MOBA: Rethinking needs and financing for affordable rent and cooperative housing in Central and South-Eastern Europe

The article "MOBA: Rethinking needs and financing for affordable rent and cooperative housing in Central and South-Eastern Europe" is published by the Radical Housing Journal and authored by Zsuzsanna Pósfai, Csaba Jelinek, Mara Ferreri, and Camila Cociña. This work explores innovative financing solutions for affordable rental and cooperative housing in Central and South-Eastern Europe (CSEE), highlighting a significant need for diversified housing models in a region characterized by high homeownership rates.

In 2022, a consortium of seven organizations conducted a comprehensive study across eight CSEE countries, including Bosnia and Herzegovina, Bulgaria, Croatia, Czechia, Hungary, North Macedonia, Serbia, and Slovenia. The research aimed to identify how catalytic capital investment could facilitate the development of affordable housing options. Findings revealed a significant potential demand for alternative housing models, yet existing financing tools were found to be inadequate for nurturing this sector.

The housing market in CSEE is predominantly characterized by individual homeownership, exceeding 90% in most countries. This situation has resulted in escalating housing inequalities and a deepening crisis, especially since the 1980s. Public housing has declined, and private rental markets remain small and poorly regulated, leading to high costs and instability for renters. The study indicated that over 20-30% of the population, including middle-class households, struggles with housing affordability, while many face energy poverty due to low-quality housing stock.

Surveys conducted in four capital cities (Budapest, Belgrade, Ljubljana, Zagreb) showed that over half of the respondents desired changes in their housing situations. A subset of this group expressed readiness to consider affordable rental and cooperative housing options. This indicates a significant gap between current housing offerings and the actual needs of the population, challenging the prevailing narrative that emphasizes homeownership.

The report outlines the shortcomings of existing housing finance products, which predominantly cater to wealthier households through individual mortgage loans. Nonprofit housing providers face barriers such as short loan maturities and lack of adequate financial tools, which stifle their capacity to develop rental and cooperative housing. The authors propose the concept of catalytic capital investment as a means to bridge the financing gap, allowing for the establishment of a quasi-revolving fund to support local housing initiatives.

MOBA, established in 2017, aims to facilitate the emergence of new affordable housing models through collective ownership and cooperative organizations. The initiative comprises seven full members from five countries, all focused on creating anti-speculative housing solutions. By fostering peer-to-peer learning and advocating for policy changes, MOBA seeks to transform the housing landscape in CSEE, emphasizing that housing is a fundamental social need rather than a commodity.

MOBA is actively involved in international networks and partnerships, emphasizing the importance of solidarity and resource sharing. Through collaborations with organizations such as World Habitat and urbaMonde, MOBA aims to mainstream the need for housing reform in CSEE, promoting community-led and cooperative housing as viable alternatives.

The study highlights three critical challenges to implementing community-led housing models in CSEE: inadequate financing, insufficient regulatory frameworks, and lack of organizational capacity. Addressing these challenges requires concerted efforts from both local and international actors to reshape the housing finance landscape and advocate for supportive legislation.