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					ENHR conference 2011, Toulouse, France


Plenary 2:
International perspectives on social enterprise and hybridity in housing
organisations.


Social enterprise and hybridity in housing
organisations in Europe: a response to
financial and regulatory challenges?
16-1-2012


Darinka CZISCHKE, in collaboration with Prof. Vincent GRUIS
Dept of Real Estate & Housing, Faculty of Architecture, Delft University of Technology
(the Netherlands)




             Delft
             University of
             Technology

             Challenge the future
The concept of social enterprise
    Wide variety of definitions:

•     “…a business with primarily social objectives whose surpluses are principally re-
      invested for that purpose in the business or the community, rather than being
      driven by the need to maximise profits for shareholders or owners” (DTI 2002)

•     “…nor-for-profit private organisations providing goods or services directly
      related to their explicit aim to benefit the community…” (Defourny et al 2008)

•     “…organisations that have been designed as private enterprises, operating in a
      market situation, that at the same time employ their means to fulfill a societal
      objective that is interwoven with (or parallel to) the common interests, that
      produces goods and services and that uses its profit entirely for the realisation
      of its societal objective.” (NTMO 2003)




                                                         Titel van de presentatie   2
Social enterprises:
Between the State, Market and Society




      Source: Brandsen et al. (2005), based on Zijderveld (1999) and Pestoff (1992).
                                               Titel van de presentatie   3
Social enterprises:
Inherent hybrid nature
The Conceptual Classification Framework – The Social Economic Continuum for NI
and NW ROI (Crossan, 2009)




                                                   Titel van de presentatie   4
                       Types of social housing providers in the EU
       „Public‟                                             „Private‟
      providers                                            providers
     L.A.   Public           Private law entities (civil or business), non profit              Coop      For-
             law                                                                                        profit
                     Assoc   Coop                Companies/societies                  Other
            bodies
                                      Public owners      Private or mixed owners

AT    *                        *             *                       *                                    *

BE            *                *             *

DE                                                                                              *         *

DK    *               *        *

ES            *                                                                                 *

FI    *       *                              *                       *

FR            *                *                                     *

IE    *                        *                                     *

IT    *       *                                                                                 *         *

NL                    *                                                               Found

PT    *       *                                                                       NGOs      *

UK    *               *        *                                     *                  *
                                                                    Titel van de presentatie        5     *
                                                                      Source: Czischke, based on Bauer (2011)
    Towards a typology of social enterprise in
        social housing in the EU

        Differences:            Commonalities:

    •   Legal status           • Mission (social, not profit
    •   Organisational forms     maximising)
    •   Size, structure        • Continuity (permanent character)
    •   History                • Long term strategic plan
                               • Stated values
                               • Defined target groups
                               • Legally „approved‟ or self-defined
                                 social (housing) mission.
The social enterprise
              model?


                                        Titel van de presentatie   6
 Adaptative strategies to different
    institutional contexts and logics
Organisational archetypes in the social housing sector (Gruis 2008)




                                            Titel van de presentatie   7
 How are housing organisations in different
    settings responding to current contextual
    developments?

     Two cases:

     • The Netherlands

     • England




                            Titel van de presentatie   8
The Netherlands

• Housing associations under increasing financial pressure from
  governmental taxes, reduced income from sales and tighter
  conditions for finance.

• EU / Dutch government ruling:

   • Split between „social‟ activities which may be funded with state aid
     and „commercial‟ activities which may be not.
       Impact on financial architecture (and on funding levels?)
   • Narrower target groups: income ceilings
       Impact on tenants‟ profiles, sustainable communities, affordability?




                                                   Titel van de presentatie    9
Responses by Dutch housing associations:
    1. Narrowing scope of activities
Average balance of pairs and possible priorities in 2007 & 2010 (Gruis 2008)




                                                     Titel van de presentatie   10
Responses by Dutch housing associations:
    2. Reducing demolition & development
    activities, increasing refurbishment of
    existing stock




                                  Source: Central Housing Fund (2011)


                              Titel van de presentatie   11
Responses by Dutch housing associations:
    3. From a transition to ‘social innovators’ to
    ‘social housing investors’




                                    Source: Central Housing Fund (2011)


                                Titel van de presentatie   12
Responses by Dutch Housing associations:
    4. However - keep active role in society


• Aim to maintain a wide network and cooperation with
  societal partner organisations to stay active in broader
  societal interests.

• Regional specificities play pivotal role on housing association‟s
  continuous role as social enterprises in the communities where
  they operate.




                                          Titel van de presentatie   13
England
• Major changes to social housing policy and regulation coupled to
  wide-ranging welfare reform creating a new environment for
  housing associations:
   • Reduction in capital grants
   • Possibility for social landlords to charge higher social rents to new
     tenants (up to 80% market rents)
   • Housing benefit significantly cut
   • Localism bill, „big society‟ discourse: emphasis on the role of third
     sector actors in service delivery
   • Government pledges 150,000 new social units in four-year term.


 Challenges and opportunities


                                                 Titel van de presentatie   14
Responses from English housing
   associations:

• Less capital funding => more debt => higher risk

• Financial strength and business strategy of each company
  determining new development levels

• Most going for considerable lower development levels (caution)

• Concerns about affordability (insider – outsider dilemma)




                                           Titel van de presentatie   15
Responses from English housing associations:
Shifting position between the State, Market and
Society?




                               Titel van de presentatie   16
Conclusion
• Social enterprises in housing significantly influenced by current
  financial and regulatory constraints.


• However, in line with their social mission and their hybrid nature,
  still aiming to counterbalance these pressures with staying active
  in wider societal interests as much as possible.


• Factors determining different responses (State, market or
  community orientations) include: financial strength, regional
 context (housing markets), leadership, consistency of core
 mission…


                                            Titel van de presentatie   17

				
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