Mass Housing Development Blueprint: The Case of Namibia

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1 Mass Housing Development Blueprint: The Case of Namibia Charl-Thom Bayer Department of Land and Property Sciences Governance in Africa 15-17

2 1. How is Policy Informed Nationally and Regionally? 2. How Can Universities Support Policy Development? 3. Mass Housing Development Blueprint 4. Conclusion

3 2. How Is Policy Formed? Slowly? Impervious to the needs of the whole and serving the purpose of the policy drivers only? Policy terrain is contested terrain. Is anyone in charge?

4 2. How Is Policy Formed? Or is it like this? Good ideas poorly implemented (Governance)?

5 2. How Is Policy Formed? There are underlying, theories and process that are difficult to change. Needs to focus on the long term however. Need to focus on changing the theories and process of policy making. Research Theories Outreach Process Research

6 3. How Can Universities Inform Policy? (Case of NUST) Focus on Outreach and Research Networks, Curricula and Training to Build Long Term Capacity. Change approach from linear to parallel. Outreach and Research

7 3. How Can Universities Inform Policy? (Case of NUST) Public Outreach Act at Different Scales and Create Vehicles for that if Needed!

8 3. How Can Universities Inform Policy? (Case of NUST) Public Outreach Policy Dialogue Workshop Seminar Training Events 23 June 2016 Dr. Isis Nunez Ferreira workshop on Co- Design and Urban Informality Dr. Henrik Ernstson (ACC/KTH) workshop on Global South Urbanisms 13 October 2016 Space, Informal trading in Congolenses market, Luanda, Angola by Martin Mendelsohn.

9 3. How Can Universities Inform Policy? (Case of NUST) Research Publish What and Where You Can!

10 4. Mass Housing Development Blueprint

11 4. Mass Housing Development Blueprint (The Principles) Housing is more than a house!

12 4. Mass Housing Development Blueprint (The Principles) Various tenure arrangements and housing typologies!

13 4. Mass Housing Development Blueprint (The Principles) Housing has an extensive economic impact!

14 4. Mass Housing Development Blueprint (The State of Housing) Population dynamics are changing. Increasingly Urban

15 4. Mass Housing Development Blueprint (The State of Housing) The Namibian housing crisis is an extreme case of high prices, coupled with inadequate wages, jobless growth, and an almost negligible formal housing production. Median house prices have more than doubled in only five years. Poor Sanitation Lack of access to services and infrastructure.

16 4. Mass Housing Development Blueprint (The State of Housing) Income Inequality Currently less than 4% of households have a monthly income above N$ 10,000. (N$ needed to afford the median home!) NSA. (2015). The Namibia Labour Force Survey 2014 Report. Windhoek: Namibian Statistics Agency. Lack of serviced land available The average cost of servicing a 300m 2 plot of residential land stands at N$86,000 Horizontal Growth Non-Diversified Housing Stock

17 4. Mass Housing Development Blueprint (The State of Housing) Insufficient Public Spending on Housing Budget allocations to housing development (including DBTP, SDFN, and MHDP-1) have historically been around 0.1% of GDP Below international figures such 0.6% of GDP (European Union member states in 2015) or up to 3.7% of GDP in South Africa.

18 4. Mass Housing Development Blueprint (The State of Housing) Spatial Segregation Remote Job Opportunities Increased Transport Costs

19 Relate Housing Needs and Affordability Regional Differences (Plan and accommodate for diversity) Develop Formula for calculating housing needs on an ongoing basis (To be further refined) 4. Mass Housing Development Blueprint (The Response)

20 4. Mass Housing Development Blueprint (The Response) Relate Housing Needs and Affordability Those with the biggest need can afford the least. Therefore need to support community driven approaches. Needs to focus the policy interventions. Previous interventions targeted the 4%

21 4. Mass Housing Development Blueprint (The Response) Relate Housing Needs and Affordability Those with the biggest need can afford the least. Therefore need to support community driven approaches. Needs to focus the policy interventions. Previous interventions targeted the 4%

22 4. Mass Housing Development Blueprint (The Response) Market segmentation is necessary to align interventions to affordability of beneficiary households and to enable estimates of the overall programme cost. Do not measure houses, but instead focus on housing opportunities enabled, and housing actions enacted. Housing Opportunities Enabled Housing Actions Enacted Informal Settlement Upgrading Greenfield developments and access to and tenure security. Incremental improvement of existing sub-standard housing opportunity through Community-driven Process; Access to an affordable and tenuresecure rental unit; Create additional erven through subdivision; Provide public infrastructure to support residential and mixed-use neighbourhoods; Provide bulk infrastructure to enable the development of future residential and mixed-use neighbourhoods.

