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Remaking the urban mosaic Remaking the urban mosaic Remaking the Participatory and inclusive land readjustment urban mosaic Participatory and inclusive land readjustment, or PILaR for short, is a way of reorganizing the ownership of land in and around cities in a pro-poor way. It brings together land parcels belonging to different owners and treats them Participatory and inclusive as a single unit for planning and infrastructure provision. The municipality reserves a portion of the land for roads and other public infrastructure, land readjustment and returns the rest to the original owners. Each owner gets back a smaller parcel, but it is worth more because it now has road access and other services. PILaR involves all the stakeholders – landowners, the municipality and residents – in planning and managing this process. Everyone has a say, and everyone benefits. This book describes how to implement PILaR. It guides the reader through the various aspects of this complex process: governance, land management policies, planning and design, collecting and analysing data, engaging with stakeholders, legal issues, finance and communication. It will be of interest to urban managers, land professionals, landowners, representatives of residents and other stakeholders who are considering or are involved in land readjustment projects.

HS Number: HS/006/16E

ISBN Number: 978-92-1-132699-4

UNITED NATIONS HUMAN SETTLEMENTS PROGRAMME For more information please contact us: UN-Habitat GLTN Secretariat Urban Legislation, Land and Governance Branch facilitated by UN-Habitat Land and GLTN Unit P.O. Box 30030, Nairobi 00100, Kenya P. O. Box 30030, Nairobi 00100, Kenya Tel.: +254 20 76 5199; Fax: +254 20 762 4256 Tel: +254 207623120; Fax: +254 207624266 Email: [email protected] Website: www.unhabitat.org Website: www.gltn.net Remaking the urban mosaic

Participatory and inclusive land readjustment Remaking the urban mosaic: Participatory and inclusive land readjustment

HS Number: HS/006/16E ISBN: 978-92-1-132699-4

Disclaimer

The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning delimitation of its frontiers or boundaries, or regarding its economic system or degree of development.

The analysis, conclusions and recommendations of this publication do not necessarily reflect the views of the United Nations Human Settlements Programme, the Governing Council of the United Nations Human Settlements Programme, or its Member States.

References to names of firms and commercial products and processes does not imply their endorsement by the United Nations, and a failure to mention a particular firm, commercial product or process is not a sign of disapproval.

Excerpts from the text may be reproduced without authorisation, on condition that the source is indicated.

United Nations Human Settlements Programme (UN-Habitat) PO Box 30030, GPO Nairobi 00100, Kenya E-mail: [email protected] Web: www.unhabitat.org

Cover From a land readjustment plan in La Candelaria, Medellin, Colombia

Sponsors The Governments of The Netherlands, Norway and Spain, and the Swedish International Cooperation Agency (Sida)

Published in collaboration with: International Institute of Rural Reconstruction (IIRR) Africa Regional Centre, PO Box 66873, Nairobi, Kenya [email protected], www.iirr.org

Printing: UNON, Publishing Services Section, Nairobi, ISO 14001:2004-certified. D1 No: 16-06353/500 Copies/June

ii CONTENTS

Figures...... v Who implements PILaR?...... 26 The PILaR process...... 28 Tables...... vii

Boxes...... viii 3

Videos...... ix Governance...... 37 Rights and principles that underlie PILaR. 38 Acknowledgements...... x Stakeholders in PILaR...... 42 Foreword...... xi Project management...... 47 Executive summary...... xiii Improving governance...... 48 Evaluation ...... 55 1 4 Introduction...... 1 Welcome to an urban world...... 2 Land management policies ...... 59 A short history of land readjustment...... 4 General policy guidelines...... 59 Land readjustment and the poor...... 6 Choosing the location...... 62 Alternatives to land readjustment...... 9 Land records...... 64 Related land tools...... 12 Who has a say? Who gets what?...... 65 Participatory and inclusive land Land contributions and reparcellation..... 69 readjustment...... 13 Assessing the value of land ...... 73 Who this book is for...... 18 Examples of reparcellation...... 71 What is in this book...... 18 5

2 Planning and design...... 89 Using PILaR ...... 21 Setting planning and design objectives.... 90 Urban expansion...... 21 Recognizing the development and Urban renewal, infill and densification.... 23 tenure situation...... 91 Improving poor neighbourhoods...... 24 Conforming to and adapting the Linear projects...... 26 planning system...... 91

iii Remaking the urban mosaic

Setting planning principles and policies... 93 9 Planning the project area...... 97 Finance...... 165 Stakeholder involvement in planning..... 100 Guiding principles for finance...... 165 Sources of finance...... 170 6 Tracking total costs and benefits...... 172 Collecting and analysing data...... 105 Assessing individual outcomes: The Information at different scales...... 106 exchange model...... 175 Information-gathering methods...... 107 Organizing finance...... 177 Phases of data collection and analysis... 114 Considerations in data gathering...... 132 10

Communication...... 179 7 Communication goals and objectives.... 179 Engaging with stakeholders ...... 137 Audiences...... 181 Who are the stakeholders?...... 139 Information products...... 188 Community engagement...... 142 Stages in communication...... 190 Disadvantaged groups...... 150 Organizing communication...... 190

8 11

Legal issues...... 151 What next?...... 191 Strategic issues...... 151 Applying PILaR in your country...... 191 Project-level issues...... 160 Developing PILaR further...... 192

