UN Habitat Urban Legal Assessment Framework: lessons learned from Egypt & Saudi Arabia The Urban Law day
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1 UN Habitat Urban Legal Assessment Framework: lessons learned from Egypt & Saudi Arabia The Urban Law day 15 July, London
2 Contents: Planning city expansion: an introduction The process of reforming urban Legislations. The legal assessment framework in practice. Reflection on using the framework.
3 Banha City Strategic plan Detailed plan for the north expansion area
4 land subdivision
5 The Process of Reforming the Legal Framework Governing Urban Development Black letter law analysis The legislative map Issues and options Validation Amending/ Introducing new bill Examination of existing practices
6 The Egyptian Constitution The Egyptian Laws Law 119/2008 promulgating the building law Law 70 / 1973, the Planning Law Law 43/1979 on The local government system Law 131/1948, known as the Egyptian Civil Law, concerned with the land ownership and ownership transition Law 142/1964 on registering land and real estate ownership Law 100/ 1964 on organizing the process of leasing lands owned by the state Law 136/1981, Lease and Sale of Buildings and the Relations between Landlord and Tenant Law 49/1977 amended by Law 6/1997 on the provisions related to leasing Law 143/1981 on desert land management Law 53/1966 amended by Law 116/1983 on protection the agriculture lands from any encroachments Law 84/1968 amended by Law 146/1984 on public roads Law 5/1996 concerning the rules on free disposal of desert lands that are state owned Law 59/1979 amended by Law 86/1997 on the establishment of a New Urban Communities Authority Law 7/1991 amended by Law 86/1997 on organizing the real states owned by the state Law 38/1967 on public Cleanliness Law 57/1978 on getting rid of pools and swamps and prevention of digging works Law 4/1994 on the environment Law 117/1983, Protection of Antiquities Law 66/1956, on Regulating Advertisements Law 5/1966, Cemeteries Law Law144/2006 on regulating the demolition of non dilapidated buildings and establishment, and the preservation of architectural heritage Law 14/1981 amended by Law 122/2008 on co operative housing Law Law 107/1976 amended by Law 4/2006 on the establishment of the social housing funding facility Law 138/2006 on providing specific buildings with needed infrastructure services Law 62/1974 amended by Law 113/1975, regarding certain reconstruction provisions Law 148/2001amended in 2014 on the real state finance law Law no 222 for the year 1955 regarding the imposition of a betterment levy on improvements of buildings for public purposes Law 10 / 1990 concerning The Expropriation of Real Estates for Public Interest: Law 27/1978 on organization of public sources of portable water and water for human use Law 30/1983 amending certain provisions of Law 106/1976 on orientation and reorganization of construction works Law 104/1992 on the establishment of The Egyptian Union for Construction and Building Law 67/2010 on regulating the participation of the private sector in the infrastructure, services and public utilities projects Law 196/2008 amended in 2014 on Constructed Real Estate Tax Promulgated Mapping out existing primary and secondary urban legislations in Egypt
7 Presidential decrees Presidential Decree 495 / 1977 on Dividing the Arab Republic of Egypt into Economic Regions and Establishing Regional Planning Authorities Presidential Decree 531 / 1981 on the regulations of managing the land and property evacuated by the Egyptian armed forces Presidential Decree 29/1993 on the establishment of The technical inspection on the construction work Presidential Decree 281/1995 on the establishment of the public economic authority for portable and waste water Presidential Decree 164/ 1996 on the organizational structure /objectives of the Ministry of Housing and Utilities. Presidential Decree 237/1997, provisions on leasing non residential places Presidential Decree 153 / 2001on the establishment of The National Centre for Planning State Land Uses Presidential Decree 277/2001 on the establishment of the General Organization for Real Estate Financing Presidential Decree 37/2001 on the establishment of the National Organization for Urban Harmony (NOUH) Presidential Decree 4/2003 on issuing the system of Support and Guarantee Fund for Real Estate financing Presidential Decree 305/2008 on the establishment of the Informal Settlements Development Facility (ISDF) Presidential Decree 289/2008 on the establishment of the Supreme Council for Planning and Urban Development (SCPUD) Presidential Decree 160/2010 on setting the regulation of the competencies of granting building and operation licenses for commercial and industrial zones. Presidential Decree 33/2014 on social housing) may be a law) Prime Minster decrees Prime minister decree 707/1979, releasing the executive regulation of the local administration law. Prime minister decree 31/1981, rules and terms disposing the land and buildings evacuated by the armed forces. Prime minister decree 834/1983, rules and terms disposing the land and buildings evacuated by the ministry of interior. Prime minister decree 933/1988 on the process of determining the area liable for tourist investment and land reclamation and reconstruction areas Prime minister decree 2906/1995, rules and terms disposing, managing and exploitation of the lands allocated to the GARPAD (General Authority for Rehabilitation Projects and Agricultural Development) Prime minister decree 338/1995, releasing the executive regulation of the enviroment law 4/1994. Prime minister decree 127/2000, establishing the supreme committee for urban harmony Prime minister decree 350/2007 on the right of companies & establishments to own lands and real states.
