Case study type: Políticas y regulaciones

Seattle “Grand Bargain” and the Mandatory Housing Affordability (MHA) program

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Seattle “Grand Bargain” and the Mandatory Housing Affordability (MHA) program

Mismatches Financing
Policies and regulations Local policies Regulation Building capacity Planning Public-private initiatives
Promotion and production Public-private partnerships
Ownership and tenure

Main objectives of the project

On July 15th, 2016, a coalition comprising 10 city officials, private developers, and advocates for affordable housing came together to sign the Seattle "Grand Bargain." This agreement, forged through unprecedented negotiations and collaboration, aimed to implement an inclusionary zoning and linkage fee program across upzoned neighborhoods in the city. Central to the Grand Bargain is the Mandatory Housing Affordability (MHA) program, which mandates the incorporation of rent-restricted units for low-income households in new developments, but specifically within neighborhoods upzoned for increased density. Consequently, the Grand Bargain ensures the inclusion of affordable units in new developments while also offering development incentives to facilitate the construction of more units on a given lot, thereby mitigating the revenue loss associated with affordable housing. Through the negotiation of the Grand Bargain, the city sought to simultaneously expand the overall housing supply (by increasing density) and the availability of dedicated affordable housing for lower-income households (via mandatory inclusionary measures).

Date

  • 2019: Implementation
  • 2016: En proceso

Stakeholders

  • City Council of Seattle
  • Grand Bargain coalition

Location

Continent: North America
Country/Region: Seattle, United States of America

Description

In 2016, the City Council of Seattle ratified the Grand Bargain's Mandatory Housing Affordability (MHA) program, incorporating it into city law. This program encompasses zoning code revisions to boost density across much of the city, the establishment of a mandatory inclusionary housing scheme mandating certain affordability standards for new apartment complexes, and the introduction of commercial linkage fees requiring owners of new commercial spaces to contribute funds toward constructing affordable units within the city.

The MHA program, spearheaded by then-Mayor Ed Murray in collaboration with Seattle's Housing Affordability and Livability Advisory Committee, aims to produce 6,000 affordable housing units for families at or below 60 percent of the area median income (AMI) within a decade. This initiative is anchored by 65 individual policy recommendations, with the MHA being a prominent feature. Under the MHA, the city undertakes zoning changes to boost density in commercial and multifamily residential areas and neighborhoods near transit lines. Developers are then obligated to include dedicated affordable housing within new constructions in these areas.

To offset the costs associated with incorporating affordable units into new developments and to bolster the overall housing supply, the city representatives agreed to heighten residential density in select neighborhoods in exchange for affordability requirements in new development. The MHA mandates that approximately six percent of single-family zones transition to a newly designated category termed Residential Small Lot, facilitating the construction of multiple "cottage" homes on a single lot, as well as the creation of duplexes and row houses. Additionally, some single-family zones will permit the construction of triplexes, townhomes, row houses, and three- to four-story apartment buildings.

Once an area undergoes rezoning to increase density, the Grand Bargain stipulates that residential developers constructing new units must incorporate units affordable to families at or below 60% AMI. This requirement applies solely to new constructions and/or alterations that increase the total number of units within a structure. The Mandatory Inclusionary Housing program dictates that a percentage of units constructed be rent-restricted for a minimum of 50 years. The affordability criteria range between 3-7% of units, depending on the market. Developers opting out of including affordable housing must pay the city a per square foot in-lieu fee ranging from $5 to $33, contingent on the development's size and location.

Furthermore, in neighborhoods rezoned for increased density, commercial developers are mandated to pay a linkage fee on new developments, ranging from $5 to $17 per square foot. These fees, contingent on building size and location, apply to all new constructions, expansions, or conversions from residential to commercial use. The collected linkage fees are allocated to nonprofit organizations to aid in constructing affordable housing in Seattle.

However, the path to implementing these regulations was fraught with challenges. The Mandatory Inclusionary Housing components within the MHA program only take effect once neighborhoods are upzoned, and since the program's adoption, the city's upzoning efforts have faced legal disputes and community resistance. After nearly four years of legal battles, the agreed-upon timeframe for adopting all zoning changes extended beyond the original 2017 deadline. In 2019, eventually, all the rezoning measures were enforced.

The adoption of zoning changes to boost density marks Seattle's efforts to expand its housing supply by facilitating the development of new multifamily buildings. While increased housing supply theoretically improves affordability, the significant supply deficit in high-cost cities often means initial expansions merely meet existing demand, having limited immediate impact on housing prices. By coupling increased density with mandatory inclusionary housing requirements, the policy ensures the availability of lower-cost units for low-income families and their continued affordability through legal constraints.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Cement Block Banking in the Gambia

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Cement Block Banking in the Gambia

Mismatches Financing Vulnerable groups
Financing Financial actors Supply subsidies Sustainable development financing Progressive financing

Main objectives of the project

Gambia's financial market is underdeveloped, offering limited financial products, particularly in the affordable housing mortgage sector. The majority of households face exclusion from mortgage opportunities due to high interest rates and stringent screening requirements, compelling them to undertake self-built housing projects. Recognizing these gaps and acknowledging the potential business and social benefits, Amiscus Horizon (AH) commenced operations in June 2014. AH introduced a pioneering initiative known as "Cement Block Banking" to address the affordability of housing for all Gambians. This innovative "Cement Block Saving Scheme" operates on a "pay-as-you-go" model, allowing clients to save and purchase cement blocks on a monthly basis. These accumulated blocks serve as a form of savings and act as a simple hedge against material price inflation, offering households a gradual means of accumulating building materials while incrementally constructing their homes.

