Cooperative Housing Pioneers in Central and South- Eastern Europe: Mainstreaming Alternatives through Translocal Networks

This resource, titled "Cooperative Housing Pioneers in Central and South-Eastern Europe: Mainstreaming Alternatives through Translocal Networks," is published by Critical Housing Analysis and authored by Corinna Hölzl from the Geography Department at Humboldt-Universität zu Berlin. The document examines the challenges and opportunities facing grassroots housing movements in semi-peripheral European countries, focusing on the role of translocal networks like MOBA in promoting non-speculative housing alternatives.

Financing is identified as the most significant challenge for grassroots housing movements in Europe, particularly in semi-peripheral countries where access to appropriate financial resources and regulatory frameworks is limited. The phenomenon of "super-homeownership," resulting from privatization waves since the 1990s, has left over 70% of households owning their homes, while affordable rental and social housing options are scarce. Informal rental agreements and weak tenant protections exacerbate the problem, especially for younger generations in large cities like Prague and Budapest.

MOBA (a solidarity-based transnational umbrella association) has emerged to confront these financial challenges. Established in 2017 and legally constituted as a European Cooperative Society in 2020, MOBA encompasses cooperative initiatives from Croatia, the Czech Republic, Hungary, Serbia, and Slovenia. The network aims to promote non-speculative housing alternatives and establish transnational solidarity-based financing for community-led housing.

The paper analyzes MOBA's strategies to challenge financialized housing practices through the development of legally robust cooperative structures. These strategies include establishing pilot projects that provide affordable housing options for middle-class members lacking access to credit. Examples of these pilot projects include the Cooperative Open Architecture in Croatia and a housing initiative in Belgrade.

To address financing gaps, MOBA is developing innovative financial instruments such as the MOBA-Accelerator, a revolving fund designed to provide interim financing for housing projects. This fund seeks to bridge the gap until long-term financing through bank credit can be established. Additionally, MOBA is collaborating with European banks to create a European Ethical Bank aimed at fulfilling the financial needs of small and medium enterprises in an ethical manner.

MOBA engages in advocacy efforts across Europe to raise awareness about the issues of financialized housing practices. By connecting local projects with international networks, MOBA enhances visibility and attracts support from various stakeholders. The organization's unique combination of local community projects and transnational networking positions it to challenge the prevailing narratives surrounding housing commodification and private homeownership.

The study concludes that while MOBA has made significant progress, challenges remain in securing adequate funding and maintaining effective network structures. The ambitious goals of establishing financing instruments and creating long-term spaces for non-profit-oriented models will require ongoing collaboration and trust-building among its members. Overall, the efforts of MOBA illustrate the potential for grassroots movements to create sustainable housing alternatives in Central and South-Eastern Europe amid a complex landscape of financialization and political challenges.