8 Ministers decrees Ministerial decree 359/2006 on issuing the reins and borders for the Egyptian villages Ministerial decree 985/2009 on managing the construction process outside the reins and borders Ministerial decrees 1836 and 1990/2011 on the exceptional regulations of building on agriculture lands Minister of Housing, Utilities and Urban Communities decrees on delegating some competencies and authorities to the Governors Decree 1314/1964, delegating specific terms of reference to the governors Minister of Housing, Utilities and Urban Communities decrees releasing the executive regulation of certain laws. Decree 134/1968, releasing the executive regulation of the law 38/1967, on the public cleanliness Decree 268/1996, amending the executive regulation of the law 106/1976, on organizing building Decree 421/2007 concerning the amendment and standardization of the construction ratios and heights in all the industrial regions approved at the governorates and the new urban cities Minister of Housing, Utilities and Urban Communities decrees on establishing specific committees and authorities. Decree 1118/1962 on establishing the public administration of technical inspection Decree 1373/1962 on establishing a planning and supervising authority Decree 1605/1964 on establishing a comitte to manage the cabinet s lands Decree 521/1964 on the procedegers of establishing a comitte for organizing and supervising the building processes Decree 580/1966 on establishing and organizing the cooperative loaning fund in the field of building and housing Decree 835/1981 on the internal system of the cooperative housing union Decree 137/1982 on the internal system of the cooperative organizations of building and housing Minister of Housing, Utilities and Urban Communities decrees on the general specifications and requirements for the commercial, industrial and social spaces, including decrees numbers 79 98, and of the year General Conditions for Metal Drawing, Iron & Steel Factories Minister of Housing, Utilities and Urban Communities decrees on the codes and specifications of construction
9 Governance and Government Infrastructure and Basic Services Urban Planning Disaster Recovery and Urban Resilience Building and Construction Taxation, Finance & Economic Development Land and Environment
10 Land Management Financing UN Habitat s Urban Legal Assessment Framework Public Space Plots and Blocks Buildability development rights Building codes
11 Functional Effectiveness of the Law Objectives of the regulations Mechanisms and processes Organizational responsibilities & roles Ambiguity and standard of drafting UN Habitat s Urban Legal Assessment Framework Capacity to implement the legislation Technical Effectiveness of implementation A relevant policy is in place The suitable standard is in place A clear process is in place Elements of good governance Acknowledgment of basic rights
12 Functional effectiveness of law Sub indicator Ranking extremely unclear unclear Somehow clear Clear Score Comments Objectives of the regulations Mechanisms and processes Institutional/organ izational responsibilities and roles Ambiguity and standard of drafting Unclear, complicated and bureaucratic and costly for the poublic administraion and for the citizens extremely unclear institutional roles, overlap of compentencies, high discretion, responibilities scattered, no coordination Extremely unclear and ambiguous language The legislation's objectives are extremely clear and straightforward Processes are clearly defined and they do not impose an unnessary burden (time and money) on the public administration and on the citizens. unclear Somehow clear Clear Institutional roles and responsibilities are clearly defined leaving no room for discretion. Interinstitutional coordination incentivated. unclear Somehow clear Clear Legislative texts are written in clear and understandle to all language leaving no room to ambiguity. Capacity to implement the legislation Extremely inappropriate: legislation cannot be implemented for the lack of human and financial resources inappropriate: legislation is implemented in a piece meal fashion. Adequate: Legislation is not widely implemented for the lack of human and financial resources but there are plans to increase the current human and financial capacity. appropriate: legislative provisions take into account the local context (human and financial capacity). Extremely appropriate: legislative provisions take into account the local context (human and financial capacity) and the implementation conditions (informality, local income etc. etc. )
