Tag Archives: community development

India photo-share: Slum upgrading in Ahmedabad, Gujarat

By: Vidhee Garg

On my recent visit to India, I went on a guided tour of Ramesh Dutt Colony, a slum settlement on the outskirts of Ahmedabad, led by Kinnariben of Mahila Housing SEWA Trust (MHT). MHT is a sister organization of Self-Employed Women’s Association (SEWA), with which AHI has partnered since 2008.

MHT was a key partner in the Ahmedabad Municipal Corporation’s Slum Networking Project (SNP), which aimed to transform the physical environment of the slums, and has been working with this particular settlement since the late 1990s. The transformation of the environment established several basic infrastructure services – household water connections, toilets and underground sewerage for individual households, and stone paving of internal and approach roads, among other things.

More than a decade in the making, the residents are now eagerly awaiting government permission to rebuild the settlement under the Rajiv Awas Yojana (RAY) scheme, which will give the residents title to land and permanent housing.

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Kinnariben (left) with one of the SEWA members in Ramesh Dutt Colony. Kinnariben is one of many field operation staff (called ‘Saathibens’) who interact regularly with community residents, thereby forming an integral part of SEWA’s last-kilometer delivery system in meeting the banking needs of SEWA members.

Children play gully cricket in the mid-afternoon. Narrow alleys (gully in Hindi) between the houses are good locations for children to play while being supervised by family and community members. 

Children play gully cricket in the mid-afternoon. Narrow alleys (gully in Hindi) between the houses are good locations for children to play while being supervised by family and community members.

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Promoting a Rare Breed: Private Nonprofit Housing Developers in the GCC

This piece was originally published by Jadaliyya, an ezine produced by the Arab Studies Institute. Jadaliyya combines local knowledge, scholarship, and advocacy to better understand the Arab World and to fulfill its dedication to discussing the Arab world on its own terms. The original article can be found here.

           

By Maysa Sabah Shocair, AHI’s Managing Director of the GCC Region

While working as a Project Manager at the Fenway Community Development Corporation (CDC) in Boston and as a Consultant to Phipps Houses in New York City, I experienced firsthand how nonprofit developers can contribute to preserving housing affordability in central locations. Fenway CDC builds and preserves housing and champions local projects that engage the entire Fenway community in protecting the neighborhood’s economic and racial diversity. It has operated since 1973 and has developed nearly six hundred homes, housing approximately 1,500 low and moderate-income [1] residents, including those with special needs. In addition, Fenway CDC has supported residents through offering job placement and career advancement services, building playgrounds, running after-school programs for teens and operating a center for seniors. Similarly, Phipps Houses develops, owns and manages housing in New York City. Since its  founding in 1905, it has developed more than six thousand apartments for low- and moderate-income families, valued at over one billion US dollars. Phipps Houses manages a housing portfolio of nearly ten thousand apartments throughout New York City. In addition, it serves over eleven thousand children, teens, and adults annually through educational, work readiness, and family support programs.

Now that I am working in the Gulf Cooperation Council (GCC) as an affordable housing consultant for several public and private entities, I often wonder: Could private nonprofit housing developers, like the Fenway CDC and Phipps Houses, make an impactful contribution to bridging the supply and demand gap in affordable housing in the GCC for both citizens and non-citizens? Could the experience of other countries with nonprofit housing developers be distilled and adapted to the GCC states?

To answer these questions, I will first discuss the main attributes of nonprofit housing developers, followed by a discussion on the shortage of affordable housing for citizens and non-citizens in the GCC and the resulting need for nonprofit housing developers. I will then recommend strategies to enable the growth of nonprofit housing developers and end with a few concluding remarks. 

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Domed roofs in Haram City


Nonprofits Housing Developers as Mission Entrepreneurial Entities

In its 2010 landmark study Mission Entrepreneurial Entities: Essential Actors in Affordable Housing Delivery, the Affordable Housing Institute (AHI) defined Mission Entrepreneurial Entities (MEEs) as “private nongovernment entities that are in the business of making housing ecosystemic change by doing actual transactions valuable in themselves that also serve as pilots and proof of concept.” MEEs could be Non-Governmental Organizations, Community Development Corporations, or Housing Associations, labels that have sometimes been used interchangeably. The study profiles twenty-three MEEs in the United Kingdom and the United States, where, in both countries, there has been a steady migration from entirely publicly managed and operated systems to hybrid public-private models, with MEEs as key delivery mechanisms.

