LAND AND HOUSING FOR THE URBAN POOR DIAGNOSIS AND NATIONAL STRATEGY

Transcription

1 LAND AND HOUSING FOR THE URBAN POOR DIAGNOSIS AND NATIONAL STRATEGY José Alejandro Bayona Chaparro Director Urban Development and Environmental Policy National Planning Department DNP Colombia South America URBAN RESEARCH SYMPOSIUM WORLD BANK LINCOLN INSTITUTE OF LAND POLICY SIDA WASHINGTON D.C., May 27

2 BACKGROUND During the last half of the twentieth century, like most Latin American countries, Colombia has shown a strong tendency of urbanization % of the total population lived in urban areas more that the 75% of population live in urban areas. The role of national government in the housing sector has evolved from a housing producer to an enabling actor, that facilitates the functioning of the housing sector through demand-side housing subsidies (since 1991) By year 23 16% of the urban households (1.3 millions) are living in slums areas Colombia has established regarding the MDG Target 11 to decrease from 16% to 4% the number of households living in slums (22). The study and its strategies will help in order to achieve this goal. The housing construction dynamic has been positive during last five years, overcoming the crisis at the end of the 9s. However, this level is still insufficient compared to the household formation. During last 12 years, close to 3 million urban housing units have been built of which only the 4% are formal.16

3 BACKGROUND The rate of legal/formal housing construction is very low in relation to urban households formation. Formal Housing Units vs. Households Formation (annual average ) New Housing Construction (annual rate per 1 inhabitants) ,9 8,2 6,5 6,1 5,9 4, 3, 2, 1,8 National 5 Urban Areas Bogotá Households Increase New Legal Houses Spain Greece The World PAI Chile Germany United Kingdom Colombia Ecuador Source: Dane, ECH and Building Census. Calculations: DNP DDUPA.

4 METHODOLOGY Main objective: To prepare a national strategy in order to avoid new informal settlements formation by means of increasing the generation of serviced land and the supply of formal housing for low income population. This strategy will complement i) financial schemes for low-income household and ii) the national approach for poverty reduction Case Studies: Components 1. Bogotá, Soacha and Mosquera * ( inhabitants) 2. Medellín and its Metropolitan Area* ( inhabitants) 3. Bucaramanga and its Metropolitan Area ** (955. inhabitants) 4. Cartagena and Turbaco ** (94. inhabitants). * DPU-University College of London ** CEDE Universidad de Los Andes 2. National Strategy definition and its dissemination Outputs 1. The rationale of land occupation for formal and informal housing in the last 5 years. 2. To characterize the formal and informal market of land and housing - analysis of 8 formal and informal settlements 3. To determine the institutional capacity for carrying out urban control on informal urbanization 4. To provide guidelines as an input for a strategy that focuses on making land and formal housing markets more competitive for low-income households

5 DIAGNOSIS CASE STUDIES Trends in Bogota, Soacha and Mosquera - Spread of Informal Settlements Informal Growth vs. Total Urban Area 7,2 millions inhabitants N Bogotá D.C. Bogotá D.C. Hectares (21%) (23%) (39%) (34%) 2119 (58%) Cota Cota Total Informal Funza Funza Mosquera Mosquera Soacha Soacha 3 2,5 2 2,3 Population / Urban Area 2,4 The Savannah of Bogotá 1,5 1,2 1,4 1,4 Source: DNP DPU Political and Administrative Borders 1,

6 DIAGNOSIS CASE STUDIES 3,2 millions inhabitants Trends in Medellin Metropolitan Area - Spread of Informal Settlements 3 Informal Growth vs. Total Urban Area Hectares (4%) (3%) (27%) (21%) (46%) Total Informal Population / Urban Area 4 3,5 3,5 3 2,5 2,32 2,27 Source: DPU 26 Political Source: and DPU Administrative 26 Border Political and Administrative Border 2 1,5 1,5 1,68,

7 DIAGNOSIS CASE STUDIES Trends in AM Bucaramanga - Spread of Informal Settlements O,95 millions inhabitants Informal Growth vs. Total Urban Area Hectares 3 Bucaramanga Bucaramanga (3%) 5 23 (9%) Total (19%) (43%) (48%) Informal Population / Urban Area Floridablanca Floridablanca 4,2 4,5 4 3,7 3,5 3 Girón 2,5 1,8 2 Girón Piedecuesta 1,5 1,2 1 Piedecuesta Source: Metropolitan Area of Bucaramanga AMB 27 Source: Metropolitan Area of Bucaramanga AMB 27 Political and Administrative Border Political and Administrative Border,2,

8 DIAGNOSIS CASE STUDIES Trends in Cartagena - Spread of Informal Settlements,9 millions inhabitants 14 Informal Growth vs. Total Urban Area Inner city Swamp of the Virgin The Swamp of the Virgin Hectares (1%) (53%) (93%) 63 (8%) 18 (94%) Caribbean Sea Total Informal Caribbean Sea Cartagena Bay ,9 Population / Urban Area 6 5 Neighborhood Origin: 199 Formal Informal Source: CEDE (26) Cartagena City and its surroundings ,7 8,66 1,38 1,

