Introduction to the VMSW
Social housing in Flanders
Everyone in Flanders has the right to a customized dwelling, of good quality, in a decent living environment, at an affordable price, as well as to housing stability.
The Flemish authorities desire to help persons for whom the rental or purchase of a decent home is too expensive.
The VMSW plays an important role in the social housing sector.
Since 1 July 2006, the VMSW is the legal successor to the Flemish Housing Company (VHM). This is a consequence of the reorganisation of the Flemish authorities. In this new structure, the VMSW is an external autonomous agency (with its own Board of Directors), within the policy domain of the Town and Country Planning, Housing Policy and Immovable Heritage (RWO). The VHM changed its name and received a modified set of responsibilities. In addition, the RWO Inspection Agency now oversees and inspects the 102 local social housing companies (SHMs). The successor of the social rental system is now in the hands of the RWO Department.
What does the VMSW do?
The VMSW wants to make social housing possible.
It stimulates, supports, supervises and finances local social housing organisations in the Flemish Region in order to realize and maintain affordable and high-quality housing projects.
Planning
The VMSW drafts an annual implementation program for the purchase, construction and renovation of social housing rentals and sales. This programme is a list of all housing projects for which a budget is established in that year so that the necessary work can start. The drafting of the annual implementation programme occurs in association with all social housing stakeholders and takes into account the results of these local consultations.
Guidance
The VMSW guides and supports the parties involved during the building process, namely the 102 local social housing companies in Flanders, but also the municipalities and the OCMWs. In the guidance process, we concentrate on quality (sustainable housing) and affordability (e.g. by means of a maximum cost price norm). We hereby strive for a high-quality standard for all social housing projects. Projects with an extra value serve as evidence that social housing in cities and municipalities can become the driving force in urban renewal. One can download freely the ABC handbook (General works handbook, Description of building techniques, Concept and design instruction) on our website www.vmsw.be.
Finance
The VMSW converts the budget, which the Flemish Government unveils annually for the social renting sector, into affordable loans. The SHMs then utilize these funds to purchase housing, construct new projects and renovate their existing properties. The SHMs then rent the social dwellings to persons of limited income at a rental price adjusted according to their financial situation. Finally, the SHMs use this rental revenue to pay off the 33-year loans from the VMSW.
Special social loans
Within the social sales sector the SHMs build social dwellings and sell these to persons of limited income. These buyers can acquire an affordable mortgage loan through the VMSW. The VMSW converts the budget that the Flemish Government invests in the social housing sales sector into special social loans for individuals with a modest income. The interest rate of these loans is adjusted to the income and repayment abilities of the individual borrower. In addition, individuals wishing to purchase a home with the intention of renovating it, or those wishing to build their own social dwelling, those seeking to renovate their own home, or to renovate, refurbish or re-fit their own homes may, under certain circumstances, obtain an affordable loan from the VMSW.
Banking
The VMSW manages the financial resources of the SHMs. In other words, each SHM has a financial account at the VMSW, just as one would at a bank. The VMSW also pays the invoices of the contractors for the SHM’s account.
Housing Infrastructure
Since 1 July 2006 the former ministerial department of Subsidized Infrastructure got integrated into the VMSW. So now we are also responsible for the construction of the housing infrastructure for social housing projects (roads, sewers, landscaping). In this way the project focuses particularly on a qualitative, sustainable, safe and socially-integrated environment.
Achievements
The SHMs build and buy some 2,000 social rental properties and 550 social properties for purchase annually. Each year renovation work is conducted on nearly 6,500 properties. The SHMs own approximately 137,000 social rental dwellings in Flanders.
The VMSW lays the housing infrastructure for an average of 1,900 homes annually. Each year the VMSW grants special social loans to about 1,000 individuals. At present, the VMSW manages a total of some 25,000 outstanding mortgage loans.