13 Land Management Technical Sub indicator Physical cadaster Tenure systems Urban planning tools Regulatory support for social housing (sale/rent) No land information system is present. Only formal statutory rights are recognized. The urban planning hierarchy is confused, too many levels of plans with no clear content. Institutional and administrative overlaps. Procedures are complex, costly and lenghy. No consideration Information system present but has no coverage and/or it is not updated. Only formal statutory rights are recognized but there are mechanisms to recognize informal rights and to give them legal recognition (ex. adverse possession, titles of occupation, non documentary forms of evidence,.. etc) The urban planning hierarchy is clear but there are institutional and administrative overlaps. There are minimum percentages in every new urban development that need to be social/low cost housing on sale/rent but the regulations are not implemented. Ranking Information system present but covers the city only partially (less than 80%) and/or it is not adequately updated. Legislation recognizes statutory and customary rights. There are mechanisms to recognize informal rights and to give them legal recognition (ex. adverse possession, titles of occupation, non documentary forms of evidence,.. etc). The process of registration or its fee is quite prohibitive. The urban planning hierarchy is adequate to the local needs, plans are designed and implemented. There are minimum percentages in every new urban development that need to be social/low cost housing on sale/rent. The obligation can be complied by paying or developing the low cost houses elsewhere. the land information system covers more than 80% of the municipality and it is adequately updated. Legislation recognizes statutory and customary rights. There are mechanisms to recognize informal rights and to give them legal recognition (ex. adverse possession, titles of occupation, nondocumentary forms of evidence,.. etc). It exists a semplified process for firsttime registration. The urban planning hierarchy is adequate to the local needs, plans are designed and implemented. The planning instruments include a city street plan. There are minimum percentages in every new urban development that need to be social/low cost housing on sale/rent. The percentages are not adequate to the housing deficit. 100% of the land in the municipality is recorded in a cadaster and its information is up to date and publicly available. 2 Legislation recognizes statutory and customary rights. There are mechanisms to recognize informal rights and to give them legal recognition. It exists a simplified process for first time registration. There are instruments to recognize occupation and give non property security of tenure 3 The urban planning hierarchy is adequate to the local needs, plans are designed and implemented. The planning instruments include a city street plan. Score 2 There are minimum percentages in every new urban development that need to be social/low cost housing on sale or on rent. The percentages are adequate to the housing deficit. 0 Comments information system cover rural and urban land, yet not updated. recognition of informal rights occur during the process of the application of eminent domain. urban plans are not connected to investment plans. investment plans are centralized. City strategic plan specifies areas that requires detailed plans (which include city street plan).
14 Financing Technical Sub indicator Fiscal cadaster Ranking Fiscal cadaster has partial Fiscal cadaster has partial coverage Fiscal cadaster in place (80 Fiscal cadaster in place coverage (20 50%), not up to (50 80%) and partially up to date. 100%) and up to date. (100%) and up to date. It date, it does not cover informal covers informal areas too. No fiscal cadaster exists areas. Score 3 Comments Mechanisms to share increases in land value due to planning decision (urban to rural, building potential, valualble land use) and public investments (streets, public space, green areas, public transport infrastructure, basic infrastructure) Property tax No mechanism to share the increase in land value exists and land owners capture all the increase in land value. no property tax exists Simple mechanisms exist such as land value contribution in case of land subdivisions or building licence application. No consistent enforcent and implementation though. a property tax exists but it has less than 20% collection rate and based on old cadastral values (older than 20 years) Simple mechanisms exist such as land value contribution in case of land subdivisions or building licence application. These are commonly used and enforced. a property tax exists but it has less than 50% collection rate and based on old cadastral values (older than 10 years) Several mechanisms to share Several mechanisms to share the increase in land value are the increase in land value are present both for planning present both for planning decisions and public decisions and public investments. Only investments. mechanisms related to planning decisions are consistenly enforced. a property tax exists and it has more than 800% collection rate and based on current cadastral values (not older than 5 years) Property tax exists, large collecction rate (more than 90%). It is based on the value of land and development. Progressive increase for undeveloped, vacant land or empty houses Instruments for value sharing exist upon the provision of infrastructure, approval of detailed plans, and 2 nd case of subdivision cases (developer exactions), yet they are not generally enforced. Property tax law was passed in 2008, however it has not been applied yet.
