Thailand’s new National Housing Action Thailand’s new National Housing Action Achieving Land Tenure Security and Upgrading Achieving Land Tenure Security and Upgrading

Of urban Poor Communities Of urban Poor Communities

- At City Wide Scale - At City Wide Scale - Through Community Driven and City Partnership Approach - Through Community Driven and City Partnership Approach

Of urban Poor Communities Of urban Poor Communities Thailand’s new National Housing Action Thailand’s new National Housing Action

Achieving Land Tenure Security and Upgrading Achieving Land Tenure Security and Upgrading Of urban Poor Communities Of urban Poor Communities

- At City Wide Scale - At City Wide Scale - Through Community Driven and City Partnership Approach - Through Community Driven and City Partnership Approach

Thailand’s new National Housing Action Thailand’s new National Housing Action Achieving Land Tenure Security and Upgrading Achieving Land Tenure Security and Upgrading

Of urban Poor Communities Of urban Poor Communities - At City Wide Scale - At City Wide Scale

- Through Community Driven and City Partnership Approach - Through Community Driven and City Partnership Approach

Achieving Land Tenure Security and UpgradingAchieving Land Tenure Security and Upgrading

Of Of UUrban Poor Communities rban Poor Communities

At City-Wide ScaleAt City-Wide Scale Through Community-Driven and City Partnership ApproachThrough Community-Driven and City Partnership Approach

COMMUNITY ORGANIZATIONSDEVELOPMENT INSTITUTE(CODI)THAILAND

HistoryHistory

In 1992, the Thai Government established In 1992, the Thai Government established the Urban Community Development Office the Urban Community Development Office (UCDO) to address the problem of urban (UCDO) to address the problem of urban poor communities. UCDO was set up as a poor communities. UCDO was set up as a unit attached to the National Housing unit attached to the National Housing Authority of Thailand.Authority of Thailand.

The Government also granted THB 1250 The Government also granted THB 1250 mln.as Community Development Fund to mln.as Community Development Fund to support urban community development support urban community development activities and provide low-interest loans to activities and provide low-interest loans to community organizations.community organizations.

In 2000,a Royal Decree was enacted In 2000,a Royal Decree was enacted to merge UCDO with Rural to merge UCDO with Rural Development Fund (a fund managed Development Fund (a fund managed by the National Economic and Social by the National Economic and Social Development Board) to create a new Development Board) to create a new organization called the Community organization called the Community Organizations Development Institute Organizations Development Institute or CODI. or CODI.

CREATION OF CODICREATION OF CODI

URURBBAN COMMUNITY DEVAN COMMUNITY DEVELOPMENT OFFICE (UCDELOPMENT OFFICE (UCDO)O)USD 61.62 m.USD 61.62 m.

(THB2,156.69 m.)(THB2,156.69 m.)

RURAL RURAL DEVELOPMENT FUND (RDEVELOPMENT FUND (RDF)DF)USD 21.23 m.USD 21.23 m.(THB743.04 m.)(THB743.04 m.)

CODICODIUSD82.85 m.USD82.85 m.(THB2,899.73 m.)

In 2004 Thai Government announced In 2004 Thai Government announced new policy of new policy of one million houses one million houses for for urban poor all over Thai cities in 5 years urban poor all over Thai cities in 5 years with 2 approaches :with 2 approaches :

1. Constructing of new 1. Constructing of new low- income housing by NHAlow- income housing by NHA

2. Slum upgrading by CODI2. Slum upgrading by CODI

Thailand City-Wide Slum UpgradingThailand City-Wide Slum Upgrading

CODI set 5-year target for slum upgrading CODI set 5-year target for slum upgrading in 200 Thai cities covering 2,000 slum in 200 Thai cities covering 2,000 slum

communitiescommunities..

CODI receives budget from central government then passes the budget directly

to communities according to the consent of city development partners especially Local Authority and community network

in each city.