Glossary...... 195

References ...... 201

iv Remaking the urban mosaic FIGURES

1 An example of land readjustment...... 3 17 Land readjustment in various 2 Franz Adickes, the originator of development and tenure situations.... 90 land readjustment in Germany...... 4 18 Example of a street network 3 The Lex Adickes: the German law covering 1 km2...... 95 that is the basis of land readjustment... 5 19 Street network created 4 Alternative land acquisition through land readjustment in approaches for a new road...... 11 Ouagadougou, Burkina Faso...... 96 5 Role of residents in PILaR...... 15 20 High-density urban use: Jaipur, India.. 97 6 The main building blocks of PILaR 21 Connectivity to the city and described in this book...... 18 major transport networks, 7 Who leads land readjustment in improvement scheme, Nagpur, India.. 98 different countries? ...... 27 22 Hierarchy of streets in the 8 Simplified steps in a PILaR process...... 29 Nagpur Improvement Scheme...... 99 9 Land readjustment can be very 23 Topography and infrastructure, complex: A flowchart from a improvement scheme, Nagpur...... 99 project in Bhutan...... 30 24 Creating walkable blocks in the 10 The continuum of land rights...... 41 Nagpur improvement scheme...... 99 11 It may be advisable to do the 25 Street design for the Nagpur project in stages...... 64 improvement scheme...... 101 12 How the Social Tenure Domain 26 Locating final plots in the Nagpur Model relates elements with one improvement scheme...... 101 another...... 67 27 Regularizing the shapes of plots 13 Original ownership of area to be in the Nagpur improvement scheme.101 readjusted...... 78 28 Finding the “sweet spot” that 14 Land readjustment plan based on serves all interests...... 103 land area, with no municipal reserve.. 78 29 Be prepared to create several 15 Land readjustment plan based on options at each stage for the land area, with municipal reserve...... 79 stakeholders to consider...... 104 16 Readjustment based on area with 30 PILaR project workers in La compensation for excess or shortfall.. 80 Candelaria explaining the next

v Remaking the urban mosaic

steps of the enumeration process 43 Options for the formal transfer to the community...... 111 of titles...... 157 31 Baseline mapping team in Angola ... 114 44 Fragmentation of land tenure in 32 Ground truthing in Angola...... 114 La Candelaria, Medellin, Colombia... 161 33 Data gathering stages and methods.115 45 Ideally, the cost of land 34 Example of a poverty scorecard readjustment project will be from Colombia...... 124 covered by rising land values...... 168 35 A typical environmental impact 46 Relationship between land value assessment process...... 130 increase and land contribution 36 Where does information come required...... 177 from? Who owns it?...... 135 47 Stakeholders for communication...... 181 37 Cadastral maps before and 48 The La Candelaria project website.... 184 after the land readjustment in 49 Communication activities at Lungtenphu, Thimphu...... 138 the information centre in La 38 Stakeholders in a PILaR project...... 140 Candelaria, Medellin...... 185 39 Community engagement at each 50 El Colombiano features the stage in a PILaR project...... 144 land readjustment project in La 40 The powerful and the less powerful.145 Candelaria...... 186 41 Training materials produced by 51 Communication activities by the the Global Land Tool Network on La Candelaria PILaR project...... 187 applying the gender criteria...... 147 52 Announcement of the Medellin 42 The relationship between policy agreement on the UN-Habitat and law...... 152 website...... 189

vi Remaking the urban mosaic TABLES

1 Conventional land readjustment: 11 Land areas before and after good and bad...... 7 readjustment, based on land value..... 81 2 Implications of human rights on 12 Land areas before and after land readjustment...... 39 readjustment, sliding scale of 3 Applying the principles of good contributions...... 83 urban governance to PILaR...... 40 13 Consensus ratios around the world.... 85 4 Sample questions for evaluation...... 56 14 Examples of policies, legislation, 5 Evaluation form to compare the standards and guidelines that situation before and after a PILaR may affect a PILaR project...... 92 project...... 58 15 Information on households in the 6 Land contribution ratios around community...... 126 the world...... 70 16 Steps in participatory 7 Sliding scale for land enumeration and mapping for PILaR.127 contributions in Bhuj, Gujarat, India... 76 17 Types of documents...... 163 8 Land areas before and after 18 Revenue sources for PILaR...... 170 readjustment – no reserve...... 78 19 The costs and benefits of PILaR...... 174 9 Land areas before and after 20 Exchange model used in La readjustment – with reserve...... 79 Candelaria...... 176 10 Land areas before and 21 Fictional example of plot sizes after readjustment – with and land contributions...... 178 compensation for shortfall or excess areas...... 80

vii Remaking the urban mosaic BOXES

1 Definition of land readjustment...... 3 24 Conducting a legal baseline study.... 121 2 Other names for land readjustment...... 5 25 Poverty scorecards...... 123 3 Finding the right words...... 8 26 Community engagement ...... 142 4 Definition of PILaR...... 14 27 Gender evaluation criteria...... 147 5 When might PILaR be used in 28 Youth and land ...... 149 urban expansion?...... 23 29 Policy and law...... 152 6 PILaR in built-up areas...... 25 30 Getting the law used ...... 153 7 Critical factors for PILaR...... 34 31 Notice and publication measures: 8 Land governance ...... 37 Borrowing related legal 9 The management team...... 48 mechanisms ...... 155 10 Social Tenure Domain Model...... 66 32 Community land trusts ...... 158 11 Thimphu, Bhutan: Setting the 33 A patchy hierarchy of plans ...... 159 contribution ratio too low...... 70 34 Housing subsidies in Ethiopia...... 172 12 Using betterment charges 35 Data needed for a cash flow sheet... 173 to fund infrastructure in 36 Types of costs incurred by a project.. 173 Ahmedabad, Gujarat, India...... 74 37 Covering costs in La Candelaria...... 174 13 Land values in Germany...... 75 38 Example of an exchange model: 14 Betterment...... 85 La Candelaria, Medellin ...... 175 15 Floor area ratio...... 86 39 Balancing land contributions and 16 Transfer of development rights...... 87 the expected land value increase...... 178 17 Planning vs design...... 89 40 La Candelaria project website...... 184 18 Encumbrances and clearances...... 93 41 Community information centre in 19 UN-Habitat’s five principles for La Candelaria ...... 185 sustainable neighbourhood planning .94 42 La Candelaria project in the media... 186 20 Intra-household relations...... 109 43 La Candelaria project at 21 Community character and social international events...... 187 capital ...... 110 44 Elevator pitch...... 188 22 Building trust in La Candelaria...... 111 45 Announcing an agreement on 23 Participatory mapping in Angola ..... 114 PILaR in Medellin, Colombia...... 189 viii Remaking the urban mosaic VIDEOS

