Introduction to Urban Housing PDF

DAMBI DOLLO UNIVERSITY College of Engineering and Technology Urban and Regional Planning Program: Architecture Course Name: Introduction to Urban Housing Credit: 6 ECTS Academic year 2024/2025 Course outline COURSE DESCRIPTION Provides basic introduction to housin...

DAMBI DOLLO UNIVERSITY College of Engineering and Technology Urban and Regional Planning Program: Architecture Course Name: Introduction to Urban Housing Credit: 6 ECTS Academic year 2024/2025 Course outline COURSE DESCRIPTION Provides basic introduction to housing and community development area of planning practice. Topics include the housing and development industries, housing production and distribution systems, housing demand and supply, housing market dynamics, neighborhood change process, housing and real estate finance, social aspects of housing and development programs and policy issues.  Course outline EARNING OUTCOMES At the end of the course, students are expected to: Understand how global population growth and urbanization is shaping global housing problems and the nature of this problem in terms of quantity, quality and distribution Understand the housing challenge in developing countries, with focus on the Ethiopian context. Understand housing policies (their intentions and their outcome through time.) Understand the housing dynamics: demand vs. supply, affordability and housing finance, tenure, Understand why and how governments intervene in housing (housing intervention approaches)  Course outline - Contents Introduction to urban Housing Global housing problem and Ethiopian context Housing Policy Housing Demand and Supply Housing Finance and Affordability Housing Actors Tenure and its impact on Housing Housing Intervention Approaches  References The course does not have a textbook; however, students are expected to read the following selection of reference materials: 1. UNCHS (Habitat) (1996). An Urbanizing World: Global Report on Human Settlements. 2. Turner, John F.C. “Housing by people: towards autonomy in building environments” 3. Turner, John F.C. “Uncontrolled Urban Settlement: Problems and Policies.” 4. Wubshet, Berhanu (2002). “Urban Policies and the formation of Social and Spatial Pattern in Ethiopia- the Case of Residential Areas in Addis Ababa.” 5. Jenkins, Smith and Wang, “Planning and Housing in Rapidly Urbanizing World” 6. Robert B Potter, “The city in the developing world” 7. Buck, Gordon, Harding, Turok (eds): “Changing Cities: Rethinking urban competitiveness, cohesion and governance” 8. Roger Zetter, Mohammed Hamza, “Market economy and urban change: impacts in the developing world” 9. Elias Yitbarek Alemayehu (2008). “Revisiting “slums”, Revealing responses: Urban Upgrading in tenant-dominated inner-city settlements in Addis Ababa, Ethiopia. Ph.D Thesis, Norwegian University of Science and Technology.” 10. Doebele, W. (1987), “The Evolution of Concepts of Urban Land Tenure in Developing Countries.” 11. Abbot, J. (2002), “An analysis of informal settlement upgrading and critique of existing methodological approaches”. 12. Datta, K. & Jones, A. G. (eds) (1999), “Housing Finance in Developing Countries.”  Chapter One Introduction to Urban Housing WHAT IS HOUSING? As a Noun the : The stock of dwelling, ◼ What it is ◼ Finished Product ◼ Provision Paradigm As a Verb: The process by which that stock is created ◼ What it does ◼ Process ◼ Support Paradigm Rapid urbanization In 2014 - 54% of the world population were found to be urban. (In 2050 - 66%) In Africa this number is 40 % projected to reach 56 % by 2015 Main causes Rural to urban migration Natural population increase Boundary redefinition of cities. Rapid urbanization Urbanization in Ethiopia  2014 the urban population of Ethiopia was 19 % of the total. But Ethiopia has one of the highest urbanization rate in Africa (2.3%)Consequences  Over burdened meagre resources  Overcrowded Slums  Addis Ababa had 31.4% of its population unemployed (2008 data)  High urban Poverty (Ethiopia has the highest proportion and highest absolute value of slum dwellers in East Africa)  Urban Expansion and Rural Urban Conflict Poverty - Urban Inequalities  Discrepancies of access to local resources  Spatial locations  Societal organizations  Personal relationships  Land ownership and tenure  Environmental degradation  Islands of activities, for those who can afford, surrounded by slum  Chapter Two Housing Policy Housing policy through time –global Housing Policy Through Time - Global (Key lesson learned) From: Slums as hindrances of development Slum clearances in 50s and 60s, (Modernist theory and provider paradigm) To  Squatter settlements and slums have an inherent potential for improvement  Energy & resources of low-income groups can be mobilised for betterment of environment  Squatters and slum dwellers as part of the solution(Self-help theory, support paradigm) Housing Policy Housing Policy Through Time – Ethiopian Context Policy: No comprehensive housing policy 1886 –1974 “ Capitalist” oriented  Informal Rental Housing 1974 – 1991  Supply approach Subsidies: land, basic infrastructure, technical support, low interest rate on loans  Key actors: Cooperatives and AARH  Satisfied 21% of demand Housing Policy Housing Policy Through Time – Ethiopian Context 1991 to date  Approach Subsidies: land, infrastructure and design for low-income (Low-interest rated one away because of free- market) Private sector: Real estate developers Lack of experience, low/High profitability, land allocation process, land lease prices, rising costs of building material, land Speculation, mis management, bankruptcy Cooperative Housing: Lack of support, mismanagement, lack of finance, Integrated (Grand) housing project, IHDP, Urban Renewal Projects Ethiopian Housing