Transcript Slide 1

new National
Housingand
Action
AchievingThailand’s
Land Tenure
Security
Upgrading
Of urban Poor Communities
Of Urban Poor Communities
Achieving Land Tenure Security and Upgrading
Of urban
Poor Communities
At City-Wide
Scale
At City-Wide Scale
Through Community-Driven
and City
At City-Wide
ScalePartnership Approach
Through Community-Driven and City Partnership Approach
Through Community-Driven and City Partnership Approach
COMMUNITY ORGANIZATIONS
DEVELOPMENT INSTITUTE
(CODI)
THAILAND
History
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In 1992, the Thai Government established the Urban
Community Development Office (UCDO) to address
the problem of urban poor communities. UCDO was
set up as a unit attached to the National Housing
Authority of Thailand.
The Government also granted THB 1250 mln.as
Community Development Fund to support urban
community development activities and provide lowinterest loans to community organizations.
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In 2000,a Royal Decree was enacted to merge
UCDO with Rural Development Fund (a fund
managed by the National Economic and Social
Development Board) to create a new
organization called the Community
Organizations Development Institute or CODI.
CREATION OF CODI
URBAN COMMUNITY
DEVELOPMENT OFFICE
(UCDO)
USD 61.62 m.
(THB2,156.69 m.)
CODI
USD82.85 m.
(THB2,899.73 m.)
RURAL
DEVELOPMENT FUND
(RDF)
USD 21.23 m.
(THB743.04 m.)
Thailand City-Wide Slum Upgrading
In 2004 Thai Government announced
new policy of one million houses for
urban poor all over Thai cities in 5 years
with 2 approaches :
1. Constructing of new
low- income housing by NHA
2. Slum upgrading by CODI
CODI receives budget from central
government then passes the budget directly
to communities according to the consent
of city development partners especially
Local Authority and community network
in each city.
CODI set 5-year target for slum upgrading
in 200 Thai cities covering 2,000 slum
communities.
The new paradigm shift
For housing development by people
in action
1. Community organizations are the owners of projects / main actors
(surveying, planning, designing, savings / management)
2. Change from supply driven to “Demand Driven by communities”
3. Change the approach from construction management to flexible financial
management allowing community and local partners to work together
4. Urban land reform for urban poor housing by land survey and community
negotiation
5. holistic upgrading process to build strong and secured community
organization and managerial capacity as a collective group for integrated
physical, economic and social improvement
6. City-wide development process covering all communities in the city
City-wide upgrading involving many possible city development actors and
find various secured housing solutions for all communities in the city
On-site
Upgrading
Community
Row-house
Community
Land-sharing&
reconstruction
Flat
Detach house
Municipality
City-widesurvey /
joint planning,
search forsolutions
together
Find various
solutions suitable
for all communities
in city
Reblocking &
readjustment
Flat
Other
dev.agencies
Resettlements่
Row-housing
Mixed approach
Process of Baan
Mankong
Baan Mankong City-Wide Planning
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Identify stakeholders
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Organize network meetings, as well as meetings in
individual communities
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Community members, local politicians and bureaucrats,
NGOs, academics, and community organizers
Begin brainstorming and planning process of pro-poor
solutions for housing and land issues
Establish joint committee to oversee implementation
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Survey all communities
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Develop housing, land tenure and policy plan for whole
city
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Identify problems in individual areas and create holistic plan
that allows communities to work together to overcome
collective challenges
Negotiate with local or government landowners through
collective bargaining
Begin work with individual communities on concrete
plans
Slums and Squatter Settlements in Nakornsawan
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Select Community Working Team
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7-10 representatives from the community to manage
each aspect of the upgrading process
Survey Community
Leadership team manages survey process
 Collect information about land, housing, physical
infrastructure, income, employment, problems, and
existing development initiatives
 The survey allows the community members to meet,
learn about each other’s problems and establish links
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Planning Phase
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Recheck all Information
Community members and CODI work together to
go through all information and begin planning
solutions
 Conceptualize housing and development goals (i.e.
will it involve reblocking or relocation? Will they
purchase or rent?)
