Housing reform in Hungary : five concept papers

(1) The first paper addresses desirable forms of interaction between the State and local government in light of a 1990 law which assigned primary responsibility for housing to local governments, while reserving some important duties to the State. The paper focuses on tools the State could use to induce local governments to achieve national objectives in housing. (2) The second paper examines the relationship between national and local government in administering Hungarian housing programs and policies. A central thesis is that the housing programs recommended for the national government -- a housing allowance and a multipurpose housing block grant -- are particularly suitable for enhancing the authority of local governments and protecting them from arbitrary decisionmaking by representatives of the national government. (3) The third paper focuses on the proposed housing block grants, through which the State would fund local government activities, including the development of infrastructure for new housing projects, rehabilitation of existing units, and payment of housing allowances to poor families. (4) The fourth paper analyzes the proposed housing allowances, which would allow increased private sector participation in the rental housing market while protecting lower-income families from high rent payments. (5) The final paper proposes a reform in the management of State rental housing throughout Eastern Europe which would gradually raise rents to market levels while protecting low-income tenants with a social safety net.