STATE REGULATION OF THE PROBLEMS OF INVESTMENT PROCESSES IN THE CONSTRUCTION OF SOCIAL HOUSING IN THE CONTEXT OF EUROPEAN EXPERIENCE

Abstract

The article defines that, in general, the existing problem of a significant housing shortage in the country is solved by purely state programs for the construction of low-cost housing. The population buys it, or rents it at low prices. And construction companies are stimulated by privileges from the state in the form of tax incentives. Subsequently, the state stops such programs due to the saturation of the market with housing, and targeted assistance is provided. State policy in the field of investment regulation is reviewed in most countries with a developed social housing sector. A common concern is the fact that the available housing offers are not enough to meet the existing housing needs. In addition, there is political uncertainty about the future financing of social housing in many countries. There is a growing interest in finding innovative sources of funding, analyzing existing systems for economic efficiency, increasing interest in government guarantees, productive combination of funds, developing cooperation with private developers and receiving investments from institutional investors. It has been proven that housing for social housing stock lacks attractiveness to attract the attention of investors. As a rule, in most cases, the landlord expects to receive material benefits. The constant decrease in the number of social residential buildings is explained, in particular, by the fact that the construction of new social houses almost does not occur and at the same time a certain number of residential premises fall out of the so-called circle of obligations. Such “obligations” are contracts that establish a period during which the premises may be leased as social. The signing of new contracts by the owners was not carried out, since  they (the contracts) do not guarantee an adequate level of income. Therefore, it is believed that this type of obligation should be provided by municipalities and federal lands, since it is the latter that are competent in the construction of social residential premises.