 Identify land owner and begin negotiation process
for long term lease or purchase
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Formulate Budget
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Estimate budget for all land, housing and construction costs
Resolve conflicts resulting from wealth disparities between
community members
Create financing plan. Decide if community members will
take on loan from CODI or self-finance the project
Meet with all Stakeholders
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Organize meeting with all stakeholders to discuss plans
Involve local government unit, academics, NGOs, etc
Implementation Phase
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Detailed Development Plan
Work with engineers and architects to design
housing and infrastructure
 Include options for house size and cost in order to
accommodate wealth discrepancies between
community members
 Identify ways to mitigate costs, including recycling
old building materials and hiring local community
members for construction, instead of hiring
contractors
 Present plan to CODI for approval
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Disburse Loan and Subsidy
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Loan
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Subsidy
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Loan must be approved by local committee before being sent to
CODI
CODI loan committee approves loans individually on a monthly basis
CODI passes on government subsidies for infrastructure
development and administrative costs
Infrastructure subsidy ranges from 25,000 – 45,000 THB
Begin Construction
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Loan installments are disbursed based on completion of
construction phases
Community Survey
all communities in districts and city
Community survey of all households
In the community and all communities in the city
carried out by community people
การ
Participatory planning process
Baan Mankong:
Financial Aspect
Providing Flexible Financial Support
for City-wide Upgrading by Communities
Grant
1)
Upgrading of infrastructure and social
facilities
2)
Local management cost
3)
Support for exchange visits, capacity
building, seminars, coordinator
Members
Loans
From CODI
Revolving Fund
Interest 4 %
Communities
Members
Members
Government
Subsidy
Banks
Source of Financing
Three components of BMK financing:
 Local communities’ own savings (10% of project
cost)
 Government subsidy-THB80,000(~USD2,460)
per family
 Housing loan from CODI
CODI loan
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Loan type:
Term loan
Maturity: Up to 15 years
Interest rate: Fixed at 4% p.a.
Maximum loan amount: not exceeding THB
300,000 (~USD9,230) per household
Loan portion: CODI will finance up to 90% of
the project cost.
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Loan Security: 1)Land and buildings are
mortgaged with CODI
2)Bank deposit of 5-10% of
project cost (optional)
3)A guarantee agreement
signed by chairman, committee and all members
of the community organization.
Re-lending to members
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The borrower will on-lend the fund to individual
household by adding a margin of 2-3% to the
interest cost.
The margin is set aside for the purpose of loan
administration, community welfare and serves as
a cushion for loan repayment in case any
member fails to meet his or her obligation in any
particular month.
Baan Mankong
Housing Loans (as of Mar 2010)
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Total approval
Disbursement
Repayment
Outstanding
Beneficiaries
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No. of communities
No. of households
THBmm. (USDmm.)
3,244 (99)
2,197 (67)
382 (12)
1,815 (56)
758
20,478
Sample Case:
Narai-pitak Mankong
Housing Co-op
Phase I
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In 2005, Sakolnakorn Municipality and CODI
jointly conducted city-wide slum survey.
Upgrading plan was consequently agreed by all
stakeholders. The 1st phase targeted the most
urgent cases of about 91 families.
Savings group was formed in 2006 and in 2007
was transformed into a housing cooperative.
CODI granted loans in 2007 totaling USD
527,118.
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Community savings: USD 85,925
Government subsidy: USD 190,400
CODI loan: USD 527,118, about one-third of
which was for land purchase and remaining for
housing construction.
Loan tenure: 15 years
Interest rate payable to CODI: 4% p.a.
Interest rate charged by co-op: 6% p.a.
Project progress
Of 91 houses, 87 are CODIfinanced, construction has
been completed; 4 are selffinanced, one is completed.
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Monthly family income: USD 154-461
Monthly repayment per family: USD 52-65
As of now, USD 61,015 of CODI loan has been repaid.
Community also has a plan for community welfare.
Each family is required to contribute about USD 0.03 a
day for welfare such as healthcare, childbirth, elderly
support, funerals etc.
In March 2010, CODI approved another loan of USD
804,215 for the 2nd phase to build houses for 120
families.
Bang Bua Community
From canal-side slum to pleasant
community
SAMAKKI RUAMJAI
COMMUNITY
BEFORE
AFTER
BANGBUA : BANGKHEN
Baan Mankong
Performance
Project Progress : From Jan. 2004 to Feb. 2010
Project Progress
1.Total number of projects approved
Number
811 projects
2.Total number of cities/districts
operated
268 cities/districts
76 province
3.Covering no.of communities
1,475 communities
4.Total number of families
5.Total budget approved :
-Grant for Upgrading
-Loans for Housing
88,392 families
3,856 mil. Baht
(USD 118.6)
3,156 mil. Baht
(USD 97)
Type of upgrading
Nearby Relocation
9,468 families
(10.71%)
Relocation
21,170 families
(23.95%)
Shelter House for Homeless
273 families
(0.31%)
Upgrading/Reconstruction
57,481 families
(65.03%)
Upgrading & Reconstruction
Relocation
Nearby Relocation
Shelter House for Homeless
Status of Land Tenure Security Improvement
Permission to use land
(11,220 families)
12.69 %
Cooperative ownership
(31,366 families)
35.49 %
Short – term lease
(7,660 families)
8.67 %
43.16 %
Long – term lease
(38,146 families)