A N A LYS I S Mikel Berra Sandin March 2025 Bizigune, Basque Country: converting empty apartments to social rental housing The paper is part of the project titled “Affordable Housing: Best Practices from around Europe.”

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A N A LYS I S Bizigune, Basque Country: converting empty apartments to social rental housing People without homes and homes without people—this paradox is a major issue in many European cities, exacerbating the housing affordability crisis. However, the Basque Government(Basque Autonomous Region, Spain) has taken a proactive approach by repurposing empty homes for social rental housing. The Bizigune Program, in place since 2003, offers a win-win solution: providing hassle-free leases for owners of vacant properties while ensuring affordable rents for tenants in need. Managed by the Basque public rental housing agency, Alokabide, as of 2025 the program oversees nearly 7,400 housing units, which accounts for more than 5% of the rental housing stock in the region, effectively increasing the supply of social rental housing. Abstract Bizigune is a government-led initiative that transforms ­vacant homes into social rental housing in the Basque ­Autonomous Region, Spain. The program secures longterm leases from private property owners at below-market rates and then rents these units to individuals seeking af fordable housing. This approach benefits all stakeholders: → → Property owners receive guaranteed, secure, and longterm rental income from the government, along with assurances that their property will be returned in the same condition. → → Tenants gain access to affordable, government-managed housing in high-demand municipalities. → → The government quickly increases its social housing stock without requiring new construction. In addition, the program offers additional benefits to own ers, such as support and financial assistance for home im provements, and legal support for all lease-related process es. The program, running since 2003, is managing 7375 housing units 1 for social rental as of December 2024. A collage of several different streets in Barcelona/ photo Mikel Berra Sandín and Júlia Sorribes Mir 1 Ormazabal, Mikel.‘Más de 20 años de alquiler amparado por el Gobierno vasco: “Es una experiencia recomendable 100%”’. El País, 2 February 2025. https://elpais. com/economia/2025-02- 02/mas-de-20-anos-de-alquiler-amparado-por-el-gobier no-vasco-es-una-experiencia-recomendable-100.html. Bizigune, Basque Country: converting empty apartments to social rental housing 3

The average yearly cost per unit for the government is 4,852€, as shown in a 2020 evaluation of the program 2 . Introduction The Basque Autonomous Region, as the rest of Spain, has suffered from large rent hikes in the past decade, with rents rising 28% since 2016 3 . The region’s rental market is highly fragmented, with most rental properties owned by individual landlords, and less than 10% of rental units are owned by large owners or institutions. At the same time, despite being the Spanish region with more social housing, only 6.4% of the housing units are social housing, be it government-owned rental units or owner-occupied units 4 . This limited public sector presence restricts the government’s ability to influence market dynamics. However, the government wants to leverage the opportunity of empty houses, which were 4% of the total in 2023 5 , in or der to put them back to the market and increase the rental housing stock. To do so, the government has taken a proac tive role. Through Bizigune, a program running since 2003, the government facilitates the conversion of empty homes into affordable rental properties, effectively expanding the social housing stock without new construction. Through Bizigune program the government facilitates the conversion of empty homes into affordable rental properties The program The Bizigune Program was introduced in 2003 by the leftwing party Ezker Batua(‘United Left’, part of The Left group in the European Parliament), a minor party at the government coalition at that time. The Basque Socialist Party first opposed the measure, arguing that it diverted resources from long-term social housing initiatives to a short-term solution. Afterwards, when the Socialist Party led the regional government between 2009 and 2012, it re duced the funding for the program, deeming it too costly. However, since 2016, with the Socialist Party once again 2‘Informe de Evaluación Del Programa Bizigune’. Observatorio Vasco de la Vivien da, September 2020. 