WhyHousing..?

The Significance OfHousing Investment

As a Means OfEliminating Poverty

by Ruth McLeod and David Satterthwaite

WhyHousing..?

Front Cover Photo: Members of the South AfricanHomeless Peoples Federation in front of one of

the shacks in an informal settlement.

The Bellview community in Kenya use their resourcefulness toconstruct housing from any waste materials they can find.

Page 2

Introduction...Why is investment in adequate housing a priority?

This paper explores the importance of consider-ing housing as an integral part in any developmentstrategy.

It examines the impact of adequate housing onhealth, education and community development,among other issues.

The information, case studies and research aimto show that whilst housing has long been ne-glected on the agenda of overseas development itis vital to invest in housing in order to implementsuccessful development programmes.

PAGE4. Housing & Poverty6. Health & Safety8. Household Income10. Community Development12. Children’s Development14. Producing multiple benefits16. Other Benefits18. Success Stories20. Contact Details

Page 3

Contents

WhyHousing..?

Councillor Miriam Mwikali outside paper house inMavoko, Kenya.

Page 4

Poor people are frequently described as ‘living in poverty’, butfew aid agencies have given any priority to directly improvingtheir living conditions. Perhaps this is because the importance topoor people of secure, good quality housing and its associatedinfrastructure (water, sanitation, drainage, electricity and wastedisposal) has frequently been underestimated.Benefits that community-driven housing programmes can bring interms of cost savings, income generation and local economicdevelopment have also often been overlooked. As a result thepotential role of housing within poverty elimination programmes.has rarely been realised. Indeed, most development profession-als still assume that poverty is caused by a lack of income orassets, but fail to recognise that poor quality overcrowdedhousing which lacks basic infrastructure, underpins or greatlyexacerbates the deprivations associated with poverty. For poorpeople, particularly women, the struggle for shelter and housingcomprises one of the most fundamental elements of their dailysurvival strategy.Secure, safe housing plus supporting infrastructure provides awide range of benefits for low income households. These include:

improved healthincreased security and social well beingincreased safety from the effects of natural hazardssuch as floods, landslides and storms.

Improved housing has a particularly positive impact on the wellbeing of children and women, and is often prioritised by womenabove other forms of investment. Many community-driven pro-grammes to build or improve housing have helped low incomegroups to work together and to develop constructive relation-ships with local authorities or other service providers. Theselocal initiatives have shown that the costs of significantly improv-ing housing conditions and basic services can be kept low and,when appropriate financing is made available, there are oftengood possibilities for cost recovery.

Page 5

Housing& PovertyTHE RELATIONSHIP

BETWEEN HOUSING &POVERTY

WhyHousing..?

IMPROVING HEALTH AND SAFETY

Poor quality housing imposes enormous health and safety costs onits inhabitants. Families suffer significant loss of income throughdays off work and the expense of medical treatments. Forexample, many infectious and parasitic diseases, and diseasevectors, are now known to be associated with sub standard housingand inadequate provision of water, sanitation, drainage and garbagemanagement. In addition, a combination of overcrowding, the useof open fires or kerosene stoves and flammable buildings leads todanger from burns, scalding and accidental fires. These conditionsare also associated with poorrespiratory health. The health burdens of those who have nooption but to live on marginal land - flood plains or steep slopes-are particularly severe. They are the first to suffer the effectsof natural hazards such as earthquakes, landslides, cyclones andfloods.

Community-managed upgrading programmes can greatly reduce thehealth and safety risks faced by poor families. For example theDepartment for International Development (DFID) has funded aneducation and credit programme in Bolivia which helps poor familiesto upgrade their adobe housing in order to prevent infestation byvinchuca beetles. These beetles live in rough adobe walls and arevectors for a terminal illness called chagas disease. When housingis upgraded the beetles lose their habitat and community controlof chagas disease becomes possible.

In Karachi, the Orangi Pilot Project supported a low cost sanitationprogramme. As a result household health improved and familymembers had to take fewer days off work because of sickness.Their medical bills were also reduced. It is estimated that theincrease in annual household savings as a result of the programmeexceeds the cost per household of installing good quality sewers.

Page 6

Health& Safety

Pro-Habitat’s Chagas disease project aims to protectcommunities from the fatal chagas disease through housingimprovements which irradicate the habitat of the vectorvinchucca beetle.

Page 7

WhyHousing..?