The new paradigm shift The new paradigm shift

For housing development by people For housing development by people in actionin action 1. Community organizations are the 1. Community organizations are the ownersowners of projects / of projects / main actorsmain actors

(surveying, planning, designing, savings / management) (surveying, planning, designing, savings / management)

2.2. Change from supply driven to Change from supply driven to ““Demand Driven by communitiesDemand Driven by communities””

3.3. Change the approach from construction management to Change the approach from construction management to flexible financialflexible financial

managementmanagement allowing community and local partners to work togetherallowing community and local partners to work together

4.4. Urban land reformUrban land reform for urban poor housing by land survey and community for urban poor housing by land survey and community

negotiation negotiation

55..

holistic upgrading processholistic upgrading process to buildto build strong and secured community organistrong and secured community organi

zation and managerial capacity as a zation and managerial capacity as a collective collective group for integrated physical, group for integrated physical,

economic and social improvementeconomic and social improvement

6. 6. City-wideCity-wide development process covering all communities in the citydevelopment process covering all communities in the city

City-wide upgrading involving many possible city development actors and find various secured housing solutions for all communities in the city

City-widesurvey /joint planning,

search forsolutions together

Find varioussolutions suitable

for all communitiesin city

Community

Municipality

Community

Otherdev.agencies

On-siteUpgrading

Land-sharing&reconstruction

Reblocking &readjustment

Resettlements ่

Row-house

Flat

Detach house

Row-housing

Flat

Mixed approach

Process of Baan Process of Baan MankongMankong

Baan Mankong City-Wide Baan Mankong City-Wide PlanningPlanning

Identify stakeholdersIdentify stakeholders Community members, local politicians and Community members, local politicians and

bureaucrats, NGOs, academics, and bureaucrats, NGOs, academics, and community organizerscommunity organizers

Organize network meetings, as well as Organize network meetings, as well as meetings in individual communitiesmeetings in individual communities Begin brainstorming and planning process of Begin brainstorming and planning process of

pro-poor solutions for housing and land issuespro-poor solutions for housing and land issues Establish joint committee to oversee Establish joint committee to oversee

implementationimplementation

Survey all communitiesSurvey all communities Identify problems in individual areas and create Identify problems in individual areas and create

holistic plan that allows communities to work holistic plan that allows communities to work together to overcome collective challengestogether to overcome collective challenges

Develop housing, land tenure and policy Develop housing, land tenure and policy plan for whole cityplan for whole city Negotiate with local or government landowners Negotiate with local or government landowners

through collective bargainingthrough collective bargaining Begin work with individual communities on Begin work with individual communities on

concrete plansconcrete plans

Slums and Squatter Settlements in Nakornsawan

Select Community Working TeamSelect Community Working Team 7-10 representatives from the community to 7-10 representatives from the community to

manage each aspect of the upgrading processmanage each aspect of the upgrading process Survey CommunitySurvey Community

Leadership team manages survey processLeadership team manages survey process Collect information about land, housing, Collect information about land, housing,

physical infrastructure, income, employment, physical infrastructure, income, employment, problems, and existing development problems, and existing development initiatives initiatives

The survey allows the community members to The survey allows the community members to meet, learn about each other’s problems and meet, learn about each other’s problems and establish linksestablish links

Planning PhasePlanning Phase

Recheck all InformationRecheck all Information Community members and CODI work Community members and CODI work

together to go through all information together to go through all information and begin planning solutionsand begin planning solutions

Conceptualize housing and development Conceptualize housing and development goals (goals (i.ei.e. will it involve reblocking or . will it involve reblocking or relocation? Will they purchase or rent?)relocation? Will they purchase or rent?)

Identify land owner and begin negotiation Identify land owner and begin negotiation process for long term lease or purchaseprocess for long term lease or purchase

Formulate BudgetFormulate Budget Estimate budget for all land, housing and construction Estimate budget for all land, housing and construction

costscosts Resolve conflicts resulting from wealth disparities Resolve conflicts resulting from wealth disparities

between community membersbetween community members Create financing plan. Decide if community members Create financing plan. Decide if community members

will take on loan from CODI or self-finance the projectwill take on loan from CODI or self-finance the project Meet with all StakeholdersMeet with all Stakeholders

Organize meeting with all stakeholders to discuss Organize meeting with all stakeholders to discuss plans plans

Involve local government unit, academics, NGOs, etcInvolve local government unit, academics, NGOs, etc

