Housing and Inner city
development
Housing policy
Housing Policy
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 mobilized for
betterment of environment
• Squatters and slum dwellers as part of the solution
(Self-help theory, support paradigm)
Housing Policy
Housing Policy Through Time - Global
Period Phase Focus Instrument
1960s- early Modernisation Physical planning, Blue-print planning: Slum
1970s & urban Production of shelter by clearance and direct construction
growth public agencies of housing
Mid 1970s – Growth & Self help Upgrading, Sites-&-services
mid 1980s redistribution
Late 1980s - Enabling Securing an enabling Public/private partnership;
early1990s approach framework for action by community participation;
people, private sector & capacity building
markets
Mid 1990s Sustainable Holistic planning to As above, with more emphasis on
onwards urban balance efficiency, environmental management &
development equity and sustainability poverty alleviation
Key Housing Issues in Ethiopia
By ‘Housing For Humanity (HFH) Ethiopia
Income and affordability
Access to housing finance
Policy environment
Institutional capacity
Access to land and very high land prices
Recognizing roles of citizen participation
Recognizing roles of NGOs in housing
Potential but least used housing providers.
Achievements of & challenges encountered by the
existing housing providers
Housing Policy
Housing Policy Through Time – Ethiopian Context
1. The Pre 1975 Situation
• No formal housing policy was adopted during that
period
• Free market principles as land lords were leasing
urban land and construct residential houses to
tenants
• “Capitalist” oriented
• Informal Rental Housing
• More over this laissez faire condition was one of the
factors blamed for the unplanned development of
most of the urban centers in Ethiopia particularly in
Addis Ababa.
Housing Policy
Housing Policy Through Time – Ethiopian Context
2. 1975 – 1993
• Proclamation no. 47/1975 nationalized all urban land and extra houses,
high-rise apartments and office buildings with out any compensation.
• The main target of the proclamation was to get rid of the right of
landlords.
Supply approach
Subsidies: land, basic infrastructure, technical support, low
interest rate on loans
Reduction on the amount of rent by 50per cent
Satisfied 21% of demand
Housing Policy Through Time – Ethiopian Context
Production of housing
Different programs undertook the provision of
housing
• Construction of new rental dwelling houses, which are administered by
the Agency for the Administration of Rental Houses AARH.
• Self-help and assisted self-help housing for low income groups
o House plan free of charge and technical assistance from the
government.
o Loan from governmental bank (Housing and Construction Bank HCB)
with interest rate of 6-4.5%.
Housing Policy
Housing Policy Through Time – Ethiopian Context
3. 1993 to Date
• private sector participation in the provision of housing.
• Ceasing the subsidy of interest rate loans from the financial sector.
• Land lease policy
Approach
Private sector: Few real estate developers.
Lack of experience, low profitability, land allocation process,
land lease prices, rising costs of building material, land
Speculation
• Integrated (Grand) housing project
• Urban Renewal Projects
Housing 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).
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
Demand and Supply
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, DireDawa; 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.
• Effective need for housing: Influenced by affordability (economic capacity)
and willingness to buy, construct and to rent
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
Housing Challenge
Addis Ababa about 80% of 2.7 million population (official estimation), living
within 85% of housing stock located in slums
Housing Challenge
• 1986 master plan
• 2002: Revised master plan
IHA-UDP Eco-city
Grand housing project