This book is accompanied by a series of one on the right) on short, 1–2 minute videos featuring experts your mobile phone. on various aspects of land administration, You will need a QR all contributors to this book, talking about code reader app to various aspects of participatory and inclusive do this. Or you can land readjustment. You can view a video in visit the weblink next tinyurl.com/pilar- two ways. You can scan the QR code (like the to it. haile

Why land readjustment?: Land readjustment after the Rainer Müller-Jökel...... 6 earthquake in Bhuj, India: Conventional land readjustment vs Shirley Ballaney...... 82 PILaR: Achieving consensus on a vision: Solomon Haile...... 16 Salvatore Fundaro...... 102 Four ways to use land readjustment: Data-gathering in PILaR: Robin Rajack...... 22 Melissa Permezel...... 107 PILaR in Huambo, Angola: Engaging stakeholders in PILaR: Allan Cain...... 28 Melissa Permezel...... 146 Making land readjustment work for PILaR in La Candelaria, Medellin, the poor: Colombia: Clarissa Augustinus...... 42 Maria Buhigas...... 148 Cross-cutting issues in PILaR: PILaR and the law: Rebecca Ochong...... 52 Robert Lewis-Lettington...... 154 Land valuation in PILaR: Communication in PILaR: Larry Walters...... 79 Oihana Cuesta...... 180

ix ACKNOWLEDGEMENTS

Task managers UN-Habitat Clarissa Augustinus, Gianluca Crispi, Oihana Jean du Plessis and Solomon Haile, Cuesta, Jean du Plessis, Salvatore Fundaro, UN-Habitat Solomon Haile, Robert Lewis-Lettington, Co-authors Rebecca Ochong, Liz Paterson, Melissa Permezel, Remy Sietchiping. Brigham Young University, USA www.unhabitat.org, www.gltn.net Larry Walters, tinyurl.com/qexc5dr Inter-American Development Bank and Urban Facts, Spain World Bank Maria Buhigas, www.urban-facts.com Robin Michael Rajack, www.iadb.org and www.worldbank.org City Survey Ofﬁce, Frankfurt, Germany Rainer Müller-Jökel, tinyurl.com/pzt6qmx Production

Development Workshop, Angola Writeshop facilitation Allan Cain, www.dw.angonet.org Isaac Bekalo and Janet Nyaoro, International Institute of Rural Reconstruction,www.iirr.org HCP Design, Planning and Management- Pvt. Ltd., Gujarat, India Logistics Shirley Ballaney, hcp.co.in Janet Nyaoro and Jacquiline Ochanda, Internationa national Institute of Rural Independent specialist in development Reconstruction communication, Kürten, Germany Paul Mundy, www.mamud.com Editing, design and layout Paul Mundy, www.mamud.com Juan Felipe Pinilla & Associates Rose Kipyego and Tervil Okoko, International Juan Felipe Pinilla, juanfelipepinilla.com Institute of Rural Reconstruction Massachusetts Institute of Technology Sponsors and Lincoln Institute of Land Policy, The Governments of The Netherlands, USA Norway and Spain, and the Swedish Yu-Hung Hong, www.lincolninst.edu International Cooperation Agency (Sida)

x FOREWORD

his book, Remaking the urban mosaic Land readjustment offers a solution. It pro- T– participatory and inclusive land read- vides access to land for public use by captur- justment, represents a milestone in the de- ing a proportion of the value created by development of the Participatory and Inclusive velopment. That gives the authorities much Land Readjustment (PILaR) tool. It offers val- greater capacity for intervention. Land uable guidance on how to adapt the con- readjustment involves pooling all the land ventional land readjustment methodology parcels in a particular area and planning in a developing country context. them as a unit. Roads can be put in, and sewerage and other infrastructure installed. Local and national governments often Agreed portions of the land are then reallo- struggle to improve the urban fabric and cated to the original owners. Each landown- meet the growing demand for public ser- er gets back a plot that is smaller than the vices. In many countries, authorities have to area he or she originally contributed to the cope with unprecedented rates of urbaniza- common pool, but that is now worth more: tion. They are called on to provide shelter, its value has gone up because of proper housing, services, public infrastructure and planning, rezoning, added infrastructure, safe public spaces. To achieve this requires and improved services. land. In the absence of available public land, the only ways that the authorities can Some local governments have achieved no- secure the necessary land are to buy it or table results with land readjustment. But a through expropriation. Both are cumber- very specialist-driven approach to land read- some and expensive processes – making it justment requires strong and well-resourced almost impossible for many governments to local authorities and quick, effective dis- develop, or redevelop, large areas in a sys- pute-resolution mechanisms that are acces- tematic way. sible to all. Such things are lacking in many developing countries. At the same time, a deteriorating urban environment further marginalizes many As the book demonstrates, the results from urban dwellers, leading to more poverty, land readjustment have invariably been bet- unhygienic living conditions and limited ter, stronger and more sustainable if local livelihood opportunities. Women, children, people have been involved in the process. youth and newly arrived migrants often Positive outcomes have included an im- bear the brunt of these hardships. proved supply of serviced urban land, more