According to the study, the three main attributes of MEEs are: (i) being mission oriented, since their goal is impact, not just profits; (ii) entrepreneurship, taking risks and persuading established institutions, including governments, to approve proposals, provide capital, etc.; and (iii) self-containment, because sustainable MEEs must make profits and maintain a positive cash flow. However, generated profits are used to further the purposes of the organizations instead of being distributed to managers and shareholders.


MEEs also share the following strengths:

·         Willingness to serve populations that the private for-profit sector cannot or will not serve, including the hardest-to-house residents;

·         Commitment to providing affordable housing to lower income people for the long term;

·         Building strong connections with residents and the communities they serve;

·         Commitment to providing various social services that lower income or special needs residents may require;

·         Potential for accessing affordable land, buildings and funding through governments and philanthropic entities or individuals;

·         Commitment to seeing projects through both during their early and post-delivery phases.

Given the potential of MEEs to serve populations that are not served by private or public housing provision, this essay discusses the potential relevance of this model to the GCC countries. This interrogation is critical at a time during when many GCC countries are facing a shortage of housing for low and moderate income households. It is also a time in which we are witnessing the emergence of institutionalized charitable giving that could be in part harnessed to help with housing provision. These conditions are creating a ripe environment for the growth of nonprofit housing developers, with the much needed support of the public and private sectors.

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Indonesia photo-share: self-help housing in Depok

By: Duong Huynh, Project Manager

As part of the housing sector mission to Indonesia, I joined another colleague Matt Nohn, whose work focuses on incremental housing, and a team of staff from Indonesian Ministry of Housing to visit Depok. After a 1+ hour drive through some peaceful Indonesian peri-urban farm land, we landed in Depok to begin our tour of a few of the city’s self-help housing project.

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Self-help housing belonging to a family of one working mom and three daughters.

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Photo Report: Three Days in Ulaanbaatar

By: Anya Brickman Raredon

AHI has been working with the World Bank and Municipality of Ulaanbaatar, Mongolia to develop an affordable housing strategy for the rapidly growing city.  In late-August, David Smith, our CEO and Founder, and I took a three-and-a-half day trip to present the results.  Fortunately we got a little bit of time away from our meetings to see the city and visit a ger area neighborhood – their term for the informal settlements. What follows is a bit of a photo tour with some interspersed musings.

Located in a high valley at the intersection of two rivers, Ulaanbaatar has some of the worst air pollution in the world, in part due to coal heating in the winters. According to the city masterplan, both rivers have protected buffer zones along their banks, although new apartment construction is edging very close on the south side of the valley.  10534525_10100612341304914_7619381653213947338_n936681_10100612341349824_5668957290735238999_n

Downtown Ulaanbaatar is a striking collection of soviet style apartment blocks, yurts, and modern glass towers all sitting right next to each other. There’s even an amusement park in the middle of downtown.10569050_10100606082482644_1606306620005765474_n                 10593150_10100612341424674_2564284688276477326_n  10629839_10100612341629264_7146385909691851264_n                  10474839_10100606076444744_4868540471071979280_n  10610547_10100612341150224_5811294750562497487_n

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The race against winter in the slums of Ulaanbaatar

By: Noel Sampson, AHI Nicaragua Regional Analyst

“There are so many new rich people and there is no place for them to spend their money” said Rob, a French- American investor I met on the flight from Moscow to Ulaanbaatar (UB). He told me he was building a new club and Irish pub – “the biggest in UB” he promised. I gave a dry smile.  The thought of yet another Irish pub is hard for me to get excited about because they all look the same to me. 

 

Hours later I discovered the city is already full of Irish pubs, crammed in amongst the office towers under a skyline cluttered with cranes. Up in the surrounding hills, beyond the cranes and city lights, the slums are populated by gers (traditional Mongolian tents) exhaling thick coal smoke. The khashaas (individual fenced plots) highlight the organic pattern of the informal urban fabric.

 

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Overview of Ulaanbaatar and its slums far in the back

 

More than 50% of Ulaanbaatar’s population lives in ger-areas and around 47% of ger residents live in poverty. Ger-areas have limited infrastructure and services such as heating, water and sanitation. Residents use coal-fired stoves to survive extremely harsh winters with temperatures below -40°C. Domestic coal fires are the main cause for air pollution in Ulaanbaatar where individual households cannot afford to connect to the city’s power grid. Improving access to services would help to upgrade these areas and improve the quality of life.

