EU Support for Housing Reforms

The rising costs of housing relative to household incomes have become a significant concern across the EU, exacerbated by economic disparities and demographic shifts. Many member states face challenges such as insufficient affordable housing, high rental costs, and deteriorating housing conditions. Addressing these issues is essential not only for improving living standards but also for promoting social inclusion, labour mobility, and overall economic resilience.

The Technical Support Instrument (TSI), managed by DG REFORM, is a pivotal tool in supporting member states to tackle these housing challenges. The TSI provides technical expertise to design and implement comprehensive housing reforms, rather than direct financial assistance. With a budget of €864 million for the period 2021-2027, the TSI aids in the development of policies and frameworks that can complement other EU funding sources, such as the Recovery and Resilience Facility and Cohesion Funds.

TSI support is demand-driven, tailored to the specific needs of member states, and can address all phases of reform. It includes assistance in evaluating and updating housing policies, conducting needs assessments, and developing targeted interventions to enhance housing affordability and accessibility. This initiative is in line with the EU's broader goals of fostering equal opportunities and social equity, as highlighted in von der Leyen's agenda.

TSI in practice

The following two projects illustrate how the TSI assists public authorities in addressing various aspects of housing policy comprehensively, integrating considerations from related sectors such as education, transport, health, and social services.

1. Tackling Informal Settlements in Romania (2021-2023)

Informal settlements, often inhabited by the poorest and most marginalized groups, pose significant challenges in Romania. These areas typically lack basic amenities, including sanitation, utilities, and access to education and healthcare. The COVID-19 pandemic further highlighted the vulnerabilities of these communities, making it difficult to distribute essential goods and services.

The TSI project aimed to enhance the capacity of local and national authorities, and in particular of the Romanian Ministry of Development, Administration and Public Works, to address these issues. The key areas of intervention were:

• Situational Analysis: Mapping and analyzing informal settlements to understand the scale and nature of the problem.
• Prioritization and Planning: Establishing criteria for prioritizing interventions and developing action plans to address the needs of these communities.
• Knowledge Sharing: Facilitating the exchange of best practices and methodologies from other EU countries to improve local interventions.

The project contributed to a better understanding of the socio-economic conditions in informal settlements and offered public authorities at central and local level practical tools to prepare and carry out interventions targeting communities living in informal settlements.

2. Enhancing the Social Housing Framework in Romania (2024-2026)

Despite Romania's high homeownership rate, the country faces significant challenges with inadequate social housing, particularly in marginalized communities. These challenges include overcrowding, energy poverty, and the presence of substandard housing that does not meet legal requirements.

This project supports the Romanian government in developing a more effective social housing policy. Key activities include:

• Data Collection and Analysis: Conducting a comprehensive survey of social housing needs and existing stock, focusing on the integration of housing with other social services.
• Policy Development: Crafting a unified policy framework that integrates housing provision with other social support services, ensuring that vulnerable groups receive holistic support.
• Implementation Strategy: Developing a multi-level governance model to streamline policy implementation, involving various stakeholders from national to local levels.

This project, bringing together the Ministry of Development, Administration and Public Works and the Ministry of Labour and Social Solidarity, aims to enhance the regulatory framework for social housing, ensuring that it is not only sufficient in quantity but also meets the quality and accessibility needs of the population.

Through such targeted interventions, the TSI is helping Romania and other EU member states to address critical housing issues, in line with the EU's broader commitment to ensuring decent and affordable housing for all.

If your national public authorities would like to apply under the next TSI round, they can obtain all the relevant information here or write to REFORM-B4@ec.europa.eu.