Increasing housing supply
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INCREASING HOUSING SUPPLY; . SHELTERING URBAN AND NON CAMP BASED REFUGEES IN LEBANON AND JORDAN Shelter Meeting 13B.

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Increasing housing supply

INCREASING HOUSING SUPPLY;

SHELTERING URBAN AND NON CAMP BASED REFUGEES IN LEBANON AND JORDAN

Shelter Meeting 13B


Increasing housing supply

  • Majority of refugees are not in camps but residing within private rental arrangements in urban/peri-urban areas (800,000 registered refugees in Lebanon – 15% in ITS. 550,000 in Jordan – <120,000 in Zaatari (?)). However camps are very visible and it is much easier to provide assistance

  • Direct cash rental support can have an inflationary effect on the market

  • Especially in saturated markets

  • Impacts on local renters

  • Host communities becoming increasingly frustrated with presence of refugees.

    WHAT CAN WE DO?


A market driven philosophy

A Market driven philosophy

  • 2 possible ways to address urban support

  • Increase access to credit (inflate the bubble....)

    or

  • Increase the housing stock

  • Unfinished buildings are very common in Lebanon and Jordan

  • Incremental construction done as people can afford to do so – generally to pass onto children when they marry or as families increase in size.

  • Banks offer loans at usually high levels of interest


The approach simplified evolving

The approach (simplified & evolving)

  • ‘Advertise’ a need for unfinished buildings within the local community – owners contact NRC through a hotline.

  • NRC team visits buildings to assess suitability

  • Technical team prepare BoQ

  • Social team (with Legal/ICLA support) prepare contracts and match HH with owner/building

  • Staged conditional payments made to owner to undertake works (Jordan = $2000 & Lebanon = $1500)

  • Families allowed to stay rent free for 12 (L) or 18 (J) months


Its too expensive

“Its too expensive”

Lebanon (costs are approximate)

Annual costs per Household in a collective centre = $3000

Shelter = $250, + Latrine = $350, + WASH infrastructure, + winterisation, + rents paid by refugees, +++

Jordan

Tent/storage/handling/kitchen = $<1000 + WASH + infrastructure

Shelter = >$2000 + WASH + infrastructure

E.G roads in Azrak have cost $12 million – or $240 pp assuming 50k population


The benefits include

The benefits include

  • Incentivisation of host communities – provides a clear benefit to hosting refugees without inflating the rental market

  • Conditions generally better

  • Potentially less health/protection issues

  • ‘Sustainable’ fund usage – investment remains unlike

  • Facilitates relationship management between the communities – Jordanian authorities assist with reference checks of landlords

  • Can increase longer term availability of housing stock for the local rental market


Complications include

Complications include

  • Very difficult to scale up - systems limitations;

  • 6000 HH (L) 4500 HH (J) (target for 2014 =7500 HH)

  • Time demands

  • Ideally need significant follow up capacity

  • Efficient way of making payments is key

  • Completed buildings could potentially attract greater rents in the private sector

  • Rogue landlords – increasing rents or pulling out before hosting starts. Do we take them to court?

  • Only applicable in areas where large stock of unfinished buildings!


Incentivisation of host communities a way forward

Incentivisation of host communities – a way forward?

  • Happy host communities = easier assistance environment

  • Inherent value/costs of hosting need to be better appreciated by the humanitarian community.

  • Understanding of local rental laws allows contracts to become the risk management tool to facilitate decision making around investment. Preventing eviction a potential programme in itself.

  • Repairs and upgrades the possible next step?

  • Investment with ‘multipliers’ – energy related support (solar heaters/insulation etc) could increase ‘payback’ for owners


Questions

Questions?

[email protected]


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