Date

  • 2013: Implementation

Stakeholders

  • Amiscus Horizon (AH)

Location

Continent: Africa
Country/Region: Gambia

Description

The Gambia, with its small land area of 11,000 km² and a population of approximately 1.9 million, stands as one of West Africa's smallest and most stable countries. However, like many African nations, it grapples with a significant shortage of affordable housing, estimated at over 50,000 units. High poverty rates render privately developed housing out of reach for the majority, leading to widespread self-construction of homes. About 52% of these residences are built using semi-permanent materials, highlighting the country's housing challenges. Moreover, the financial market in Gambia remains underdeveloped, with limited offerings, especially in the affordable housing mortgage sector. High interest rates and strict screening criteria further exclude many households from accessing mortgage opportunities.

Recognizing the gaps in Gambia's affordable housing market and the potential business and social benefits, Amiscus Horizon (AH) was registered in November 2013 and commenced operations in June 2014. AH introduced the innovative concept of cement block banking to make housing more affordable for all Gambians. Their "Cement Block Saving Scheme" operates on a "pay-as-you-go" model, allowing clients to gradually accumulate cement blocks through monthly savings. These blocks serve as both savings and a hedge against material price inflation, providing households with a means to construct their homes incrementally.

Initially, AH procured blocks from a factory on a monthly basis, benefiting from bulk order discounts. However, due to high demand, the company transitioned to in-house block production within its first year of operation. This move allowed AH to closely monitor block quality, ensuring adherence to industry standards. Clients are guaranteed a refund if blocks fail to meet required standards. The blocks are stored in AH's secured depots, equipped with 24-hour security.

AH employs a full-time construction engineer to provide technical guidance to clients. While technical advice is currently limited due to resource constraints, AH offers standard housing plans and packages for various home sizes and fences, which have been well-received by customers.

Most of AH's clients are low- to middle-income earners seeking to build new homes or fences around their properties. Only a small percentage have access to home finance at the start of the construction phase. AH's approach involves allowing customers to select their desired block package, complete an application form, and commence monthly contributions. Default rates are relatively low, with AH incentivizing regular payments by offering 8% interest on total blocks banked for a year without defaulting.

Innovative solutions like AH's cement block banking model are crucial for addressing Africa's affordable housing shortage. As housing sector stakeholders increasingly engage with affordability challenges in creative ways, pioneering business models have the potential to make significant strides in resolving the continent's housing shortfall.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Barrio 31, Buenos Aires

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Barrio 31, Buenos Aires

Mismatches Segregation Security Functional adequacy Services Cultural suitability Demographic/Urban growth
Policies and regulations National policies Local policies Regulation Planning Participatory processes
Urban Design Modelos De Ciudad Services and infrastructure Environments Quality Liveability Inclusion Equity Segregation

Main objectives of the project

Barrio 31 in Buenos Aires serves as a testament to the city's commitment to social and urban integration. From physical upgrades like new roads to socio-economic initiatives or housing programs, residents actively participate in enhancing living conditions and community development. Supported by favorable loan terms, housing improvements ensure affordability and stability, driving sustainable transformation without rampant gentrification.

Date

  • 2016: Implementation

Stakeholders

  • Promotor: Buenos Aires Ciudad Autónoma

Location

Continent: South America
City: Buenos Aires
Country/Region: Argentina, Buenos Aires

Description

The City of Buenos Aires currently faces the challenge of integrating nearly 250,000 individuals residing in slums or informal urban settlements. This integration necessitates interventions addressing both social and urban issues concurrently. The conviction of the city lies in fostering integration, ensuring these populations have equal opportunities and responsibilities as other residents.

Various social and urban integration projects are underway in Buenos Aires, benefitting not only the quarter of a million slum dwellers but all inhabitants of the city. One such project is located in Barrio 31, positioned strategically amidst affluent districts like Retiro and Recoleta, near the national government seat, financial hub, and iconic Obelisk monument. Unlike many slums situated on the city's south side, Barrio 31 faces physical and social barriers, including train tracks, the Illia highway, and disparities in education, health, and employment access.

The Integral Plan for Barrio 31 aims at urbanizing the area, constructing new roads, and integrating the neighborhood into the city fabric. Additionally, initiatives such as proper street paving and renaming contribute to a sense of belonging. The plan encompasses social and economic aspects, focusing on enhancing family living conditions through housing and economic development, exemplified by initiatives like the "patio gastronómico" and the creation of green spaces.

