ESP Ausserholligen: Negotiating Affordable Housing through Direct Democracy

The transformation of ESP Ausserholligen in Bern highlights how direct democracy can shape urban redevelopment. Designated as a development priority by the Canton of Bern in 1994 due to its excellent transport links, this former industrial and commercial area was set to become a mixed-use district, with 35% of its gross floor area allocated to housing. With Bern's population expected to grow by 12% by 2030, the city's goal was to accommodate this growth while addressing housing needs.

A key aspect of the project is its evolving focus on affordable housing. Initially, the project was slow to start due to a lack of developer interest, and early developments focused on free-market housing. However, as housing scarcity became a pressing issue, Bern voters passed a 2014 initiative requiring that one-third of all new housing in residential areas be cost-rent or non-profit. This regulation was incorporated into the city's building code and significantly influenced negotiations with developers. For example, in the Weyer West sub-project, the city mandated that one-third of the new housing be affordable.

Not all projects, however, were subject to this requirement. In the redevelopment of two parcels in Holligen, a commercial zone which is therefore not required to include affordable housing, developers voluntarily committed to providing 100% cost-rent housing, with 35% below cost-rent. This agreement was motivated by the need for public approval for a new land-use plan via referendum, further demonstrating the impact of direct democracy on planning outcomes.

The ESP Ausserholligen case illustrates how legally binding regulations and democratic processes can secure affordable housing in urban redevelopment, even within a profit-driven framework.