Delivery of Security of Tenure, Infrastructure Services and Access to Finance through Community-Based Approaches

Transcription

1 Delivery of Security of Tenure, Infrastructure Services and Access to Finance through Community-Based Approaches by John Driscoll, Christa Lee-Chuvala and Dritan Shutina Institute for International Urban Development Cambridge. Massachusetts May 2007 Study Team: John Driscoll, Dritan Shutina, Felicity Chan Christa Lee-Chuvala, Carolina Morgan

2 Research Questions and Context 1. What is the role of progressive approaches in achieving tenure security and facilitating access to housing, infrastructure and services in informal communities? 2. How can the partnerships between local authorities, NGOs and CBOs offer an effective means of fostering social inclusion and facilitating access to land? 3. How do we develop programs that account for urban / neighborhood context and the complexity of issues surrounding property laws and rights? 4. Case Studies: - Tirana, Albania: Urban Land Management Program (ULMP) - El Salvador: FUSAI Program

3 Tirana - Early Transition in the 1990s Source: John Driscoll (IIUD) Unprecedented Rural-Urban migration led to very high demand for housing Private sector GDP contribution grew from 10% to 75% (1992 to 1996) Kamza Municipality (north of Tirana) grew 10-fold (1994 to 2000) Investment in housing supported by remittances Informal neighborhoods lacked clear title, basic infrastructure etc. Tirana - Since the 1990s Source: John Driscoll (IIUD) Growing urban density in city center and along development corridors Active creation of public open spaces and urban façade improvements New road widening projects on the inner ring roads Decentralization began to have real operational impact Informal housing development benefited lower income groups

4 Land Use and Types of Property Markets in Tirana A formal market within the framework of existing institutions and procedures An informal market characterized by a multiplicity of actors and smaller scale activities Source: Strategic Plan for Greater Tirana, Feb 2005,ULMP

5 Urban Land Management Project (ULMP) Organization Financing Principles Impacts - Targeted under-serviced lower income and informal settlements - Managed out of Ministry of Public Works and Municipalities - CBOs mobilize and organize community level efforts - NGOs assist CBO+Municipal teams in pre-feasibility stud. + outreach Project cost: $15.25 mil Project duration: From Jan 99 to Mar 05 Sources of funding: World Bank loan (thru Central govt), Municipalities, Households (10-20%) FLEXIBLE - Unbundle sources and financing of housing, land and infrastructure -Initiate land regularization process from outset INFRASTRUCTURE COST-SHARING -among national government, municipal authorities and residents COMMUNITY PARTNERSHIPS -Develop non-statutory urban plans of roads and circulation paths -Identify/prioritize infrastructure investments + cost-sharing agreements DEMAND-DRIVEN DELIVERY -Ask community residents to pay a fee before development commenced Benefited 8,300 families. Long-term cost savings. CBOs empowered to become advocates for the community. Change in behavior in paying user charge and local govt taxes

6 ULMP Approach Site Selection Identify potential site for upgrading based on criteria Local Municipality Funding Agencies Project Assessment Data Collection + Physical Survey Pre-feasibility Study Concept Plan Stakeholder Workshops Partnership Agreement Municipal departments Consultants Community reps NGO and CBO Utility/Service Providers Implementation Subdivision plans and tender document preparation Cartella created to confirm occupancy Payments for infrastructure completion Award Contracts + Utility Agreements Legalization of Occupancy and Land Titles Municipal departments Utility/Service Providers Residents Community reps NGO and CBO

7 ULMP Pilot Neighborhood: Bathore from 1998 to 2005 Bathore Source: Google Earth Total land area = 170 ha Designated a suburban residential zone in 1994 Grew rapidly from 1992 to 1996 Mostly young nuclear families with average of 6 persons Source: Aerial - Edmond Leka, Schematic-ULMP, Composite-IIUD

8 Source: John Driscoll (IIUD)

9 Bathore II: Land Ownership and Land Tenure Land Acquisition and Ownership patterns Met hod of Land Ac quisit ion Survey 2000 (%) Pu rc hase fro m 1990s s ettlers 31 (62%) Pu rc hase fro m ex -owners 1 (2%) Squatt ing 10 (20%) Othe r m ea ns 5 (10%) Giv en by com mun e 3 (6%) TO TAL 50 (100% ) Defacto Land Tenure Investments in neighborhood infrastructure by the government, donor, households and the regularization process led to a defacto tenure in Bathore II. This led to increased confidence of households to invest in housing and infrastructure Between 2000 and 2007, the willingness to pay for legal tenure of land has increased from 64% to 96%

10 Bathore II: Land Prices Changes in Land prices $60 $50 $50 $40 $40 $30 Land prices (per sqm) $20 $10 $16 $22 $ Year Source: Co-Plan Field Survey 2000 and 2007

11 Bathore II: Property and Infrastructure Investment Financing Investments 1. Remittances made up to half of the household income for 79% of households interviewed 2. Employment and Remittances are major sources of finance 3. Other sources: borrowing from relatives/friends, profits from business and securing bank loan Property - Incremental build-out: 7 yrs - Built as personal residences - Invest between $11,000 to $321,000 Infrastructure - 84% contributed in cash and land for infrastructure development - Good access to social amenities - Comparable level of access and payment

