A quarter of a century ago, the people of Ghent voted against an underground parking lot at the Belfort. On Sunday, the noose bearers can go to a referendum on affordable housing. They can speak out about the privatization of public real estate and the establishment of an urban land bank to realize 20% social and 20% budget (rental) housing. The latter are homes with a lower rent than the market rent.
The plebiscite was forced by Volksraad. The citizens’ initiative Too expensive walked all the streets of the city for more than a year and collected 26,725 valid signatures. The initiators hope that the people of Ghent will massively agree to the demand to no longer privatize municipal public real estate.
The City of Ghent, the OCMW and the urban development company Sogent together own approximately 7% of the land within the city limits, of which only 2% is suitable for housing
The sale of public land and buildings has been a major concern for activists for several years. Apache followed some of these symbolic files closely, such as the (now destroyed) sale of historic agricultural land to a port operator company. Fernand Hutsthe St. Anne’s Church that supermarket chain Delhaize leasehold for 99 years, and the (temporarily suspended) sale of the second Pandhof to the Caermersklooster. Also the sale of about 120 social homes from the housing company The People’s Hearth was an eyesore.
The ‘Group Ghent’ (de City GhentIt OCMW and the urban development company Sogent) owns about 7% of the land within the city limits. Only 2% of those public lands are suitable for residential use. The majority (79%) of the public lands in Ghent have a green destination, supplemented by a substantial portion of agricultural land (9%).
The Ghent Group together owns 621 buildings, of which 99 are used for residential purposes. The majority of the approximately 12,500 social and (a limited part) budget rental homes are owned by the housing company Home point Ghent.
Currently, 11% of households rent social housing in Ghent, one of the highest figures in Flanders, where the average is 6%. Yet in the Arteveldestad, another 11,000 Ghent residents are on a waiting list for social housing. In addition, 48,000 households, more than 40% of families, belong to the lowest income category, according to city figures. These families are theoretically eligible for social housing, the activists note.
That is why the activists are calling on the city to achieve 40% social and affordable housing. The activists want the city to move to 20% social housing and provide the other 20% with budget rental housing.
In the public interest
To achieve these ambitions, a land bank is essential, although the concrete implementation of that instrument has not been determined. This can range from a new vehicle in which all public land is housed, to a shared ‘real estate inventory’ of the various public actors. What all these options have in common is the idea that the local government stimulates an affordable housing market with an active land policy.
In Ireland, the Land Development Agency (LDA) ensures that social and affordable housing is built on public land
In recent weeks there has been criticism about the way the second question was formulated and how the land bank concept should be fleshed out. “The whole idea of a public land or property bank, or a public agency that looks for land and buildings to organize a social and affordable housing supply, is not just something that fell out of the sky,” said Gert Eyckmansdirector of the Association of Flemish Housing Companies at a city debate in the run-up to the referendum.
He pointed to examples from Ireland, but also cities such as Vienna or Barcelona, which show that governments that focus on strengthening their land positions can rapidly increase the number of affordable homes.
In Ireland it does Land Development Agency (LDA) ensures that social and affordable housing is built on public land. Since 2021, the LDA has maintained a register of relevant public land for housing owned by itself or owned by other authorities.
In an initial report, the LDA immediately put forward 83 plots in 10 cities and municipalities where up to 67,000 affordable homes can be built in the long term. The database with all public lands is one of a kind.
The agency must not only ensure that government-owned land is used for social and affordable housing. “LDA must also look at which private owners are in the area and ensure that they are involved in the projects, so that something is also achieved there in the public interest,” says Eyckmans.
Tradite in Vienna, catch-up operation in Barcelona
In the Austrian capital Vienna, more than half of the 1.9 million residents live in subsidized apartments. “That is the result of a consistent and thorough policy that focuses on land,” says Eyckmans. “In Austria there is also a system to oblige private developers to build social housing on their land.”
The Wohnfonds Wien owns more than 3.2 million m² of residential land
The “world capital for social housing” has had a tradition since the period just after the First World War, but social housing is particularly booming thanks to the foundation founded in 1984. Wohnfonds Wien. This fund for land purchases and urban renewal now owns more than 3.2 million m² of residential land.
The city of Vienna invests 400 million euros every year in the construction of social housing and renovations. In addition, another 100 million euros in support will go to residents who cannot yet pay the full social rent.
