Housing policy in Norway IMF 16.12.2014

Norwegian Ministry of Local Government and Modernisation

Engelsk mal: Startside ALTERNATIV B

Housing policy in NorwayIMF – 16 December 2014


Introduction• Overview of the presentation:

– Key figures, housing policy in general, social housing policy

– Building costs, technical requirements for buildings

– Building permits – renewal, simplification and improvement

– Planning for housing

• Discussion

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Key figures for Norway• The population in Norway is 5,1 million

• There are 2,2 million private households

• The population is growing rapidly, mainly due to migrant workers

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Dwellings – owned and rented

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Social rented dwellings (5%)

Owner occupied dwelling (63%)

Source: Statistics Norway


Adequate and secure housing for all• Providing dwellings to vulnerable groups

(appr. 2,7 % of the population are characterized as disadvantaged in the housing market)

• Increasing the amount of environmental friendly and universally designed dwellings and neighborhoods

• Innovation in the housing and building sector

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Loan, grants and allowancesare provided through The Norwegian State

Housing Bank and the municipalities :

• Loans

• Grants

• Housing allowances

• Counseling the municipalities on housing issues

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Start-up loans• Is given from the Norwegian State Housing Bank

to the municipalities

• Affordable loans for first-time buyers, they are characterized as medium-low-income households with financial difficulties

• The credit risk is shared between the municipalities and the Government (25/75)

• In 2013, Start loans were given to 11.300 households (1.326 mill EUR)

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Norwegian Ministry of Local Government and Modernisation8

Basic loan• Supply-side stimulate

• Construction of new homes, renewal and reconstruction of existing ones

• Promote universal design and environmental sustainable solutions


Grants• Is given to the municipalities to provide social

rental housing

• Is given to individuals who need grants in addition to loans– For buying a home – For improvement of dwellings

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Housing Allowances• Shall ensure that people with low income and high

housing cost, have a suitable home.

• Help the disadvantaged group to obtain and keep a home

• All tenures

• State housing allowance in 2013: 114.000 households (351 mill EUR)

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Building costs - development

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

50

100

150

200

250

Housing prices Cost of input factorsProducer price for new single dwellings Building costs for houses financed by the State Housing Bank


Technical requirements for buildings• Regulations from 1997 – main changes in

2007 (energy) and 2010 (universal access and security).

• Energy: Enhances reduction in energy costs and long term investment costs. Short term increase in investment costs.

• Universal access: Increased independence for people with disabilities. The smallest apartments slightly larger.

• 2015: Exceptions for small apartments from requirements of universal access.

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Renewal, Simplification and Improvement

• The goal of the Norwegian Government is to make it easier and less costly to build houses

• But at the same time, we need to focus on building functional and sustainable houses that can be used by several generations to come

• The first action by the Government to streamline the building processes was to gather the planning and the building authorities in one ministry, the Ministry of Local Government and Modernization. This will ensure uniformity, continuity and completion of the work force

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• The Planning and Building Act regulate time limits for the building authorities to handle applications for building permits. These are regarded as important means to achieve efficient and predictable building processes

• E.g., The general time limit is 12 weeks for application for building permits, and 3 weeks for “straight forward projects” where all requirements are complied with.

• Some of these time limits are followed by sanctions when exceeded. E.g., if the local authority is overdue concerning the 12 weeks limit, they have to pay back the case-handling fee to the client with 25 % per week overdue.

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• The Parliament has recently passed an amendment bill to the Planning and Building Act that will enter into force July 1th 2015

• The changes include the possibility for house owners to build a garage or a similar building of up to 50 square meters without needing to apply for a building permit.

• We also propose changes to reduce unnecessary protests and complaints from neighbours.

• Further time limits for the building authorities to handle applications for building permits is also introduced. E.g., building permits that require dispensation from zoning plan must now be processed within 12 weeks.

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Case: Oslo city region, a planning problem?

Built-up area in 3 counties & 11 municipalitiesCommuting zone in 6 counties & 36 municipalities


Planning for housing in Norway In Oslo and surrounding Akershus county the increase in population is

expected to be 350.000 inhabitants the next 20 years. The number of employees is expected to rice between 8-9000 pr

year Make planning processes more efficient and plan for new housing

continues to be crucial topic in Norway The government has recently set into force new central guidelines for

“coordinated , housing, land-use & transport planning” Means more compact development, especially concerning projects

close to public transit nodes or communication centers Planning system based on close interaction between the planning

authority and private developers. The municipality do overall analyses and allocate areas for housing in

the municipal master plan About 90 % of all zoning plans are based on initiatives and plan

proposals from private developers (70 % in rural district). After hearing the zoning plan becomes a municipal plan

Tittel på presentasjon17


Planning for housing in Norway The municipal set the zoning plan into force. Private developers both finance and execute the projects Most private plan proposals are for residential or commercial use, or

combinations of these (Mixed-use development) Only 3 % of land area in Norway is suitable for agricultural use In practically all municipalities there will be conflict of interests

between land-use areas for housing and the need for preserving agricultural areas and safeguarding representative habitats and landscapes for future generations.

Affected central government, regional bodies and other municipalities may make objections to plan proposals regarding the land-use element of the municipal master plan and the zoning plan.

Unless these objections are withdrawn during the final negotiations with the municipal council, the plan must be sent to the Ministry of the Environment for final approval.

