The purpose of the study is to understand how to break the vicious circle, in which housing maintenance and communal services providers and residential customers are caught now in Armenia. Low tariffs and poor payment enforcement mean apartment owners do not pay the full costs of their housing. As a result, owners are discouraged from establishing homeowners associations and managing and maintaining their buildings. At the same time, without homeowners associations, it is hard to enforce payments for communal services, such as water, heating, garbage collection and building maintenance, since individual customers cannot be "disconnected" for non-payment. The study analyzes why owners of privatized apartments allow the buildings they live in, and the communal services they depend on, to deteriorate given that a legal framework for ownership has been adopted, and extensive technical assistance is being provided. The study focuses on multi-family apartment buildings for two reasons. First, more than half of the population lives in these buildings and comprise the majority of communal services customers. Second, housing reform efforts have targeted apartment buildings since historically there was little state involvement in single-family dwellings.
Details
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Document Date
2006/03/01
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Document Type
Working Paper
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Report Number
36187
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Volume No
1
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Total Volume(s)
1
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Country
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Region
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Disclosure Date
2006/05/23
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Disclosure Status
Disclosed
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Doc Name
Multi-apartment housing in Armenia : issues note
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Keywords
Housing and Communal Services;Apartment Owners;small and medium enterprise;cost of service provision;garbage collection;types of service;municipal service providers;provision of shelter;local government policy;average monthly salary;real estate market;level of private;local government involvement;maintenance and repair;private service provider;access to gas;reductions in demand;power generating company;benefit of contract;accumulation of debt;local self government;fee for service;joint stock company;water distribution network;alternative service provider;district heating company;public information campaign;hours of service;kind of investment;energy saving measure;responsibility for collection;environmental resource management;cost of maintenance;cost of repair;case of electricity;central government transfer;family benefit system;garbage collection service;provision of service;average exchange rate;per capita income;provision of heat;private sector provider;economies of scale;access to water;environment for development;local government budget;accumulation of arrears;private sector insurance;housing maintenance;capital repair;legal framework;housing stock;water company;incentive structure;water utility;water utilities;housing management;discount rate;
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Citation
Multi-apartment housing in Armenia : issues note (English). Housing and Communal Services in the South Caucasus series Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/282691467997590639/Multi-apartment-housing-in-Armenia-issues-note