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Administrative Practices in Russia's Housing Allowance Programme

Urban Institute, 2100 M Street, NW, Washington, DC, USA, Rstruyk{at}ui.urban.org

Alexander S. Puzanov

Institute for Urban Economics, Lusinovskaya ul. 36, Moscow 113093, Russian Federation, puzanov{at}urbaneconomics.ru

Anastasia Kolodeznikova

USAID, the Urban Institute

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 middle of the current decade. Primary administrative responsibility for the programme rests at the local level. Since the rate at which rents increase is determined by each municipality, progress varies. Arguably, the quality of the programme's administration may influence acceptance of both the programme and broader economic and political reforms. Reported here are the results of a first-time assessment of the practices of local housing allowances offices (HAOs) who administer the programme. Field work included on-site reviews at 17 HAOs and analysis of about 1200 files of programme beneficiaries. For administrative practices covering such areas as the presence of written job descriptions, written guidelines for intake workers, generation of reports for higher-level authorities and setting standards for the routine review of files of applicants determined to be eligible for benefits, applicants rejected and time during which processing of approved cases should be completed, HAOs had a fair record. Generally, 2-4 of the studied offices failed the standards set out in the paper. However, frequent instances of incomplete record-keeping about HAO operations limit our conclusions and highlight an area definitely needing improvement. On the other hand, and important for programme credibility, errors in computing subsidies paid to beneficiaries were found to be universally very low. Overall, HAO performance is adequate but highly variable and improvements are clearly needed. The results can be interpreted as being consistent with HAO staff acceptance of housing allowances as a legitimate replacement for the previous broad entitlement to benefits that worked through controlled rents in state housing. The adequate operation of HAOs should work to strengthen popular support of broader economic and political reforms.

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