City-Wide Community Upgrading

8/3/2019 City-Wide Community Upgrading

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City-wide community upgrading

in Thailand and Asia

Presentation at the

World Bank06/12/11


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Problems with supply driven approach does not

match with demand side the targetted

urban poor

Rethinking How to make the demand side

Become main actors and drivers at the

realistic scale of the problems with supportfrom more friendly, efficient and accessiblefinance


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Differences of supply-driven and

demand-driven approachesSupply-Driven

Government or developersplan and implement

and select or sale to buyers Govt. or developers control

finance and implementationprocess

Beneficiaries or buyers buyand own housing unitsindividually

Maintenance by hiredcompanies

Demand-Driven

Urban poor communities orneeded people plan and

implement together Community implement

process and manage theirfinance

Community own and manage

the units and the projectstogether or collectivelytogether with social andeconomic self development

Maintenance by community


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In 2003 Thai Government announcednew policy of one million houses forurban 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

ThailandThailand CityCity--WideWideSlumSlum UpgradingUpgrading


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CODI receives budget from centralgovernment then pass the budgetdirectly to communities according tothe consent of city developmentpartners especially Local Authority andcommunity network in each city.

CODI target 5 years slum upgradingachieving city without slums programin 200 Thai cities covering 2,000 slumcommunities.


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Community Organizations Development Institute

- A Public organization under Ministry of Social Development

and Human Security (It was semi-independent unit underNHA from 1992-2000)

- Managing Community Development Fund for urban and ruralcommunities

- started with 40 millionU

S$ as revolving fund in 1992 asUCDO

- merging with rural fund to be CODI in 2000 having totalabout 90 US$ million

- Government grant 100 US$ million more as revolving fundloan for housing development in 2010

- recieveing government budget and subsidies each year forupgrading and other community projects such as welfare,environment, community strengthening, disasters, etc.,.


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CDF.

Community

Development Fund

1. Conventional govt, Fiscal budget,top-down system.

dep.

Indi.

2. NGOs Service delivery.

Donors

NGOs

proj.

proj.

Com.

3. Private sectorbanking system.

BankCompany.

Individual.

Conditions of

first world.

Market.

Community Organization DevelopmentCommunity Organization Development InstituteInstitute

min.


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The new paradigm shiftThe new paradigm shift

ForFor housinghousing development by peopledevelopment by people

in actionin action11. Community organizations are the. Community organizations are the ownersowners of projectsof projects

22.. Change from supply driven toChange from supply driven to Demand Driven by communitiesDemand Driven by communities

3.3. ChangeChange the approach from construction management tothe approach from construction management to flexible financialflexible financial

managementmanagementallowing community and local partners to workallowing community and local partners to work togethertogether

4.4. Urban land reformUrban land reform for urban poor housing by land survey and communityfor urban poor housing by land survey and community

negotiationnegotiation

55.. holistic upgrading processholistic upgrading processto buildto buildstrong and secured communitystrong and secured community

organization and managerial capacity as aorganization and managerial capacity as a collectivecollective group for integratedgroup for integrated

physical, economic and social improvementphysical, economic and social improvement

66.. CityCity--widewide development process covering all communities in the citydevelopment process covering all communities in the city


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Community Surveyall communitiesin districts and city

Community survey of all households

In the community and city carried out bycommunity people


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Community Saving ActivitiesCommunity Saving ActivitiesSaving people, saving money, saving group managerial capacitySaving people, saving money, saving group managerial capacity

And building community financial systemAnd building community financial system

for long term sustainable community and housing developmentfor long term sustainable community and housing development


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CityCity--wide Survey in Samutprakarn Provincewide Survey in Samutprakarn Province


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Bang Proang : Household SurveyBang Proang : Household Survey


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14

Community planning process


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...........


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Working Together,build togetherThe actual price will be reduced

half the normal construction cost

and gaining social capital


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City-wideupgradinginvolvingmanypossible city development actors andfind varioussecured housingsolutions forall communitiesinthe city

City-widesurvey /jointplanning,

search forsolutionstogether

Find varioussolutionssuitable

forall communitiesin city

Community

Municipality

Community

Otherdev.agencies

On-site

Upgrading

Land-sharing&reconstruction

Reblocking&readjustment

Resettlements

Row-house

Flat

Detachhouse

Row-housing

Flat

Mixed approach


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Project Mechanism

CODI

Ministry ofSocial Development

AndHuman Security

Com.

Com.

Com.

Com.

Com.

