socially excluded localities: rpg real estate approach
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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