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Ger-areas in the district of Selbe

 

A major cause of the growth of slums in Ulaanbaatar is immigration to the city related to dzud – a concurrent natural disaster characterized by summer drought followed by particularly harsh winter with extremely low temperatures and heavy snow. The 2010 dzud affected an estimated 769,106 people (28% of total population) and has resulted in 8.4 million livestock deaths. Many were forced to move to the capital. Other causative factors for the increase of slums include high poverty levels in rural areas, the inexperience of local institutions in dealing with urban issues, natural population growth and the Free Mobility Law. This law, approved by the Supreme Court in 2003, grants every Mongolian the right to freely own a plot of land in the capital.

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View of one family Khashaa

 

The challenge in Ulaanbaatar is therefore a matter of land management and affordability of services and adequate housing. The extreme temperatures  and the spread  of slums make services difficult and expensive to implement. To address these issues, the most viable strategy is to densify ger-areas. Residents can not afford individual connections to services and grouping residents together could reduce the cost for such services.

 

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Lack of access to infrastructure and services are remarkable in Ger-areas

 

The question lies in how to implement such efforts, in particular how slum dwellers will participate in the development strategies of the city.  Another important challenge is how to create a financial flux that integrates private sector, residents and government. It is important to remark there is not small effort towards slum upgrading of ger-areas, any small improvement can create a flow-on effect on service provision to the surrounding slums that continue growing. Thus, opportunities for both residents and private sector, and the city’s development future lie in the provision of adequate housing and the improvement of ger-areas.

 

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Despite construction industry is booming, building season is just five months in a year due to the harsh winter

 

Perhaps, the creation of an entity to act as fair broker between private, residents and government can contribute to fill this gap. Under the support of a new created public-private entity residents could create community builders associations, or similar schemes of housing co-ops as an alternative for affordable housing construction. Residents can start a guided and progressive land pooling process, making land available for public facilities at the time they can have optimums living conditions. This process can allow to lease part of the land to the private sector and obtain in return the finance for the construction of housing buildings and improved urban spaces.

 

Moreover, the creation of such entity can address potential future concerns such as how to work out compensation systems, how to prevent land speculation and rise in land prices after the first residents gain access to services and, more importantly, how to guarantee that residents who take part in eventual slum upgrading strategies will get fair benefits for pooling or trading their land. Additionally, this entity can stimulate private sector investments in areas that have higher profitable potential such as the land along the primary roads.

 

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Formation of slums in the peri-urban areas of the city

 

As the opportunities rise in Ulaanbaatar, the private sector is ready to push forward with urban development, the national economy is booming due to rich mining resources, and the Mayor, Bat-Uul, has outlined a vision of creating urban corridors on the model of Los Angeles’ Wilshire Boulevard in the middle of the slums. Empowered residents stand to gain through improved housing and lives will be saved from the harsh Mongolian winter while contributing to the city’s economy. Perhaps Rob, my co-passenger from the flight in, would stand to benefit also by making a wiser choice and investing in the community.

The Mongolian urban challenge: A matter of growth, land management and the race against winter in the slums of Ulaanbaatar

By: Noel Sampson, Nicaragua Regional Analyst

 

“There are so many new rich people and there is no place for them to spend their money” said Rob, a French- American investor I met on the flight from Moscow to Ulaanbaatar (UB). He told me he was building a new club and Irish pub – “the biggest in UB” he promised. I gave a dry smile.  The thought of yet another Irish pub is hard for me to get excited about because they all look the same to me. 

 

Hours later I discovered the city is already full of Irish pubs, crammed in amongst the office towers under a skyline cluttered with cranes. Up in the surrounding hills, beyond the cranes and city lights, the slums are populated by gers (traditional Mongolian tents) exhaling thick coal smoke. The khashaas (individual fenced plots) highlight the organic pattern of the informal urban fabric.

 

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Overview of Ulaanbaatar and its slums far in the back

 

More than 50% of Ulaanbaatar’s population lives in ger-areas and around 47% of ger residents live in poverty. Ger-areas have limited infrastructure and services such as heating, water and sanitation. Residents use coal-fired stoves to survive extremely harsh winters with temperatures below -40°C. Domestic coal fires are the main cause for air pollution in Ulaanbaatar where individual households cannot afford to connect to the city’s power grid. Improving access to services would help to upgrade these areas. Creating service hubs and promoting increased population density whilst simultaneously making services more affordable will improve the quality of life.

