In February, the Housing and Environment Committee adopted the Mandatory Rules for the rental of residential premises in the state city of Riga. The document was issued in accordance with the Residential Lease Law, the Self-Government Law, and the Law on Preventing the Squandering of Public Funds and Property.
"The Municipal Housing Stock is Insufficient"
This is the conclusion stated in the package of documents reviewed by the deputies led by the Chair of the Committee Elina Treija (National Alliance).
Currently, 1557 individuals (families) are registered in Riga to receive assistance in solving housing issues. The average waiting time for assistance is six years. At the same time, the municipality owns 3505 apartments that have not been rented out to their tenants as part of the assistance. The tenants of these apartments simply... "did not exercise their right to privatize the rented residential premises."
"In accordance with the legal regulations in force at the relevant time, the municipality reports, "indefinite contracts were concluded with tenants, under which tenants continued to use the residential premises after the privatization of residential buildings. Until the day the Residential Lease Law came into force, the municipality did not have the legal capacity to unilaterally change or terminate the concluded indefinite contracts, which resulted in the municipality being bound by indefinite lease agreements with individuals who are not entitled to assistance in solving housing issues due to the housing stock shortage."
Therefore, the new version of the Mandatory Rules proposes to re-sign contracts for a period of 5 years. "This, in the opinion of the municipality, is a sufficient period for the tenant to make a choice – to initiate the alienation of the rented residential premises in accordance with the established regulations, find other housing, or apply to the municipality for assistance in solving housing issues."
The Question of Political Will
Vineta Darzniece, Head of the Legal Regulation Department of the Housing and Environment Department of the Riga City Council, noted that the question of what term to establish for the contracts of residents of non-privatized apartments is a political decision of the deputies themselves.
– For the municipality, this is a good mechanism to acquire material property for itself, – noted an opposition deputy in this regard.
– Yes, so that people do not have to stand in line for 6 years, – admitted V. Darzniece. According to her, those whose new contract will expire in the medium term will be able to either privatize the housing for money or apply for an apartment as part of housing assistance. The status of a "non-privatized" apartment in Riga will not exist after 2030.
Committee Chair E. Treija also inquired whether legal entities, enterprises could be registered at these addresses.
– I cannot answer this question right now, – the head of the legal regulation department admitted honestly. – We will consider this...
Ms. Treija noted that the city owns a total of 11,500 apartments – and the municipality, as their owner, should be aware of what and where is registered. Although currently, the legislation does not require the owner's consent!
Where to Get Money to Buy Your Housing?
The opposition pointed out that many people currently living in non-privatized apartments received them in the past for good work at enterprises. Now, however, to buy this housing – at least on credit – they will need to provide banks with proof of a certain level of income.
– Here, the problem has emerged that people will not be ready for this. The second is that if something in the apartment has been rebuilt incorrectly – then the contract is only for 1 year... Have you considered any benefits for granting loans, attracting Altum?
– We do not yet have a complete picture of who these people are, – Vineta Darzniece stated. – We cannot talk about any tools when there is no clarity...
The deputy presented a project for consideration – to establish a 10-year term for extending contracts for residence in non-privatized apartments. This term, according to unofficial information, was originally intended. In fact, Ms. Darzniece herself acknowledged this:
– Yes, but we cannot put one part of our tenants in a privileged situation compared to others. Especially since the majority will generally acquire other housing without any problems.
Welcome to Court!
In Ms. Darzniece's view, determining the market price of apartments is also very simple. In accordance with the Law on Standardization, housing will be studied by certified appraisers, who will name its real value. If the residents do not agree with the price – then welcome to court! "The department will, of course, work with each tenant separately," promised the official.
Agree, it is a strange view of the situation with the real estate market in Riga, which is currently stagnating – neither selling nor buying. During the heating season, people are not thinking about how to pay their utility bills. A reasonable, i.e., 10-year, extension of contracts could have helped this situation.
However, only 3 participants in the meeting supported it, 5 were against, and 1 abstained.
Insurance
Municipal apartments are required to be insured. To cover damage to third parties up to 20,000 euros, according to E. Treija, it will be enough to purchase a policy based on 2 euros per square meter – per year. Or something around 100 euros for a two-room apartment.
