack crucial resources (funding, knowledge, capacity, and stakeholder cooperation) for implementing household or community-level best practices related to biomass sustainability.

The pilot projects aimed to test various small-scale interventions – such as window-replacement, local savings group, attic insulation or firewood drying and storage facilities – and identify best practices to reduce firewood-dependency and increase energy efficiency.

Implementation in each location was coordinated by the national Habitat for Humanity office (Habitat Bulgaria, Habitat Hungary, and Habitat Romania) in cooperation with local municipalities, community organizers, and coordinators.

This guideline describes the local pilot projects, the best practices which resulted from their implementation, the lessons learnt during the process as well as recommendations for replicability.

The steps to implement the pilot projects, the stakeholders involved, and how to reach and engage the target group are described in the Guideline for local capacity buildings and multi-stakeholder planning.

The full text of the guidebook can be found here:
Local pilot projects towards the reduction of energy poverty and firewood use

This project is part of the European Climate Initiative (EUKI) of the German Federal Ministry for Economic Affairs and Climate Action (BMWK).

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06.03.202406.03.2024 News

PARIS (March 6, 2024) — Today, in recognition of housing’s critical role in climate mitigation and adaptation, Habitat for Humanity has made specific programmatic commitments toward accelerating low-income families’ access to low-carbon, resilient housing solutions. Furthermore, through its Home Equals campaign, Habitat for Humanity is calling on governments at all levels to prioritize locally led adaptation actions that directly address the needs of the most vulnerable communities, in particular people living in informal settlements, while also pursing mitigation efforts that are affordable and accessible to all.

The buildings and construction sector is currently responsible for 37% of global CO2 emissions. Not only are low-income families and residents of informal settlements uniquely vulnerable to the ongoing and increasingly severe impacts of climate change, but also the ability to meet global climate targets depends on successful decarbonization of this sector.

“Global leaders are leaving the most vulnerable communities behind by underinvesting in climate adaptation solutions and failing to mobilize mitigation investment from the private sector,” said Roland Pearson, vice president and executive director of Habitat for Humanity International’s Terwilliger Center for Innovation in Shelter. “To achieve net zero emissions by 2050, low-carbon investments in emerging markets must reach US$2 trillion annually by 2030 – a five-fold increase from 2020 – with 80% of these investments coming from the private sector. We must prioritize equitable housing solutions in these investments.”

From March 7-8, the Buildings and Climate Global Forum in Paris will, for the first time, gather ministers and high-level representatives of key organizations to focus on decarbonizing the built environment, following the Conference of the Parties 28, or COP28. In the joint declaration developed at the Forum, Habitat for Humanity urges member states to promote:

• • Adaptation measures through housing for the most vulnerable, prioritizing locally led adaptation actions that directly address the needs of the most vulnerable communities.
  • Mitigation solutions in the housing sector that are affordable and accessible for families, particularly in rapidly urbanizing cities around the world.
  • Housing and urban settlement transformation as a means of achieving inclusive climate action and resilience for, by and with vulnerable communities.

Habitat for Humanity joins fellow built environment sector stakeholders in making specific commitments to support the Forum’s ambition of a decarbonized construction future, including:

• Enabling 300,000 households to secure financing to make climate-resilient and energy-efficient home improvements by 2035. Habitat for Humanity has over 15 years of experience working with financial service providers, or FSPs, to develop and deliver affordable housing finance products for families, and specifically for women, who often do not qualify for traditional loans and mortgages. Building on the success of its MicroBuild Fund, and working through FSPs, Habitat will dedicate at least 50% of new investment capital to climate-focused financial products and services, specifically loans for families to improve the resilience and energy efficiency of their homes, as well as to loans for small and growing businesses advancing resilience and decarbonization in the housing sector.
• Tripling the number of housing-focused climate tech enterprises in our portfolio. Habitat for Humanity will invest capital and technical assistance in at least 100 startups and small- and medium-sized enterprises focused on climate action in the housing sector. Habitat for Humanity will make climate a core pillar of its investment strategy as the organization looks to significantly expand its Shelter Venture Fund, and will prioritize investments in products and services that take an integrated approach to addressing both the climate and housing crises.
• Advancing policy changes to ensure 15 million people living in slums and other informal settlements have more equitable access to adequate housing. The overcrowding, housing quality and tenure insecurity that characterize informal settlements inherently make residents of informal settlements more vulnerable to disasters brought on by climate change, particularly floods, landslides and excessive heat. Adequate housing is resilient housing. Through its global advocacy campaign, Home Equals, Habitat will work across more than 40 countries to drive policy changes at local, national and global levels towards realizing the right to adequate housing for all.