xi Remaking the urban mosaic streets and better public space, more social which played a central role in making PILaR housing, orderly and less conflict-ridden city a reality. expansion, and an increase in financial re- The book is written in an easily accessible sources mobilized through the sharing of style to make it useful for a wide range of land value and other land-based financing potential participants in the PILaR process. It instruments. can also be used as a basis for adapting the This book helps readers understand how to methodology to different local situations. apply PILaR in a developing country context. A key feature of PILaR is that it puts stake- It is the outcome of intensive research and holders at the heart of planning city exten- collaboration by partners and experts con- sions and redevelopment throughout the vened by UN-Habitat and the Global Land project cycle. The emphasis is on meaning- Tool Network (GLTN). It builds on experi- ful participation by all stakeholders, includ- ences in countries that have applied con- ing the poor and marginalized residents of ventional land readjustment in a participa- the affected area. They agree to operate un- tory and inclusive way. The best elements der a governance, legislative and regulatory of these experiences have been used as framework designed to create a win–win building blocks of what a full-blown PILaR situation for most, and ideally all, the par- approach might look like. Significant thanks ties involved. The goal is sustainable urban are also due to the city of Medellin, Colom- development: a better urban future for all, bia, and the community of La Candelaria, especially for the urban poor.

Joan Clos Under-Secretary General, United Nations Executive Director United National Human Settlements Programme (UN-Habitat)

xii EXECUTIVE SUMMARY

articipatory and inclusive land readjust- hood without having to pay for compulsory Pment, or PILaR for short, is a way of acquisition or risk lengthy lawsuits. reallocating the land in or around a city in Land readjustment is not a new approach: a more sustainable way for unified plan- it was developed in Germany in the ear- ning, subdivision or re-parcelling, and ly 1900s, and has since spread to many development. countries around the world, including In- dia, South Korea, Turkey, Thailand and Co- LAND READJUSTMENT lombia. In Japan, one-third of the built-up Land readjustment involves pooling all the environment has been created or recreated land parcels in a particular area and plan- using this approach. ning them as a unit: putting in roads, sewerage and other infrastructure, and then PARTICIPATORY AND INCLUSIVE dividing up the land again to the original LAND READJUSTMENT owners. A proportion of the land is used Conventional land readjustment does not for roads and public space. Each landown- necessarily operate in favour of the poor: er gets a plot back which is usually smaller too often, the municipal government, than the area he or she originally contrib- working only with formal landowners, uted to the common pool. But the plot is imposes decisions on local communities. now more valuable: it has infrastructure and PILaR differs from conventional land services, and has formal documentation; the readjustment in that it is participatory. area has been re-zoned, and different types It involves all stakeholders – landowners, of use are permitted. The municipality may tenants, informal residents, the municipal retain part of the area for sale or for other authorities, land professionals and uses (such as affordable housing). community organizations – in planning Land readjustment allows both the munic- and making decisions. It is also inclusive: ipality and the landowners to share in the it ensures that the poor and disadvantaged profits created by a change in land use and also benefit. It aims to achieve consensus rational planning for a large area. The land- among all stakeholders and avoid forcible owners end up with more valuable land removals or evictions. parcels than if they were to act alone. The municipality gets a well-planned neighbour-

xiii Executive summary

PILaR can be used where there is little or WHO IMPLEMENTS PILAR? no formal land ownership, and few or no PILaR requires close collaboration between registered land parcels. It can be applied in the municipality, technical and professional situations where landholders have rights specialists, community organizations, non- (or claims) to plots of land a variety of for- government organizations, landowners, mal and informal arrangements. It involves landholders, tenants, informal residents and all stakeholders in designing and planning other community members. how the land in the neighbourhood should be reallocated. It uses a financial framework The process may be led by the national, re- that does not just benefit the landowners gional or municipal authorities, a group of and municipality, but also people who do landowners, landholders, a nongovernment not formally own land, the tenants and the organization, or an international organiza- poor. It also supplies a better balance for tion (such as UN-Habitat). sharing the burdens and benefits of land readjustment between the public and private THE PILAR PROCESS sector. PILaR consists of five main steps.

Conceptualize This involves identifying WHEN CAN PILAR BE USED? the legal framework, choosing the location, PILaR can be used in various circumstances: determining the desired land use, checking Urban expansion On the edge of a the legal status of the land and plans for growing city, PILaR can be used to convert the area, setting up a team to manage the land from rural to urban use. project, conducting a feasibility study, and making an initial presentation to the stake- Urban renewal, infill and densifica- holders (landowners, landholders, local res- tion PILaR can be used to redevelop areas idents, tenants and others who may be af- that are already built up – for example to fected or want a say in the project). make an existing neighbourhood more suited to new uses, convert a low-density area Gather data This includes a baseline to a higher density, rejuvenate a run-down study, a mapping of the stakeholders, and inner city, or rebuild after a disaster such as a detailed enumeration of each plot of land a conflict or earthquake. and the tenure arrangements associated with it. The data are gathered in a participa- Improving poor neighbourhoods PILaR tory way, involving local people in designing, can be a key tool in upgrading slums. gathering and analysing the information. Linear projects Building or widening Develop a draft plan The team analyses roads and railways and installing pipelines the data, fixes the boundaries of the total requires changes in land holding and use. area, draws up a physical plan, creates a fi- PILaR can facilitate these. nancial plan, identifies the amount of land that each landowner and landholder will be xiv Remaking the urban mosaic expected to contribute and determines the be necessary to create new policies and laws boundaries of each plot. All these steps are to facilitate it. If a pilot project is successful, done in close collaboration with the com- the approaches used can be expanded to munity and other stakeholders. cover other similar areas within the country.