The ministry's decision may not be appealed



Nordregio Report 2013:1Key findings “The review has shown that there are three clear aspects that distinguish the

Norwegian detailed development planning practise: relations between the municipality and developer; relations between the municipality and the state; and the detailed (time) regulation of detailed development planning.

The first distinctive characteristic of the Norwegian planning system is the right for private actors to develop proposals for detailed plans. This has a long tradition in Norway, and means that the municipality's role in the planning process is slightly different than in other cases; it has a more of a guiding and controlling function compared to other Scandinavian states.

The second characteristic is the state (and regional) influence in the planning process and importance of spatial planning. The national level in Norway provides municipalities with detailed guidance material and the 22 sectorial authorities have the possibility to make objections on detailed plans.

The Norwegian system is also characterised by a detailed (time-) regulation of its detailed development planning process. This is particularity evident by several formal time limits in the planning process, including municipal consideration of private proposals and as well for political handling and public consultation.

These unique features of the Norwegian planning system have direct consequences both for the time spent for making a plan, as well as for the efficiency, and potential bottlenecks that can be encountered.”



KMD 11.september 2014

Rosenhagen, Stv

Sjøkvartalet, Stv

N Humlehaugen, Trh

SIRKUS, Trh

Rådal nord, Ber

Slakterhustomta, Ber

Tiedemann, Osl

Barcode, Osl

0 1 2 3 4 5 6 7 8 9 10 11 12 13

Time use in planning and building permit process

VARSEL PLAN inns KOMPL plan 1.G.BEH HØRING frist VEDTATT planFORH.KONF.B.Sak RAMMETIL.Bsak IGANGTILL M.BRUKSTILL FERDIG.ATT.

År

Building permitZoning plan


Municipal land-use planning in Norway Land use plans

High level of planning activity– 2,000 and 3,000 land use plans, zoning plans and municipal master

plans adopted every year Cases of objections that are not resolved through the planning process

and mediation efforts are sent to the Ministry for final decision– The last 10 years there have been a slight increase in the

proportion of land use plans that are met with objections, which is now between 20 and 30 per cent. With a new Government we see a noticeable reduction so far in 2014

For municipal master plans, the average age of the land use element is five years, and six years for the social element

– The situation varies greatly across the country– Especially large municipalities with low and decreasing population

figures lack updated plans– Many of these municipalities also lack planning competence

In connection with the new Planning and Building Act, it is a challenge to build the capacity, expertise and motivation needed to ensure that all municipalities have up-to-date municipal master plans


General principles municipal land-use planning

All municipalities shall have a land-use plan for the whole municipality (master plan)

In marine areas, the Act applies to a zone extending one nautical mile beyond the baselines of the territorial sea

The regional and municipal council shall within one year after the election, prepare a regional and municipal planning strategy

The processing of building applications pursuant to the Act shall ensure that projects are carried out in compliance with statutes, regulations and planning decisions


General principles municipal land-use planning

The municipal council is entitled to adopt master plans and zoning plans. The council may leave it to other authorities and private bodies to prepare an zoning plan proposal

Private bodies, developers, organizations and other authorities are entitled to put forward proposals for detailed zoning plans

– Private planning proposals must follow up the main framework from the municipal master plan and zoning plans

– Impact assessment of the effects of the plan on the environment and society must be made if there are significant alterations to the municipal master plan or zoning plans

Zoning plans must be prepared by experts Anyone who presents a planning proposal shall facilitate public

participation


General principles - regional level, state

At the regional level, the tasks are divided between the county authorities and the county governors (state): County governors representing central government, are responsible

for following up and coordinating the state’s different functions in the county.

They also function as expert authorities in areas such as agriculture, environmental protection, schools etc. The county governors have responsibility for control and follow-up in relation to the municipalities, and they mediate in planning application matters where objections have been made.

They are responsible for legal guidance to the municipalities in relation to plans.

Consideration of appeals pursuant to the Planning and Building Act has been delegated by the Ministry of Local Government and Modernisation to the county governors.

The county governors and county authorities cooperate extensively on planning matters that concern the municipalities’ follow-up of the Planning and Building Act, through regional planning forums laid down in the Planning and Building Act as well as in other ways.


General principles - regional level, county councils

The county authorities are managed by the county councils, which are elected by direct vote at the same time as the municipal councils. They are responsible for regional development and planning, transport, upper secondary schools, culture and the protection of cultural heritage sites and monuments.

The county authorities are responsible for providing planning guidance to the municipalities. All the county authorities have now set up ‘planning forums’, which are coordination bodies at the regional level in which municipal land use plans are discussed with central government and regional authorities.

The county authorities are responsible for a large share of the national trunk roads, which account for approximately 80 per cent of the road network. The county authorities have also been given a more important role in regional planning and in respect of the climate change challenge. They have also taken over functions relating to agriculture, water regions, outdoor pursuits and value creation.

Regional planning forum in all counties for coordination of planning Inter-municipal planning is an option


Development in housing prices2000–2014, 2000 = 100

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The housing prices have increased 135 % since the year 2000.

Unlike several other countries, there were no crucial decreases in the housing prices – as a result of the financial crisis.

Source: Statistics Norway

Presentations & Public Speaking

Housing policy in Norway IMF 16.12.2014