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Monitoring Russia's Experience with Housing Allowances

Urban Institute, USAID Shelter Co-operation Program, 19 Prospect Mira, Moscow 129090, Russia, URBANINST{at}glas.apc.org

Alexander S. Puzanov

Institute for Urban Economics (FUND), 36 Prospect Mira, Moscow 129090, Russia, URBANINST{at}glas.apc.org

Lisa A. Lee

Urban Institute, 2100 MStreet, NW, Washington, DC 20037, USA

The implementation of housing allowances is an integral part of Russia's programme of systematic rent increases on state and municipal rental units which began in 1994. Because housing allowances constitute the country's first income-tested programme, its performance transcends the housing sector. Rents are being increased in steps to cover full operating costs by the beginning of the next century. The first increases were modest in real terms, and a housing allowance programme was to be operational in each city when rents rose. This paper reports the results of an initial assessment of the programme in two cities. The assessment focuses on the extent to which income-eligible households know about the programme, their participation rates and their experience in becoming recipients. Survey results show quite low but increasing participation rates and knowledge about the programme. While both are in part explainable by the low average benefit levels at this stage in the programme of rent increases, they also clearly call for greater effort by local and national administrations to inform the population.

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