- Funding Programme
- Year
- 2021
Support for investment in affordable housing in Latvia through the revolving fund
The commission supported the Ministry of Economics establish the key features for the functioning of a revolving fund for Latvia to boost investment in affordable housing
Context
Housing quality and affordability gaps are a pressing challenge in Latvia. Addressing these challenges require a significant boost in housing investment, which remained low in past decades. The 2019 country-specific recommendations suggest that Latvia focus investment-related economic policy on the provision of affordable housing.
Therefore, a long-term self-sustainable model of financing could take the form of a revolving fund to channel investment towards good-quality affordable housing would be established. This fund could finance new affordable housing construction, as well as maintenance and renovations of the existing stock.
Support delivered
In the context of the project, implemented in the period of September 2021 to July 2023, by the Organisation for Economic Cooperation and Development (OECD), in cooperation with DG REFORM and with the support of the Technical Support Instrument (TSI), the Ministry of Economics of Latvia benefited from the following support measures:
- The design and circulation of a stakeholder survey to identify the barriers and opportunities in the establishment of a revolving fund scheme to channel affordable housing investment in Latvia;
- Working meetings with international experts with experience in the establishment and operation of revolving funds to promote housing affordability and renovation;
- Review of good international practice in the establishment and operation of revolving funds, as well as the key features that would be needed to establish and operate such a scheme in Latvia;
- Development of a road map to set up a revolving fund in Latvia;
- Organisation of awareness-raising activities to disseminate and discuss results with Latvian stakeholders;
The support measures are reflected in the following outputs:
- Report providing an overview of good international practice in the establishment of revolving fund schemes to finance investment in affordable housing;
- Report summarising survey results of Latvian stakeholders on key barriers and opportunities to establish a revolving fund to channel affordable housing investment in Latvia;
- Knowledge exchange event with Latvian and experts from other countries with experience in the establishment and operation of revolving funds;
- Report summarising the key features of a revolving fund to channel affordable housing investment, with specific recommendations and road map.
Results achieved
The Ministry of Economics of Latvia can rely on the deliverables produced in the context of this project to make evidence-based policy decision in the area of affordable housing, notably on the best practice exchange, the stakeholder’s survey and the Recommendations and Road Map for the Revolving Fund.