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Ger-areas in district-subcenter of Byankhoshu

 

In order to address these issues the Municipality of Ulaanbaatar (MUB) has requested the Asian Development Bank (ADB) to plan and finance a service and infrastructure provision strategy. This strategy is intended to increase population density and provide public utilities for the two ger district sub-centers of Byankhoshuu and Selbe.  It is hoped that a flow-on effect will be seen on service provision to the surrounding slums that continue to grow.

 

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Lack of access to infrastructure and services are remarkable in Ger-areas in Selbe sub-district

 

A major cause of the growth of slums in Ulaanbaatar is immigration to the city related to dzud – a concurrent natural disaster characterized by summer drought followed by particularly harsh winter with extremely low temperatures and heavy snow. The 2010 dzud affected an estimated 769,106 people (28% of total population) and has resulted in 8.4 million livestock deaths. Many were forced to move to the capital. Other factors include high poverty levels in rural areas, the inexperience of local institutions in dealing with urban issues, natural population growth and the Free Mobility Law. This law, approved by the Supreme Court in 2003, grants every Mongolian the right to freely own a plot of land in the capital.

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Formation of slums in the peri-urban areas of the city

 

However, there is reason to be optimistic about the potential success of the program. The political will exists, Ger-residents have expressed interest and there are business opportunities for the private sector at a time when the country is experiencing strong economic growth.

The challenges lie in how to implement the program, in particular how slum dwellers will participate in the development strategies. A balance needs to be sought between any benefits and costs of such a program.

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Despite construction industry is booming, building season is just five months in a year due to the harsh winter

 

One option is for residents to pay directly for their connections. This way they need only sacrifice a section of land for road and infrastructure developments of their individual sub-district. However, the monetary cost of such a method would be high, and it would be unlikely to be financially viable for residents. Each heating technical room costs between 15 to 25 Million MNT ($17K USD). A variant of this option is for neighborhood residents to group together to build townhouses and share the costs of connections, but this adds the challenge of financing the construction of the buildings.

 

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View of one family Khashaa in Selbe

 

An alternative is a land trading process, whereby residents trade a portion of their land to the private sector in exchange for financing of connection costs. The private sector will therefore redevelop the land – building residential or mix-use buildings to be sold on the open market.  However, implementation would be a complicated, long process, and might prove unattractive to the private sector and residents. Success would depend on how much land needs to be sacrificed for low to middle density residential construction.

A third option is community land pooling, where neighborhoods from 10 to 20 Khashaas give up the land owned in its entirety to be redeveloped into multi-use compounds including residential, commercial and social service facilities. The private sector would compensate landowners with a “purchasing credit” that can be used to buy an apartment in the new redeveloped area. This alternative is risky because it puts residents at a disadvantage by making them dependent on the private sector. The main advantage lies in the provision of more land for complete service hubs.

 

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Many Ger-areas have consolidated to more permanent houses but still lack of access to services

 

In any of the alternatives there are several questions that need to be addressed, such as how to work out the compensation system, and how to prevent land speculation and a rise in land prices after infrastructure provision. Gentrification of these areas could further marginalise the city’s poorest residents.

To address all these concerns a Sub-Center Redevelopment Agency (SRA) will be established to implement the investment program  in a fair, stable and efficient manner for both citizens and private sector interests. The SRA will have a key role in the implementation of the program along with MUB and ADB’s partners such as UN-HABITAT, which is currently working on community mapping and consultation to address citizens’ preferences.

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Community consultation in Byankhoshu sub-district

 

In Ulaanbaatar the private sector is ready to push forward with urban development, the national economy is booming due to rich mining resources, and the Mayor, Bat-Uul, has outlined a vision of creating urban corridors on the model of Los Angeles’ Wilshire Boulevard in the middle of the slums. Citizens need to be empowered to participate in the city’s upgrading and redevelopment strategy. Residents stand to gain through improved housing and quality of life, and lives will be saved from the harsh Mongolian winter. Perhaps Rob, my co-passenger from the flight in, would stand to benefit also by making a wiser choice and investing in the community.

Civil Society and Nongovernment Organization development in Brazil: can a powerful tradition shift to embrace new models of social business and investment?

