The government is addressing the housing needs of state agencies without a plan, spending approximately 80 million euros annually on rent, according to a report by the Court of Auditors.
The Court of Auditors conducted an audit of the systems used to meet the housing needs of government agencies, as well as public-law entities such as the country’s Health Regions, e-EFKA, EOPYY, and DYPA.
In a 60-page report, it finds that government agencies neither plan nor systematically monitor their housing needs.
“To date, no obligation has been established for the ongoing, systematic planning of housing needs for public agencies. Furthermore, there is no requirement for continuous monitoring or regular reassessment of needs, and there are no procedures, timeframes, or criteria for reviewing them or evaluating changes in staff composition, responsibilities, and the conditions under which the services fulfill their mission,", the report states.
The only significant initiatives developed to rationalize housing costs were two circulars issued by the Ministry of Finance to the then-competent local Land Services in 2012 and 2015.
The responses to the circulars, however, were fragmented and limited, the report notes.
There is also the Housing Registry maintained by the local Land Registry Offices of the General Secretariat of Public Property throughout the country, but here too the system is not “functional.”
The report then notes that the tools used to record the housing of public sector services have design flaws and that there is a systematic reliance on leasing real estate to house public services.
“Leases, due to their typically long duration, function as permanent solutions. This practice is inconsistent with the provisions that define leasing as a temporary solution,” the report notes.
The eight recommendations
Regarding its proposals, the Court of Auditors suggests changes that will strengthen the regulatory framework.
It recommends considering the establishment of an obligation for systematic planning to meet the housing needs of public entities, through the preparation of annual and multi-year plans to address housing needs.
It also proposes that consideration be given to the possibility of establishing a unified information system to record housing needs, the accommodation of services, and the detailed costs of housing, covering all forms of housing (owned, leased, or granted property, etc.), and possibly all public sector entities.
Furthermore, it makes the following recommendations:
- Consider establishing a mechanism for regular and ad hoc reviews of the housing needs of public entities, adopt uniform and up-to-date criteria for building programs, and provide for periodic review procedures.
- The competent authority, procedure, and criteria for the purchase of real estate to meet the housing needs of the State should be established.
- Consider establishing a requirement for a documented, preliminary assessment of all housing alternatives prior to making any relevant decision (housing in privately owned property, purchase, construction, leasing, concession of use, co-location), using a standardized methodology.
- Consider establishing procedures and incentives for cooperation and information sharing among public agencies regarding the co-location of services, the granting of use of real estate, and the leasing of spaces.
- With regard to the government, the distribution of responsibilities regarding housing among ministries and land agencies should be reviewed, with the aim of reducing fragmentation and ensuring that there is a body with an overall view and the capacity to coordinate housing policy.