Guidelines for designing programs for raising rents and implementing housing allowances in Russian Republics and municipalities

It reports the effects of six alternative rent increase-housing allowance strategies, and describes how each would develop under two possible scenarios of income growth relative to inflation, i.e., the extent to which incomes keep up with price increases during the implementation period. The simulations are based on real 1992 data from three Russian cities: Moscow, Novosibirsk, and Ufa. These data enable the estimation of the impacts of housing allowance programs on actual cities and households in the Russian Federation. This material should serve as a guide to local government officials responsible for formulating housing policy and those involved in the design and implementation of the rent increase and housing allowances program. The central conclusion is that there are important differences among the housing sectors of the cities of the Russian Federation. Consequently, any simple national directive on the implementation of the rent increase-housing allowance program should be avoided. Rather, each city should examine its own situation and devise its own program strategy. (Author abstract)