Structured around four main areas—Habitat, Human Capital, Economic Development, and Urban Integration—the Barrio 31 project adopts a holistic approach, viewing residents as both individuals and a collective. Housing plays a crucial role, with programs focusing on building new homes and renovating existing ones, thereby improving living conditions and fostering a sense of community. The housing programs encompass Comprehensive Improvement, External Improvement, and Self-management. These voluntary and free programs involve collective and individual interventions aimed at enhancing living conditions, safety, and accessibility. Residents are empowered to actively participate in the improvement process, ensuring that individual enhancements benefit the entire community.

Comprehensive Improvement: This program involves collective interventions in both the interiors and exteriors of all houses within a block. It aims to enhance ventilation, lighting, service access, safety of technical installations, and dwelling access. Residents actively participate throughout the process, fostering awareness that improving individual houses benefits the entire block.

External Improvement: This program focuses on improving the exteriors of houses along main thoroughfares. The interventions include plastering, rainproofing, and paintwork to combat humidity, as well as replacing stairways, doors, and windows to enhance safety and accessibility. These exterior enhancements also positively impact the interior living conditions.

Self-management: Residents are empowered to improve their own homes through a supported program. Social workers and architects assess the buildings, devise improvement plans tailored to individual family needs, and provide necessary materials. Residents are guided throughout the process, enabling them to implement the proposed improvements to sanitation facilities and living conditions effectively.

Financially, households are supported through loans with favorable terms, ensuring that no family spends more than 20% of its income on housing. Repayment options are tailored to individual circumstances, with fixed monthly payments and the possibility of shortening the loan period for those with stable incomes. This payment model aims to ensure affordability and financial stability for low and middle-income families, aligning with repayment standards prevalent across the city.

Barrio 31 has become a role model of a huge transformation of an informal settlement and their integration to the city. It began at 2016 and it is still ongoing. Yet, the results can be already seen: new businesses in the neighborhood, new green spaces, housing improvements and no massive gentrification.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Habitat for Humanity Egypte (HFHE)

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Habitat for Humanity Egypte (HFHE)

Mismatches Price Financing Vulnerable groups
Policies and regulations
Financing Financial actors Supply subsidies Sustainable development financing Progressive financing

Main objectives of the project

Since 1989, Habitat for Humanity Egypte (HFHE) has effectively assisted more than 25,000 impoverished households across selected rural and urban areas by offering interest-free loans for essential housing improvements, renovations, and new construction projects. Within Egypt's developing microfinance sector, HFHE stands as the sole provider of micro loans dedicated solely to housing-related endeavors. These short-term loans, averaging EGP 7,000 (US$ 890) each, are repayable over a 24-30 month period in monthly installments, with the first payment due a month after loan receipt. All loans are structured without profit or interest, but include an inflation adjustment to safeguard HFHE's loan capital value and support the operational costs of partnering NGOs.

Date

  • 1998: En proceso

Stakeholders

  • Habitat for Humanity

Location

Continent: Africa
Country/Region: Cairo, Egypt

Description

In Northern Africa, addressing the housing sector's challenges, particularly in financing projects for low and medium-income families, remains a significant issue. Despite having homes and support from NGOs, non-profits, or the government, many struggle to secure financial assistance for refurbishment or reconstruction while maintaining their autonomy. This is where Habitat for Humanity Egypt (HFHE) steps in. Habitat for Humanity is an International NGO. Yet, has a great implementation in Egypt. Since 1989, HFHE has effectively aided over 25,000 impoverished households across selected rural and urban communities by providing "no-profit, no-interest" loans for essential housing improvements, renovations, and replacement home construction.

HFHE functions as a national intermediary NGO, abstaining from directly disbursing loans. Instead, it offers loan capital, technical assistance, training, and oversight to partner NGOs and participating community-based organizations (CBOs), which assume direct responsibility for loan management. In FY2015 alone, this decentralized network of independent non-profit entities disbursed 2,393 HFHE loans, totaling EGP 20.2 million ($2.6 million USD) to needy families in 22 rural and provincial urban communities. The process is straightforward: HFHE allocates loan capital exclusively for housing microloans to its NGO partners, who, in turn, supervise local CBOs and loan committees to administer and oversee these loans. HFHE provides training and technical support to partner NGO staff responsible for these loans, as well as to participating CBOs and loan committee members in each community.

HFHE operates autonomously from the financial system. It has never sought loan capital from Egyptian banks and maintains no microfinance relationship with local banks. Egyptian banks typically refrain from extending banking or home improvement loans to HFHE's clientele—poor and low-income households—due to their unregistered homes and lack of property ownership documents. Consequently, Egyptian banks and HFHE are not seen as direct competitors, with HFHE clients eschewing Egyptian banks as alternative lenders. Meanwhile, the annual interest rates on personal loans from Egyptian banks, ranging between 10.5% and 12.5% since 2008, far exceed the 7% annual inflation adjustment applied to HFHE microloans.

The lending approach of HFHE consists of three main strategies: normal lending, wholesale lending, and home improvements for the poorest households. In normal lending, HFHE partners with NGOs for an indefinite period, sharing the risk of bad loans. The loans have no end-date, with an average size of EGP 7000. In wholesale lending, a pilot initiative with CEOSS, loans are disbursed for five years, with the partner NGO bearing all risk. Higher fees are charged, and the repayment period is defined. Both approaches have identical loan terms and conditions. Home improvements for the poorest households are charitable initiatives, targeting those unable to repay loans. The improvements aim to enhance living conditions and are funded through various means, including donations and partner NGO commitments.

