Innovative models for collective community investment and ownership

Revitalising neighbourhoods for communities to come together is about ensuring the right conditions. Innovative funding and new business models can provide the necessary framework and incentives to rethink how solutions and projects are designed, planned, executed, and invested in for the structural and systemic transformation of neighbourhoods^[1] in line with New European Bauhaus (NEB) values^[1] and working principles^[1]. Demonstrating the socioeconomic, environmental, financial, aesthetic^[4] and cultural value creation of NEB-aligned solutions and projects can incentivise stakeholders in the built environment^[1] and its related ecosystems (e.g. construction^[1], banking, insurance, social economy, and real estate) to invest and participate in the circular^[1], inclusive^[1], affordable, accessible, sustainable^[1] and culturally significant revitalisation of neighbourhoods. New business and innovative funding models are thus crucial to encourage long-term and life-cycle thinking in the built environment while enhancing its long-term, sustainable competitiveness.

This Destination will address three of the Commission political guidelines 2024-2029, namely:

1. A new plan for Europe’s sustainable prosperity and competitiveness
2. Supporting people, strengthening our societies and our social model
3. Sustaining our quality of life: Food security, water and nature

This Destination supports the NEB Facility’s overarching aim to drive the implementation of the European Green Deal on the ground. Its focus on circular economy principles, biodiversity, responsible and sufficient use of natural resources, and sustainable competitiveness contributes to the Clean Industrial Deal^[10], EU Circular Economy Action Plan^[11], new Circular Economy Act^[12], Zero Pollution Action Plan^[13], EU Biodiversity Strategy^[14], and European Climate Adaptation Plan^[15]. This Destination also seeks to engage local stakeholders and the local social economy in neighbourhood transformation while addressing community^[1] challenges and needs as well as better understanding and leveraging appropriate market dynamics. It thereby offers potential contributions to the EU Startup and Scaleup Strategy^[17]. By focusing on the reuse of the existing building stock, the provision of key social infrastructures^[1] and services, and addressing homelessness^[1] at neighbourhood level, it also contributes to the EU Renovation Wave^[20] and potentially contributes to the European Affordable Housing Plan^[21].

In work programme 2026-2027, this Destination contributes to the following overarching expected impacts set out in the Horizon Europe strategic plan 2025-2027:

8. Realising the full potential of cultural heritage, arts, and cultural and creative sectors

9. Strengthening social and economic resilience and sustainability

15. Achieving global leadership in climate-neutral, circular and digitized industrial and digital value chains

In addition, proposals for topics under this Destination should set out a credible pathway to contributing to the development of innovative funding and new business models for the transformation of neighbourhoods, and more specifically to one or several of the following impacts:

1. Better understanding of the contextual local conditions that drive or hinder sustainable neighbourhood developments and the uptake of NEB-aligned solutions and projects, such as capital and real estate market dynamics and socioeconomic, cultural, demographic, and climatic changes.
2. Anticipation and consideration of future needs, functions and inhabitants (including more-than-human^[1] perspectives) of neighbourhoods and their developments towards the future.
3. Demonstrated socioeconomic, financial, environmental, cultural, and aesthetic value of NEB-aligned solutions and projects driving the revitalisation of the built environment in neighbourhoods.
4. Increased investment in the transformation of neighbourhoods in line with NEB through alternative, innovative, and community-based investment and ownership approaches^[23].
5. Community and place-based approaches that adopt a systemic perspective and use co-creation^[1] approaches with diverse local stakeholders, including marginalised or underrepresented groups or those in a vulnerable situation, and contribute to addressing pressing community challenges and needs such as homelessness and housing.
6. ⁠Circular manufacturing, renovation, and reuse approaches in the built environment contribute to the sufficient use of resources and space.

When possible and relevant, actions are strongly recommended to collaborate with and build on the results of past and ongoing research projects, including regional, national or European funded projects, to ensure consistency and continuity in research.

[1] See definition in the Glossary section of the NEB part of the HE WP26-27.

[2] See definition in the Glossary section of the NEB part of the HE WP26-27.

[3] See definition in the Glossary section of the NEB part of the HE WP26-27.

[4] See definition of "beautiful” in the Glossary section of the NEB part of the HE WP26-27.

[5] See definition in the Glossary section of the NEB part of the HE WP26-27.

[6] See definition in the Glossary section of the NEB part of the HE WP26-27.

[7] See definition in the Glossary section of the NEB part of the HE WP26-27.

[8] See definition in the Glossary section of the NEB part of the HE WP26-27.

[9] See definition in the Glossary section of the NEB part of the HE WP26-27.

[10] European Commission, ’Clean Industrial Deal’, accessed 5 August 2025, https://commission.europa.eu/topics/eu-competitiveness/clean-industrial-deal_en

[11] European Commission, ’Circular Economy Action Plan’, accessed 5 August 2025, https://environment.ec.europa.eu/strategy/circular-economy-action-plan_en

[12] Under development and with expected adoption by the end of 2025.