Finalize the plan During the negotia- Key decisions will include: tions with the stakeholders, it may be nec- The site selection It must be accessible essary to revise the plan several times in or- and have suitable topography and social sit- der to take their concerns and interests into uation (for example, an area with a lot of account, and to create a workable financial crime is probably not a good place to do plan. The plan is then submitted to the mu- a pilot project). The land records must be nicipal council for approval. reasonably clear and accurate, or it must be Implement It is now possible to mark possible to generate new land information new boundaries on the ground, assign plots using an approach such as the Social Tenure and manage compensation, put in the infra- Domain Model. structure, and sell or develop plots. The amount of land to be contributed Each landowner and landholder will be re- GOVERNANCE quired to contribute a proportion of his or The PILaR approach is based on a set of her land. The amount will depend on the principles of good urban governance, in- amount of land needed for roads and other cluding sustainability, subsidiarity (decisions public spaces, as well as the land to be held should be taken at the lowest appropriate by the municipality in reserve for later rede- level), equity, efficiency, transparency and velopment or sale. The proportion may vary accountability, civic engagement and securi- between 30% (in Bhutan) to 55% (South ty. It recognizes that rights to land are rarely Korea). Larger landowners and landholders absolute; rather, there exists a continuum of may be required to contribute more; smaller land rights. PILaR tries to take the interests ones less. and rights of all stakeholders into account – The land valuation method The land whether landowners, landholders, formal or may be valued according to its area, its informal residents, tenants or people with presumed market value, or by some proxy customary rights to the land. By engaging (such as distance to the city centre or public with the stakeholders from a human-rights transportation). Unregistered land will also perspective and by building on the existing have to be valued. legal framework, it is possible to set rules The compensation rate Planning re- that are fair to all. quirements mean that it may not be possible for each landowner and landholder to LAND MANAGEMENT POLICIES get back exactly the amount of land he or The project should comply with existing pol- she is entitled to. Landowners and landhold- icies, but if PILaR is new in a country, it may ers who fall short must be compensated at

xv Executive summary a particular rate; those who get more than flect reality) and participatory enumeration their entitlement have to pay the difference. of local residents and other stakeholders. The information needed will cover a range The consensus ratio This is the propor- of topics: governance, legal issues, finance, tion of landowners and landholders who stakeholders, planning, land and housing, have to agree for the project to go ahead. and the environment. The information must Figures range from 85% (in Indonesia) be analysed and validated before it is used. to 51% (Colombia). If someone does not agree, his or her land must be compulsorily acquired at a set rate. This must be support- ENGAGING WITH STAKEHOLDERS ed by the prevailing legislative framework. Along with the financial model, thedegree of stakeholder engagement is the main PLANNING AND DESIGN difference between PILaR and conventional land readjustment. In the conventional The plans must ensure that the resulting approach, the project implementer nego- neighbourhood is a marked improvement tiates only with landowners, then imposes over the previous situation. The area must its decisions on everyone else: non-owners, conform to the planning system and guide- residents and tenants. A PILaR project in- lines, though it may be necessary to adapt volves all stakeholders at each stage in the them to suit the specific situation. For exam- project. A broad range of stakeholders are ple, there must be enough land for streets consulted, including formal owners, other and public space, and basic services and af- landholders, tenants, informal residents and fordable housing must be made available. others who may be affected. The project The project should promote a diverse land- puts a major effort into informing the stake- use and a social mix. As with all stages in holders, getting their opinions and inputs, the project, the stakeholders must be in- and finding solutions that all can live with. volved in the planning and design. A num- It puts particular emphasis on reaching indi- ber of planning scenarios will have to be viduals and groups who are usually ignored: created for discussion with stakeholders women, young people, the elderly, and oth- and to identify the best fit with the financial er disadvantaged groups. model adopted.

LEGAL ISSUES COLLECTING AND ANALYSING DATA If the law already provides for land read- It is important to gather sufficient data be- justment, it should be used as the basis for forehand to ensure that the project func- project design. If no such laws exist, it may tions smoothly and that everyone’s interests still be possible to borrow concepts from are taken into account. The data will be related legislation, such as rules on plan- drawn from a combination of formal records ning, land acquisition, expropriation and (remembering that in many countries these compensation. do not exist, are out of date, or do not re- xvi Remaking the urban mosaic

In conventional land readjustment, the main COMMUNICATION beneficiaries are the formal landowners A PILaR project has six main audiences: the and the municipality. PILaR aims to benefit project implementing agency itself (usually a wider range of stakeholders, such as all a team within the municipality), collaborat- landholders, tenants and informal residents. ing organizations (such as other branches The solutions for these groups must be de- of the local government), policymakers and fined, and all parties must formally agree donors, the landholders and community to them. Legal mechanisms are needed to members, the media, and the wider pub- handle issues such as the site selection, the lic. The communication strategy is vital for level of land contributions, the amount of stakeholder engagement. It should aim to say that landowners and non-owners have, keep all these people informed, facilitate the land valuation mechanism, sales and exchange, enable them to make their voic- transfers of land after the project has been es heard, and generate their support and announced, handling disputes, combatting trust. The project can use a range of infor- speculation, the classification of land in the mation products and events: newsletters, a plan, the types of formal land rights to be website, videos, meetings, announcements allocated, and the financial arrangements. and exhibits. A community liaison centre and the mass media can be valuable ways FINANCE of keeping people informed and involved. A PILaR project aims to ensure that the burdens and benefits of the readjustment are WAY FORWARD shared as fairly and equitably as possible PILaR is a promising way to reorganize the between the public and private sector so land-tenure rights and use of land in a va- the private sector does not capture all the riety of situations in and around cities. The benefits while the public sector carries all approaches described in this book need to the burdens. Everyone should benefit: each be adapted to each situation – there is no landowner and landholder should receive a one-size-fits-all solution. Where the legal plot of land that is smaller but worth more environment permits, the way to start is to than his or her original plot, while those do a small-scale pilot project in a relative- residents who choose to participate should ly simple, clear-cut situation. If this is suc- benefit, regardless of their tenure status. cessful, the approach can be adapted and They should not be displaced through scaled up to larger areas and more complex forced eviction or by overt or covert market conditions. If the legal situation is less con- forces. The project should be self-financing ducive, it will be necessary to find related as far as possible; that means it should cov- rules and legislation that can be used as a er the infrastructure and construction costs. framework, then to design a pilot project. This is possible only if the value of the land Changes in the law can then be proposed rises enough so that the municipality can on the basis of the experience. sell (or rent) a portion to pay for the costs.

