Financing urban shelter : global report on human settlements, 2005 / United Nations Human Settlements Programme.

Format:

Book

Contributor:

United Nations Human Settlements Programme.

Language:

English

Subjects (All):

Urbanization--Economic aspects.

Urbanization.

Housing--Finance.

Housing.

Urban policy.

Housing policy.

Human settlements.

Sustainable development.

Physical Description:

xlix, 246 pages : color illustrations ; 31 cm

Other Title:

Global report on human settlements, 2005

Place of Publication:

London ; Sterling, VA : Earthscan, 2005.

Summary:

Rapid urbanization and increasing poverty are among the greatest challenges facing humankind in the new millennium. The world's urban population is projected to increase from 48 percent of the total world population in 2001 to 60 percent in 2030.

Contents:

Key Issues, Findings and Messages xxiii

MDG Special Feature: Financing the Target on Slums xxvii

Part I Economic and Urban Development Context

1 Challenges of Sustainable Shelter Development in Macroeconomic Context 3

Understanding Urban Shelter Development Challenges 3

Demographic framework 3

Translating demographic growth into the demand for housing and infrastructure 4

Socio-behavioural framework 5

Economic framework 5

Environmental framework 7

Financial framework 7

International development aid 7

Foreign direct investment 8

National public investment in shelter 8

Valuing urban assets 8

Governance framework 9

Mobilizing finance: removing constraints and reducing risks 9

Addressing shelter and infrastructure standards 9

Constraints to mobilizing resources 10

Risks to providers of finance for low-income households 10

The Macroeconomic Context of Urban Shelter Development 10

Patterns of economic growth 10

Sectoral performance and productivity 11

Income distribution and inequality 11

Poverty and employment 12

Savings 13

External debt 13

Patterns of investment 14

Foreign investment 14

Public investment 15

Private investment 15

The impact of external factors on macroeconomic performance 17

The urbanization of national economies 17

2 Shelter Policy and Finance: Retrospective Overview 19

Context to International Thoughts on Financing for Urban Development 19

Trends in Shelter and Municipal Finance Development: 1972-2004 21

Between 1972 and 1982: Habitat I 21

The project approach 21

Self-help 21

Who took part in and benefited from the projects? 22

Towards financial sustainability: the 1980s 23

Structural adjustment: towards macroeconomic orthodoxy 24

The birth of the enabling strategy: the mid 1980s 25

Sustainability and the Brown agenda 25

Whole-sector development: 1987 onwards 26

The Global Strategy for Shelter 26

Focus on building institutional capacity to develop housing and urban services 27

Finance capital in development 28

Globalization of Finance 29

The New Millennium: Policies and Organizations in Shelter and Urban Development 30

The Habitat Agenda 30

Reaching the lowest income groups: community-based finance 30

The right to housing 30

3 Financing Urban Development 34

Municipal Finance and Urban Development: The Main Issues 34

National Municipal Finance Systems 35

Sources of Municipal Finance 37

Transfers 37

Taxes on property and businesses 38

User fees 39

Betterment taxes and development exactions 40

Borrowing 40

Short-term borrowing 41

Credit enhancement, access to financial institutions and capital markets 41

Income-generating enterprises 42

Municipal development funds 42

Municipal Spending Patterns 43

Local government budgeting 43

Participatory budgeting 44

Multi-year capital budgeting 44

Lack of funds for maintaining existing assets 44

Managing municipal expenditures 45

Accountability and transparency 45

Privatization of Municipal Services 47

Challenges of privatizing urban services 47

Joint funding of infrastructure and urban services 48

Joint funding of community-based initiatives for the delivery of basic services 48

New trends in partnerships for local development 48

Summing Up: Assessing the Effectiveness and Impacts of Municipal Finance Systems 49