strategy Feb – 2013 Resilient, Green and Affordable Urban Housing Strategic Framework Housing Policy - Ethiopian Housing strategy 2013 RESILIENCE Resilience is the capacity of individuals, communities, institutions, businesses, and systems within a city to survive, adapt, and grow no matter what kinds of chronic stresses and acute shocks they experience. A resilient city can adapt to a variety of shocks and stresses while still providing essential services to its residents, especially the poor and vulnerable. RESILIENCE  Chapter Three Housing Need – Demand and Supply 3. Housing Need – Demand and Supply Housing need: Number of dwelling units, regarded as socially desirable in terms of: structural quality, rates of occupancy, sanitary and other facilities and standards of health, privacy etc. Housing required: replace deteriorated units, relieve overcrowding, house new families (for both backlog and future).  Effective need for housing: Influenced by affordability (economic capacity) and willingness to buy, construct and to rent Housing Need – Concept and Theory Housing need: need is an intrinsically normative concept  Bramley (1990), drawing on an extensive literature from the preceding decades, concluded that “all need statements contain a normative judgment.  One of the more problematic areas for achieving consensus in discussion of needs is the effect of individual choice (Le Grand, 1991).  Housing presents a number of such examples, as in the homelessness field or where people could afford to improve their home but choose not to ❑ Housing need is multidimensional; that is, it comprises a mixture of qualitatively different conditions which affect different groups in different ways and which may require different kinds of solutions. ❑ It was argued that any general housing needs model for government should recognize this multi-dimensionality and allow some flexibility in terms of relative priority assigned to different categories. ❑ Needs ultimately rest on value and policy judgments, as argued above, and will in practice have to be weighed against available resources. This may lead to varying judgments being made, at the margins, about the definitions and coverage. ❑ Example: the ‘rights’ of younger single people to expect self contained accommodation to be provided through public subsidy.  Housing need is multidimensional; that is, it comprises a mixture of qualitatively different conditions which affect different groups in different ways and which may require different kinds of solutions. It was argued that any general housing needs model for government should recognize this multi-dimensionality and allow some flexibility in terms of relative priority assigned to different categories. Needs ultimately rest on value and policy judgments, as argued above, and will in practice have to be weighed against available resources. This may lead to varying judgments being made, at the margins, about the definitions and coverage. An obvious example of such marginal judgments concerns the ‘rights’ of younger single people to expect self-contained accommodation to be provided through public subsidy. It would be desirable for the model to make the relationship between these marginal judgments and resulting numbers explicit. Housing Need Vs Demand Housing Demand: Concept of Backlog Vs New Need Academic discussions generally distinguish ‘need’ – shortfalls from certain normative standards of adequate accommodation – from ‘demand’ – the quantity and quality of housing which households will choose to occupy given their preferences and ability to pay (at given prices). The term ‘housing requirements’ is sometimes used in this context, to refer to the combination of need and demand, particularly where market as well as affordable housing provision is being considered (as in the planning system). Demand and Supply Housing need - Example Ethiopia Estimated housing stock 2,331,126 units (2005) Total urban housing needed due to population growth 2, 250,831 units (between 2005 - 2015) By 2005 (1999 projection) 30% of total housing units, good condition 30% fair condition 40% bad condition Therefore: New housing need 2,250,831 To replace dilapidated units (40% of housing stock) 932,450 To relieve over-crowdedness (10% of housing stock) 233,113 TOTAL 3,416,444  Housing need - Example Ethiopia Acute housing shortage largely owing to decline in housing supply post nationalization of urban land and rental houses Assuming out of 30% good condition 10 % would, through time, join fair condition Only 20 % good condition The rest 80% fair and bad (SLUM?) Except Tigray, Harari, Dire Dawa; all >70% wood, mud and thatch. >90% Amhara, Oromia (2/3 of urban centers and about ½ of urban population) About 80-90% of urban population, substandard dwellings and settlements Housing Challenge About 80%, “slum” Majority in inner city About 70% kebele (government) owned Kebele houses: deteriorated & occupied by low-income tenants Inner city pressure 50% of total estimated 527,800 (2005) housing units need replacement by 2015 to meet MDGs Addis Ababa about 80% of 3.1 million population (official estimation), living within 85% of housing stock located in slums Housing Challenge - Interventions IHA-UDP Eco-city Grand housing project (GHP, AAHP, Condominium) Project Identify housing challenge in your area (go to your town and select specific area about 5ha from the downtown and make site visit) to develop your housing solution, recommendations and suggestions.  