The majority of borrowers additionally benefit from complimentary engineering technical services for their intended home improvements. Notably, the expense is not incorporated into the loan amount for repayment; instead, HFHE covers the entire cost of these engineering services from its own budget. Skilled and trained engineering graduates are engaged on a part-time basis to support CBOs and loan applicants in defining construction requirements, creating engineering designs (if necessary), assessing actual costs for planned home renovations and new construction, and inspecting completed projects. These engineering graduates are engaged on an annual basis, with HFHE currently maintaining contracts with four part-time engineering graduates.

HFHE imposes specific criteria for borrower selection, categorized into three areas: the need for adequate shelter, ability to repay the loan, and willingness to partner. Eligible borrowers must be homeowners within the community, with no discrimination based on demographics. To qualify, households must lack adequate shelter, demonstrate low income, and exhibit financial stability. They should also display willingness to contribute to home improvement costs and participate in related activities. The organization gives priority to vulnerable groups like orphaned children, widowed women with dependents, and married couples with dependents.

The loan application process of HFHE involves several steps. First, applicants submit a one-page Loan Request Form to the CBO loan committee, providing personal and project details. Then, the committee reviews the form and contacts an engineer for a home inspection and cost estimate. Together with the applicant, they complete a Loan Request Review Form gathering financial and household information. The committee periodically meets to approve loans, determining sizes based on their discretion. Disbursements occur in two installments, contingent on satisfactory completion of construction work. Repayment typically starts 30 days after the first tranche. Finally, an HFHE engineer inspects completed work for quality assurance. Loan documents are maintained by the partner NGO for audit, while CBOs keep records for active loans. Additionally, the average cost per loan includes engineer fees for initial visits and inspections.

With this simple scheme, HFHE provides finance resources to the communities and the poorest homeowners in Egypte. Thanks to it, and without the burden of the financial system, people can have an affordable and decent housing.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Jaga Mission

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Jaga Mission

Mismatches Vulnerable groups Demographic/Urban growth
Policies and regulations National policies Local policies Governance Participatory processes
Financing
Promotion and production Public-private partnerships Favelas/Slums
Ownership and tenure Land ownership Public-private partnerships

Main objectives of the project

The Government of Odisha has set an ambitious goal: to be the first state in India to eradicate informal settlements. To achieve this, they have implemented the innovative Jaga Mission, which aims to upgrade the state's 2,919 existing informal settlements by December 2022, benefiting approximately 1.7 million people. This program is based on a decentralized approach, where associations of residents of these settlements work closely with public authorities to carry out the necessary improvements. The municipal government allocates 25 percent of its budgets to finance the works, while the rest of the funding comes mainly from Odisha state funds.

Date

  • 2017: Implementation

Stakeholders

  • Housing & Urban Development Department, Government of Odisha

Location

Continent: Asia
Country/Region: India

Description

In the eastern Indian state of Odisha, more than 1.7 million people, approximately 25 percent of the state's total population, reside in urban informal settlements and slums. The inhabitants of these areas face extremely precarious conditions, with a lack of access to basic services such as running water, electricity and sewerage, as well as the absence of property rights and public resources. This situation creates a cycle of poverty and marginalization, exposing residents to the risk of disease, evictions and the loss of their homes, especially affecting vulnerable groups such as women, migrants and people of certain castes.

Since 2017, the state's Mission Jaga and Mission for Adequate Habitat programs in Odisha have joined an innovative effort to title land and upgrade informal settlements, with the aim of drastically improving living conditions and promoting social equality for those in urban poverty.

The program is based on the principle that all families living in informal settlements in Odisha must obtain on-site land rights to access public housing subsidies and avoid evictions. Land rights certificates are inheritable and eligible for mortgages, but cannot be sold to prevent gentrification. To date, land rights have been granted to 125,000 residents of informal settlements, including women who can acquire them through co-ownership.

Once informal settlements are mapped and land rights are granted, residents' associations are established to oversee housing and infrastructure improvements. These associations have inclusive representation, where 50 percent of members must be women or other marginalized groups. Formally recognized as partners in project governance, these associations have control over the implementation of improvements and access to funds through a special bank account.

Community participation is central to the project, with residents, including women, hired to carry out community improvements without the intervention of private contractors. Local associations oversee the work and set standards of control, ensuring fair wages that help improve family incomes.

Mission Jaga has an innovative financing system that leverages funds from various government departments to maximize investments, avoiding the creation of separate budget lines. In addition, a legal provision was established that sets aside 25 percent of a city's budget for improvements in informal settlements, a unique approach compared to other programs that often rely on external development institutions.

