Communal housing in Poland : management and privatization

Most of these buildings are located in cities and towns, where they comprise about 30% of all housing. Ownership of communal housing was recently transferred to the local governments, which are now responsible for operation and/or disposition. However, privatization may ultimately be a fiscal necessity, since rents are not adequate to cover costs and no financial assistance is likely to be available from the central government. This report evaluates the financial and physical condition of Poland"s communal housing in the context of the transformation of the housing market from central to private control. A major finding is that a substantial portion of the communal housing stock is physically deficient, overcrowded, and undermaintained. Less than half of the communal housing units in multifamily buildings contain central heating and private bathrooms and very few units are insulated. Several generations live together, there are no vacancies, and waiting lists can exceed 15 years. The report cautions that the transition to a private housing market must be a long-term one. Even in countries where functioning housing markets, adequate credit markets, and housing subsidy programs already exist, the sale of public housing has not been an unqualified success. The report then recommends what TA should be provided to local government in their efforts to manage and privatize communal housing.