12 Property and Community Development:1999 Development:2005 By 2005 By 1999

13 Lapraka, Tirana

14 Challenges in the 21st Century Approach and Sequencing of the Legalization of illegal properties and informal settlements -Oct 04: Law 9304 Legalization and Urban Planning of Informal Zones -May 06: Law 9402 Legalization, Urban Planning and the Integration of Illegal Buildings Issues and Questions raised: - is it urbanization vs. legalization or linked approaches? - pilot programs face the challenge of scaling up - national programs face the challenge of scaling down - how to operationalize with municipalities - ability of municipalities to absorb the costs of upgrading - sequencing and financing of interventions - linkage to municipal plans and off-site and on-site infrastructure - the role of neighborhood and community - funding compensation

15 Progressive Steps to providing Tenure Security 1. Developing a Neighborhood Agenda Helps to coordinate infrastructure and land planning Helps to mobilize community leadership and additional funding for social infrastructure 2. Investing in Physical Infrastructure as a means to Urban Integration and Social Inclusion Good transportation links connect people and goods to the city center 3. Understanding the Financing Mechanism Investments in self-build housing are financed by remittances and salaries regardless of the legality of ownership 4. Forming Partnerships with Local Governments Local governments can identify realistic entry points for different neighborhoods Local governments can package different incentives and processes according to larger urban strategies and willingness of community 5. Understanding the Impacts of Legalization Spatial implications of the implementation of legalization will impact the actions of local government

16 Setting the Context: Access to land in El Salvador Government Interventions: - Law allowing for progressive subdivisions - National Social Fund for Housing (FONAVIPO) - Rural-Urban Migration - Geographic constraints and susceptibility to natural disasters

17 FUSAI: Approach and Financing Organization Financing Principles Impacts -Fundacion Salvadorena de Apoyo Integral (FUSAI) -Private non-profit est Partnership with stakeholders to provide low-cost land and housing -Est a microlending for-profit organization (Integral) in Diversity of funding sources in addition to Integral project participants -SIDA-financed revolving loan fund -Central Government Subsidies -International donors OFFER LOANS AND TECHNICAL ASSISTANCE -To families with income of up to 4 minimum salaries -Secure ownership of serviced lots, construct houses, upgrade existing houses COMMUNITY HOUSING PROJECTS -For households living on environmentally hazardous sites PARTNERSHIPS -With local governments, community groups, multilateral and bilateral partners that provide land and technical expertise - Active in 10 departments of El Salvador, especially in communities affected by natural disasters (San Salvador, La Libertad, Cuscutlan, La Paz, San Vicente and Usulutan)

18 FUSAI s Process - developing a housing community Site Selection Local municipality offers site for consideration Local Municipality FUSAI Site Acquisition Municipality signs contract with FUSAI, service providers and funding agencies Participant Screening Integral screens potential loan clients Municipal departments Utility/Service Providers FUSAI and Integral Residents Site Preparation Obtain local authority and Vice Ministry of Housing Authorization, Environmental permit based on EIA and Construction Permit Community Planning Design housing and layout of the site, Lottery held to allocate land plots, Contract agreements signed Municipal departments Utility/Service Providers Residents FUSAI Construction, financial and legal experts Construction and Monthly Payments After moving in, Community Development Plans and Maintenance Plan developed Land Title Transfer to Residents FUSAI and Integral Residents FUSAI and Integral Residents

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20 Financing for the integrated housing model PHASE 1 Pre-investment PHASE 2 Investment PHASE 3 Finance Finance Technical Assistance Financial Resources Social Assistance Technical Assistance Financial Resources Social Assistance Technical Assistance Revolving Fund Revolving Fund Integral FUSAI Integral - Site identification - Prescreening clients - Development Permits - Community design -Subsidies - Mutual-help construction - Agreements signed - Final list of clients - Loans disbursed - Community building Source: FUSAI Institute for International Urban Development

21 Joya de Tomasico Project, Usulután Municipality PROJECT PARTICIPANTS Women-headed households Employed in informal sector 25% 55% Income less than two minimum salaries Receiving income from remittances 47% At least 50% Urban dwellers 90%

22 FUSAI s Contributions Packaging financing from a range of sources to foster social inclusion Partnering with municipalities, communities and international organizations Channeling remittances into the purchase of housing and land Providing serviced land at prices competitive with the informal market Facilitating access to credit through FUSAI/Integral partnership 55 housing communities, 7,100 units, 35,000 persons benefited

23 SEVEN THOUGHTS for policies and future research 1. Linking between legalization process, local development plans and provision of infrastructure and services 2. Building capacity of local governments to package programs in collaboration with intermediary and local NGOs 3. Institutionalizing community participation as part of local governance 4. Packaging and leveraging of multiple sources of financing 5. Researching on the responses to the dynamics of migration and remittances 6. Understanding the economic implications of legalization and urbanization depending on context 7. Researching linkages between land policy reforms, incremental approaches and household investments