INCREASING HOUSEHOLD INCOMEBY CREATING A SIGNIFICANTASSET BASEMost families living in illegal and insecure housing have to paylarge amounts for water, which has to be carried or truckedinto the area. Supplies of electricity can also be extremelyexpensive. For instance, in Mumbai, pavement dwellers pay threetimes more a month for illegal electricity connections than theofficial price charged for legal connections. Often the mostexpensive item of household expenditure is rent and for manytenant-households this takes up more than a third of theirincome. When people live in their own homes they may save onrent payments. However because they are usually only able tobuild in temporary materials the costs of repairing andmaintaining their shelter can be considerable, in some casesexceeding the amount required to repay a housing loan, if onlythey were able to access such a facility.The day to day expenses that poor people living in informalsettlements face in meeting their shelter needs areconsiderable. It is therefore somewhat ironic that aid agenciesso often assume that household costs will increase when poorfamilies obtain their own homes, especially if they acquire orbuild the house with loan finance. The experience emergingfrom community led housing initiatives presents quite adifferent picture. With secure tenure of a land plot, familiesextend their homes over time, as and when resources areavailable. When the extensions accommodate small businessesor extra rooms are rented out, family income tends to increase.With secure tenure it also becomes easier for legal water,sewer and electricity connections to be made. A permanent,legal home can also be used as collateral to secure loans whichcan be invested in income generating activities, leading tofurther improvements in the livelihoods of poor families.

Page 8

“14 years ago I was anagricultural labourer and life washard. A man came to our villageand asked us, ‘Why are yousuffering like this? Why don’tyou talk to YCO? They do goodwork and can help you to improveyour life-style.’ So we discussedit together, just the women ofthe village without YCO present.We wanted to form a women’sgroup, but some didn’t believewhat might be achieved andothers didn’t feel able to saveeven Rs10-12 (14-17p) per month.So there were only 25 of us tostart with.“Our monthly savings increased to30 rupees (42p) per month, sothat eventually we could take outhouse-building loans... Everyfamily is now able to send a childto high school. Our health hasimproved. There is betternutrition. There are even privatetoilet facilities in the village forthe women.”

HouseholdIncome

A Department For International Development supported housingprogramme in Andhra Pradesh led to greatly improved provision ofinfrastructure by local authorities and had a particularlysignificant impact on the social status of women who managed theloans that financed the new homes. The women formed their ownmutual cooperative and were able to negotiate additional lines ofcredit for income generating loans. As housing was completed localauthorities cooperated in the provision of other infrastructuresuch as water and electricity. Over 300 of the women weresuccessful in local authority elections and have become activeparticipants in the management of their own communities. Thescheme was assisted by sterling guarantees provided by UK housingassociations. Without this assistance the women would have beenunable to obtain housing finance.

37-year old Mangarapnamtells her story...

Page 9

WhyHousing..?

PROVIDING A FOCUS FOR COMMUNITYDEVELOPMENT AND PARTICIPATION INLOCAL GOVERNANCEPoor communities who work together to address theirhousing problems often develop the capacity to successfullynegotiate additional resources and services from governmentagencies. There are many examples of small communityinitiatives in squatter settlements that began in response to aspecific need, for example improved water or garbagecollection and that then led to the development of effectivecommunity organisations. Often the organisation comes aboutbecause of a crisis such as a forced eviction.As people learn to work together they frequently take on moreambitious challenges involving increasingly complexnegotiations with local authorities. Negotiating for legal landtenure is perhaps the most difficult of these. Howeverpartnerships between local authorities and low incomecommunities can prove of mutual benefit. Even weak andunder-resourced local authorities can support successfulcommunity-led housing improvement programmes - for instancethrough technical support, the loan of heavy equipment andlegalizing land tenure. Many communities that organized in thisway to improve housing and basic services also develop thecapacity to work together with local authorities to addressother development needs.When community organisations function in a trulyrepresentative manner the potential for communityinvolvement in local governance systems is greatly enhanced.This is particularly noticeable in countries that have passedpopular participation legislation over the last few years.

Page 10

In this exchange of Indian and South African slum and shackdwellers, many ideas were shared about influencing policymakers, negotiating for land rights and increasing the profileof slum and shack dwellers.

CommunityDevelopment

Page 11

WhyHousing..?

Members of the Sadak Chaap Street children’s federation inMumbai (Bombay), India have successfully negotiated the useof some land in the centre of the city, and built their ownnight shelter there.

Page 12

INVESTING IN CHILDREN’SDEVELOPMENT

Relocation and forced evictions are a common experience formany poor families who are forced to move from oneinadequate location to another. The consequent lack ofsecurity has a particularly deleterious effect on children’shealth and development.

On the other hand, safe, secure housing brings tremendousbenefits for children. When poor families acquire suchhousing, dramatic falls in infant and child mortality andmorbidity result, and children’s physical, mental and socialdevelopment is greatly enhanced. This is particularly true forgirl children who tend to shoulder significant householdresponsibilities. Reduced household responsibilities mean thatthere is more time for education and play.

The Churchgate night shelter has been followed by othernight shelters being constructed, housing many more streetchildren in the city.

Childrens’Development

Page 13

WhyHousing..?

PRODUCING MULTIPLE BENEFITS BY INVEST-ING IN HOUSING

The role of housing in poverty eradication programmes ispotentially significant because of the range and number ofbenefits that such investment can support. Community ledhousing initiatives have led to improvements in health, safety,education, household income and the capacity of communitiesto work in partnership with local authorities. In most casesthese initiatives, when managed at local level, have also provedhighly cost effective. Historically, however it has beendifficult to measure the complete range of potential or actualbenefits quantitatively and comparative analysis betweeninitiatives has proved problematic. This is unsurprising aspoor communities are not homogenous and have varying needsand priorities. However it is clear that the benefits are realand that they are particularly prioritised by women. Perhapsit is the responsibility of development professionals toarticulate more precisely why the judgements made by poorwomen might be correct.

