Affordable Housing Investment Summit Africa, 2019 - Radisson Blue Hotel, Nairobi, Kenya
Page content transcription
If your browser does not render page correctly, please read the page content below
Affordable Housing Investment Summit Africa, 2019 Radisson Blue Hotel, Nairobi, Kenya 26-27 June Presentation:- Cooperative Housing and the Big Impact By Mike Duru email@example.com +263 774 733 631/ +263 713 289 654
• Shelter is a basic human right hence governments’ effort fighting hard to overcome housing shortages. • African cities will have to accommodate more than 300 million new residents by 2030.
Africa Map 1 1,2 billion urban residents by 4,5 million new 2050 residents in Informal settlements Housing each year Investments represents 6% of 5 jobs per house GDP built
COOPERATIVE HOUSING DEFINED • People-centered approach, where housing is designed and developed for specific needs. • Cooperative housing is usually aimed at providing affordable housing for:- – Low to moderate –income people – Can be adapted to any range of income groups by self help or mutual aid. – Cooperative housing can deliver a range of housing that provides for the needs of the community at different stages of life and caters for diverse household types.
• It is an alternative to convectional commercial or public housing models where projects are owned and controlled by the residents who use their services. • Encourages innovation in housing design with a focus of planning for vibrant communities, environmental sustainability and the productive use of shared spaces. • Combines most of the advantages of home ownership with the economy and stability of large scale enterprise. • A registered corporate.
The Cooperative Model 1. Effective for vulnerable groups like -Senior people living with disability -low income earners -homeless people -ethnic groups 2. Is community-owned and controlled 3. Gives residents democratic control of their property in which they live. 4. Gives residents a greater say over the management and maintenance of their properties.
5. Residence also decide codes of contact and rules of membership. 6. Operates in a democratic governance structure. 7. Business is amongst members and non-members. 8. Membership requires compliance with the legislation guiding their operations. 9. Provides infrastructure such as roads, transportation, water system and open spaces. 10. There is joining fees; buying of shares and monthly subscriptions to meet building expenses.
11. Based on a combination of rights with responsibilities and a respect for mutualism. 12. Individuals holds an ownership share in the cooperative, which entitles them to a unit in the dwelling. Area of Operations Urban areas Rural areas Townships Farmlands
• Cooperative housing concept has been there in history although the approach has not been used to provide houses at scale in most countries. • Countries like Sweden; German; Turkey; Morocco, Norway; South Africa, Kenya; Egypt and Zimbabwe had used the approach to produce housing at scale. • In Africa, governments, have now accepted that housing cooperatives are good partners in building African cities.
5. Contribution of cooperatives to housing developments Zimbabwe Rwanda KENYA Egypt House Housing picture by Housing picture House picture Picture 2030 cooperative will 43% of the housing 40% from 1,8% go up to 90% plan (Cooperative) cooperatives cooperative
Source of Funding 1. While housing finance is an important ingredient in the housing delivery chain, it is limited in most African countries. 2. Cooperatives could use other sources of funding apart from their monthly subscriptions. 3. Cooperative owners contribute some equity towards the purchase of their share. 4. Mortgages 5. Housing Micro-Finance.
Funding Options Proceeds from Public- - Member private Subscriptions Housing partnerships Cooperative Funding Constituent Options Donations development from NGOs Fund Government Bank Loans grants/ Formation of and pension mortgage Savings and funds loan schemes Egypt, Mauritius, Namibia, Sychelles, South Rwanda; Kenya, Uganda, Africa and Tunisia Tanzania, (Pension Funds) (Mortgages)
Cooperatives embark on cost reduction efforts
Tenure 1. Cooperative housing is either a. Rental housing b. Individual ownership 2. a. Housing cooperative is a legal entity that owns the housing project b. The land c. Improvement on it 3. Each member owns a share in that housing cooperative. -Signs the right of occupancy agreement with members.
Advantages of Cooperative Housing Housing cooperatives offer a unique form of home ownership to many families, community groups, churches, local and national government because cooperatives:- 1. Provide permanent tenure to members. 2. Stabilization of their lives and community 3. Build community spirit. Members learn to work together and form bonds with one another. 4. Provide positive community environment. Programs to fight vandalism; reduce crime etc.
5. Financial inclusion. 6. Incremental development. 7. Supply own labour and expertise (member skills) and low costs through:- -Infrastructure material production (brick moulding at sites) -production of building material (doors, window frames) -Income generating projects
8. Fundraising potential – greater chance to attract support. 9. Monitoring and evaluation through:- • Supervisory committee – a cooperative watch dog. 10. Stakeholder team (Central/Local Government, Cooperative leaders, Financial Institution Rep, Legal Representative).
Raising money for subscription Raising money for housing project - Making own window frames – reducing cost End result- beautiful new community
Big Impact Provide social projection Housing and provide tenure to over 15 million people across Africa (regardless of income) Cooperative ownership is positively associated with building quality; better safety and security. There is more evidence of pro-social norms. Educated and high earners in cooperatives, tend to stay in the cooperative and invest resources in improving their living conditions.
Longevity of cooperative tenants. Creation of employment over 500 000 workers Improved social contacts, life satisfaction, sense of personal safety, and happiness in cooperatives. Cooperative ownership significantly reduced operating costs (including marketing, administration, operating and maintenance costs). Building of private public partnerships.
Impacts-cont Promotes Cost savings - Diversity of ageing in build more communities place for less Maintaining Community your stability independence Benefits of Cooperative Housing Better Health Democratic and well-being structure outcomes Active Contribution Connected Improved and ongoing communities of quality of education interest life
*Policies and law enactments e.g. 30% of state-land to be allocated to housing cooperatives in Zimbabwe:- • Law 03/07- of Uganda :- Promotes Public – Private housing policies. (The Framework Law for housing). • Kenya – NACHU, supported by the Housing Policy, to contribute 50 000 units in 2019. • In Egypt:- Government exempt housing cooperatives from taxes and fees. 25% discount on all State-owned land, which has since gone up in percentage.
• Morocco recognised the work of housing cooperatives and helped housing cooperatives to get mortgages, known as Master Mortgages (generally large sums) • Investment into poverty:- NAHCU, Kenya built a high raise building for rentals. • Decongestion of communities. • Infrastructure development; (Community Schools; halls; shops; recreation centres, health centres and other social amenities). • Development of industrial areas; Masvingo in Zimbabwe for housing related material (door frames; tiles; brick molding). Last 5 years the cooperative housing built over 185 000 houses.
• In Senegal and Ethiopia, their governments are subsidizing the housing cooperatives after realizing their importance. • Restoration of dignity of African persons in housing cooperatives by giving them own houses. • Provision of Microfinance loans to housing cooperatives by NACHU – Kenya. • Tanzania:- Housing Cooperatives in 2017; got Sh6 billion from Commercial banks to build 18000 affordable houses (repayment period more than 10 years). • Zambia housing cooperatives employed 55252 workers.
Conclusion With Africa braced to accommodate more than 300 million new residence by 2030; it is a window of opportunity for an investor who so wish to invest in housing to partner housing cooperatives and use their business model to provide shelter and develop African cities.
You can also read
NEXT SLIDES ... Cancel