Barcelona, a city with hardly any social housing and with rent prices skyrocketing for all kinds of reasons, took a different approach in 2016. With the Barcelona Right to Housing Plan 2016-2025 the number of social homes grew from 7,500 in 2015 to 11,500 in 2023.
“The city chose to actively buy up land and buildings for social purposes,” says Eyckmans. “Public lands have been leased with the obligation to create a social rental offer. In addition, there is also a system of social charges, obligations to share (usually 30%, ed.) to realize social housing in new construction projects and housing cooperatives received cheap loans.”
Between 2015 and 2022, the local government purchased 43 buildings housing 938 homes. The city of Barcelona’s housing department says that purchasing existing homes ensures that those properties do not fall into the hands of speculators or ‘vulture funds’ – which are investment funds that buy up loans and debts cheaply.
Bouwmeester’s idea
Sky-high land prices in Belgium are an obstacle for urban authorities to acquire new land themselves. “Moreover, it will be very attractive to introduce city land into the market logic and capitalize on it,” said the Ghent master builder. Peter Vanden Abeele rather to Apache.
Researchers from the Ghent housing study state that public lands ‘should ideally be used to maximum effect to expand social and affordable rental supply’
Yet the city government is not without a chance, his essay states Solid wood goods about public real estate. He sees merit in land exchange, including for built-up plots. “When exchanging, we must of course start from our own real estate portfolio, where we can use land for strategic exchange and expanding a land position in a specific area. The land bank can be supplemented through area-specific purchases that strengthen the real estate portfolio.”
In his essay, the city architect also makes a plea to first develop a thorough strategy for dealing with public real estate before opting for sale. He proposes a graduated method in which conservation comes first, followed by use under conditions (such as a leasehold agreement) and only then development under conditions. Also the Team Flemish Architect sees salvation in such instruments.
The idea of a Ghent land bank is also reflected in the Residential study Ghent. “In order to be able to implement a long-term housing policy, expanding a land position is a crucial success factor,” the researchers say. “The systems of leasehold and building rights can also be used to investigate how this becomes feasible for the city’s finances.”
The researchers believe that land over which the Ghent Group has control “should ideally be used as much as possible to expand the social and affordable rental supply. The Ghent Group lands on Ghent territory must therefore be preserved.” They call for a screening of the heritage that should lead to a land bank.
First experiments
In the Housing policy document, the current city council started with the intention to use its own land position to create an affordable private rental offer. In addition, the city announced that it wants to strengthen its land position and expand its supply by granting non-traditional business rights. During this period of government, the city council invested 90 million euros in housing and experimented with some alternative models for land management.
The Ghent city council invested 90 million euros in housing and experimented with some alternative models for land management
For example, in 2021, the urban development company Sogent gave homes for a 39-year lease to the developer for the first time. Citynest to renovate it and rent it socially or affordably through a housing company. The homes remain the property of the urban development company.
In addition, the city also brought in land Community Land Trust Ghent. Buyers of those CLT homes will become owners of the property, but not of the land. It remains in a foundation. The first 34 CLT homes are currently being built in the Meulestede district.
The idea for a land bank is already receiving support from CLT Ghent: “From the perspective of CLT Ghent, it is logical to YES to vote on this question. Together we can ensure that more space is created for affordable housing options, like ours.”
Wooncoop, a cooperative of citizens who jointly manage housing projects, calls on its members to vote ‘yes’ twice. “But we find the two questions quite guiding for possible solutions to the housing crisis. We do not believe that there is a perfect solution. The city (and society as a whole) can be more creative.”
Midfield continues to hammer
The Ghent city council debated the referendum at the end of September, but does not consider it necessary to call for votes or to provide advice. After much insistence, PVDA was able to hear a position on the questions from all parties. With the exception of N-VA, all parties appeared to be in favor of a land bank. A ban on the sale of public real estate proved to be a bridge too far for the majority parties and N-VA.
That the need is dire is once again evident from cries for help from civil society organizations. In their memorandum with thirty priorities to guarantee the right to affordable housing and shelter for everyone, thirty organizations call on the city government to stop the sale of public land and buildings. They ask for the land and heritage to be used in equal parts for social rent, budget rent and alternative housing options.