These commitments build on Habitat’s longstanding efforts to promote safe, affordable and future-proof housing around the world – including the Residential Energy Efficiency for Low-Income Households project – as well as new research from Habitat for Humanity’s Terwilliger Center for Innovation in Shelter (PDF) analyzing how impact investors can leverage the dependencies between climate and housing targets to maximize impact.

Projections indicate that the world’s building stock will double by 2060, with almost 70% of the world’s population likely living in urban areas. Already, 2.8 billion people lack adequate shelter. Acting on every chance to create green, sustainable and circular economies in the built environment will be the only successful way to achieve global climate targets as we build for our collective future.

Resource: https://www.habitat.org/newsroom/2024/habitat-humanity-pledges-access-resilient-housing-solutions-ahead-buildings-and 

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12.10.202312.12.2023 News

European Climate Initiative (EUKI) Project SUNRISE Partners Convene in Berlin to Advance Plug-in PV Systems Initiatives in Bulgaria, North Macedonia, and Lithuania

BERLIN – [October 10-11, 2023] – In the pursuit of sustainable living, the partners of the European Climate Initiative (EUKI) Project SUNRISE recently gathered in Berlin for a collaborative meeting aimed at discussing project progress, planning future steps, and engaging in a workshop organized by the Initiative SoLocal Energy from Kassel (GER). The workshop was dedicated to exploring every aspect of Plug-in PV systems technology, leaving no stone unturned in the quest for sustainable energy solutions.

In an increasingly eco-conscious world, the SUNRISE project is taking a step forward in the journey toward a sustainable future. Led by the Initiative for Housing in Eastern Europe (IWO) and supported by partners from Habitat Bulgaria, Lithuanian Consumers Alliance (LCA), Habitat for Humanity International (HFHI), German Solar Energy Company (DGS), and Habitat Macedonia, the project focuses on increasing the use of renewable energy in the residential sector through a PROSUMER approach – empowering individual homeowners or tenants to become both energy producers and consumers.

In the heart of the project lies the ambition to promote Plug-in PV systems technology through pilot projects in the target countries of Bulgaria, North Macedonia, and Lithuania. In these nations, small-scale investments in Plug-in PV systems offer an accessible and cost-effective alternative to large, expensive energy efficiency measures for buildings. These initiatives empower residents and property owners to actively contribute to climate protection while lightening the burden on their wallets, addressing the issue of energy poverty in the process.

During the workshop the project partners have encountered unique challenges in their respective countries, including varying technical requirements and conditions. For instance, differences in electricity meters that count energy fed into the grid as consumption pose a hurdle. Despite these challenges, the partners received valuable demonstrations on various technical aspects, from electrical configurations to balcony mounting options. Gratitude was expressed to Arvid Jasper for his enlightening explanations, guiding the partners through these complexities.

During a site visit to the ufaFabrik, the partners explored additional avenues for sustainable urban development, including rooftop solar systems, green roofs, green facades, and rainwater harvesting (RWH). Marco Schmidt, a dedicated pioneer from the Technical University of Berlin, shared insights into the site’s evolution and showcased the impact of these initiatives through compelling statistics and figures. Standing amidst green rooftops and solar panels, the partners experienced firsthand the transformative potential of such areas, recognizing their vital role in enhancing urban life and elevating quality of life in cities.

For more information about the SUNRISE Project, please visit ➡ http://www.sunriseproject.hfh.bg/en/

About EUKI:
This project is part of the European Climate Initiative (EUKI). EUKI is a project financing instrument by the German Federal Ministry for Economic Affairs and Climate Action (BMWK). The EUKI competition for project ideas is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. It is the overarching goal of the EUKI to foster climate cooperation within the European Union (EU) in order to mitigate greenhouse gas emissions.

