Description of institutions involved in housing policy implementation in the country at national, regional and local levels, organization charts

Residents Supporters Center

• Association of Condominiums' Presidents

• Our Home Is Armenia

• Union of Refugees, Benevolent Non-Governmental Organization

• "Continent" Center for Social and Political Analysis NGO

• Verakangnum" NGO

• 
  Armenian Habitat – An Affiliate of Habitat for Humanity International
  

• Union of Constructors of Lori Marz

• Union of Housing and Communal Sphere Workers

3. 
   Overview of foreign institutions involved in the housing sector and their projects
   

Several international and foreign organizations/institutions are involved in the various issues of the housing sector in Armenia. However, it has to be stressed - their main focus is on the recovery of the Earth Quake Zone in which families still living in temporary shelters due to the 1988 earthquake.

In respect to the given housing situation in all of Armenia probably there is a huge opportunity for donors to work together to ensure that their work to address the housing problems brings other benefits as well. In fact, collaboration among donors in the housing area might result in valuable synergies between housing and urban development goals such as the new housing infrastructure created will as a by-product result in healthier development patterns for the city as a whole. Important here is to apply a holistic approach in rehabilitation activity with the goal of creating complete and improved built environments; protect the overall environment during rehabilitation work.⁵ For example, significant synergies can be achieved when the reinforcement of an apartment building that creates valuable new housing units is combined with new sidewalks, trees, curbs, lighting and street furniture and all other components of a complete public space. This kind of synergy can be obtained through collaboration between donor housing programs and programs focused on infrastructure and/or social welfare.⁶
In this respect the following foreign institutions and donors are of relevance –

• 
  Hayastan All-Armenian Fund
  

The Fund implements projects of reconstruction, renovation and construction of substructures in Armenia and Mountainous Karabagh. It has scientific-cultural and social assistance projects as well. The basic idea of the Hayastan All-Armenian Fund is the National Giving. It means, that each Armenian willing to take part in the projects of the Fund makes allocations in the size and periodicity he prefers. Examples of projects in the housing sector implemented by Hayastan All-Armenian Fund –

• 
  Donors: Armenian Businessmen, Armenia
  

Type: Contruction

Contractor: Daniel Ltd, M. Misakina Ltd, Akhtamer Ltd.

The earthquake of 1988 has greatly damaged the population of Spitak. Most of the houses of the town have been either ruined or become unusable. After the earthquake, the people were placed in wooden wagon-houses lacking elementary conditions required for living. In the course of this project 3 residential buildings have been built in the center of Spitak for the families who had lost their houses in the result of the earthquake.⁷

• 
  Donors: Armenian Community of Great Britain
  

Location: Spitak Lori

Type: Contruction

Contractor: Sourshin Ltd

• 
  Donors: Armenian Community of West Coast, USA
  

Location: Gyumri, Shirak

Type: Recontruction

Contractor: Verakangnum Ltd

The residential building #121 of Abovian Street is situated within the area of the "Koumayri" historical-cultural zone of Gyumri near the St. Neshan church. It was built in the latest 19th century and has nearly 20 years served as a girls' college. Then it was converted into a residential building with 4 apartments. After the earthquake of 1988 it was slackened and had become dangerous to live in.

• 
  Donors: Group of benefactors, Argentina
  

Location: Martakert, Vaghuhas village, Karabagh

Type: Recontruction

Contractor: Vardenisshin Ltd

After the establishment of the cease-fire, the reconstruction of the settlements and economic infrastructures started. In the course of this project 67 private houses damaged in the result of war have been reconstructed in Vaghuhas village.

• 
  Lincy Foundation
  

The Lincy Foundation has begun funding loans under its $100 million Entrepreneurial Lending Program.  The four initial commercial loans mark the first step in Lincy’s program to foster the development of small and medium size enterprises in Armenia.⁸

Presently, the Lincy Foundation has a $165 million programme in Armenia, of which $90 million is grants and $75 million is loans or equity stakes. All the programs covered by this Foundation are administered by the Government of Armenia.⁹ By far the largest of their activities in specific in the Earth Quake Zone is the commitment of 15$ million to reinforce damaged unoccupied apartment buildings. It will result in 1,300 new housing units in safe, earthquake reinforced buildings. Under a similar program the Foundation is funding the GOA’s construction of approximately 400 new housing units in Spitak and other new/renovated housing projects in Gyumri.⁵

Among the projects of the Lincy Foundation within the earthquake zone it is of importance to highlight the Lincy-2 Project of constructing residential houses. On April 19, 1999 the GoA adopted Resolution # 233 “On Lincy-2 Project of Constructing Residential Houses in the Residential Sites of the Earthquake Zone of the Republic of Armenia and Satisfying the Housing Needs of the Needy Victims of the Earthquake Implemented by the American Red Cross.” The core of the project is to provide victims with permanent housing who at present live in temporary shelters.¹⁰