Local

Authorities GovernmentAcademics

NGOs

Others

Community

DevelopmentCommittee

CommunityNetwork


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Project opening ceremonyProject opening ceremony

Charoenchai Nimitmai Reblocking Upgrading CommunityCharoenchai Nimitmai Reblocking Upgrading Community

Location :Location : BangkokBangkok

Land Owner :Land Owner : CooperativeCooperative

Situation :Situation : EvictionEviction

Area size :Area size : 00..77 ha.ha.No. of Units :No. of Units : 8181

improvement :improvement : ReblockingReblocking

Size :Size : 4040--100100 mm

Repayment :Repayment : 11,,100100--22,,000000 baht (baht (2727--

5050 U$) per monthU$) per month

Before UpgradingBefore Upgrading After UpgradingAfter Upgrading

22


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BeforeBefore AfterAfter

Ruam Samakki : Community Plan


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Everyhousehasitsownwatertreatmentand children/youthparticipation

inwatercleanup


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Community Welfare ActivitiesCommunity Welfare Activities


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CityEvent forMOU SigningonCityWide SlumUpgrading AgreementCityEvent forMOU SigningonCityWide SlumUpgrading AgreementParticipating by all Development ActorsinUdonthaniCityParticipating by all Development ActorsinUdonthaniCity

And TheUpgradingMarch Acrossthe cityparticipated by communitiesinAnd TheUpgradingMarch Acrossthe cityparticipated by communitiesin 1010 citiescities


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subgroup subgroup subgroupsubgroup

BonkaiCommunityCreditUnionBonkaiCommunityCreditUnion

subgroupssubgroupsGroupGroupguaranteeguaranteeHelpeachotherHelpeachotherCollectrepaymentCollectrepayment

SubgroupmanagementSubgroupmanagementSubgroupsaving fundSubgroupsaving fundDailysavings collectionDailysavings collectionMonthlymeetingMonthlymeetingHelpmemberswho canHelpmemberswho cantpaytpay

Interest 4%

CODI

Community Cooperatives

on lend to membersat 5-6 % interest using

margin for community

development,

management and welfare

Wholesale loan fromCODIto communityWholesale loan fromCODIto communitycooperatives andcooperatives and

DevelopmentofsubDevelopmentofsub--groupsinnew com.groupsinnew com.

managementmanagement


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ProvidingFlexibleFinancial SupportProvidingFlexibleFinancial Support

forCityforCity--wideUpgrading byCommunitieswideUpgrading byCommunities

Grant2,600$

perfamily

1 UpgradingofInfrastructure and SocialFacilities about 1,000 $/ fa. x No. ofFamilies

2 5% of 1) forCommunity and Local Management

4 Support forCommunityExchange,CapacityBuilding, Seminars,Coordination

Loans4-5000$/unit

FromCODI

RevolvingFund 80 Mil.$

(grant fromGovernment)

CommunityOrganization(cooperatives)

3. Directhousingsubsidy 570 $ perunit

Banks

4 % Members

Members

Members

1

26-7%


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Building new secured community

Collective landownership, or lease Community savings and fund(acting as

community bank)

W

elfare activities:

scholarship, children, youth,elderly, sick and advantaged, dead

Active linking with community network and cityorganizations and regular meeting

Collective management Active citizen, closer or regular link with local

authority


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Some Achievement and Impact :

Community upgrading and housing development

850 projects in 270 cities total 92,000 families Community organizations and networks in more

than 300 cities with information and partnershipwith cities

City Development Fund as alternative communityfinance organize in 205 cities with welfare funds,income generation, insurance and housingdevelopment

Change in the regulation, lower standard,attitudes from policy, land owners, cities and thepublic


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CommunitysCityDevelopmentFundCommunitysCityDevelopmentFund

Total fund

29,000,000

Community4% 18,021 baht/month Benefits

1% 4,505 baht/month

Support fund

2% 9,011baht/month

Condition At present, the saving by 15 communities is 21,000,000 bath but there is nonetworking system. So, the mutual fund is established to support each other.

-There is system of assurance at all level; from the sub groups to local community and

from the community to the city network.

-There is social welfare for members (birth / death), by collecting one bath per day from the

members. There is also this welfare saving collected from community to the Bangkhen

district network.-Collective community maintenance budget: 0.50 baht/ square wah ,0.50 baht for district

Network/Cooperative

8,007,000

ACCAFund1,000,000

networking450,000

Local contributions

(Dam/Local library/Nursery center)

Housing fund

Welfare/Livelihood

Environment

Management

1% 4,505 baht/month


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Upgrading &Reconstruction Nearby Relocation

Relocation Shelter House for Homeless

Type of upgrading

Nearby Relocation

4,418 families(10.76%)

Relocation

8,436 families(20.55%)

Upgrading/Reconstruction27,798 families

(67.73%)

Shelter House for Homeless

393 families(0.96%)


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Permissionto use land Short termsecurity

Statusof Land Tenure SecurityImprovement

Permission to use land4,302 families

(10.48%)

Long term tenure security 18,598 families (45.31%)

Short term security2,762 families

(6.73%)

Cooperative ownership15,383 families(37.48%)


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Urban poor housing development is an

investment, not only social expensesInput : Government subsidy 2,000 $

Loan for land/housing average 4,500 $ ( to be repaid)

Community contribution 500 $

O

ther contribution 500sTotal investment 7,500 $ (govt. less than 30%)

Output : For urban poor family1. Economic Assets for the urban poor family more than 15,000 USD

2. Legitimacy,and security

3. Healthy environment

4. Community asset : Community organization ,welfare , better socialcohesion

5. Political assetof active community network and participation


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Government paid 2,000 $ per family

will get more return by

Vat 7% of 7,500 = 525 $

Land lease, property tax = 500 $

Tax, fees,income tax, etc. = 500 $

Other contribution, indirect

gain from other relevant economic activities

Reduce expenses on health, otherpoverty programs

Healthy and more active citizen and community

Documents

City-Wide Community Upgrading