The program has been implemented in 2,919 informal settlements in 114 cities in Odisha, with notable progress in upgrading 585 settlements and complete eradication in eight cities between September 2020 and May 2022. This effort, considered one of the largest land titling and informal settlement upgrading projects in India and the world, continues to expand throughout the state thanks to a mentoring model that has proven effective in training and guiding new cities in the process of upgrading their informal settlements.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España
World Habitat

Móstoles fight against homelessness

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Móstoles fight against homelessness

Mismatches Vulnerable groups
Policies and regulations Local policies Global frameworks Data and monitoring

Main objectives of the project

The city of Móstoles in Spain, with a population of 205,614, stands as a compelling example of the proactive measures taken by local authorities worldwide to address housing challenges. Situated in the southern metropolitan area of Madrid, Móstoles, like many neighboring municipalities, endured severe repercussions from the enduring economic downturn that began in 2008. With a predominantly working-class population, the city faced a pressing housing crisis marked by escalating evictions and a rise in homelessness. In response, Móstoles initiated a multifaceted strategy aimed at ameliorating the situation and safeguarding the right to housing. This comprehensive approach encompasses a spectrum of initiatives, ranging from providing direct assistance to families facing eviction to actively promoting social housing and advocating for the rights of the homeless population.

Date

  • 2016: Implementation

Stakeholders

  • Móstoles municipality

Location

Country/Region: Madrid, Spain

Description

Móstoles, situated in the southern periphery of Madrid, predominantly comprises a working-class demographic, with an average per capita income of 19,000 euros, notably lower than Madrid's average of 30,000 euros. The lingering effects of the economic downturn have exacerbated social and economic disparities, reflected in the surge of users accessing municipal social services from 8,000 before the crisis to 25,000 in 2017. This crisis has particularly impacted the most vulnerable segments of our population, with homelessness emerging as a stark manifestation of social exclusion.

To address this pressing issue, Móstoles has fortified its existing services, including shelters, and in 2016, established a community center providing nighttime shelter—a rarity in the southern metropolitan area of Madrid. Additionally, the city has implemented a successful Housing First strategy and expanded its "emergency apartments" stock by nearly 100 units.

Two key innovations have been introduced to tackle homelessness head-on. Firstly, the creation of the "Office for the Right to Housing" aims to prevent evictions and homelessness. This office serves two primary functions: facilitating connections between housing issues and municipal social services, including the provision of emergency financial aid, and offering legal services to negotiate with various stakeholders to halt evictions and seek resolutions for those affected by financial speculation. The objective here is to stop evictions in our city or reaching agreements that will free people who have been victims of financial speculation, such as moratorium agreements, payment dams or debt forgiveness.

The second innovation is the adoption of the Homeless Bill of Rights, positioning Móstoles as one of the few cities pioneering such initiatives. A multidisciplinary team monitors the daily experiences of homeless individuals, ensuring their rights are upheld. Administrative flexibility has been introduced to enable homeless individuals to access essential services by facilitating their registration. In Spain, you need to be registered in a house to have access to many social services. For this reason, they have facilitated homeless people access to this registry regardless of their housing situation. Collaborative efforts with social agents aim to raise awareness and engage citizens in addressing homelessness.

Through these measures, Móstoles underscores the importance of prioritizing housing issues. Despite budgetary constraints, the city has demonstrated how strategic policy implementation can prevent a housing emergency from escalating into a social crisis.

It is important to mention that the policies have allowed us to have more data on the situation of homelessness in Móstoles. This allows us to improve future care, innovating in future actions.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

“Fincas” project in Montevideo

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“Fincas” project in Montevideo

Mismatches Segregation Cultural suitability Diversity Vulnerable groups Demographic/Urban growth Vacant housing
Policies and regulations National policies Local policies Land Planning Governance Participatory processes
Urban Design Services and infrastructure Liveability Inclusion
Promotion and production Self-management Cooperatives

Main objectives of the project

Montevideo has initiated a project leveraging existing legal mechanisms to reclaim abandoned private urban land, with the aim of repurposing it for specific social needs through new housing and habitat initiatives. Upon reclamation, the municipality integrates the land into Montevideo's "Cartera de Tierras," a well-established city-land portfolio system spanning over twenty-five years. This mechanism streamlines residents' access to land for the development of social and cooperative housing endeavors.

Date

  • 2019: Implementation

Stakeholders

  • Promotor: Montevideo municipality
  • Asociación Civil Plaza Uno
  • Federación Uruguaya de Cooperativas de Vivienda por Ayuda Mutua
  • Facultad de Arquitectura, Diseño y Urbanismo

Location

Continent: South America
Country/Region: Montevideo, Uruguay

Description

The downtown of Montevideo was in decline. Due to urban sprawl, the city center has struggled to retain its population. Moreover, new economic activities such as tourism threatens the neighbours, causing gentrification. So, on the one hand, the downtown presented many deprived and vacant housing units and, on the other, new activities threats to the existing communities. To avoid depopulation and make an innovative urban renewal, “Fincas” was set in motion in 2019.

The main feature of the plan is recovering the abandoned buildings of the city center. To do so, they made a change in municipal rules. Many of those buildings had unpaid fines and taxes to the cityhall. Then, should the debt be over 80% of the assessed value of the lot, the owner can settle the debt by giving the lot to the municipality. Other tools, such as expropriation, has also been used. Thanks to all of it, more than twenty buildings are included in the “Cartera de Tierras”, a portfolio of public land.