9 DIAGNOSIS CASE STUDIES The case studies have highlighted that the cost of a formal housing solution is twice as much as (in average) the cost of an informal housing solution including land, urbanism and construction costs. Estimated Costs of a Formal Social Housing Solution vs. informal Housing Solution US Dollars (Thousand) 14., , 12., 1., 8., 6., 4., 1.153, 8.228, 7.986, Formal / informal Total cost = 2 Land + urbanism = 3,4 Construction = 1,4 Indirect = NA 2., - Bogotá Medellín Cartagena Bucaramanga Formal Informal Source: FINDETER (24 VIS Projects) DPU (26) and CEDE (26) Note: The estimated costs of an informal solution in Bogotá is based on the estimated value of the house given by the households interviewed during the fieldwork of the study. The estimated costs of a formal housing solution in Cartagena is based on an average among FINDETER and COMFENALCO data.

10 DIAGNOSIS CASE STUDIES Comparative value analysis highlights that there is a bigger difference on the informal sector. It is due to the fact that housing value is the result of household s investments plus the State s investments. Value paid vs. Estimated Value (by the Household) w1 Bucaramanga - Cartagena US Dollars 2. Bogotá D.C. US Dollars Formal Informal Formal Informal Bucaramanga Cartagena Value Payed Estimated Value Formal Value Payed Informal Consolidated Estimated Value Source: DPU (26), CEDE (26) and DNP Source: DPU (26), CEDE (26) and DNP Δ Formal = 3% Δ Informal = 12% (6% state upgrading)

11 Slide 1 w1 Alejandro: En este "slide", el parrafo en ingles no es claro para nosotros. Estoy tratando de cambiarlo. Por favor dinos si esta bien para ti. wb234688, 4/27/27

12 KEY FINDINGS 1. The land management legislation and its instruments (Law 388 of Territorial Development, 1997) have a strong municipal emphasis contradicting regional characteristics of land market. 2. The country lacks efficient regional cooperation mechanisms that permit to provide and generate land for social interest housing- VIS 3. The water supply and sanitation provision schemes are important determinants for regional articulation and land generation for VIS. Smaller municipalities are not willing to take the responsibility on subsidies for public services, education and health sectors, overflowing some times their financial capacity 4. Thus, it is recommended to make a review of municipal political and administrative structure and sectoral policies (water, transport) in order to promote regionalization processes through incentives from the national government

13 KEY FINDINGS 5. The largest cities are not taking advantage of huge potential that urban renewal offers around the massive transport system interventions as mechanisms in order to generate land for social housing. 6. The investments from low-income households in informal housing are much higher than expected and are equivalent to those ones in formal housing. But, the costs for the State on urban upgrading projects are very high (US$3. per housing). 7. The housing solutions do not reach the entire demand. These conditions make evident the need to make more flexible the supply portfolio of the Government subsidies for social housing. 8. The demand side subsidies scheme, which has several advantages, by itself do not guarantee the formal housing production. Thus, the National Government must define stronger intervention strategies focusing on land generation for VIS

14 POLICY IMPLICATIONS THE NATIONAL DEVELOPMENT PLAN Livable Cities Strategy Urban development: compact and sustainable cities Housing: within reach for all Water for life Urban Transport and Mobility Guidelines of policies articulation (water & housing; mobility & urban development) and integral programs. Neighborhoods integral upgrading Urban macroprojects for social housing Urban Renewal and/or Urban Redevelopment (densification)

15 POLICY IMPLICATIONS Livable Cities Strategy Urban development: To strength the regional planning system for which the regulation will adjust in accordance to: To promote the harmonization of the Territorial Planning Plan POT To define incentives for supporting regional integration processes, mainly on topics such water supply, sanitation solid waste and transport To strength the urban control instruments in order to unify the local management of municipalities in an articulate manner with their region Housing: The housing policy envisages the following strategies: Strengthening the Housing upgrading Strengthening of the housing supply quality through standards. To set up capacity building, guarantees and financial aid schemes in order to enable developers to strength the VIS supply Strengthening of the financial schemes for low income households

16 POLICY IMPLICATIONS Livable Cities Strategy Urban macro-projects for social housing: The Macro-project urban management instrument will be mainly used in order to generate land for social housing which is a project with a strong regional nature aiming the articulation among several municipalities Therefore, the Nation looks to play a major role on the functioning of the housing sector with a direct intervention trough the Macro-projects urban management tool The Macro-projects will join the Nation s experience with its resources plus financial aid from municipalities, private sector, and institutional investors (e.g. pension funds, multilateral agencies, among others). The Macro-projects could be associated to big investments for infrastructure and financed by the Nation, capturing land value increment in favor of social housing developments.

17 DIAGNOSIS CASE STUDIES The first Macro-project Bogotá, Soacha and Mosquera. Bogotá D.C. Urban Renewal (25. new dwellings) Slums Upgrading Cota Funza Mosquera Soacha Longitudinal West Avenue The first Macro-project has been included to construct 2. dwellings

18 THANK YOU VERY MUCH. NATIONAL PLANNING DEPARTMENT DNP Bogotá D.C., Colombia South America