The property mafia has found someone to kill the reform for municipal apartments. You announced this a few days ago from “Save Sofia“. What is happening in the Sofia Municipal Council, who is lobbying for what, when it comes to municipal apartments… Arch. Rositsa Nikolova, municipal councilor from “Save Sofia“ and submitter of the proposed new regulation, speaks to FAKTII.
- Ms. Nikolova, the property mafia influences the Municipal Council in Sofia. You said this from “Save Sofia“ a few days ago. How does this happen? Who says what to whom, so that there is a property mafia with influence…
- Over the past 35 years, over 90% of municipal housing has been sold in Sofia – this is not just a statistic, but a symptom of a vicious system that tolerates favoritism of close and hidden interests. A large part of the transactions are carried out at prices many times below market prices, often with resales in short periods, which really hurts those in need. There are numerous indicators that sometimes behind these tenants are people with hidden incomes, political patronage or simply brokerage interests. We call this the “property mafia“ – not a sensation, but a real network of dependencies and vicious deals that hinders any real reform.
- The Sofia Municipal Council voted to postpone the consideration of the draft of a new regulation on municipal housing. What happened during the vote…
- The vote showed a lack of political will and courage. Despite months of work, dozens of meetings with experts, district mayors and citizens, our proposal was postponed with the argument that "there was no good communication". The truth is that there is no desire for reform. Populism prevailed, especially when the rostrum instilled fear that people would be thrown out onto the streets, which is a categorical lie.
- The reason for the postponement was that the municipal councilors had remarks and concerns, right?
- No, not a single specific legal or social argument was presented that would cast doubt on the texts in the regulation. On the contrary - it fully covers the instructions of the MRDPW for improving housing policy, it was prepared with the participation of lawyers, administration and mayors. The regulation is the result of 7 years of work and has gone through two public discussions and numerous revisions. Some of the colleagues clearly prefer to look like Robin Hood, but refuse to work on the substance and propose alternatives. This leads to another working group, another postponement and another irresponsibility.
- And a working group was created, which should do what...
- The truth is that the working group is a convenient way to hide a reform that some political forces do not have the courage for. This is a well-known strategy - postpone, delay, throw away. While debates are supposedly taking place, housing will continue to be sold off at symbolic prices, the fund will decrease, and more and more Sofia residents will wait for years for the opportunity to live normally.
- The new regulation is your proposal. What are you proposing that the Municipal Council does not like? What will change so radically that it meets such resistance…
- This is not an end in itself for “Save Sofia“. We only took responsibility for this regulation to reach debates in the hall. We also joined with colleagues from various even purely ideological parties such as BSP, “Blue Sofia“, ITN and “Vazrazhdane“ as co-sponsors. We propose real mechanisms for justice, control and growth of the housing stock, not imitation of politics. Here is what is not liked about the proposal:
-- we are putting an end to the sale – homes will not be sold for pennies;
-- we are introducing a period of accommodation and more control;
-- introducing a new register and more transparency – it will become clear who, when and how is accommodated. This is inconvenient for those who have been managing “our man“ over the years;
-- and the most important reform - a fund for new construction and renovations – we propose that 60% of the income from rents and sales go to new housing, 40% to renovation and maintenance;
- Let's talk with numbers. What are the apartments sold – what size, at what price, who buys them…
- Over 90% of municipal housing has been sold in the last 35 years. In 2022 alone, nearly 1,500 sales were approved. But the scandalous thing is that the prices are between 500 and 750 euros per sq m, for various locations in Sofia such as “Druzhba“, “Ilinden“ and “Zone B-5“, where the market value is many times higher. I can give a few specific examples such as a three-room apartment (111 sq m) in “Druzhba“ next to the metro sold for 94 thousand leva, a two-room apartment (80 sq m) in “Ilinden“ was sold for 79 thousand leva or a five-room apartment (142 sq m) in Zone B-5, next to Mall Sofia sold for only 172 thousand leva. Yes, the prices are in leva. The truth is that these apartments were given away, not sold, and the lack of a mechanism to limit resales makes the scheme even more scandalous.
- How to buy a municipal apartment…
- Currently, to buy a municipal apartment, it is enough for a person to have lived in it for at least 5 years as a tenant and to submit an application. The regional mayor gives an opinion, and then the SOS approves the sale - usually at prices many times below market prices. The problem is that there is no limit to the apartment being resold. This leads to abuses and profit for some - at the expense of those who are really in need. That is why we propose an end to this vicious practice and clear rules.
- Are new municipal apartments being built?
- No, or at least not at the necessary pace. In the last 15 years, there has been no systematic housing policy, only individual deals with the right to build on municipal properties, which provide a few apartments here and there. This does not solve the problems of thousands of waiting people. That is why our regulation provides for the creation of a specialized fund, into which all income from rents and sales will go and which can be reinvested in new housing. Only in this way will Sofia begin to regain the lost resource and meet the real need for affordable homes.