AHI in Mongolia. Technical Assistance to Develop an Affordable Housing Strategy for UB

Transcription

1 AHI in Mongolia Technical Assistance to Develop an Affordable Housing Strategy for UB Anya Brickman Raredon 38 Chauncy Street, Suite 600 s Boston, MA s +1 (617) araredon@affordablehousinginstitute.org

2 Agenda Who is AHI AHI in Mongolia The project Housing challenges in UB Our dra; strategy Ques>ons and discussion 2

3 Who is AHI? We are a mission- driven, non- profit (US 501c3) consul>ng and research firm, that is working to develop successful affordable housing financial ecosystems worldwide We work with governments, interna>onal NGOs, socially- oriented investors, private- sector and Founda>ons We analyze housing ecosystems, and we design and develop financial products, policy, and programs We provide deep, implementable subject exper>se on a topic that underlies many interna>onal organiza>ons goals 3

4 Context: Housing improves cities, and cities improve countries 1. Housing is the key to improving ci>es 2. Mission Entrepreneurial En>>es (MEEs) are key to improving housing 3. Scalable finance is key to MEE growth 4. Municipali>es own slum upgrading 5. Homes and housing loans are outputs of complicated value chains which can enable or disable produc>on 4

5 The Housing Value Chain: Supply side 5

6 The Housing Value Chain: Demand side 6

7 AHI in Mongolia The project Housing challenges in UB The drak strategy 7

8 The Project Objec8ve: Provide technical assistance to the Municipality of Ulaanbaatar (UB) to develop an Affordable Housing Strategy that will provide low- income, middle- income, and vulnerable households with access to decent housing 8

9 Supply Side Challenges: Regulations 1. Rapid popula>on growth 1.56% per year Most residents of ger areas are rural- to- urban immigrants 3. Ci>zens are en>tled to 700- square- meter plots, so they immigrate to UB, seale on open land, and then register that land 60% of UB households live in some form of self- built housing in ger areas This construc>on is not regulated to ensure a minimum level of construc>on and quality 9

10 Supply Side Challenges: Infrastructure 3. Ger areas have limited or no connec>on to formal infrastructure (power, hea>ng, water, sanita>on) and the current grid is at maximum capacity Ger area residents use coal- burning stoves (hea>ng, cooking) and pit- latrines 5. Lack of coordina>on mechanism for implementa>on of land use, land alloca>on, and housing policy Mul>ple departments and agencies involved Disconnect between City Master Plan and actual alloca>on of land 10

11 Supply Side Challenges: Land Use 11

12 Demand Side Challenges 1. Market- rate home loans are expensive and inaccessible to low- income popula>on 20-30% down payment requirement, 45% debt- to- income ra>o, 70% maximum loan- to- value ra>o 2. Direct government housing subsidies (8% interest rate loan) may be making things worse Not targeted, so many subsidies go to middle- income households refinancing a previous mortgage or purchasing a second home. Drives up prices for quality homes (housing prices rose 30% between 2012 and 2013) 12

13 Demand Side Challenges 3. No housing finance for households with informal income 5. Ulaanbaatar has no substan>al source of local tax funding (no residen>al property tax) to create infrastructure, upgrade informal areas, or provide assistance to poor families. 13

14 August Trip: Presenting the Affordable Housing Strategy 14

15 Affordable Housing Strategy: Guiding Principles VISION To create a city in which all households can access decent, safe, and affordable housing op>ons in communi>es that they value STRATEGIC DIRECTION 1 Increase affordable housing supply STRATEGIC DIRECTION 2 Create sustainable financial mechanisms for affordable housing STRATEGIC DIRECTION 3 Create ins6tu6onal framework for affordable housing 15

16 Affordable Housing Strategy: 12 broad initiatives VISION To create a city in which all households can access decent, safe, and affordable housing op>ons in communi>es that they value Strat. Dir. 1 Strat. Dir. 2 Strat. Dir Implement UB Master Plan as related to housing 2. Implement HAAPs 3. S>mulate formalized small- scale building development 4. Incen>vize crea>on of affordable rental stock 5. Develop finance to formalize ger areas 6. Target subsidies toward affordable housing 7. Enable financing of urban upgrading 8. Establish NOSK as City s housing & dev. agency 9. Professionalize builders and contractors 10. Nurture & support com. resource organiza>ons 11. Establish housing info. Bureau within NSO 12. Establish proper legal framework to support affordable housing 16

17 Affordable Housing Strategy: 1 enabling institution 17

18 NOSK will not be a developer, but rather a facilitator, of affordable housing PLANNING & POLICY PROGRAM MANAGEMENT FUNCTIONS ASSET MANAGEMENT AND FINANCE COMMUNITY RESOURCES Develop housing policy and goals for Master Plan Implement Master Plan with respect to housing Develop policy proposals to government related to housing Develop housing- related programs Oversee tendering process for housing- related programs Manage housing- related programs, including: o Neighborhood upgrading o Ger Area redevelopment o Green retrofijng o New affordable housing development o Rental housing Hold land acquired by MUB Provide land to developers at discounted or zero cost for affordable housing development Manage NOSK s rental proper>es via private contractors Manage funds for housing- related ac>vi>es Provide guarantees to banks for housing loans Encourage crea>on and growth of CBOs and CDCs 18

19 Questions and Discussion 19

20 AHI in Mongolia Technical Assistance to Develop an Affordable Housing Strategy for UB Anya Brickman Raredon 38 Chauncy Street, Suite 600 s Boston, MA s +1 (617) araredon@affordablehousinginstitute.org