Municipal finance and sustainable urban development 49

Municipal finance and the delivery of land and services 49

Impact of decentralization upon municipal finance and service delivery 50

Impact of privatization upon municipal finance and service delivery 51

Part II Shelter Finance: Assessment of Trends

4 Mortgage Finance: Institutions and Mechanisms 55

Cost of houses and need for mortgage finance 55

Mortgage finance and poverty 55

Recent Trends 56

General trends related to providers 56

Sources of finance 58

Strengthening secondary markets 59

State support for housing finance 61

Direct construction and loans 62

Taxation-related incentives 63

Interest rate subsidies 63

Securing stability: insurance and guarantees 64

Regional Analysis 65

The North 66

Transition countries 67

The South 69

Asia 71

Latin America 74

Sub-Saharan Africa 75

Terms and Conditions 76

Loan periods and loan-to-value ratios (LTVs): accessing loans 76

Savings 77

Interest rates 78

Housing Finance, Affordability and Lower Income Households 79

The price of housing 79

The cost of housing - and the response of supply to increased demand 80

The implications for homeownership for the young 80

More general problems of affordability 81

The continuing problem of informality 83

Assessing systemic risks 84

5 Financing for Social and Rental Housing 87

Conditions and Trends 88

State rental housing in the North 88

State rental housing in transition countries 90

Rental housing in the South 91

Social housing and homeownership 91

Challenges 95

Poor location due to market choice and financial shortage 96

6 Small Loans: Shelter Microfinance 98

Small Loan Challenges 98

Incremental development 99

Access to financial services 99

Microfinance: what is it? 101

The Growth of Microfinance for Shelter 102

Links to formal financial agencies 104

The microfinance institution (MFI) experience: enterprise to housing loans 105

Reasons for expansion of MFIs into housing 106

Neighbourhood improvement (slum upgrading) 106

Land development 108

Other Providers and Sources of Finance 109

Sources of capital finance 112

Shelter microfinance and subsidies 113

Terms and Conditions 113

Savings 114

Collateral and security 114

Interest rates 115

Loan periods 115

Technical assistance 115

Orientation towards women 116

Income generation 116

Foreseen Challenges 117

Affordability 117

Securing capital 117

7 Community Funds 120

What Are Community Funds? 120

Trends 122

Funding Sources 126

Terms and Conditions 129

Strengthening collective capacity: savings 129

Interest rates 130

Collateral and security 131

Loan periods 132

Technical assistance 132

Income generation 133

Challenges 133

Long-term strategies for continued viability 133

The challenge of inclusion 134

Part III Towards Sustainable Shelter Finance Systems

8 Assessing Shelter Finance Systems 139

Affordability and the Difficulties of Reaching the Poor 140

The role of finance: relationship-building 142

The Role of Mortgage Finance: Access to Capital and the Lack of Loan Finance 142

The Bigger Picture and What the Market Cannot Manage 143

Financial risks 144

The need for local organization 144

The issue of urban development 144

Connections and Diversity within Globalization 145

No global financial flows in housing 145

9 Policy Directions Towards Sustainable Urban Shelter Finance Systems 147

Towards Inclusive Urban Infrastructure and Services 148

Financing for municipalities and service providers 148

Public-sector inadequacy to the task 148

Balancing local, provincial and national financing 148

Importance of a municipal capital financing fund 149

Debt swaps 149

Betterment levies 149

Improving tax collection 149

Strengthening property tax systems 149

Adjusting charges for local services 150

Improving maintenance to reduce expenditure 150

Private finance 150

Improving the efficiency of resource use 150

Multi-year programmes and budgets 150

Participatory budgeting 150

Government as creditor of local authorities and service providers 150

Eliminating corruption 151

Reducing the cost of urban services 151

Enhancing households' willingness and ability to pay 151

Income and employment 151

Reducing transaction costs 151

Strengthening the Sustainability and Performance of Shelter Finance Systems 152

Reducing housing costs 152

Enabling household

decision-making through more effective policy 152

Addressing the need for rental accommodation 152

Contractor financing 153

Development of 'developers' 153

Reducing financing constraints and risks 153

Financing informal development 153

Savings and debt 153

Improving the accessibility of mortgage finance 154

Terms of housing loans 155

The price of housing 155

Recognizing the need for incremental loans 156

Lending based on the idea of housing as a productive good 156

Enhancing pro-poor formal housing finance systems 156

Subsidies 156

Social housing 157

Incentives for investment in low-income rental housing 158

Small loans and housing microfinance 159

The issue of default among low-income borrowers 160

Guarantees 160

Widening the scope of housing microfinance 160

Credit for building materials 160

Remittances 160

The role of charity in low-income housing 161

Strengthening community-based funding mechanisms 161

Epilogue: Towards Sustainable Urban Shelter 163

First Element: Abating Housing Costs 165

Capital 165

Land 166

Infrastructure and land-use planning 166

Building materials 166

Standards 166

Design 167

Location 167

Modes of production and delivery 167

Second Element: Increasing Purchasing Power 168

Synergizing the Two: Lower Housing Prices and Higher Incomes 169

Capital 169

Infrastructure and land-use planning 170

Building materials and standards 170

Design 170

Modes of production 170

Formulating and Implementing Urban Shelter Policies: Sheltering the Poor from 'Market Poaching' 170

'High-end poaching' in attractive urban locations 170

'Residential poaching' in the urban periphery 171

'Mortgage finance poaching' 171

Political commitment and policy reform as the key to sustainable shelter 171

Local engagement in the pursuit of the Millennium Development Goals (MDGs): the Millennium Towns and Cities Campaign 172

Part IV Statistical Annex

Explanation of Symbols 177

Country Groupings and Statistical Aggregates 177

World major groupings 177

United Nations Regional Groups 177

Countries in the Human Development aggregates 178

Countries in the income aggregates 178

Sub-regional aggregates 179

Nomenclature and Order of Presentation 179

Definition of Statistical Terms 180

Data Tables 186

Regional Aggregates 186

A.1 Demographic indicators 186

A.2 Shelter indicators 187

A.3 Social indicators 188

Country-Level Data 189

B.1 Urbanization, urban population and urban slum dwellers 189

B.2 Total and rural population size and rate of change 192

B.3 Households: Total number and rate of change 195

B.4 Household's consumption indicators 197

B.5 Environmental infrastructure 199

B.6 Basic economic indicators 202

B.7 Investment in infrastructure and foreign direct investment 204

B.8 Energy and transport infrastructure 207

B.9 Social indicators 209

City-Level Data 212

C.1 Urban agglomerations: Population size and rate of change 212

C.2 Housing and basic services, selected cities 218

C.3 Urban transport and environment, selected cities 221

C.4 Social indicators, selected cities 224.

Notes:

"UN-HABITAT."

Includes bibliographical references (pages [228]-241) and index.

ISBN:

1844072118

9781844072118

184407210X

9781844072101

9211317398

9789211317398

9211317401

9789211317404

OCLC:

60189575