23 LAND HOUSE LAND Department of Land and Property Science 4. Mass Housing Development Blueprint (The Response) ULTRA-LOW INCOME N$ % LOW INCOME N$5,001-10,000 7% MIDDLE INCOME N$10,001-30,000 N$10,001 and above 4% HIGH INCOME N$30,001-above Un-serviced land Free Free Free Cost recovery Bulk infrastructure Subsidy Subsidy Cost recovery Cost recovery Surveying, planning and engineering Community-driven; Subsidy Community-driven; Subsidy Standard 10% of Total Standard 10% of Total Funding Model (Demand) Services within block Subsidy Subsidy n/a n/a HOUSE Zero interest loans; 1:1 support Subsidy/Saving Low interest rate loans Affordable creditlinked Conventional mortgage finance Rates and taxes Subsidy no more than 5 per cent of income Subsidy no more than 5 per cent of income Standard Additions and improvements Ongoing access to lowinterest loans Ongoing access to lowinterest loans Conventional finance Key programme: CHSU and/or DBTP ACLH Commercial sector All segments supported by Mass Sanitation Campaign, IULPS, HIP

24 HOUSE LAND Department of Land and Property Science 4. Mass Housing Development Blueprint (The Response) Funding Model (Supply) Un-serviced land Bulk infrastructure Surveying, planning and engineering Services within block ULTRA-LOW INCOME N$ % Flexible tenure, block (collective) title Densification (upgrading and greenfield) Partnerships: communities, LAs, gov t support, and others Community led, partnerships LOW INCOME N$5,001-10,000 7% Flexible tenure, block (collective) title Densification (some upgrading) Partnerships: communities, LAs, gov t support, and others Community led, partnerships N$10,001 and above 4% MIDDLE INCOME N$10,001-30,000 Freehold or sectional title Greenfield and infill Standard Contractor HIGH INCOME N$30,001- above Freehold Greenfield Standard Contractor HOUSE Community led, individual Community led, individual Contractor Contractor Rates and taxes Collective services Collective services Individual Individual Additions and improvements Community led, individual Community led, individual Standard Standard Key programme: CHSU and/or DBTP ACLH Commercial sector

25 4. Mass Housing Development Blueprint (The Response) Community-driven Housing and Settlement Upgrading (CHSU) sub-programme for informal settlement upgrading Decentralized Build Together sub-programme (DBTP) Housing Innovation sub-programme (HIP) Affordable Credit-Linked sub-programme (ACLH) 20% allocated to private sector (incl. rental and non-residential land) Budget Allocation

26 4. Mass Housing Development Blueprint (The Response) Other Strategic Interventions 1. Mass Sanitation Campaign 2. Utilization of collective energy of grassroots communities 3. Revision and scaling-up of Decentralised Build Together Programme 4. Re -focusing of NHE mandate to provide for the public service sector 5. Unlock private investment for affordable rental and credit-linked housing 6. Comprehensive Review of Spatial Planning and Development Model 7. Law Reform

27 4. Mass Housing Development Blueprint (The Conclusion) 1. Change approach from providing a house to providing housing opportunities 2. The complex nature and lengthy process of land delivery, housing and urban development processes, as well as the limited capacity to coordinate and manage such a vast process in effective, decentralised and cost efficient ways, require concerted measures to coordinate inter-ministerial implementation in the immediate term, scaling-up grass-roots initiatives paired with decentralized Government support, and opening up opportunities for new forms of interventions to emerge. 3. Enhance the culture of dialogue and active exchange of information and partnership between all stakeholders. Create platforms like the Public Forum on Housing and Urbanisation, hosted by NUST, MURD and other key stakeholders, which can become the annual event where parties meet to deliberate on socio-spatial matters. 4. Transform MHDP-2 into a national alliance to decisively address the housing and land delivery questions, and unite through common purpose a society that has had to deal with the challenges of deliberate efforts to segregate society by income and or ideology.

28 13 Storch Street Private Bag Windhoek NAMIBIA T: F: E: W: Department of Land and Property Science Thank You.

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