Implementation PhaseImplementation Phase

Detailed Development PlanDetailed Development Plan Work with engineers and architects to Work with engineers and architects to

design housing and infrastructuredesign housing and infrastructure Include options for house size and cost in Include options for house size and cost in

order to accommodate wealth order to accommodate wealth discrepancies between community discrepancies between community membersmembers

Identify ways to mitigate costs, including Identify ways to mitigate costs, including recycling old building materials and recycling old building materials and hiring local community members for hiring local community members for construction, instead of hiring contractors construction, instead of hiring contractors

Present plan to CODI for approvalPresent plan to CODI for approval

Disburse Loan and SubsidyDisburse Loan and Subsidy LoanLoan

Loan must be approved by local committee before being Loan must be approved by local committee before being sent to CODIsent to CODI

CODI loan committee approves loans individually on a CODI loan committee approves loans individually on a monthly basismonthly basis

SubsidySubsidy CODI passes on government subsidies for infrastructure CODI passes on government subsidies for infrastructure

development and administrative costsdevelopment and administrative costs Infrastructure subsidy ranges from 25,000 – 45,000 Infrastructure subsidy ranges from 25,000 – 45,000

THBTHB

Begin ConstructionBegin Construction Loan installments are disbursed based on Loan installments are disbursed based on

completion of construction phasescompletion of construction phases

Community Survey all communities in districts and city

Community survey of all householdsIn the community and all communities in the city carried out by community people

การ

Participatory planning process

Baan Mankong: Baan Mankong: Financial AspectFinancial Aspect

Providing Flexible Financial Support Providing Flexible Financial Support

for City-wide Upgrading by Communitiesfor City-wide Upgrading by Communities

Grant

1) Upgrading of infrastructure and social facilities

2) Local management cost

3) Support for exchange visits, capacity building, seminars, coordinator

LoansFrom CODI

Revolving FundCommunities

Government Subsidy

Banks

Interest 4 %Members

Members

Members

Source of FinancingSource of Financing

Three components of BMK financing:Three components of BMK financing: Local communities’ own savings Local communities’ own savings

(10% of project cost)(10% of project cost) Government subsidy-Government subsidy-

THB80,000(~USD2,460) per familyTHB80,000(~USD2,460) per family Housing loan from CODIHousing loan from CODI

CODI loanCODI loan

Loan type:Loan type: Term loanTerm loan Maturity:Maturity: Up to 15 years Up to 15 years Interest rate:Interest rate:Fixed at 4% p.a.Fixed at 4% p.a. Maximum loan amount:Maximum loan amount: not not

exceeding THB 300,000 exceeding THB 300,000 (~USD9,230) per household(~USD9,230) per household

Loan portion: CODI will finance up Loan portion: CODI will finance up to 90% of the project cost.to 90% of the project cost.

Loan Security: 1)Land and Loan Security: 1)Land and buildings are mortgaged with CODIbuildings are mortgaged with CODI

2)Bank deposit of 5-2)Bank deposit of 5-10% of project cost (optional)10% of project cost (optional)

3)A guarantee 3)A guarantee agreement signed by chairman, agreement signed by chairman, committee and all members of the committee and all members of the community organization.community organization.

Re-lending to membersRe-lending to members

The borrower will on-lend the fund The borrower will on-lend the fund to individual household by adding a to individual household by adding a margin of 2-3% to the interest cost.margin of 2-3% to the interest cost. The margin is set aside for the The margin is set aside for the

purpose of loan administration, purpose of loan administration, community welfare and serves as a community welfare and serves as a cushion for loan repayment in case cushion for loan repayment in case any member fails to meet his or her any member fails to meet his or her obligation in any particular month. obligation in any particular month.

Baan MankongBaan MankongHousing Loans (as of Mar Housing Loans (as of Mar

2010)2010) THBmm. (USDmm.)THBmm. (USDmm.)