xvii xviii 1 INTRODUCTION

he farmers of Fátima were sceptical After getting everyone’s agreement, Tat first: what did the provincial gov- the boundaries of each plot were sur- ernment want to do with their land? veyed using a handheld GPS device, and Fátima is a bairro (neighbourhood) on the holders were identified. The few the southeastern edge of Huambo, the overlapping claims were resolved to second-largest city in Angola, close to everyone’s satisfaction. the airport. The provincial government Roads and other infrastructure were wanted to make the land available for planned: they took up 30% of the the city’s expansion. The area was still whole area. The remainder was then di- mostly farmland, but it was divided up vided into plots. Half (35% of the total into lots of irregular plots: too small and area) was redistributed to the holders, higgledy-piggledy to plan in a rational and the other half was sold to cover the way. Each plot by itself was not worth costs of infrastructure. Bulldozers were much: most lacked road access and basic brought in to make roads, a bridge was infrastructure. How could the land be built to connect the area with the rest allocated for development, while mak- of town, and four wells were dug to ing sure the landholders got a fair deal? provide drinking water. The landhold- A nongovernment organization, Devel- ers each received documents to confirm opment Workshop, suggested using an their rights to their new plots. approach called “land readjustment”. Today, this part of Fátima is a socially This involves putting all the plots to- diverse community with a range of in- gether into a single unit, allocating land come groups, from poor to middle class. for roads and services, then distributing Some of the original landholders have smaller, but now more valuable, plots to sold part of their plots, but most have the original owners. built houses and they or their relatives Development Workshop added a twist. still live there (UN-Habitat 2013). Instead of imposing the plan from above, it worked in a participatory way. It held a series of meetings with the government, local leaders and the landholders to explain how it would work.

1 Remaking the urban mosaic

Rational urban development needs larger WELCOME TO AN areas that can be treated as a unit. This is so roads, sewers and other infrastructure can URBAN WORLD be installed and function efficiently, new buildings that conform to safety and other 2008 marked a threshold: for the first time requirements can be put up, and living con- in history, cities became home to more than ditions can be improved. half humanity. Some 3.5 billion people Land readjustment (Box 1) is a way to across the globe now live in urban areas, achieve this. The individual private land- and an extra 2.5 to 3 billion people will do holders voluntarily give up part of their land so by 2050. Most of this growth will take in return for better public infrastructure place in the developing world. An influx and services. The land is cleared and part of predominantly poor people, along with of the land is sold to cover the costs of the a burgeoning middle class, will put new infrastructure. New, multi-storey buildings stresses on cities. Those countries will re- replace the previous single-storey shacks. quire visionary urban policies, legal regimes Taller buildings mean that more people can and land management approaches that live in a smaller area, but still have more liv- promote liveable cities that are socially just. ing space than before. The space freed up One of the biggest problems that city gov- makes it possible to lay pipes and cables, ernments face is in making land available build roads and drains, and set aside land for development or redevelopment, espe- for squares and parks. cially for the poor. Land is typically divided In theory at least, everyone wins. Residents into many small, irregularly shaped plots, get new housing, better infrastructure and each with a different landholder with his services, and a higher standard of living. The or her own particular interests. Even in the holders’ land and the buildings on it rise in best cases, the resulting development is value because of the improved infrastruc- haphazard: each landholder erects build- ture and services. The local authority im- ings on his or her own plot, often without proves the services it offers, and saves mon- adequate services and without following ey because it avoids having to buy the land planning guidelines. Roads are narrow and in order to redevelop it. Its revenues rise as winding, and end up clogged with traffic. people start to pay taxes and fees for servic- Many plots remain without road access or es. Public health improves; crime falls. the possibility of providing services. In the worst cases, slums result: large numbers of poor people are crammed into restricted areas; land rights are unclear, tenure is informal and uncertain, and living conditions squalid.

2 1 Introduction

Box 1 Definition of land readjustment

Land readjustment is where a group of Before land readjustment contiguous plots are voluntarily brought together or shared. This land may be in B an urban fringe or in an inner city or mu- A nicipality neighbourhood, or lie along the line of an infrastructure project such House G as a railway or road.. H The consolidated plots are treated as a unit for the planning of new buildings C and infrastructure such as roads, drains, E water, electricity and sewerage. I The unit is re-divided into plots and re-allocated to the landholders according to F the size or value of the land that each D J has contributed. The costs and benefits are shared equitably among the landholders. The landholders get back a smaller amount of land than each contributed, but the value has increased because of the improved infrastructure. The excess land is used for public amenities such as roads and open space. Some land may be After land readjustment set aside as a reserve to be sold to cover the costs of the readjustment. A House B G

Road Definition adapted from: Global Land Tool Network/UN-Habitat, tinyurl.com/ o4fyt4h D E H Graphic adapted from Kiyotaka Hayashi, Land readjustment in international per- C Reserve F spectives tinyurl.com/pd99xbr land I