The range of projects executed under the framework of Fincas exhibits notable diversity, benefiting from collaborations with both national ministries and local civil society organizations. Various initiatives within housing and habitat development have been prioritized, including the establishment of "temporary shelters" for vulnerable demographics like homeless women with children or individuals awaiting social housing allocation. Additionally, several housing plots have been repurposed to provide social rental accommodations.

Further endeavors, such as the implementation of the "dispersed cooperative" model, have played a pivotal role in fostering alternative cooperative housing arrangements and safeguarding residents in areas susceptible to intense speculative pressures. This model entails a distributed form of co-living, wherein separate real estate units are managed cooperatively by residents who form a scheme to utilize different buildings and shared spaces. This grassroots approach has contributed to revitalizing downtown Montevideo. Moreover, Fincas has supported projects with community and recreational objectives, such as "Casa Trans," which advocates for the rights of transgender individuals and gives a community center dedicated to the trans community.

A distinctive aspect of Fincas as an urban renewal initiative lies in its focus on land use legislation and the pursuit of "re-densification" in Montevideo—a strategy aimed at transforming the city into a more densely populated urban center. By repurposing central urban locations for social purposes and returning them to residents, Fincas strives to counteract abandonment and gentrification in certain districts. This effort reduces both physical and symbolic disparities between central and peripheral areas, fostering a more cohesive city and advancing the concept of the right to the city.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Diverse Metropolis Regulation

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Diverse Metropolis Regulation

Mismatches Diversity
Policies and regulations Local policies Planning
Promotion and production Public-private partnerships
Ownership and tenure

Main objectives of the project

Montreal, Canada, implements a new regulation to have affordable housing, the Diverse Metropolis Regulation. The main goal of the regulation is that all the projects done in “affordable zones” (a new zoning category) must reach an agreement with the city to enhance social and affordable housing. Preserving the diversity of our neighborhoods and promoting access to suitable housing for all: this is the objective set by the City of Montreal with its Regulations for a mixed metropolis.

Date

  • 2021: Implementation

Stakeholders

  • Montreal

Location

Continent: North America
Country/Region: Canada, Montreal

Description

Montreal wanted to foster more mixed communities. However, in its planning legal framework, the private initiative has a lot of power. Thus, agreements with promoters must be reached in order to have affordable housing and a diverse typology of housing units. For this reason, in 2021, they enforced a new planning regulation on certain areas of the city. Any person who carries out a project involving the addition of at least 1 dwelling and a residential surface area exceeding the threshold set in the Regulation must enter into an agreement with the City in order to contribute to the supply of social, affordable and family housing. This may be a new building, an extension or the conversion of a building.
The threshold set in the Regulation is 450 m² of added residential area (equivalent to approximately 5 housing units). However, until December 31, 2026, the threshold is temporarily increased to 1,800 m² (equivalent to approximately 20 housing units) in order to take into account the economic context. After this period, the threshold will be restored to 450 m².

Contributions are made either for social housing (any dwelling unit owned by a non-profit organization, cooperative, government or paramunicipal corporation that is intended for people with special housing needs or households with low or modest incomes) or affordable housing (dwelling unit, not necessarily owned by non-profits or municipality, for which the selling price or rent is subject to a commitment of at least a 20-year period). The percentage going into affordable housing is between 10 to 20% of the project. Then you must add the social contribution depending on the surface of land.

The affordable contribution of the project is agreed with the city and has three main ways to be fulfilled: the creation of affordable housing by the promoter; the sale of a building to the city, which can take the form of the sale of an existing rental building or vacant land; a financial contribution: the contribution varies depending on the size of the project and the sector in which it takes place. A combination of the three is also possible. In the case of social housing, a portion of land must be selled to the city or made a financial contribution.

The new regulation is an innovative way to generate mixed communities in a market-driven development scheme. Using the legal tools of planning, the municipality enhanced social housing and affordability in different typologies of buildings.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Oukalas Project in Tunis

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Oukalas Project in Tunis

Mismatches Segregation Vulnerable groups Demographic/Urban growth Vacant housing
Policies and regulations Global frameworks
Urban Design Liveability Inclusion Equity Segregation
Promotion and production

Main objectives of the project

Tunis grapples with intricate migration dynamics, serving as both a destination and a transit point for international migrants bound for Europe. Additionally, internal migration has significantly shaped the city's demographic landscape since gaining independence in 1956. Drawn by employment prospects, a large influx of internal migrants settled in Tunis, particularly in the historic center known as the Medina. This area saw an increase in vacant housing units as former residents moved to suburban areas seeking modern accommodations. In response to the housing challenges faced by these migrants, many from economically disadvantaged backgrounds, makeshift living arrangements called Oukalas emerged within the Medina. While these Oukalas provided affordable housing, they often lacked basic amenities, were overcrowded, and posed safety hazards due to deteriorating conditions. To address these issues, the Municipality of Tunis launched the Oukalas Project in 1991 with dual objectives: to improve living standards for residents, many of whom were internal migrants, and to preserve and restore historic structures within the neighborhood. This initiative, which concluded in 2012, positively impacted over 3,000 households in the Medina.

