Financial and Social Returns in Housing Asset Management: Theory and Dutch Housing Associations' Practice

This paper discusses how financial and social returns can be measured in relation to asset management in Dutch housing associations. The potential applications of performance measurement in housing asset management are assessed as well as the indicators that can be used to measure financial and social returns. An explorative survey among Dutch housing associations indicates that practice is poorly developed. As far as the measurement of financial return is concerned, a few associations operate in accordance with the theoretical 'ideal'. However, many of them still follow a traditional book-keeping approach, which is unsuitable for supporting asset management decisions. As far as social return is concerned, the survey indicates that, although associations collect a lot of data, they do not really evaluate their performance by comparing their output against pre-set targets or benchmarks. The poorly developed evaluation of performance makes it difficult for housing associations to achieve the various objectives offered by performance measurement within their own asset management. This, in turn, hampers both internal and external accountability, raises questions about the impact of municipal performance agreements and indicates that housing associations are not actively striving to use their financial surpluses in the interest of housing.