15 Public Space Technical Sub indicator Ranking Score Comments Mechanisms to allocate adequate space to streets No mechanism less than 5% of the land or more 0 No clear mechanism as it is generally left to the detailed plan. Mechanisms to allocate adequate space to non street public space (green areas, play grounds, sport facilities etc ) Acquisition of land for public space Scale at which percentages are calculated for streets and public space. Existance of design guidelines for buildings facades No mechanism less than 5% between 5 and 15% between 15 and 20% between 20 30% 0 No clear mechanism as it is more than 60% between 40 and 50% between 30 and 40% generally left to the detailed plan. No mechanism to obtain land from private owners exists and land is acquired through expropriation. Land is contributed by land owners in the process of urbanizing/subdividing the land. The requirements are too vague and leave room to discretion in the approval. Land is contributed by land owners in the process of urbanizing/subdividing the land. The requirements are either not adequate or not followed Land is contributed by property owners in the process of urbanizing the land. Subdivision or building rights are conditioned to the land contribution. no scale At plot level only in one planning instrument At all scales (from city master plan to detailed planning) but with no coordination. no some basic guidelines (set backs and building lines) Responsibilities for very unclear and/or Clear roles and responsibilities ownership/maintena fragmented among various but poor maintenance for lack nce of streets and public space. institutions. of adequate funding and personnel. detailed guidelines (walls and fences) Clear roles and responsibilities, good coordination and adequate funding and personnel. Public space properly maintained but its access is restricted to citizens or subject to a fee. very detailed (building types, facades, roofs) Clear roles and responsibilities, good coordination and adequate funding and personnel. Public space properly maintained and open to citizens. Land is contributed by property owners in the process of urbanizing the land. Subdivision or building rights are conditioned to the land contribution. Once the street plan is approved no buildings can be erected or compensated if erected afterwards. at all scales (from city master plan to detailed planning) extremely detailed (furnitures, kind of trees, material of the pavement, etc etc. ) Clear roles and responsibilities, good coordination and adequate funding and personnel. Public space properly maintained, vibrant and open to citizens that are involved in its management and use. 2 detailed plans are hardly implemented in real life and as a result informal urbanization occur. 2 Mainlyat the detailed planning level. 1 As presented in the detailed plan. 1 Local government is responsible for maintaining most of the public spaces, yet they are under funded.
16 Sub indicator Minimum plot size for residential use Plot subdivision Plot consolidation (adjacent lots of the same or different owners) Plots readjustment Ranking and more sqm no mechanism is present Lengthy and costly process. Very and if present no rules are vague rules to be followed. set to guide the subdivision. Subdivion done by private owner with public approval (highly discretional) no mechanism is present a mechanism for consolidation is present but requires a complex and expensive process. Vague rules to be followed. Its approaval is highly discretional. no mechanism is present a mechanism for plots readjustment is present but the rules and process to be followed are vague. Its approaval is highly discretional. Plots and Blocks Technical Lengthy and costly process. Rules to be followed are clear but subdivision standards are not adequate. Subdivion done by private owner with public approval. Lenghty and costly process. Standards are not adequate. No consideration is given to the adequacy of the existing infrastructure. Rules and requirements are complicated and difficult to use. Municipal institutions involved are not coordinated. Onwers participation is not adequate (more than 70% or less than 60% consent) and not meaningful. Subdivision can be proposed by the public authorities in consultation with the owners. Clear indication of plot shapes and required urban standards for public space, streets and other facilites. Easy and straighforward. Consolidation is used to increase densities in urban areas already serviced (infill) and it is part of urban policy and programs. Rules and requirements are straighforward. Onwers participation is adequate (between 60 and 70%?) and institutional coordination sufficient. Easy and straighforward with clear indication of plot shapes and required urban standards for public space, streets and other facilites. Score Development of the required standards and infrastructure are borned by the owner. 2 Easy and straighforward. Consolidation is used to increase densities in urban areas already servised (infill) and it is part of urban policy and programs. Existance of incentives (ex. right of first refusal for neighbors, higher densities allowed, etc. ) 0 Effective mechanism exists to readjust plots with adequate partecipation, projects take into account city wide objectives. It tries to avoid gentrification. It takes into consideration also tenants and non property rights. Maximum block size (maxium length in any direction) no criteria is present more than 400 m m m less than 130 m 4 1 Comments amendment occur in the executive regulation resulted in removing the requirement of a minimum size ( 120 meter square) Amendment to the executive regulation has been undertaken, yet the process is still complicated and lengthy. Land readjustment is specified in unplanned and preplanning areas ( and not in expansion areas). 2 Max block length is 240 meters
