Social Housing and Redevelopment of Building Complexes on Brownfield Sites: The Financial Sustainability of Residential Projects for Vulnerable Social Groups

Abstract

The global economic crisis has caused a sharp contraction in many Italian productive sectors, with the construction industry experiencing a decline of about 22% over the last few years (2009-2013). In the residential property market, sale prices for houses have fallen by 40% and rental prices by 30% [. Despite a greater supply of housing at lower prices, there remains a significant demand for low-cost housing from lower-middle-income families, young couples, single-parent families and from non-resident and foreign university students. This is also due to the lack of public resources to create substantial policies to support social housing construction. Social Housing (SH) programmes, with joint financial support from public and private stakeholders, are aimed at responding to the demand for accommodation for rent at social rates, for sale at concessionary prices and/or for rent (with or without redemption) at controlled rates. At the same time, especially in large cities, there is a continuing need to initiate processes for the redevelopment of numerous public and private residential building complexes in brownfield sites that have become functionally obsolete and dilapidated. The implementation of urban and building redevelopment programmes in this situation requires the definition of management models and methods for assessing the financial sustainability of such programmes. This article, based on a contextual analysis of these market segments, outlines a methodological approach, tested on a restructuring proposal for the Corviale (Rome) building-city housing development, to assess the financial sustainability of redevelopment projects on brownfield sites, providing a new range of functions that include housing, student residences and services.