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09.06.202329.08.2023 News

The 32,225 municipal-owned dwellings in Bulgaria represent 0.8% of the national housing stock, and they accommodate 82,240 people or 1.2% of the total population. There are as few as 899 social housing units, located in the territory of 25 municipalities and implemented under Operational Programme Regional Development 2007-2013 and Regions in Growth 2014-2020, Habitat for Humanity Bulgaria and the Ministry of Regional Development and Public Works found in a joint survey of the condition and management of the municipal housing stock, the NGO said on Friday.

Bulgaria lacks an up-to-date national housing strategy and uniform legislation regulating housing accommodation, Habitat pointed out.

The only option available to households in need of housing is to be accommodated in a municipal-owned dwelling under municipal ordinances provided for by the Municipal Property Act. Municipalities provide housing at rents that are a tenth or less than the market rates, and the revenue generated cannot pay for the renovation of the available housing fund and its enlargement. The local authorities, however, are not compensated by central government for providing this service of general economic interest, the organization said.

The survey regarding the quality of the municipal housing accommodation services, conducted online between October and December 2022, covered all 265 municipalities in Bulgaria and the 24 constituent boroughs of Sofia Municipality.

The survey found that 216 municipalities manage a municipal housing stock and 49 do not own any residential property. Of the municipalities with housing stock of their own, 85 of 32% own fewer than 10 municipal dwelling. Sofia Municipality accounts for the largest number of municipal dwellings: 8,917 or 27.7% of the total. As many as 97% of municipal housing in the country are occupied, and there is a 10,085-long-waiting list in 130 municipalities. According to those polled, just 14% of council housing were in excellent condition, nearly 50% were in bad condition, 9% were uninhabitable, and 33% were in need of minor repairs.

Recommendations for improvement of the management of the municipal housing stock were developed on the basis of the analysis of the survey results.

Resource Bulgarian News Agency: Municipalities Own Just 0.8% of Bulgaria’s Housing Stock
Author: Roumen Yanovski

 

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23.11.202230.08.2023 News

These can be vulnerable households, for example large families, single mothers, people with disabilities, commented the director of Habitat Bulgaria.
Author and photo credit: Raya Lecheva

We talk about the new energy efficiency programs under the National Plan for Recovery and Sustainability with Mincho Benov, National Director of Habitat Bulgaria since January 2011. What are the alternative financial instruments to stimulate people to co-finance the energy renovation of the home. According to a more radical solution, it is one-time assistance for vulnerable households, for example large families, single mothers, disabled people. Then such households will become the engine of the process, knowing that they will receive this money, they themselves will demand that a decision be made and renovation measures be taken, he believes.

What are the highlights:

• Sanctions are being considered for owners who do not renovate their homes. The Directive on minimum energy standards for buildings is expected to be adopted very soon, and we will see how the renovation measures will go from being recommended to being mandatory.

• We cannot expect that out of 66,000 buildings by renovating 3,000 we will achieve huge savings.

• In fact, one-stop services will enable better coordination.

• Let’s make, as in Slovakia, a fan of different financial instruments from which a person can choose from the point of view of social status. Over 90% of multi-family buildings in Slovakia have been renovated, and in Bratislava over 97% with 30% self-contribution.

• A long-term renewal strategy and clear planning over the years is needed.

Mincho Benov has worked in the field of the capital market, financial sector and international development as deputy executive director of the Sofia Stock Exchange AD, director of “Financial Sector and Capital Market” in the American consortium FLAG, managing partner of investment and consulting companies. Mincho Benov has implemented projects in Bulgaria for the World Bank and the European Bank for Reconstruction and Development.

In the period 2005-2009, Mincho Benov worked on a project for crediting residential energy efficiency in Bulgaria, financed by an EBRD credit line in the amount of 50 million euros and secured by a grant component of 10 million euros from the International Fund ” Kozluduy” and implemented with the participation of six leading Bulgarian commercial banks. Mincho Benov has consulted and managed a number of investment projects and projects financed by EU pre-accession and structural funds. National Director of Habitat Bulgaria since 2011.

Mr. Benov, in a few days the admissions for the rehabilitation program under the Recovery Plan will begin, the funds will not reach everyone, is a working financial mechanism possible?