[13] European Commission, ’Zero Pollution Action Plan’, accessed 5 August 2025, https://environment.ec.europa.eu/strategy/zero-pollution-action-plan_en

[14] European Commission, ’Biodiversity Strategy 2030’, accessed 5 August 2025, https://environment.ec.europa.eu/strategy/biodiversity-strategy-2030_en

[15] European Commission, ’EU Adaptation Strategy’, accessed 5 August 2025, https://climate.ec.europa.eu/eu-action/adaptation-climate-change/eu-adaptation-strategy_en

[16] See definition in the Glossary section of the NEB part of the HE WP26-27.

[17] European Commission, ’EU Startup and Scaleup Strategy’, accessed 5 August 2025, https://research-and-innovation.ec.europa.eu/strategy/strategy-research-and-innovation/jobs-and-economy/eu-startup-and-scaleup-strategy_en

[18] See definition in the Glossary section of the NEB part of the HE WP26-27.

[19] See definition in the Glossary section of the NEB part of the HE WP26-27.

[20] European Commission, ’Renovation Wave’, accessed 5 August 2025, https://energy.ec.europa.eu/topics/energy-efficiency/energy-performance-buildings/renovation-wave_en

[21] European Commission, ’European Affordable Housing Plan’, accessed 5 August 2025, https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/14670-European-Affordable-Housing-Plan_en

[22] See definition in the Glossary section of the NEB part of the HE WP26-27.

[23] See the NEB Investment Guidelines for more information. European Commission, ’NEB Investment Guidelines’, New European Bauhaus, accessed 5 August 2025, https://new-european-bauhaus.europa.eu/tools-and-resources/neb-investment-guidelines_en . Sections of particular relevance for applicants to consider include: 1. Introduction; 2. Mapping the NEB; 4.4 Project risks; 5. Making the NEB case; and 6. Conclusions.

[24] See definition in the Glossary section of the NEB part of the HE WP26-27.

Expected Outcome:

Project results are expected to contribute to all of the following expected outcomes:

• Community^[1] stakeholders co-create^[1] and participate^[3] in innovative community investment and community ownership models.
• Community stakeholders benefit from increased local democratic participation, social equity and cohesion, a sense of place and belonging, and local economic development.

Scope:

Collective community investment and ownership models can empower diverse local community stakeholders to collectively invest in, own, manage, and benefit from local commercial, housing, transitional, or mixed-use assets. By directly engaging community stakeholders, such bottom-up and place-based approaches respond to local community needs and preferences and create local agency and long-term stewardship in the revitalisation of neighbourhoods.

Proposals are expected to address all of the following:

• Develop a collective community investment or ownership model that involves diverse community stakeholders, including marginalised groups or those in a vulnerable situation, in the co-creation and revitalisation of neighbourhoods in line with the New European Bauhaus by focusing on one of the following options:
  • Option A: A community equity investment model that offers community stakeholders the ability to acquire shares in local cooperative and community-based commercial or service-oriented assets to profit from and participate in their further development without necessarily working there.
  • Option B: An occupant equity model through which community stakeholders build equity via their occupancy and participation in the development of a local cooperative and community-based housing or mixed-use^[4] asset where they typically live or work.
• Develop and validate the model in at least three neighbourhoods in different Member States and/or Associated Countries.
• Assess the socioeconomic and environmental impacts of the model on the targeted neighbourhood(s) and their surrounding environment, including long-term affordability, accessibility, and local community and public interest outcomes.
• Identify potential systemic challenges to the uptake of the model and formulate solutions to overcome them. This should include considerations of the influence of local capital and real estate market dynamics, and the long-term financial viability of the developed model^[5].
• Consider and leverage existing relevant investment and ownership regulations and legal aspects at the local, regional, and national levels.
• Provide recommendations to scale up and adapt the model in different local and cultural contexts.

Proposals are expected to follow a participatory^[1] and transdisciplinary^[1] approach through the integration of different actors and disciplines.

This topic requires the effective contribution of social sciences and humanities (SSH)^[1] disciplines and the involvement of SSH experts, institutions, as well as the inclusion of relevant SSH expertise, in order to produce meaningful and significant effects enhancing the societal impact of the related research activities.

Proposals are expected to allocate at least 0.8% of their budget for engaging with the Horizon Europe-funded 'New European Bauhaus hub for results and impact' to share their intermediate and final results, findings and learnings, as well as to contribute to impact assessment.

[1] See definition in the Glossary section of the NEB part of the HE WP26-27.

[2] See definition in the Glossary section of the NEB part of the HE WP26-27.

[3] See definition of ”participatory process” in the Glossary section of the NEB part of the HE WP26-27.

[4] Mixed-used assets refer to assets that combine different functions, e.g. housing, community services, etc.

[5] European Commission, ’NEB Investment Guidelines’, New European Bauhaus, accessed 5 August 2025, https://new-european-bauhaus.europa.eu/tools-and-resources/neb-investment-guidelines_en .Sections of particular relevance for applicants to consider include: 1. Introduction; 2. Mapping the NEB; 4.4 Project risks; 5. Making the NEB case; and 6. Conclusions.

[6] See definition in the Glossary section of the NEB part of the HE WP26-27.

[7] See definition in the Glossary section of the NEB part of the HE WP26-27.

[8] See definition in the Glossary section of the NEB part of the HE WP26-27.