3  Eustat.‘Tablas Estadísticas: Renta Mensual Media Por Metro Cuadrado Construi do de Los Contratos de Alquiler Libre de Vivienda Habitual Colectiva(Contrato de Vivienda Habitual) Por Territorio Histórico y Tamaño Del Municipio, Según Trimestre de Inicio Del Contrato(Euros/Mes). II/2024’. Accessed 12 March 2025. https://www. eustat.eus/elementos/ele0017900/renta-mensual- media-por-metro-cuadrado-const ruido-de-los-contratos-de-alquiler-libre-de-vivienda-habitual- colectiva-contrato-de-vivienda-habitual-por-territorio-historico-y-tamano-del-municipio-segun- trimestre-de-inicio-del-contrato-eurosmes/tbl0017999_c.html. 4  Euskadi.eus.‘Euskadi registra el mayor número de viviendas protegidas iniciadas en la última década’, 2 March 2023. https://www.euskadi.eus/gobierno-vasco/-/noti cia/2023/euskadi-registra- mayor-numero-viviendas-protegidas-iniciadas-ulti ma-decada/. 5‘Encuesta sobre el Uso de la Vivienda(EUV) 2023: Informe de Síntesis’. Órgano Estadístico Específico del Departamento de Planificación Territorial, Vivienda y Transporte, 2023. managing the Housing Department, the program has expe rienced increasing success. The program aims to expand the rental housing market by repurposing vacant properties into affordable social housing. To achieve this, the government takes an active role in se curing long-term leases from property owners at below-market rates, selecting eligible tenants and managing the rental process, collecting social rent from tenants and ensuring the property is returned in proper condition to the owner. This process involves three key stakeholders: → → The homeowner, who leases their vacant property to the program. → → The tenant, who benefits from affordable social housing. → → The administration, represented by the Basque public rent al housing agency, Alokabide, which manages the rentals. Eligibility: ensuring adequate housing and social purpose Both homeowners and tenants must meet specific criteria to participate in the program. For homeowners, eligibility is based on the housing unit itself, which must have been vacant for at least three months, be located in a‘high-de mand’ municipality and meet legal and physical requirements for rental. For tenants, eligibility is determined by being registered as a social housing applicant with the Basque Government’s housing service and having an annual weighted income ­between€3,000 and€21,000(as of 2020). The process works as follows: 1. Homeowner application and preliminary review: The homeowner contacts Alokabide to offer their vacant unit for the program. Once the application is received, Alokabide conducts a preliminary assessment of the property and determines the monthly lease payment, which is set at between 65% and 75% of the market rate, up to a maximum of€650 per month. 2. Lease agreement: The homeowner signs a 6-year usuf ruct lease with Alokabide, which begins once a tenant moves in. Upon signing, Alokabide provides free energy certification, technical reports, insurance coverage, and legal support for the duration of the lease. 3. Tenant allocation: Alokabide assigns a tenant from its social housing applicant list, and charges rent to the tenant equivalent to 30% of their income. 4. Guaranteed payment to homeowners: Alokabide pays the homeowner every month for 72 months, regardless of whether the unit is occupied. The agency covers the difference between the tenant’s rent and the agreed ­lease payment. 4 Friedrich-Ebert-Stiftung e.V.

5. End of lease and property return: After six years, if the homeowner chooses not to renew, Alokabide returns the property in the same condition, accounting for normal wear and tear. To attract more homeowners and ensure proper maintenance of properties, Bizigune offers several optional bene fits. On one hand, if a unit requires upgrades before leas ing, Alokabide provides technical assistance and can ­advance lease payments up to€18,000 to finance renova tions. On the other, homeowners have an option to termi nate the lease early: in year three of the lease, they may withdraw from the program if they need the property due to personal circumstances such as death or divorce of the owner or a first-degree relative. Benefits: a positive solution for all parts involved The Bizigune Program provides advantages for all parties involved—homeowners, tenants, and the government. → →Benefits for homeowners → →Secure and hassle-free rental management: The program offers an easy and safe pathway to renting, eliminating the typical risks associated with private leasing. To do so, homeowners benefit from insurance coverage and legal protection, ensuring peace of mind throughout the lease period. → →Stable and guaranteed income: Although the monthly payment is 65-75% of the market rate, capped at€650 per month, homeowners receive guaranteed payments for the full 72-month lease duration, even if the unit is temporarily vacant. The government also covers additional costs, including waste collection and sewer taxes, and in some municipalities, participating properties receive a 50% discount on property tax. → →Property maintenance and improvement support: ­Improvements may take place at the start of the lease, when the government covers the cost of energy certifications and technical reports and homeowners can ­access technical assistance and zero-interest financing for home improvements, with lease payments available in advance(up to€18,000). In addition, upon lease com pletion, the property is returned in the same condition, accounting for normal wear and tear. The Bizigune Program provides advantages for all parties involved: homeowners, tenants, and the government Benefits for tenants → → Affordable, well located social housing: Tenants secure housing at social rental rates, calculated as 30% of their income. In addition, properties are located in high-de mand areas and meet quality standards, providing ten ants with stable and decent living conditions. Benefits for the government → →Efficient and cost-effective housing expansion: The program allows the government to quickly expand its social housing stock without the need for new Process: simple steps offering certainty to homeowners and tenants Figure. 1 Leases longterm (6 years) Homeowner Alokabide (public entity) Rents Dweller (eligible for social housing) Pays fee • monthly payment • 65—75% of market rate • max. 650€/month Pays social rent • depending on income (max. 30% of income) Average pay(2020): 515€ Stand: 2025 Quelle: Friedrich-Ebert-Stiftung e.V. Difference covered by Alokabide Average cost(2020): 4852€/unity/year Average rent(2020): 234€ Bizigune, Basque Country: converting empty apartments to social rental housing 5

construction or additional land use. Therefore, in the short term, B­ izigune is a more cost-effective solution for increasing the availability of social rental units. → → Improvement of housing stock: Through its support to home improvements, Bizigune helps keep the region’s housing stock up to date. In addition, home improve ments incentivize the refurbishment industry while ­creating local economic activity. Impacts and shortcomings: a successful program, yet improvement is possible The program has been deemed a success from all parts of the process: as of late 2024, the program manages more than 5% of all rented housing units in the Basque Autono mous Region(7,375 out of 137,123 total rental units) 6 . It is well appreciated by homeowners, who get to lease their units while avoiding the management and uncertainty related to rentals, and it is cherished by dwellers, who can access to affordable housing in municipalities across the region. A comprehensive evaluation of the program, published in 2020, assessed tenant satisfaction and the extent to which Bizigune met their housing needs. The findings revealed that 70% of respondents considered the program instru mental in securing their first home, while 68% affirmed that it met their medium-term housing needs. Regarding housing quality, 75% of participants expressed satisfaction with their units, while the location of the housing received an average rating of 7.7 out of 10. In terms of affordability, 75% of tenants reported being content with their rental costs, although 27% acknowledged experiencing difficulties in making rent payments. 70% of respondents considered the program instrumental in securing their first home Despite these positive outcomes, the evaluation also high lighted certain challenges that need to be addressed. One of the key issues is the availability of units in high-demand areas, as the€650 per month rental cap discourages home owners from joining the program in cities with high market rents. As a result, participation is more common in munici palities where rental prices are generally lower. Another concern is the average four-month gap between a homeowner’s enrollment in the program and the first tenant moving in, which could be reduced to improve efficiency. Additionally, the evaluation pointed to the need for better housing management, oversight, and conflict resolution mechanisms to improve the overall experience for both homeowners and tenants. Conclusion The Bizigune Program has established itself as an effective and efficient mechanism for transforming vacant housing units into social rental properties. By taking a proactive role as an intermediary between homeowners and dwellers, this program of the Basque Government currently manages almost 5% of all rental units in the region. Homeowners benefit from secure and hassle-free leases, while tenants gain affordable housing in high-demand areas. More than twenty years since its inception, Bizigune re mains a widely appreciated initiative among both property owners and tenants. Beyond its immediate social impact, it also serves as a cost-effective strategy for the government to expand its social housing stock without the need for new construction or additional land use. As housing ­affordability continues to be a pressing issue, the program stands as a model for innovative, sustainable, and prag matic housing policies. The program currently manages almost 5% of all rental units in the region The Bizigune Program exemplifies a policy that effectively leverages existing resources to expand affordable housing by repurposing vacant private properties for social use. ­Beyond addressing housing shortages, it also plays a cru cial role in strengthening communities, as homeowners voluntarily participate in the program despite lower financial returns, prioritizing social benefit and peace of mind. Furthermore, it is a sustainable solution that prevents ­urban sprawl and excessive land use, instead redensifying ­existing neighborhoods. It has also gained recognition as a model policy for other associations and regional governments in Spain. For example, Asociación Provivienda has created and supported ­similar programs for more than a decade, the Barcelona city council did so in 2009 by creating the Rental Housing ­Listing, and the Asturias’ regional government is set to launch its own version,‘Alquilámoste’, later in 2025, directly inspired by Bizigune’s success. 6  Eustat.‘Notas de Prensa: El Parque Residencial de La C.A. de Euskadi Experi menta Un Continuo Crecimiento Entre 2013 y 2023, Añadiendo Un Total de 53.896 Unidades’. Accessed 17 March 2025. https://www.eustat.eus/estad/id_274/ti_cen so-de-poblacion-y-viviendas-viviendas/ultima-nota-prensa.html. 6 Friedrich-Ebert-Stiftung e.V.

References Ajuntament de Barcelona. Housing: Barcelona 2015-2023. 2023. https://bcnroc. ajuntament.barcelona.cat/jspui/handle/11703/130616. Alonso, Diego Díaz.‘Bizigune y ASAP, el modelo vasco de vivienda en el que se fija la consejería de Ovidio Zapico’. Nortes| Centradas en la periferia(blog), 16 January 2025. https://www.nortes.me/2025/01/16/bizigune-y-asap-el-modelovasco-de-vivienda-en-el-que-se-fija-la-consejeria-de-ovidio-zapico/. Alokabide.‘Si tienes una vivienda vacía, Bizigune es tu programa’. Accessed 9 March 2025. https://www.alokabide.euskadi.eus/bizigune/es/. ‘Alquilámoste del Principado está inspirado en el modelo vasco Bizigune’. Radiotelevisión Pública de Asturias. Accessed 10 March 2025. https://www.rtpa.es/ noticias-asturias/2025-01-27/Alquilamoste-del-Principado-esta-inspirado-en-elmodelo-vasco-Bizingune_111738009179.html. DECRETO 466/2013, de 23 de diciembre, por el que se regula el Programa de Vivienda Vacía«Bizigune».(2013). Dol, Kees, Estrella Cruz Mazo, Núria Lambea Llop, Joris Hoekstra, Gala Cano Fuentes, and Aitziber Etxezarreta Etxarri.‘Regionalization of Housing Policies? An Exploratory Study of Andalusia, Catalonia and the Basque Country’. Journal of Housing and the Built Environment 32, no. 3(September 2017): 581–98. https://doi. org/10.1007/s10901-016-9528-z. ‘Encuesta sobre el Uso de la Vivienda(EUV) 2023: Informe de Síntesis’. Órgano Estadístico Específico del Departamento de Planificación Territorial, Vivienda y Transporte, 2023. Euskadi.eus.‘Crece el número de viviendas principales en Euskadi y bajan las de temporada y deshabitadas en los últimos dos años’, 8 January 2022. https://www.euskadi.eus/gobierno-vasco/-/noticia/2022/crece-numero-viviendasprincipales-euskadi-y-bajan-temporada-y-deshabitadas-ultimos-dos-anos/. Euskadi.eus.‘Euskadi registra el mayor número de viviendas protegidas iniciadas en la última década’, 2 March 2023. https://www.euskadi.eus/gobierno-vasco/-/ noticia/2023/euskadi-registra-mayor-numero-viviendas-protegidas-iniciadas-ultimadecada/. Euskadi.eus.‘Vivienda incrementará la renta máxima para las personas que cedan su vivienda al programa de alquiler social Bizigune hasta los 650 euros mensuales’, 28 May 2021. https://www.euskadi.eus/gobierno-vasco/-/noticia/2021/viviendaincrementara-renta-maxima-personas-que-cedan-su-vivienda-al-programa-alquiler-­ social-bizigune-650-euros-mensuales/. Eustat.‘Notas de Prensa: El Parque Residencial de La C.A. de Euskadi Experimenta Un Continuo Crecimiento Entre 2013 y 2023, Añadiendo Un Total de 53.896 Unidades’. Accessed 17 March 2025. https://www.eustat.eus/estad/id_274/ti_censode-poblacion-y-viviendas-viviendas/ultima-nota-prensa.html.Eustat.‘Tablas Estadísticas: Renta Mensual Media Por Metro Cuadrado Construido de Los Contratos de Alquiler Libre de Vivienda Habitual Colectiva(Contrato de Vivienda Habitual) Por Territorio Histórico y Tamaño Del Municipio, Según Trimestre de Inicio Del Contrato(Euros/ Mes). II/2024’. Accessed 12 March 2025. https://www.eustat.eus/elementos/ ele0017900/renta-mensual-media-por-metro-cuadrado-construido-de-los-contratosde-alquiler-libre-de-vivienda-habitual-colectiva-contrato-de-vivienda-habitual-porterritorio-historico-y-tamano-del-municipio-segun-trimestre-de-inicio-del-contratoeurosmes/tbl0017999_c.html. Idealista.‘Evolución Del Precio de La Vivienda En Alquiler En Euskadi’, February 2025. https://www.idealista.com/sala-de-prensa/informes-precio-vivienda/alquiler/ euskadi/. ‘Informe de Evaluación Del Programa Bizigune’. Observatorio Vasco de la Vivienda, September 2020. Ormazabal, Mikel.‘Más de 20 años de alquiler amparado por el Gobierno vasco: “Es una experiencia recomendable 100%”’. El País, 2 February 2025. https://elpais. com/economia/2025-02-02/mas-de-20-anos-de-alquiler-amparado-por-el-gobiernovasco-es-una-experiencia-recomendable-100.html. Uriona, Alberto.‘Vivienda recortará sus gastos en el fomento del alquiler de pisos vacíos’. El País, 12 May 2010, sec. País Vasco. https://elpais.com/diario/2010/05/12/ paisvasco/1273693213_850215.html. Cover image credit: Alokabide.‘Si tienes una vivienda vacía, Bizigune es tu programa’. Accessed 9 March 2025. https://www.alokabide.euskadi.eus/bizigune/es/. Bizigune, Basque Country: converting empty apartments to social rental housing 7

About the author Mikel Berra Sandin is a Fellow at Future Policy Lab’s Housing Hub and a Graduate student in City Planning at MIT. Trained as an Architect at the Polytechnic University of Catalonia, he has been Project Coordinator at the Barcelona Metropolitan area, and has collaborated with UN-Habitat’s Land, Housing and Shelter Section. His work covers urban growth and development both from a design and policy standpoint. The author wants to express his gratitude to Iván AucielloEstévez for his editorial support.

Bizigune, Basque Country: converting empty apartments to social rental housing → The Bizigune Program has established itself as an effective and efficient mechanism for transforming vacant housing units into social rental properties. By taking a proactive role as an intermediary between homeowners and dwellers, this program of the Basque Government currently manages almost 5% of all rental units in the region. → Tenants secure housing at social rental rates, calculated as 30% of their income. In addition, properties are located in high-demand areas and meet quality standards, providing tenants with stable and decent living conditions. 70% of respondents considered the program instrumental in securing their first home. → The program allows the government to quickly expand its social housing stock without the need for new construction or additional land use. Therefore, in the short term, Bizigune is a more cost-effective solution for increasing the availability of social rental units. Bizigune helps keep the region’s housing stock up to date. In addition, home improvements incentivize the refurbishment industry while creating local economic activity. You can find additional publications from the Friedrich-Ebert-Stiftung at the following link: ↗ www.fes.de/publikationen