How to solve the structural problems that have caused the housing crisis? • IR.lv

The lack of a long-term housing policy in the country has caused a housing crisis. Riga Technical University experts have concluded that the wear and tear of apartment buildings built in Soviet times has reached a critical threshold. This is a threat – if extensive renovation of Soviet apartment blocks is not carried out in the next few years, many people may become homeless.

In the conditions of the geopolitical and energy crisis, the number of residents who have problems paying housing maintenance expenses has increased, thus communal debts accumulate. It’s like a vicious circle – the bills get bigger and bigger and harder to pay because the buildings are not insulated, but insulation requires investment. At the same time, this means that property has already become an unbearable burden for many Latvian residents. This is also proven by the “I want to live efficiently!” campaign in January of this year. the results of the population survey conducted as part of

The quality of the management of the multi-apartment building is significantly influenced by whether the apartment owners have taken over the management of the residential building. There are approximately one million dwellings in Latvia, of which 69% are located in multi-apartment buildings. The housing stock in Latvia consists mainly of multi-apartment residential buildings built in the 1960s and 1980s. At the moment, according to average estimates, only around 30-35% of the owners of multi-apartment houses have taken over the houses under their own management, which means that about 65-70% of the houses are managed by municipalities that do not own them at all. Such a situation creates a distorted understanding for apartment owners about their rights, duties and responsibilities as members of the home community. Latvia is currently the only EU member state in which the proportion of unoccupied houses is so high. It is necessary to decide on a single and legally clear form of management in an apartment building. It is obvious that the current situation is chaotic and due to the huge number of unoccupied houses and the unclear status of the community, the residents are not clear about their responsibility.

One of the reasons for the housing crisis is the attitude of the population towards property. It is important for the state to create a clear and legally defined environment through regulatory framework. How to address the very structural problems that are causing the housing crisis?

The seriousness of the situation requires decisive action by the state, the legislature and industry professionals. There is no doubt that the Ministry of Economy is making efforts to deal with this situation, and this is evidenced by the new draft law “Management of multi-apartment residential buildings” drafted by the Ministry of Economy.

Estonia decided on reform already in 2014, and on January 1, 2018, the Law on Apartment Property and Apartment Owners’ Associations entered into force in Estonia. With the new law, Estonians resolved and significantly changed the attitude of society and apartment owners towards their property. As a result of the reform, Estonia is now an example for the entire European Union in the volume and quality of apartment building insulation.

In my opinion, the development of the field of real estate management is hindered by the lack of a consistent housing policy in the country. Latvia needs a bold reform of the housing management regulation. If the regulatory regulation of housing management is not directed purposefully and with legal certainty and clarity, the safety of the country’s citizens is at risk, the quality of life decreases, the value of property decreases, and property may become an unbearable burden for many Latvian residents in the coming years. At the same time, the residents themselves should also be actively involved in renovation processes and take responsibility for their property, not only in the sense of a tidy stairwell, but in the maintenance of the entire building as a whole, making regular investments in renovation.

The author is the Association of Latvian Apartment Owners Associations Housing chairman of the board, director of the management education institution