Date

  • 1991: Implementation
  • 2012: Rehabilitación

Stakeholders

  • Tunis Municipality

Location

Continent: Africa
Country/Region: Tunis, Tunisia

Description

Tunis experiences a significant influx of migrants, although the city does not undertake specific projects tailored exclusively to address their needs. Instead, the municipality incorporates migrants into existing social and cultural initiatives aimed at enhancing the overall quality of life for all residents of Tunis. One such initiative is the Oukalas project, which ran from 1991 to 2012. Focused on inhabitants of the Medina, including a substantial number of internal migrants, the project aimed to offer suitable housing and essential services while simultaneously preserving and revitalizing this historic area. Consequently, the project serves as an illustration of government-led revitalization efforts aimed at improving housing conditions for Medina residents, many of whom are internal migrants.

Oukala refers to an urban caravanserai, resembling a hotel where rooms are rented for short periods like days or weeks. Following the expansion of the city and shifts in demographics within the Medina, numerous private residences and historical landmarks in the old city were converted into multi-family dwellings. They were "oukalaised". These transformed dwellings accommodated multiple households, often those facing economic challenges, in substandard living conditions. Deterioration of buildings, compounded by inadequate rental regulations, rendered oukalas precarious residences for low-income families, with some buildings experiencing partial or complete collapse over time.

The oukalas project constitutes a multifaceted intervention strategy aiming to enhance living conditions and restore the aesthetic appeal of the Medina. By implementing appropriate technical, legal, and financial protocols, its overarching goal is to address the housing challenges within the Medina while preserving its cultural heritage.

Initially, the project aimed to improve the housing conditions of 3,000 households residing in the Medina's 600 oukalas through demolition and subsequent reconstruction. The program's broader objective focused on ameliorating the precarious living situations of the oukalas' occupants, encompassing several key components:

Re-housing: Identified 256 oukalas accommodating 1,296 households in severe disrepair for demolition. To accommodate these occupants, three new residential areas were established in Tunis' western suburbs—Douar Hicher, El Agba, and Sidi Hassine Séjoumi. New residents were offered 25-year sale-by-rent plans with affordable monthly payments.

Reconstruction: Sites of demolished oukalas were either sold through public auction or reclaimed by former owners. Municipality-led or private and public developers were tasked with new construction in accordance with existing land use regulations within the Medina.

Rehabilitation: Identified 404 oukalas housing 1,600 households requiring renovations to meet standards. This rehabilitation effort encompassed both privately and municipally owned housing stock. Private owners were offered a 15-year loan with a 5% interest rate and complimentary technical assistance.

Restoration/Adaptive Reuse: Thirteen buildings of significant historical or architectural value were identified for restoration and adaptive reuse for public purposes, with specific projects devised to facilitate their transformation.

In addition to ensuring secure housing and restoring historical edifices, the project extended social support to vulnerable residents of the Oukalas. These initiatives comprised various interventions, including the construction of 76 residences tailored for elderly individuals living independently, facilitation of loan access for 220 elderly individuals lacking familial or social support networks, provision of assistance for twelve disabled children encompassing education and healthcare expenses, allocation of 60 scholarship grants to local students pursuing higher education, and seasonal aid for vulnerable groups to address expenses related to religious observance and school year cycles.

The nature of the project evolved across its phases. In earlier stages, residents from central Oukalas were relocated to peripheral districts, prompting significant considerations regarding the impact of such relocations on residents' social connections and employment prospects. However, in the final phase, Oukalas inhabitants were offered housing opportunities within the Medina itself, in buildings constructed over the sites of previously demolished structures deemed unsafe in earlier phases. Residents were presented with the option to rent or purchase these new apartments at discounted rates, with residents covering expenses equivalent to construction costs, supplemented by contributions from the municipality and the national government.

The Oukalas is one of the major transformations of the city center in Northern Africa.

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Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Al-Darb al-Ahmar Housing Rehabilitation Programme (ADAA HRP), Cairo

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Al-Darb al-Ahmar Housing Rehabilitation Programme (ADAA HRP), Cairo

Mismatches Financing Segregation Functional adequacy Cultural suitability Vulnerable groups Demographic/Urban growth
Policies and regulations Local policies Planning Data and monitoring Public-private initiatives
Financing Financial actors Supply subsidies Public-private collaboration
Urban Design Urban fabrics Environments Liveability Public-private initiative
Promotion and production Public-private partnerships Private promotion

Main objectives of the project

The district of Al-Darb al-Ahmar in Cairo holds significant historical importance, yet its approximately 100,000 residents are among the most economically disadvantaged in the city. Despite being home to numerous Islamic landmarks, the area suffers from inadequate infrastructure and services, leading to a high prevalence of health issues among its inhabitants. In response, the Housing Rehabilitation Programme (HRP) was initiated to enhance both the quality and quantity of housing while adhering to health standards and preserving the district's architectural heritage. Launched in 2004 with a goal of rehabilitating 200 houses by the end of 2009, the programme has since continued with ongoing efforts, reliant on the involvement of local communities and contributions from various donors. The HRP is committed to improving housing conditions sustainably by addressing the root causes of deterioration through a collaborative, multidisciplinary approach involving all stakeholders. The goal is to change the “Action Areas” and the surrounding of monuments into vivid communities.