Chapter Four Housing Affordability Affordability Affordability Ability to Pay Choose to Pay Not ‘spend beyond their capability and willingness’ Capability implies income; willingness alludes to choice  Affordability in the context of Developed and Developing Countries Developed countries: it is housing that can be purchased by families earning between 30% and 80% of the community’s median income; Developing countries, it is housing that is provided for the middle and low-income groups who need assistance or supplements to fulfill housing needs Access To Housing Access to housing for the low income people can be achieved through affordable housing development. Affordable Housing Issues ABILITY The target group income and savings (ability) Cost Reduction Access to finance WILLINGNESS Target Group Life Style, Aspiration, Satisfaction Pride and Belongingness Participation  External Factors affecting Affordable Housing provision Cost Land acquisition, Infrastructure, Planning, designing, Administration and Community facilities Financing interest rates, amortization (pay back) periods and subsidies  Internal Factors affecting Affordable Housing provision Socio Economic Factors Employment, and Type of occupations Income level Expenditure patterns, These affect the Ability to pay House hold size Family structure and its needs Customs, Aspirations, Priorities These affect the willingness to pay  Measurement of Affordability Income Based measurement – Does the potential owner have the income to afford the house This ignores the factors discussed above More refined method The proportion of income available for housing and utilities The ability of households to mobilize resources from other sources, including the household itself, the extended family and credit.  Cost to Income Ratio Commonly used, but being challenged nowadays Median Cost of House/Median Annual income < 3 (World Bank/UN) A house should cost 3 to 4 times the annual house hold income Housing Affordability Index (HAI) Developed by MIT Tries to capture the total cost of ownership of individuals’ housing choices. The obvious cost of rents and mortgage payments are modified by the hidden costs  Chapter Five Housing Actors HOUSING ACTORS  Housing actors’ interaction & project cycle Identification Planning Implementation Post-implementation - sustainability  Obstacles to Interaction/ Participation Time Finance Security Trust Capacity for participation varies Participation  Levels of participation None - No communication Inform / Indirect - One way communication Consult - Two way communication, but outsider decides Shared control - Two way, Joint decision Full control - Two way, but community decides  Chapter Six TENURE TENURE: PROPERTY HOLDING RIGHTS 🞑 LAND 🞑 STRUCTURES/PROPERTY LAND ▪ 🞑 Essential to all that we build ▪ 🞑 Limited Resources ▪ 🞑 Requires Effective Management and control ▪ 🞑 Human Psychological attachment (Roots)  URBAN LAND – Value depends on Socially Created Demand Publicly Provided Services LAND TENURE: Private Ownership Vs Public Ownership 🞑 Equity Vs Efficiency  Land tenure is therefore never an either or situation. It is at every historical moment, for every society, a question of striking a balance between the need for social control and fairness in access to land and equally pressing need for private initiative to ensure efficiency, and satisfaction of human yearning for territorial association. With changes in society new balances are always needed  PROBLEM About 80%, “slum” Majority in inner city About 70% kebele (government) owned Kebele houses: deteriorated & occupied by low-income tenants Inner city pressure SOLUTION? 50% of total estimated 527,800 (2005) housing units need replacement by 2015 to meet MDGs Solutions? Keep it as it is (Public ownership) Privatization ”Indirect privatization”  FROM LOW SECURITY TO HIGH SECURITY (Geoffrey Payne, 2002) Pavement dweller Squatter tenant Squatter owner Tenant in unauthorized subdivision Owner- unauthorized subdivision Legal owner-unauthorized construction Tenant with contract Leaseholder Freeholder  Chapter Seven Intervention Approaches Housing Intervention Approaches Generally the slums of Addis Ababa can be categorized into three types: Non-planned old inner-city settlements, dominated by kebele housing and occupied by tenants with some tenure rights. Informal peripheral squatter settlements built on vacant land with little or no infrastructure and with uncertain or no tenure rights. These are locally known as cherekabet in Amharic – literally, “moon house”. Can further be divided into two: Small mad houses built by low income people, usually because of the lack of access of land through the formal process. Houses built by middle and high income people either because of lack of access of land through the formal means or for speculative reasons. Inner-city squatters with no tenure rights (Sharabet, literally plastic house:. Housing Intervention Approaches Started when in 1978, World Bank identified eight kebeles: poorest of the poor for settlement upgrading Teklehaimanot: NGO-driven, community based settlement upgrading Kirkos: NGO Driven Menen (Geja sefer): NGO driven, community based Kolfe: community driven Housing Intervention Approaches The Eco City Approach ”Eco city”, Launched in 2003 (Urban rehabilitation programme) Focus on large scale infrastructure Main source of funds Budget allocated from government, matched by contributions from dwellers in cash, in kind or labour Improvement of Sanitation Sewage disposal Solid waste management Upgrading of social services; Creation and maintenance of open spaces and green areas Creation of income generating economic opportunities Provision of vehicular access and drainage lines Integrated housing project (2004 -) To build 400, 000 housing units with annual production of 50,000 units (In Addis Ababa, 455,000 people at 1st phase More than 1,000,000 in 2nd phase) So far 98,000 completed 80,000 under completion Plan 2014 - 2015 to build 50,000 units Building height 5- 13 stories Original settlement Temporary shelter Condominium