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INNOVATION IN HOUSING CO-OPERATIVE FRAMEWORK MODEL: A SIGNIFICANT TOOL IN ACHIEVING SUSTAINABLE MASS HOUSING IN
NIGERIA
Presentation TemplateByHabeeb ShuaeebBuilt Ability in Nigeria (BAIN) Limited.Lagos.
[email protected]; [email protected].
National Housing Summit, Shehu Yardua Center, Abuja.2nd – 4th June 2014
Twitter:@BAINltd
Table of Content Thought Starter
Overview of Housing Co-operatives in Nigeria
Collaborative Partnership in Delivering Mass Housing
Integrating Framework Models for Mass Housing Delivery
Benefits and Constrains of Housing Co-operative Societies in Nigeria
Proposed Collaborative Co-operative Housing Model (CCHM) for Sustainable Mass Housing in Nigeria
Guidelines for Effective Integration of CCHM
Roles and Limitations of Federal, State and Local Governments
Recommendations
Conclusion
2
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Thought Starter
The huge housing deficit of over 17 million homes and the demand for affordable and quality shelter across Nigeria particularly
amongst the middle-income and low-income earners is posing a great risk not just to the
health of the majority but to the socio-economic equilibrium of mainly the urban and
sub-urban settlers in the Country.
3
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Overview of Housing Co-operatives in Nigeria
Definition of Housing“Housing is defined as an instrument for political
stability, economic prosperity, social welfare and household well-being and an economic, physical product – which requires various parallel and consecutive processes, services, suitable resources and relevant systems in order to create and maintain quality, sustainable living environments for human beings.”
Source: Van Wyk, 2009 4
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Cont…
Definition of Housing Co-operative
“Housing cooperatives is defined as a legally incorporated Group of persons, generally of limited means and democratically organized, pursuing the same cause of meeting the common need of housing.”
Source: Akinwunmi et al, 2012 5
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Cont….
Classification of Housing Co-operatives
– House Building Societies– House Mortgage Societies– Tenant Co-partnership Housing– Tenant-Ownership Housing Societies
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Cont….
Statistical Data on Housing – Current Housing Deficit: 17 Million
– Recent Estimated Housing Stock of 23 per 1000 inhabitants
Data Showing Estimated housing deficit from 1993 -2014
Year Housing Deficit Population Cause
1993 4 million 104 million Mortgage Inefficiency
2007 8-10 million 145 million Slum demolition and Urban migration
2013 - Date
16-17 million 168 million Overpopulation, Urban Expansion and Increased Poverty
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Cont….
Diagram of Cooperative Housing Society
Source: Yuri Artibise, 2013 8
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Collaborative Partnership in Delivering Mass Housing
Definition:Collaborative partnership in housing delivery
is referred to as the pooling together of resources from various stakeholders, emphasizing on individuals input towards minimizing waste of limited resources and maximizing results achieved.
9
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Cont….
Collaborative Partnership for Mass Housing Delivery in Nigeria Mostly Comprise of:– Federal and State Governments
– Finance Institutions
– Private Commercial Housing Developers
– Primary Mortgage Institutions
– Commercial Banks
10
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Integrating Framework Models for Mass Housing Delivery
Framework Models are developed to suit mass housing.Mass housing models are suitable for socio-economic
situations and geo-climatic condition.Countries that are successful at integrating mass
housing models includes:– Canada
– United States of America
– South Africa
– Poland
– Germany
– India
11
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Cont…
Typical Institutional Framework for PPP housing delivery in Nigeria
Example of Framework Model
Source: Ibem 2010 12
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Benefits and Constrains of Housing Cooperatives in Nigeria
13
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Proposed Collaborative Cooperative Housing Model for Sustainable Mass Housing in Nigeria
Source: BAIN Limited Research, 2014 14
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Cont…
Components of CCHM– Property Developers
– Research Institute/Local Building Materials Manufacturer
– Professional Bodies
– Financial Institutions
– Public Institution
– Statutory Monitory Establishments
– Programme Driver
– Cooperative Housing Societies
15
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Guidelines for Effective Integration of CCHM
Key Players:– Effective Price Control Mechanism
– Quality resource and material control systems
– Non-interference clauses in cooperative operations
– Quality project management system
– Interaction between operators within the CCHM
– Clearly defined roles and limitations for key players
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Cont…
Cooperative Housing Societies– Membership constitution
– Clearly defined member’s contribution, conditions for and allowable means of change
– Democratic system of governance
– Stiff penalty for defaulters
– Equal opportunity to members
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Cont….Financial Disbursement
– Financial background check for beneficiaries
– Minimum contribution towards the National Housing Programme or 20-25% down payment of the total housing cost
– Membership of a housing cooperative society for a minimum period of time (i.e. 3years)
– Housing cooperative societies should be registered for a minimum period of time (i.e. 5years) to qualify for participation
– Compliance with listed requirements to access funds, e.g. provision of Guarantee for all members accessing the fund
18
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Cont…
Public Institutions– Monitoring and supervisory mechanism
– Sufficient comprehension of cooperative legislation
– Non-interference or influence in housing delivery process
– Provision of database on housing cooperatives
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Cont…
Housing Cooperative Legislation– Obligation and rights of members
– Simplified housing cooperative structures
– Dispute settlement and dissolution of contracts
– Legislative procedure for securing finance executing housing projects
– Dissemination of housing cooperative law
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Roles and Limitation of Federal, State and Local Governments
Roles:– Provision of motivational structure
– Creation of platform to check misapplication of funds
– Provision of improved infrastructural facilities
– Continuous awareness program amongst stakeholders on the benefits of CCHM
– Encouraging research institutes in developing alternative and innovative building products and processes
– Establishment of database to monitor the performance and projection of CCHM in each region of the country
– Provision of Legal framework, approval and certification of guidelines for all building processes and components
21
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Cont…
Limitations:– Limited participation of non-housing cooperative members
– Equity financial contribution by the Government for mass housing development
– Limited control over the cooperative housing members
– Population-based ratio distribution of houses within a region
– Limitation in housing ownership by Government officials
– Adherence to mass housing distribution model
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Recommendations
Government should recognize the significance of CCHM as a key tool in implementing mass housing delivery
Critical review of roles to be played by both Federal and State Governments to ensure equilibrium in the integration and implementation of this framework model for mass housing delivery in Nigeria
Housing cooperatives should strengthen their membership connections within Local and State Governments in order to achieve desired housing delivery goal
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Cont…
Federal and State Governments should exhibit their commitment through the provision of housing incentives, such as subsidy for housing cooperatives, improved infrastructural facilities, tax rebate for mass housing developers.
Funds should be set-aside by both Federal and State Governments to encourage research institutes and local building material producers in manufacturing alternative but durable and cost-effective building materials to reduce dependence on imported equivalents; and thereby strengthen the Nigeria’s economy
Federal and State Governments should source for accessible funds with lower interest rate through Bonds and PFIs.
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Conclusions
The proposed framework which has its focus on housing cooperatives with an independent Special
Purpose Vehicle (SPV) administrator and some adapted stakeholders is vital in achieving a cost-
effective, quality and timely delivery of housing in urban, sub-urban and rural areas of Nigeria, if
properly implemented.
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