to note that there have been significant improvements with respect to mitigating the challenges faced by former habitual residents of Croatia to regularize their stay in Croatia. This is in line with specific provisions for regularization of stay for former habitual residents introduced in Croatia’s 2013 Act on Foreigners. The regularization process functions smoothly and improvement is noted in exemption of fees. The improvements noted in the new Act on Administrative Fees, in force since 1 January 2017, significantly relieved all eligible beneficiaries from high costs and thus fostered their reintegration. Access to returnee status and social welfare rights remained unhindered. UNHCR commends the progress made and recommends that the Government of Croatia further extends free legal aid to all former habitual residents wishing to regularize their stay; and favorably take into consideration requests for exemptions from administrative fees. UNHCR also commends improvements in acceleration of granting Returnee Status and implementation of the Act on Administrative Fees. b) Need for adequate housing Croatia has been implementing various national housing programmes as well as the region alone. Even though the national programme schemes (organized reconstruction of houses and “housing care”) are based on individual rights, unlike the needs-based RHP, both programmes remain complementary. Based on the outstanding requests for this type of assistance, UNHCR estimates that in 2017 (period covered by this Report) approximately 10,000 persons displaced during the 90s remain without a solution in Croatia6. In the context of RHP and by taking into account specific RHP set vulnerability criteria, UNHCR supported the Government to better articulate any outstanding needs in its revised Country Feasibility Report (June 2016) by suggesting specific tailor-made housing modalities in specific locations. In this respect, UNHCR supported the making of new RHP concept notes, i.e. sub-project proposals. Regional Housing Programme (RHP) UNHCR maintained efficient cooperation with the Croatian Lead Institution for RHP (the Central State Office for Reconstruction and Housing Care - CSORHC), particularly in the area of beneficiary selection. During the reporting period, the Joint Working Group (JWG) led by the Central State Office for Reconstruction and Housing Care finalized the selection for all six approved RHP sub-projects in Croatia. To date, 150 families (364 persons) received housing under RHP in Croatia. Of this number, 63 families (150 persons) received RHP assistance in 2017. Two out of six approved RHP subof the competent state body for refugees, and who are assessed as having returned with intention to permanently live in Croatia.” 6 Based on the current number of pending applications for various types of housing programmes in Croatia (national programmes), and taking into consideration the pace and type of administrative decisions issued so far, UNHCR estimates that there are some 2,190 families (or 4,400 persons) who are awaiting housing solutions in Croatia, at the time of issuance of this Report; 6

Select target paragraph3