By October 2029, the capital plans to implement a large-scale housing construction project in the mode of public-private partnership (PPP). 732 apartments in Plavnieki, Ziepniekkalns, and Bolderaja will be built for promising professionals as "low-rent housing."
Twice the Market Price
The deputies were curious about how the circle of these young specialists would be determined. Moreover, 2500 euros per square meter seems quite a lot...
"Doctors, teachers, social workers... perhaps auto mechanics?" speculated Riga's Executive Director Janis Lange. The Chairwoman of the Housing and Environment Committee, Elina Treija (National Alliance), in turn, stated that Riga still has a rather long construction cycle ahead, and everything will be determined along the way. Additionally, 23% of the cost of buildings will be related to the "indexable part," taking inflation into account. However, all details of the pricing cannot be publicly disclosed at this time as they pertain to restricted access information.
According to E. Treija, private companies will also ensure the proper operation of the newly introduced housing, and all malfunctions will be addressed as they arise.
– "This project is unprofitable for the municipality and residents," stated an opposition deputy. "They found three plots of land, and in 3-4 years, we will have, for example, 174 municipal police officers living in Plavnieki, while they may work in other areas. Are we creating such professional ghettos?".
In the deputy's opinion, it would be better to provide allowances to municipal employees so that they could purchase housing themselves, at half the price. After all, the framework conditions for the new project were taken from... Ireland (a country with the most overheated real estate market in the EU!). For example, there is an unfinished building on Smilgya Street.
– "And we will pay them for maintenance for 25 years," noted the deputy regarding the construction business.
You Didn’t Give, So You Can’t Take Away
Your author inquired whether the city would build, for example, a new road in Bolderaja? Because the current highway is not only inconvenient but also simply dangerous. Moreover, hundreds of young families will require social infrastructure. "The answer is yes!" succinctly stated Riga's Mayor Viesturs Kleinbergs ("Progressives").
I also thought it appropriate, in a brief remark from the podium, to remind how during the height of the battle for independence, 35 years ago, the Supreme Council of the Latvian SSR built a multi-apartment building for itself on Sarkandaugava. There, both supporters of the People's Front and the Interfront settled in excellently... Now, however, "public-private partnership" has quite corrupt risks. Therefore, this topic should be put on pause – and first, determine who will be able to live in apartments with a market value of 50 and 100 thousand?
Lyubov Shvetsova pointed out that the municipal housing stock includes 11,610 apartments. Only about 15% of them are social, while the rest are simply non-privatized. According to L. Shvetsova, the city authorities are engaged in "terrorizing" residents in municipal apartments.
– "It was not the Riga City Council that issued these apartments, nor is it theirs to evict people from them."
As for the new project, "This is simply a form of investment development, a scheme." The deputy referred to her 22 years of experience in law enforcement, where she investigated financial crimes, cartel agreements, including in construction.
Why Aren’t We Singapore?
Another opposition deputy reported that a massive building was recently sold in the center of Riga – the final price was 1000 euros per square meter. "Perhaps the municipality should have bought it?" According to the deputy, communal living is de facto being revived in the capital, even in Jugendstil houses!
– "Riga needs to show its action, that we are building houses," emphasized the head of the opposition faction. He again cited municipal housing... of Singapore (a bit higher than Riga in business intensity and cost of living). One way or another, the deputy believes that housing policy can keep people at home.
Julia Stepanenko believes that the municipality should primarily finish the city's "abandoned properties." She also pointed out the fate of 3000 people from former "factory" houses, from which the Riga City Council demands – either privatize their homes at market price or leave.
Her colleague in the faction, Rudolf Bremanis, reminded that at each meeting, the Riga City Council decides the fate of dozens of apartments that it does not need. "We could also sell the cultural center 'Imanta' to private individuals; they would open a pub and a casino there!". However, the co-financed European project for the Skantes quarter park resulted in poisoned land.
– "This will be the first question we raise in the anti-corruption commission," promised R. Bremanis.
– "In Plavnieki, you can find fully furnished apartments, new projects, even with curtains – 1500 euros per square meter, just move in and live," cited deputy Inna Dieri.
Stealing Won't Work
However, Riga's Mayor V. Kleinbergs did not like that people "manipulate and lie." He considers the Kegums bypass road an excellent example of PPP: "We received a good product." As for the new construction in Riga, the city hall consulted with the Finance Department regarding the price. The mayor dismissed accusations of corruption because "this project is led by the European Investment Bank, its consultants." In other words, they won’t allow any theft.
The mayor also commented on those people who still live in non-privatized apartments – saying that they either sold their certificates or thought that the apartments were worthless. As a result, there are even burned-out apartments that the municipality now has to repair. As for the building on Smilgya Street, it is "problematic" because the land under it is private...
From the Perspective of the State Language
The cherry on top was the speech of Liana Lange. The icon of the National Alliance suggested considering those who have not privatized their housing from the perspective of... not knowing the Latvian language. L. Lange wished the opposition to teach their voters the state language, "which they have not learned in 35 years" – instead of criticizing the government!
– "Very often, they have no money," revealed the essence of the issue I. Dieri. Currently, privatization, at the increased cadastral price, costs almost as much as buying a new apartment. "So, should we now deport these Riga residents?" asked the deputy about the fate of the tenants. For example, a famous Latvian writer, Gundega Repše, found herself in such a situation!