We now know that the funds will not be enough. In the previous national program, more than 2,200 buildings were renovated with BGN 2 billion. In 2017-2018, the prices of construction materials were significantly lower. Now, with BGN 1.4 billion, we can expect about 1,000-1,100 buildings to be renovated at most. Against the background of needs, this is a drop in the ocean. In multi-family buildings alone, there are more than 60,000 buildings in need of renovation. But not a single penny has been earmarked for the renovation of single-family buildings, which account for half of the country’s housing stock. The general estimate is that 93% of the building stock is energy inefficient. If we want to solve the problem completely, we are talking about a huge need that cannot be met with this approach to financing – 100% grants for everyone. It’s unrealistic, there’s nowhere that much money is going to come from.

And that’s not the only problem. This approach greatly distorts the market. Improving the energy performance of buildings across Europe, including Eastern Europe, is a sustainable business model involving different parties with different interests. These are the financial sector, which ensures the participation of the owners, offers products under various programs, the construction companies that are in a competitive environment with each other, companies that work on the save and pay model – ESCO model. While here, grant funding 100% a priori excludes the financial sector.

Would we have achieved any results if there was no grant funding, would people have taken advantage of these financial instruments?

I just want to clarify that these funds were not under a European program. They were a national resource that you and I paid for with our taxes. Given that this public resource is being used for private interest, because all rehabilitated housing is privately owned property, the approach should have been completely different.

A greater depth of remediation than Class C should have been required first, which we will now have to upgrade.

Second, self-participation had to be required so that owners would have a commitment, including to maintenance afterwards. It could be that the depth of remediation was tied to the amount of self-contribution if, for example, we took action to achieve Class A we would receive a larger grant, if we worked simply to reach Class C, which is already considered low in terms of building performance, we would receive lower grant.

The way in which the program was actually implemented demotivated the construction companies that participated, because the decisions about who would participate were centralized at the level of municipalities, where the procedures under the PPA were carried out. The owners of these homes were also excluded from the process, as the principle was that “the teeth of a gifted horse shouldn’t be looked at”. They were excluded from carrying out control, from the selection of contractors, including performance control.

The municipalities said on the condition that we pay for everything, we will make the control and supervision decisions. You just give us access to the housing – period. And could it have happened any other way? I will give you an example with Slovakia, with which we can easily compare.

Since joining the EU, Slovakia has developed various programs for renovation of the housing stock, for single-family and multi-family buildings, with a larger or smaller grant. Keep in mind that there the largest grant was 30%, let alone 50 or even 100%.

Along with this, they also developed the relevant financial instruments to support households that cannot secure their deductible because there were such. Here, the moment a co-payment is requested, it will become clear that in every building there are households that cannot provide even a 10% co-payment. Financial instruments were created in Slovakia, such as interest-free loans from banks, grants from a state fund that supported and continues to financially support all programs. Every five years, the performance of the various programs is evaluated, and new components are added. The result as of last year was that over 90% of multi-family buildings in Slovakia were renovated, and in Bratislava over 97%. This is happening in Poland, in the Czech Republic, everywhere where there were similar problems.

With us, 20% deductible is foreseen in the second stage of the program from 2023? What are the financial instruments to include to make it clear to people?

With us, the biggest problem is that these things, to the extent that they are done at all, are small in scale.

Since the energy efficiency of residential buildings began to be discussed at all in 2005, a UNDP demonstration project was launched, which had to demonstratively renovate 50 buildings with a 50% co-payment requirement.

Also in 2005, a program for residential energy efficiency was launched, which was based on a credit line of 50 million euros from the EBRD. Through loans from 6 commercial banks, he gave loans for the implementation of certain activities, returning 20% ​​of the loan in the form of a grant. They weren’t even interest free. I started and ran the program until 2009 and 33,000 homes were renovated to some extent. People have taken to replacing insulation, roofs, walls, buying heat pumps. It wasn’t a complete overhaul, and that was the problem with this program. The quality of the performed activities was strictly monitored, but the main goal was to absorb a resource. The activities were carried out individually by a household in their own dwelling and that is why there are these patches on the facades today. This was a vice of the program, since such activities are undertaken for the entire building, the effect is incomparably greater.

Apart from these two projects, nothing else happened before the national program started. There was an attempt with European funding and a 75% grant to do something, but very little was done. Then the national program happened. It was not a well-structured campaign without prioritizing buildings of people with lower incomes or buildings in worse condition. Nobody asked these questions. The centralization of all activities in the municipalities, and everyone else standing aside, crippled the program.

Resource 3eNews: Mincho Benov, Habitat Bulgaria, to 3eNews: A more radical solution is one-time assistance for energy renovation of the home

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