17 Buildability development rights Technical Sub indicator Vertical development rights Attribution of building potential to plots Plot coverage in urban areas. It is the percentage of plot covered by the building(s) or structure and the ratio of the built up area over plot area. Setbacks: mandatory regulations in terms of the spaces to be left between the proposed construction and the boundary of the plot. Ranking Use of the development rights is Development rights need to conditioned to a bulding licence be acquired and paid for. and administrative fee Property right on the land gives the right to build on it (no licence required) No regulation exists on building potentials in urban plans and/or no urban plan. regulations on building potential exists but they attribute different potentials with great discretion. Use of the development rights is conditioned to a bulding licence and the fee is proportioned to the volumes built Regulations on building potential exists and they attribute different building potentials with criteria to limit the discretion (existing/planned infrastrucure, environment, historic sites, etc, etc) Regulations on building potential exists and they attribute different building potentials with criteria to limit the discretion. Mechanisms exists to capture the increments in land values. Development rights need to be acquired and paid for. Additional volumes can be bought and/or received from the municipality as a compensation for any taking. Unused rights can be sold/used elsewhere in the city. All land has the same virtual building potential. Differences (higher/lower) with attributed building potentials are either compensated or usable elsewhere. less than 30% between 40%/50% between 50%/60% between 60%/80% more than 80% No regulations at all Setback regulated on all sides (front, back, sides) Setback regulated only on 2 sides (front/back or sides) Setback regulated only on 2 Regulations allow for sides (front/back or sides) but continuos street facades that regulazions do not allow promote a compact, fencings and walls. walkable and vibrant city. Score Comments development rights is conditioned to a building license. Legal ambiguity regarding development rights. Regulations on coverage of urban areas are left to be specified by the detailed plans. 0 Regulations on setbacks are left to be specified in the detailed plans.
18 Building codes Technical Sub indicator Age of building code Uniform or differentiated application Scope for local materials Resources efficient measures: water, land, energy, material and waste Consideration of low cost options for small/low cost housing Ranking No building regulations 30 to 50 years 20 to 30 years 10 to 20 years 0 10 years No building regulations are present at national or local level. No building regulations are present at national or local level. No building regulations are present at national or local level. No building regulations are present at national or local level. National building code establishes rules for the whole country. No local adaptation is possible. local/traditional building materials are not allowed in the building codes. building regulations have no consideration for resources efficient measures: water, land, energy, material and waste No national building code or guiding legislation exist. Municipalities adopt their own building regulations. Constructions require building materials not available locally, difficult to find, expensive etc. Constructions require resources efficient measures not available locally, difficult to find, expensive etc. No consideration in the building Constructions with certain building regulations for low cost options. materials are explicitly forbidden (wood, mud, soil, corrugated iron, etc.) even for small/low cost housing National legislation gives broad principles and local building codes are adopted. Broad range of acceptable construction materials. Use of locally available materials and construction is allowed. Use of Resources efficient measures is mandatory. Low cost options are accounded for: a special set of rules exist for low cost houses (less than 20 sq meters and no more than 2 floors) with minimum/basic standards. Local jurisdictions adopt a building code based on a national model. Use of locally available materials and construction techniques is allowed and encouraged through incentives. (subsidized materials, fast track approval, housing typology provided, etc.) Use of Resources efficient measures is mandatory and encouraged through incentives. (subsidized materials, fast track approval, housing typology Score provided, etc.) 3 Low cost options are allowed and encouraged (subsidized materials, fast track approval, housing typology provided, etc.) Comments Most of the cods were issued in the past 3 15 years. The HBRC according the law is responsible for issuing the building codes. 0
19 Scoring According to the Technical Indicators Land Management Building Codes Financing Buildability Rights Public Spaces Plots and blocks
20 Issues and options in Egypt Tackling outdated cadaster data Clarify acquisition of land for public space and criteria for allocation of land Linking urban plans with investment plans Clarifying/simplifying plots subdivision, consolidation, and land readjustment Reform polices related to vertical development rights/ land value sharing
21 Issues and options in Saudi Arabia Urban Finance Clarify acquisition of land for public space and criteria for allocation of land Clarifying/simplifying plots subdivision, consolidation, and land readjustment Codify and prepare new urban planning act Linking urban plans with investment plans Introduce polices related to vertical development rights/ land value sharing
22 Reflection on Using the Framework Set a benchmark that enable self assessment and comparison between different contexts. Use different indicators covering different theme and dimensions. No clear linkages between the Functional effectiveness of law section & the technical section. Sometime the ranking is using multiple indicators at the same time which makes it difficult to select a specific rank. A clear distinction is needed between policy issues and legal issues, and the blackletter analysis and assessment of current practices. A guide might be needed to explain the rational for each sub imension.
23 Thank you
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