The funds contributed by the Lincy Foundation are not a donation.  They are no-interest loans to the Central Bank of the Republic of Armenia which then loans these funds to local Armenian banks at a 3% per year interest rate.  These banks in turn will lend to local businesses at an interest rate not to exceed 15% per annum.  The loan amounts are for a minimum of $100,000 and a maximum of $1,000,000.  The loans are made in Armenian currency (drams) rather than in U.S. dollars in order not to create an additional financial burden on the businesses should the dram in the future decline in value in comparison to the dollar.⁴

All credit evaluations and decisions are made by the 14 domestic banks selected to participate in this program.  The banks decide the approval or rejection of loan applications, since they are the ones that assume all financial risks.  If a borrower does not pay back his or her loan, the bank has to cover the loss from its own funds and pay the loan back to the Central Bank, which must then pay back the corresponding principal amount to the Lincy Foundation.⁴

The Loan Implementation Program stipulates that in order to apply for a loan, a minimum of 51% of the business must be owned by Armenian residents and no more than 20% of such an entity should be owned by the Armenian Government.

A Loan Agreement was signed between the Lincy Foundation and the Government of the Republic of Armenia on July 15, 1998.  According to the Agreement the Lincy Foundation will provide the Government of Armenia the Dram equivalent of $10 million to foster the development of small and medium enterprises in Armenia.  This will promote the establishment of new production, expand the volume of exports and create new jobs

• 
  USAID¹¹
  

Earthquake Zone Recovery Program; $31 million, from July 2001 to 2004, contractor Urban Institute: designed to assist the Government to complete its stated obligation to compensate families who lost housing in the 1988 earthquake.  Over 6,000 such families are being assisted through, primarily, housing purchase certificates (HPCs); grants are also being issued to complete houses in rural villages, approximately 650. A model for renovating multi-family buildings was also piloted, but not continued.  The approach is to facilitate urban redevelopment and thus regional recovery by identifying key urban land and clearing it of temporary shelters, collaborating with other donors to focus resources/build on these sites, and work with urban planning authorities to develop effective plans--this means getting community input, and considering market factors.  Geographic focus is Lori and Shirak Marzes, with also some activity in Aragotsotn Marz (town of Aparan).¹²

It is foreseen to issue and Housing Purchase Certificates to the residents of the marzes of Shirak and Lori by 2003. Persons issued Housing Purchase Certificates are entitled to purchase housing from real estate market throughout the territory of Armenia. The purchase and sale of apartments are performed by non-cash accounting.

Under the program, [some 4,000 over 6,000] families who lost homes in the 1988 earthquake are finding permanent and adequate homes. They are being awarded either certificates to purchase housing anywhere in Armenia, or grants to complete or repair unfinished or damaged houses. As beneficiary families give up their "domics" (temporary shelters), local governments are removing these structures and reclaiming the sites for public or private use. This Housing Certificate Project [EQZ Recovery Program] provides lower-cost alternatives to new construction.

Gyumri Housing Certificate Pilot: $2 million, to test the use of housing purchase certificates to rehouse families in temporary shelters and clear and recover the sites.  302 families re-housed, out of 312 who were issued certificates.  This successful pilot was the basis of the EQZ Recovery Program. Through the Urban Institute, a non-profit organization based in Washington, D.C., USAID, based on a Memorandum of Understanding signed with the GoA, introduced a Housing Purchase Certificate (HPC) Program covering the residents of housing stock destroyed or severely damaged by the 1988 earthquake. The program foresees to distribute to beneficiaries Housing Purchase Certificates with which they are expected to purchase appropriate apartments on the open market. The selection of beneficiaries is carried out by the Armenian Branch of the Urban Institute with the consent and active participation of the GoA, local authorities and NGOs. Urban Institute was the contractor, from March 2000 to December 2001.

EQZ Housing Activity: $400,000 program, implemented by Urban Institute from July 1999 to December 2000, to research and develop a new, effective approach to meet the continued housing needs in the EQZ.  This led directly into the Gyumri Pilot. 

USAID Shelter Sector Reform:  This was a multi-year (1993 to 97) program, implemented by the International City Management Association (ICMA), to provide technical assistance over a broad range of activities: condominium development, housing management privatization, cadastral reform, construction sector reform, policy/law reforms in housing, urban land and urban development.

Also, The World Bank funded (through loans) the completion of multi-family housing in the EQZ started by the Soviet Union just after the earthquake. 

Other activities include nutrition programs, health programs to increase access to primary health care, and programs to strengthen local capacity through support of community, local government and non-governmental organization (NGO) development. In addition, a number of programs focus on reform of social service delivery and social insurance systems, and support to micro, small and medium enterprises, including agribusiness.¹³

• 
  The Jinishian Memorial Foundation – Armenia - Housing Program
  

The Jinishian Memorial Foundation (JMF) is a charitable trust established on May 17, 1966, by the bequest of the late Vartan H. Jinishian in memory of his parents.

1. Direct Grants to Local organizations:

2. Cooperation with local and international organizations:

3. JMP planned and implemented projects: