Denada Jushi
A society is measured not by the buildings it builds, but by the homes it provides to those who cannot build them themselves. For many low-income families, social housing is not a statistic or a public program. It is the opportunity to have a stable address, affordable rent, and less uncertainty about the future.
The National Housing Authority (EKB) is the institution whose mission is to build and manage social housing, as well as to implement housing programs for families and categories that are most in need of public support. In theory, it should be one of the most important instruments of social policy in the country. In practice, latest audit report from the Supreme State Audit Office shows an institution that faces ongoing weaknesses in management, planning, monitoring and internal control.
A mechanism set up to help the most needy citizens does not always manage to fully perform the function for which it was created. And when it comes to social housing, the costs of poor administration do not remain only in balance sheets or procedures, they directly affect the lives of citizens.
The audit highlights a number of issues that, if not addressed, could seriously impact the effectiveness of housing policies in Albania. For this reason, its findings should be seen not simply as technical criticism, but as a roadmap for what needs to be improved.
One of the main findings relates to the institution's financial statements. According to the auditors, deviations from the legal and regulatory framework were found in the way they were prepared. Although these deviations are not considered widespread throughout the entity's financial system, they remain a serious signal for the quality of financial reporting and institutional transparency.
In the same vein, the report also brings to attention an old financial burden that continues to appear on the institution's balance sheets. It concerns around 612 million lekë in uncollectible liabilities related to families affected by the Fierza flood in Kukës since 1995. According to the audit, these values continue to remain registered without following the relevant procedures for deregistration.
Obvious problems are also evident in project planning. The report highlights a lack of standardization in determining construction areas, the number of units – apartments, garages or service areas, as well as in determining costs and initial sales prices.
When planning differs from one project to another, it creates room for deviations during implementation, increased costs or a lack of transparency on the final benefits for citizens. In the case of a public institution dealing with social housing, this is a much bigger issue than the technical organization of work.
The report also highlights that in many cases citizens do not have full access to basic information on projects. The institution's official website publishes investments by zone or region, but does not always provide clear data on the real surface areas of apartments, construction costs or final sales prices.
Another area where the audit raises concerns is the way contracts with external contractors and partners are managed. According to the report, not all contracts were followed with the required procedural rigor, including submission for approval to the relevant governing bodies. More specifically, three investment contracts with a total value of over 280 million lek including VAT were not submitted for approval to the Governing Council.
This creates a decision-making chain that is not always complete, transparent and properly documented. In the public sector, especially when it comes to construction investments and funds related to social housing, a weak link in the procedure can turn into a much bigger problem in implementation.
Contract monitoring is equally problematic. The report highlights a lack of ongoing institutional monitoring of the implementation of contractual terms. When supervision is weak, the risk increases that initial obligations will not be rigorously respected.
Another problem that emerges from the report is related to the administration of data on housing beneficiaries and their payments. The audit highlights the lack of a unified system for calculating installments, interest on arrears and other financial obligations. In some cases, these calculations are carried out manually by local branches and not through a centralized digital system.
This brings a risk of changing processes from one case to another or from one branch to another, creating uncertainty and inconsistency in the treatment of citizens, and for an institution that must guarantee social justice and equal treatment, this is a weakness with a direct impact.
Meanwhile, the report also points out the increasing financial burden on beneficiary families. In 2024, the operating fee paid by citizens before signing a contract is expected to have increased from 4% to 5%. For families entering housing schemes due to economic hardship, such administrative increases can also have real weight.
At the heart of all these issues lies internal control, considered the weakest link in the institutional chain. One of the most important conclusions of the report is the need to strengthen internal verification and oversight mechanisms. The SAI emphasizes that existing procedures are not always sufficient to guarantee full control of data and processes.
This includes the lack of unified periodic controls, the need for better coordination between internal structures, and stronger verification standards. In many public institutions, the biggest problems arise precisely where control is formal but not functional.
The report, in essence, shows that the system is working, but not in the most efficient way possible. Weaknesses in planning, lack of standardization, weak control of contracts, limited transparency and fragmented data systems are elements that, if not addressed today, could turn into bigger problems tomorrow.
In European countries, social housing Services function as a strong pillar of welfare policies. The state and municipalities actively intervene to guarantee affordable housing for low-income families, young people and vulnerable groups.
Through rent subsidies, public housing construction and partnerships with the private sector, housing is not left solely in the hands of the market, but is treated as a social right that must be protected. The SAI report shows that these are among the areas where Albanian institutions need significant improvement./acqj.al