Page 14

A Mahila Milan (‘Women Together’) member negotiatesher housing improvement loan with Jockin of the NationalSlum Dwellers Federation. She explains to some otherpeople present how being a part of a savings and loangroup has brought greater respect from her husband.

MultipleBenefits

Page 15

WhyHousing..?

CATALYSING OTHER BENEFITSCommunity-led housing programmes -whether upgrading or newdevelopments - can bring many local multiplier linkages.When communities control the management of new housingconstruction there are inevitably significant benefits withinthe local economy. Investment in housing leads to an increaseddemand for local labour and services and also for buildingmaterials, fixtures, fittings or components many of which canbe produced locally.Improved housing and basic services often result in majortime-saving, especially for women and girls. For instance timeis saved when it is no longer necessary to collect water byhand, when the house can be cleaned and maintained moreeasily and when it is no longer necessary to bury garbage or tocarry it to distant dumps. In Kenya the Maasai were helped toimprove their traditional housing structures. The developmentof a ferrocement skin over the mud roof reduced the need forrepairs and maintenance and also permitted the collection ofwater run-off from the roof. This brought particular benefitsto women and girls because it was their responsibility tomaintain the house and to collect water. Better quality wallsalso allowed higher walls with a chimney which reduced smokelevels and improved natural lighting and ventilation.

Page 16

A new water supply at the Boeung Krappeur community, Cambodia

Many loan programmes to support housing construction bylow- income groups also include the provision of loans for incomegeneration. For instance, the women’s bank in Sri Lankaoriginally provided loans for micro-enterprises but extendedtheir lending to housing because of the importance ofhome-based industries. The loans were used to build extensionsso that families could prepare food for sale more efficiently.Ventillation was improved and storage and preparation spaceexpanded. Garment producers benefited from an area forprivate fittings, and space for fabric storage and layout.Traders and shop owners were able to enlarge their display andsales areas. In this way loans for housing improvementcontributed directly to the development of local business andlivelihoods.

OtherBenefits

Page 17

WhyHousing..?

Aporn, a slum leader from Thailand, showing theplans for her new settlement to other members of

Shack/Slum Dwellers International

Page 18

A TRACK RECORD OF SUCCESSFULINNOVATION ON WHICH TO BUILDOver the last fifteen years, a growing number of community-managed savings and loan schemes have helped low incomehouseholds obtain land, build or improve housing and install orobtain infrastructure and services. Many have also helped tosupport income generation or local economic development.Perhaps as importantly, these schemes have also strengthenedthe capacity of local communities to work collectively and tosuccessfully negotiate with government agencies and foreigndonors.Examples include:! The housing programmes developed by the Indian NGO

SPARC, working with a federation of women-pavementdweller cooperatives and the National Slum Dwellers

Federation;! The rural savings and loan programme of YCO and the

Swayamkrushi Women’s Cooperative in Andhra PradeshIndia which has provided the basis for income generationand housing investment in 90 villages.

! The hundreds of community-based savings and creditschemes of the National Homeless People’s Federation inSouth Africa and the support these have provided forcommunity built housing

! The community-loan programme of the Thai government’sUrban Community Development Office which combines loansfor housing, community development and employmentcreation

! The sanitation programme and other initiatives supportedby the Orangi Pilot Project in Karachi and other cities inPakistan

! The integrated community development programme in BarrioSan Jorge in Buenos Aires and its expansion to otherlow-income neighbourhoods

! The anti chagas disease education and housing creditprogramme implemented by Pro-Habitat in Bolivia.

SuccessStories

Page 19

WhyHousing..?

People’s DialogueContact: Joel Bolnick

PO Box 34639Groote Schuur 7937

Cape TownSouth Africa

Tel: 00 27 21 447 4740Fax: 00 27 21 47 4741

Email: joelb@dialogue.org.zaWebsite: www.dialogue.org.za

SPARCContact: Sheela Patel

PO Box 9389Mumbai, 400 026

India

Tel: 00 91 22 285 1500Fax: 00 91 22 285 1500

Email: admin@sparc.ilbom.ernet.inWeb: www.dialogue.org.za/sparc

Shack Dwellers InternationalWeb: www.dialogue.org.za/sdi/index.htm

Contacts...Asian Coalition for Housing

RightsContact: Somsook Boonyabancha

73, Soi Sonithiwattana4 Ladprao Road, Soi 110

Bangkok 10310Thailand

Tel: 00 662 538 0919Fax: 00 662 539 9950

Page 20

Homeless InternationalQueens House

16 Queens RoadCoventryCV1 3DF

Tel: +44 (0)24 76632802Fax: +44 (0) 24 76632911

Email:info@homeless-international.org

Web: www.homeless-international.org

‘Why Housing?’ is produced by Homeless International