Transcript - World Family Organization

Flemish Housing Fund
for Large Families
A family dimension in social housing policy
1
Gezinsbond
(league of families)
2
The principle of family
modulation
The principle of family modulation
implies that a family's ability to cope
financially is not only determined by
household income, but also by the
number of persons that must live from
this income.
3
What does the Housing Fund?

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Families who otherwise would never
be able to own their own home, are
given the opportunity via a unique
loan system.
In 2009, more than two thousand five
hundred modest-income families with
children became owner of a house or
were able to renovate that house via
social loans from the Flemish Housing
Fund.
4
Flemish housing Fund
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Origin and evolution
Legal status
Mission: Social housing policy in Flanders
Family dimension and social dimension
Funding
Some statistics
Home improvement and rental assistance
for those who cannot afford an own house
Political appreciation
The Gezinsbond supports the Housing Fund
Conclusion: recommend application of a
family modulation scheme
5
Origin and evolution
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Established in Belgium in 1929 by the
Gezinsbond, which was then unitary
Regional structures in 1980 (competence
in Flanders, Wallonia and Brussels)
Flemish housing fund for Large
Families cvba established on
17/10/1980
Operational on 1 januari 1984
In 1999 families with at least 2
children.
6
Expanded to include all families
with at least 2 children

In a Flemish government decree
of 19 januari 1999 , the Housing
Fund target group was expanded
to include all families with at least
two children and a legally fixed
maximum income.
7
Frans van Mechelen
President of the Gezinsbond
“Also in the third millennium, the
Flemish Housing Fund for Large
Families will continue to be
indispensable for modest-income
families with 2 and more
dependent children”.
(Editorial in “de Bond” of 11 December 1998)
8
Recent evolution: families with one child.
The Flemish government decree of
9 December 2005:
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Expanded the target group to include
all families with dependent children.
At the same time substantially
increased the allowable maximum sale
value of the homes.
9
Legal Status
A private law company, namely a cooperative
society with limited liability, subject to a
number of legal requirements, (accounting,
taxes and the responsibilities of the various
policy bodies).

Certified by the government as social
housing organisation subject to decrees
that stipulate the activities the institution can
develop with the financial resources allocated
for this purpose in the Flemish Community
budget.
10
Mission of the Housing Fund:
Social housing policy in
Flanders
The Housing Fund is active in two
sectors:
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Core –business: the acquisition of
social housing by families.
Also active in the rental sector with:
home improvement and lease
assistance activities.
11
The Housing Fund:
Social housing policy in Flanders
- Family dimension: the greatest
support to the largest families.
- Social dimension: the lowest
incomes receive the most support.
12
Family dimension in social housing
policy
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Benefits of owning a home:
- guarantee against poverty ;
- possibility to adapt the dwelling to
the number of children ;
- benefits the sustainability of the
living accommodations.
The family dimension is central to the
housing issue
13
Family dimension via
digressive interest rates
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Lower in function of the number of
dependent children.
An increase in the number of dependent
children results in a (further) decrease
in the interest rate.
When the number of dependent children
decreases during the duration of the
loan, no increase in the interest rate.
14
Social housing: Housing fund is
aimed at families with children and a
limited income
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There is a limit to the:
- family income
- sale value of the homes
15
Limits to household income :
Maximum income on 1 Januari 2009 :
Number of children
 1
 2
 3
 4
 5
 6
Maximum income
 49,260 EUR
 52,340 EUR
 55,420 EUR
 58,500 EUR
 61,580 EUR
 64,660 EUR
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Social dimension via digressive
interest rates
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The interest rates charged for borrowing
families not only takes account of the
number of dependent children,
The interest rates are also lower as the
household income is lower.
Limits to the value of the house: higher
in function of the number of children
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Less than market interest rates
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Varied between 1.5% and 4.17% in
oktober 2009.
The loan duration, and thus also the
monthly payments, are set according
to the financial possibilities of the
borrowers (10 years to maximum
25 years).
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Interest rate and maximum income
Number
of child
1
2
3
4
5
6
Annual
rate
Maximum
income
Maximum
income
Maximum
income
Maximum
income
Maximum
income
Maximum
income
1.50%
16911
21138
25365
29596
33823
2.00%
16911
21138
25365
29596
33823
38051
2.50%
21138
25365
29596
33823
38051
42278
3.00%
25365
29596
33823
38051
42278
46505
3.50%
29596
33823
38051
42278
46505
50733
3.80%
32132
36359
40586
44814
49041
53272
3.90%
32976
37203
41434
45661
49888
54116
4.00%
33823
38051
42278
46505
50733
54960
4.10%
34668
38895
43122
47353
51580
55807
4.17%
49260
52340
55420
58500
61580
64660
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Revision of the interest rates
every five years
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One feature of loans from the Housing
Fund is the revision of the interest rates
every five years: the interest charged
on all loans is revised every 5 years
based on the evolution of the
borrower's income.
Taking into account the average
borrower's income for this five years.
20
Funding
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In 2009, the Housing Fund issued loans
to families for approximately 360 million
Euro (or almost 540 million US$).
This amount can be borrowed by the
Housing Fund itself on the financial
market via bond loans that are
guaranteed by the Region of Flanders.
21
Bond loans
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The call for tenders to the banks for the bond loans is
done according to the guidelines applicable to European
tenders.
The terms of the bond loans are largely a function of the
mortgage loans (this means: the amount in question is
borrowed for a period of 15, 20 or 25 years).
Repayment of the principal starts immediately.
Repayment by the Housing Fund to the banks is done
based on annuities (= annual repayment of a part of
the principal, plus the interest).
The contribution of the Flemish Region to the annuity
amounts to 50%.
22
Some statistics:
Number of loans
Total amount
Migrant families
North-Africa
Families with
Turkeys nationality
2006
2018
2007
2780
2008
2536
234.8
Mio €
441
21.9%
347.6
Mio €
615
22.2%
323.9
Mio €
565
22.3%
92
57
129
83
86
77
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Home improvement and rental
assistance
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In 2008, there was an investment of
more than 5.5 million euro The housing
fund engaged in a number of social
housing projects.
The property belonging to the Flemish
Social Housing Fund amounted to 867
housing facilities. Work was completed
on 739 of these.
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Political appreciation : the Flemish
Minister for Housing in Parliament
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“If there is something we should be proud of,
it is the social loans, including those of the
Flemish Social Housing Fund. We have injected
significant extra tax revenue in support of
these”.
“We wish to make it possible for people with a
modest income to realise their dream of home
ownership. This has become difficult for a
single-income family. Those with a reasonable
fixed income who are forced to go it alone at a
certain moment, are unable to receive a loan
from any bank, unless the entire family acts as
guarantor. And that is the best way to
guarantee family quarrels…..”
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The Gezinsbond is asking:

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The application of a family
modulation scheme in government
support and services.
This could be applied at every
policy level.
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More information

www.gezinsbond.be

www.vlaamswoningfonds.be

www.flw.be

www.woningfonds.be
(Wallonia)
(Brussels)
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