Date

  • 2004: Rehabilitación

Stakeholders

  • Promotor: Aga Khan Trust for Culture
  • Aga Khan Agency for Microfinance
  • Ford Foundation
  • Cairo Government

Location

Continent: Africa
Country/Region: Cairo, Egypt

Description

The Greater Cairo Region, with a population exceeding 18 million, confronts substantial challenges, notably over half residing in informal settlements. The Cairo Governorate alone hosts over 7 million inhabitants, positioning Cairo as one of the Arab world's most populous cities boasting a rich Islamic architectural heritage. Over the past century, urban management policies have grappled with the region's burgeoning population and associated issues such as informal housing proliferation, overcrowding in historic areas, and the deterioration of ancient urban fabrics due to transformations and gentrification.

Less than two centuries ago, al-Darb al-Ahmar epitomized wealth in Cairo. Today, its 100,000 residents, living within a historic district spanning 1.2 square kilometers, rank among the city's poorest. Despite its central location, historical significance, and vibrant community, living conditions have steadily deteriorated, resulting in a 50% population decline since the 1970s. Contributing factors include infrastructure neglect, low incomes, and the degradation of monuments and private housing. Outdated planning regulations, coupled with tenure insecurity and unrealistic rent controls, exacerbate the situation. Nonetheless, al-Darb al-Ahmar maintains social cohesion and architectural authenticity, necessitating interventions meeting varied needs while upholding health standards. Thus, the Housing Rehabilitation Programme emerged, advocating against neighborhood demolition while enhancing housing quality and quantity, preserving original architectural elements.

In 1999, a survey in the Aslam Mosque neighborhood kick-started efforts to identify planning and housing strategies for area-wide preservation and development. Subsequent baseline surveys in 2003 revealed alarming deficiencies, with 22% of dwelling units lacking private lavatories, 51% deprived of consistent water sources in kitchens, and 32% suffering from non-ventilated rooms. Despite declining living conditions, 86% of residents expressed a desire to remain in al-Darb al-Ahmar.

The Aga Khan Trust for Culture spearheaded redevelopment post-survey, focusing on physical upgrades and socioeconomic development. By 2004, completion milestones included 19 community-owned houses, a health center, a business center, school building restoration, and reconstructed minarets. Additional housing rehabilitation projects ensued, supported by microcredit programs. Subsequent phases targeted broader infrastructure enhancements and private investment facilitation. Emphasizing local engagement and capacity-building, the project ensured staff recruitment from the al-Darb al-Ahmar community, foreseeing self-sustaining credit services and envisioning microcredit activities evolving into a formal microfinance bank.

The policy targets the residents, businesses, and social groups within the district. The proposed urban improvement program by AKTC necessitates coordinated physical, social, and economic efforts sustained over an extended period. It also emphasizes the importance of institutional capacity-building, including supporting the establishment of local NGOs across various domains until they can operate with reduced assistance. Additionally, a public/private Development Corporation has been set up as an overarching entity in Al-Darb al-Ahmar, tasked with coordinating ongoing activities, generating income from restored facilities and services, and ultimately overseeing a self-sustained rehabilitation process. Furthermore, there is a focus on promoting community awareness and self-governance as a means of restoring the traditional Muslim city feature in residential areas and enhancing cultural awareness among residents.

Resource types, roles, and team players are diverse. It has financial resources from the Social Fund for Development, Aga Khan Trust for Culture, and Ford Foundation grants; residents’ direct financial and in-kind contributions (cost share 30% to 50% of rehabilitation costs); and Aga Khan Agency for Microfinance’s housing loans to support different income levels. The technical expertise in rehabilitation comes from the Aga Khan Trust for Culture and the Community Development Corporation; partners at different levels ranging from Cairo Governorate, municipal authorities, community-based organizations, to communitymembers; and local HRP staff providing administration and technical support. And, as we stated, there is Microenterprises, suppliers, and small contractors in Al-Darb al-Ahmar providing construction and finishing works.

To bolster physical rehabilitation efforts, the Housing Rehabilitation Programme (HRP) has enlisted a social housing team. This team aids in procuring the necessary legal documentation for building rehabilitation, mediates among stakeholders, and ensures that all non-physical conditions are addressed prior to the commencement of physical rehabilitation. Once a preliminary agreement is reached with residents of earmarked buildings, an independent credit team evaluates the creditworthiness of individual families. Consequently, microcredit loans are allocated based on each family's earnings. This microcredit scheme serves both tenants and property owners while ensuring secure tenure. Notably, through negotiations with tenants, property owners, and public authorities, approximately 285 households facing eviction due to deteriorating structural conditions were granted secured tenure status. These households were part of the housing stock at risk of demolition, and their rehabilitation allowed tenants to retain their residences.

The Housing Rehabilitation Programme catalyzed policy shifts, influencing demolition regulations and urban planning practices to prioritize community needs and conservation. Notable outcomes include a decree protecting existing housing stock near monuments and a revised conservation plan fostering community involvement. In summary, the program safeguarded residents' tenure, established national planning norms acknowledging community needs, and circulated a significant percentage of rehabilitation costs within the community, fostering job creation and supporting local businesses.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España