Park J

Figure 1 An example of land readjustment

3 Remaking the urban mosaic

A SHORT HISTORY OF LAND READJUSTMENT

Land readjustment was first developed in Germany in the early 20th century. Franz Adickes, the Lord Mayor of Frankfurt am Main in Germany (Figure 2), first proposed a law to ease the development of this rapidly growing city. This law, passed in 1902 and known as “Lex Adickes”, or “Adickes’ Law”, made it possible to convert rural land into other uses. Before this, individual landowners could block redevelopment or could make large profits through speculation. Source: Wikipedia Adickes’ Law (Figure 3) envisaged that re- Figure 2 Franz Adickes, the originator of land adjustment should be done in the common readjustment in Germany interest. A readjustment could be initiated either by the municipal authorities or by the (Aufbaugesetze), with a maximum land owners of a particular area. Holdouts could contribution ratio of 35%. be forced to take part, ending the possibility of speculation. The German Federal Building Code still contains the fundamental ideas of Adickes Areas designated for public use such as Law. This code has 40 paragraphs regulat- streets and squares were subtracted from ing land readjustment. Since 1960, it has the total area and were transferred the included land values as a way of readjusting city government. The remaining area was the plots. The construction of public infra- distributed as plots to the original owners, structure is still not included; it has to be preferably located as close to their original financed separately by the landowners. plots as possible. Germany has no overall data on land read- The first version of the law allocated a justment because such projects are man- maximum of 30% of the original area to aged by individual municipalities. But the the owners; in 1907 this increased to 35% approach has been used successfully in (40% if the landowners themselves had ini- thousands of projects for urban develop- tiated the process). ment and redevelopment. To reconstruct the destroyed cities after Land readjustment has since been widely World War II, federal states in West Germa- used in various other developed countries, ny implemented special “rebuilding laws” including Spain, where land administration

4 1 Introduction systems are comprehensive and legal systems are well-established. Japan also adopted the approach, modifying it in a special Land Readjustment Law (kukaku-seiri) of 1954, including regulations for construction work. More than 10,000 projects covering more than 300,000 ha have been subject to land readjustment.

Specialists from the Japan International Co- operation Agency have introduced land readjustment in various countries in Southeast Asia. It has also proven to be exceptionally useful in developing countries such as India, South Korea, Turkey, Thailand and Colom- bia (Box 2). In Japan, one-third of the built- up environment has been created or recreated using this approach.

Box 2 Other names for land readjustment

The preferred term in English, land readjustment, was adopted in 1979 at a conference in Taiwan. The same, or similar, approaches are known un- Figure 3 The Lex Adickes: the German law that is the basis of land readjustment der different names in various parts of the world. • Australia: Land pooling • Germany: Umlegung, Baulan- dumlegung • India: Town planning scheme, plot reconstitution • Indonesia: Penyesuaian lahan • Japan: Kukaku seiri, 区画整理 • Spanish: Reajuste de suelos • Taiwan, Southeast Asia: Land consolidation • Turkey: Arazi ve arsa düzenlemesi

5 Remaking the urban mosaic

administration. For example, it may replace LAND READJUSTMENT an existing, run-down area with upmarket housing or shopping facilities. AND THE POOR Land readjustment also needs specialized skills and institutional capacity. It is often Unfortunately, conventional approaches to implemented in a top-down way, and var- land readjustment have had limited success ious elements or steps (such as the crucial in developing countries. Even if they have improvements in infrastructure) are left out. aimed to benefit the poor, they have often The private sector often uses land readjust- failed to do so (Table 1). By ignoring the ment for its own purposes, to the detriment needs and opinions of the poor, land read- of the urban form and of poorer residents, justment may end up profiting local power and ignoring the local authority’s social brokers and property developers. It can trig- objectives. ger gentrification, in which better-off outsiders move in, pushing up house prices and To benefit the poor, land readjustment pro- rents, and forcing out existing poor tenants. jects have to consider the following factors: Women are often at a particular disadvantage in such situations: they have little say in decisions that affect them, and they see PHYSICAL DEVELOPMENT few benefits. Develop infrastructure This is necessary Where it is managed by the local authority, to enhance the value of land, and so attract land readjustment does not necessarily aim landholders to give up part of their land to help the poor. It may aim merely to rede- voluntarily. A strong partnership between velop an area at a minimum cost to the local the private and public sectors is needed to

The general idea is to share “the profit and the land value increase in urban development projects between the landowners and the municipality. It leads to a typical win–win situation where Photo: Rainer Müller-Jökel both sides make a profit.”

Rainer Müller-Jökel, City Survey Office,

Frankfurt, Germany tinyurl.com/pilar-mueller- joekel

6 1 Introduction

TABLE 1 CONVENTIONAL LAND READJUSTMENT: GOOD AND BAD

Good Bad

Works best when consensus is high Strong incentive for land contribu- Can be very unstructured Stakeholder tion involvement Weak or no stakeholder engagement More carrots (better infrastructure or involvement and land value increase) than sticks (expropriation)

Plots may be the wrong shape or size Converts unstructured land units for urban functions Land plots into more structured and serviced plots Plots may be too small for roads and public spaces

Delayed or dropped infrastructure investment reduces the incentive for Allows infrastructure improvements Infrastructure landholders to contribute land volun- and creation of public space tarily Delays can result in land grabbing

Land contributions are based on the Land value Increases land value size of plots rather than their value

Fragmented, inadequate and complex Works best where there is a solid legal frameworks frustrate gains Legal legal framework framework Litigation may result in termination of Avoids litigation where possible projects

Regularizes tenure and inclusion of Does not improve tenure security for Tenure informal settlements informal residents

At least part of the cost covered by Not always self-financing (a mix of pub- Financing sale of land and increased tax on lic subsidy, public–private partnership, land value cost sharing)

Can be outsourced to the private Institutional Capacity in public agencies is often a sector, but this requires strong public capacity huge issue oversight

Works best in areas with few or no Complex and contentious in inner cities Location current residents and densely populated areas

Poor and vulnerable people are not Impact on the considered. They may be forced out or poor evicted

Source: Based on Solomon Haile, UN-Habitat, 2012 (pers. comm).

7 Remaking the urban mosaic finance investments in infrastructure. It is their voices are heard and their interests are best to build the infrastructure at the same taken into account. Urban development time as doing the land readjustment, rather projects sometimes fail to involve the poor, than waiting until afterwards (which may women and the vulnerable, who end up mean it gets forgotten). worse off than before, or are even displaced.

