socially excluded localities: rpg real estate approach

Socially Excluded Localities:RPG Real Estate Approach

Residential Portfolio of RPG Real Estate

• >44 000 apartments in 5 000 buildings • Locations in 27 towns (Moravian-Silesian Region)• Average age of buildings: 54 years• Occupancy rate: 98 percents• >100 000 tenants

Socially Excluded Localities

Approx. 6 000 RPG RE flats in socially excluded localities

Problems with assets value destruction, bad debts, no returnable investments, high vacancy rate – not attractive to newcomers,antisocial /criminal behaviour (drugs), bad neighbourhood reputation, security problems

Pilot Project Liščina

Pilot Project Liščina:Fact Sheet

• 123 flats: 84 flats rented; 39 flats empty; appr. 250 tenants (appr. 90% Romanies*, all socially and economically excluded)

• 45 % households delayed in rent payment!

• Average rent in 2010: CZK 46,05 per m2

• Civic association Vzájemné soužití actively involved as of 1997

• Main problems: high unemployment (appr. 70 %*), low level of education, grey economy, criminal behaviour, drugs, debts, loans, untidiness

• Test site for all RPG RE revitalization/social inclusion projects („Self-Help“, housekeepers, tenant-funded repair program)

* „Popis sociálně vyloučených romských lokalit v regionu Ostravska“, Agentura pro sociální začleňování, 2010

Pilot Project Liščina:Local Partnership established in 2008

• Municipality: Slezská Ostrava

• NGO: Vzájemné soužití

• Owner of the houses: RPG Real Estate

• School: Elementary School ZŠ Škrobálkova

• State: Agency for Social Inclusion, Office of the Government of the Czech Republic

• Police of the Czech Republic

• OKD Foundation

Pilot Project Liščina: Time Management 2009 – 2010

Pilot Project Liščina:Self-Help Program

Pilot Project Liščina: Tenant-Funded Repair Program

May 2010August 2010

Pilot Project Liščina: Building Community

Working together Playing together

Celebrating together

Pilot Project Liščina

April 2009 August 2010

Revitalization of 8 socially excluded localities

Orlová – Poruba Slezská Ostrava – LiščinaSlezská Ostrava – KunčičkyHorní SucháOstrava – RadvaniceKarviná 6 – Nové Město Havířov – ŠumbarkProstřední Suchá

Total investments: CZK 425 000 000

Slezská Ostrava – Kunčičky

Number of flats: 493

Investments: CZK 76 mil.

Havířov – Šumbark

Number of flats: 520Investments: CZK 64 mil.

Foto opravené

Karviná 6 - Nové Město

Number of flats: 1 135Investments: CZK 176 mil.

Foto opravenéFoto opravené

Key Challenges

Re-applicable Tools

Sustainability? Identified Threats

• Crime and fear as a consequence of the drug business

• Passivity of police partially due to restricted budget – no or low police presence in the localities; excuses like „we are monitoring situation, we are waiting for a big fish“

• No newcomers due to negative reputation of the excluded areas

• Property devastation – no further investments = „no future“

• Budget cuts in state social support – increasing debts leading to evictions

Ongoing Partnership – Condition of Success

RPG Real Estate

Stanislav SvobodaGovernment Affairs Director

ssvoboda@rpgre.eu