By Gláucio Gomes, Institutional Development Manager for Atelié de Idéias, Brazil

 

Friendship Park in Vitoria, Brazil: Volunteers turn garbage into gardens under the program “Good Effort – Valuing the place where we live” conducted by Ateliê de Ideias, Community Forum – Bem Maior, and CISV International, with the support of the City of Victoria and other partners. Photo: Olga Saxén – CISV Finland.

Non-governmental Organizations (NGOs) in Brazil emerged from a distinct period in Brazilian history. Social movements developed as instruments to seek democracy, human and civil rights during the military dictatorship. These NGOs were born when the main focus of Brazilian society was on the big issues: freedom, free elections and free speech.

Most of the social movements came from the rural interior of the country, where land rights and basic social and political reforms were the main issues. Almost all of the local cells of those movements were born inside the Catholic Church, mobilized by community priests. As such, the origin of our non-profit and NGO sector was very politicized and religious. This sector is based on charity, following the principle that the government is a provider from which society must expect the absolute guarantee of all its rights, with no additional fee. The Brazilian constitution of 1988, which was built with the strong participation of social movements, accords with this view.

Organizations slowly formalize and receive funding from international sources.  Most of these social movements started to become formal organizations in the late 1980s and in the 1990s, when they needed to raise funds and hold contracts with foundations and governments.  In the 1990s, all the great militants and left-wing leaders, who were in social movements during the dictatorship period, started to work in NGOs and to help local communities to start their associations, cooperatives, etc. These militants and leaders were great intellectuals, artists, political minds, and community organizers, with the knowledge and skills to mobilize people. However, they were not managers, administrators, or practical leaders with the necessary skills to take care of organizational development and sustainability. Their organizations struggled with the many managerial tasks that international cooperation agencies required of them. In the early 1990s, nearly 95% of funding to non-profit and NGOs in Brazil came from international development aid agencies and foundations such as USAID, GTZ, Oxfam etc.

The public sector becomes a funder. Later in the decade, these international organizations and foundations began to reduce their funding to Brazilian non-profits.  The election of Luis Inácio Lula, our first leftist president (according to the Brazilian political thermometer), took the relationship between civil society organizations and government to another level. Federal and local governments filled the void left by international organizations, building strong partnerships with social movements and beginning to financially support non-profit and nongovernmental organizations. During the 2000s, about 50% of the money to civil society organizations came from governments (federal and local), 40% from international foundations and agencies, and 10% from the private sector.

Government funds enable NGOs to reach an entirely different scale. Now, a small organization from Pernambuco (a state in Northeast Brazil) can become the partner of a ministry or a local government and receive amounts in the order of US$ 250K to develop a social project in its community. That same organization, fundraising with companies and foundations (private sector) could raise, with a lot of difficulty, US$ 50K –but only if the organization had the communication skills to get approval in public selection processes to which more than a thousand other organizations also have applied. In the rural area of Pernambuco it is very hard to find a company willing to fund a local social project.

Independent or merely a conduit? Still, the challenge remains that resources coming through governmental programs have to be implemented using government methods, strategies and approaches. Essentially, those organizations are working as tools or operational means for government policies. We are now debating the main impacts of Lula’s administration. The political and economical relationship model with social movements produced a period of participative public policies, however it has installed some managerial vicious cycles, which threaten the sustainability of these very social organizations. Currently, the problem is that civil society organizations lack the skills in order to develop as sustainable organizations capable of functioning in the “real world”.

The future: moving toward a new model of social business? Prior to the election of Lula, in São Paulo, Brazilian companies had begun to think about social accountability and social investment. However, since Lula’s presidency, no significant private sector participation with social and nongovernmental sector has occurred.

We at Ateliê de Ideias have a different relationship between social organizations and communities/society. Most social organizations are outraged by the idea of building business relationships with communities, embracing self sustaining practices instead of charity, private sector participation in social programs.  Communities are also not prepared to be approached in that way by social organizations, yet. What social investors who want to work in Brazil must know is that there is a previous step – education –   to build the foundations of a new sustainable development model that is in accordance with our political culture and social history. There is place, opportunity and real need for change in this culture.

Gláucio Gomes is a strategic planner for Ateliê de Ideias in Brazil, a social organization producing solutions for urban and local development. Among its many services, Ateliê de Ideias provides access to finance and housing for the citizens of Vitória in Southeastern Brazil. Their flagship program is Bem Morar, an integrated package of services to promote access of low-income families to sustainable and affordable houses.