Total approvalTotal approval 3,244 (99)3,244 (99) DisbursementDisbursement 2,197 (67)2,197 (67) RepaymentRepayment 382 (12) 382 (12) OutstandingOutstanding 1,815 (56)1,815 (56) BeneficiariesBeneficiaries

No. of communitiesNo. of communities 758758 No. of householdsNo. of households 20,47820,478

Sample Case:Sample Case:Narai-pitak Narai-pitak

Mankong Housing Mankong Housing Co-opCo-op

Phase IPhase I

In 2005, Sakolnakorn Municipality and In 2005, Sakolnakorn Municipality and CODI jointly conducted city-wide slum CODI jointly conducted city-wide slum survey. Upgrading plan was survey. Upgrading plan was consequently agreed by all consequently agreed by all stakeholders. The 1stakeholders. The 1stst phase targeted phase targeted the most urgent cases of about 91 the most urgent cases of about 91 families.families.

Savings group was formed in 2006 and Savings group was formed in 2006 and in 2007 was transformed into a housing in 2007 was transformed into a housing cooperative. CODI granted loans in cooperative. CODI granted loans in 2007 totaling USD 527,118.2007 totaling USD 527,118.

Community savings:Community savings: USD 85,925USD 85,925 Government subsidy:Government subsidy: USD 190,400USD 190,400 CODI loan: USD 527,118, about one-CODI loan: USD 527,118, about one-

third of which was for land purchase third of which was for land purchase and remaining for housing and remaining for housing construction.construction.

Loan tenure:Loan tenure: 15 years15 years Interest rate payable to CODI: 4% p.a.Interest rate payable to CODI: 4% p.a. Interest rate charged by co-op: 6% p.a.Interest rate charged by co-op: 6% p.a.

Project progressProject progress

Of 91 houses, 87 are CODI-Of 91 houses, 87 are CODI-financed, construction has financed, construction has been completed; 4 are self-been completed; 4 are self-financed, one is completed.financed, one is completed.

Monthly family income: USD 154-461Monthly family income: USD 154-461 Monthly repayment per family: USD 52-65Monthly repayment per family: USD 52-65 As of now, USD 61,015 of CODI loan has been As of now, USD 61,015 of CODI loan has been

repaid.repaid. Community also has a plan for community Community also has a plan for community

welfare. Each family is required to contribute welfare. Each family is required to contribute about USD 0.03 a day for welfare such as about USD 0.03 a day for welfare such as healthcare, childbirth, elderly support, healthcare, childbirth, elderly support, funerals etc.funerals etc.

In March 2010, CODI approved another loan In March 2010, CODI approved another loan of USD 804,215 for the 2of USD 804,215 for the 2ndnd phase to build phase to build houses for 120 families.houses for 120 families.

Bang Bua Bang Bua CommunityCommunity

From canal-side slum to From canal-side slum to pleasant communitypleasant community

SAMAKKI RUAMJAI

COMMUNITY

BANGBUA : BANGKHEN

BEFORE

AFTER

Baan Mankong Baan Mankong PerformancePerformance

Project ProgressProject Progress : : From JanFrom Jan.. 200 20044 to to Feb. Feb. 20201010

Project Progress Project Progress NumberNumber1.1. Total number of projects app Total number of projects app

roved roved811811 project projectss

2.2. Total number of cities/distric Total number of cities/distric ts ts

operatedoperated

268 268 cities/districities/districtscts

76 province76 province

3.Covering no.of3.Covering no.of communities communities 1,475 1,475 communicommunitiesties

4.4. Total number of families Total number of families 88,39288,392 families families5.5. Total budget approved : Total budget approved :

- Grant for Upgrading Grant for Upgrading- Loans for Housing Loans for Housing

3,856 mil.3,856 mil. Baht Baht(USD 118.6)(USD 118.6)

3,156 mil.3,156 mil. Baht Baht (USD 97)(USD 97)

Upgrading & Reconstruction Nearby RelocationRelocation Shelter House for Homeless

Type of upgrading Type of upgradingNearby Relocation

9,468 families (10.71%)

Relocation 21,170 families

(23.95%)

Upgrading/Reconstruction 57,481 families

(65.03%)

Shelter House for Homeless

273 families (0.31%)

Status of Land Tenure Security Improvement

Cooperative ownership

31( , 366 families)

Permission to use land (11, 220 families)

Short – term lease (7 ,66 0families)

Long – term lease (3 8146, families)

43.16 %

8.67 %

12.69 %35.49 %