Provide enough affordable housing Build broad partnerships Local authori- Many of the people who live in areas sub- ties can build strong partnerships with var- ject to land readjustment are poor. But land ious stakeholders: residents’ associations, readjustment projects typically do not build NGOs, private developers, etc. These can enough affordable or social housing: local help ensure that everyone’s interests are authorities often cannot plan and build such taken into account, and that the benefits housing, and projects are sometimes taken are not captured only by one group. over by the private sector, which has little Improve coordination and integration interest in doing so. Land readjustment projects involve many stakeholders, so require strong coordination and negotiation, particularly in city PARTNERSHIPS AND COORDINATION extensions. The stakeholders may include Engage key stakeholders throughout different local authorities in a metropolitan The local community and other key stake- area, urban and rural local governments, holders must be consulted and involved government and communities, public- and from the beginning. This is to ensure that private-sector organizations.

Box 3 Finding the right words

The terminology relating to land tenure land ownership, and no (or very few) is fraught with difficulties. Different le- registered land parcels. Instead the land gal and administrative systems, unclear is held in large and small plots under dif- tenure and disputes make it hard to find ferent formal and informal agreements. universally applicable terms. For the sake of simplicity this book uses Land ownership is an example. It comes the term landholder as an overarching in many shapes and forms (see the sec- term. This term includes formal landown- tion on the Continuum of land rights). ers, people with customary rights, formal We use the term landowner to refer to and informal residents and tenants. It the person or persons who have the rec- covers parcelled and un-parcelled land, ognized legal right to a particular piece and plots which are legal and non-legal. of land which is registered in the cadas- Some terms come loaded with negative tre (a parcel). In English Common Law, connotations. The word squatter is one: this is the holder of a freehold title. in some places it is seen as derogatory. In many situations where PILAR will be We prefer to use informal resident. used, there may be little or no formal

8 1 Introduction

ADMINISTRATION overcome this, but still requires the local authority to supervise and approve activities . Increase security of tenure Land readjustment can help bring informal landholders and tenants into the formal system by providing them with legal and financial incentives. People who have occupied land without formal title, often for many years, ALTERNATIVES TO LAND can get their rights recognized (Box 3). READJUSTMENT Improve land administration Many cities suffer from weak land administration: The main alternatives to land readjustment land records are limited, many plots lack ti- are: tles, and the rights of slum dwellers are not • Compulsory acquisition recognized. Land readjustment projects can help overcome these problems. • Land markets

Develop a conducive legal framework • Guided land development. The legal framework must be clear, robust Land readjustment should be used only if it and favourable for land readjustment. It has clear advantages over the alternatives. It must also be tied to strong institutions that may also be used in conjunction with these are capable of implementing it. Where an approaches; for example, it may be neces- explicit legal framework does not exist, sary as a last resort to compulsorily purchase borrowing from concepts from related leg- the plots of landowners who refuse to par- islation such as planning, land acquisition, ticipate in the land readjustment. expropriation and compensation should be considered. If this is not possible, the project can help to create a new legal framework. COMPULSORY ACQUISITION

Embed in broader urban planning To Compulsory acquisition (also known as em- ensure consistency, land readjustment must inent domain, resumption, compulsory pur- be part of the overall urban plan and related chase, or expropriation) is routinely used in to other urban development projects. If not, most developing countries. From the munic- confusion, hostility and litigation may result. ipality’s perspective, it is expensive because Manage the financial arrangements it entails compensation and may lead to Ideally, land readjustment is self-financing, lawsuits. “Public interest”, which justifies but this is not always the case. It often en- expropriation, is almost always loosely details a mix of public subsidy, private-public fined. When cases go to court, the public partnership (cost sharing), and some value authorities often lose. Litigation also causes capture. Local authorities often lack the delays and political problems. capacity to manage land readjustment; The landholders also find compulsory acqui- outsourcing to the private sector can help sition unattractive. Challenging it in court

9 Remaking the urban mosaic is expensive and risky. The compensation • Landholder  will lose out: his or her is rarely adequate or prompt, and does not land will be purchased at a price deter- include the costs of relocation. Plus, the val- mined by the city, and there will not be uation is based on the current market price enough left for a viable plot. This land- of land, not on its expected future value – holder will be displaced. which is likely to be much higher. • The landholders labelled  will be lose a Land readjustment is more consensual. It small part of their land and be left with allows negotiation, and the majority of some frontage on the road – enough for landholders choose to take part; very often, access, raising considerably the value of peer pressure results in complete consensus their remaining plot. (though it is important to make sure that • The landholders labelled  will lose a peer pressure does not descend to bullying). larger chunk of land to compulsory ac- Land readjustment is cheaper for the munic- quisition, but will be left with larger road ipality as the scheme covers part or all of its frontages. costs. It makes it possible to integrate land • Landholders labelled  do not benefit at development and the provision of infra- all: they are left without road access. structure and service, and creates space for public use. Most or all current residents can The municipality must cover the cost of stay in the area, and they enjoy better living building the road and providing the infra- conditions. The result is a mixed neighbour- structure out of its own budget. hood with a strong social fabric. The bottom of Figure 4 shows the alterna- Land readjustment is fairer than compulso- tive using land reallocation. Here, all land- ry acquisition for two reasons: it displaces holders get a smaller, but more valuable plot few people (or none at all), and the devel- with road frontage. No one is displaced, opment costs and benefits are shared eq- and the costs and benefits are shared. Rath- uitably. This means it will generate broader er than a few landholders giving up all their political support and be less likely to result land, all give up a little, creating the public in protests and lawsuits, and the associated space required for the road. In addition to delays. That more than compensates for the the road itself, the municipality is allocated extra time and effort needed for more de- plot , which it can use for public space tailed consultations with a larger number of or sell to cover the cost of providing the stakeholders. infrastructure.

Figure 4 illustrates this. Here, the city gov- Compulsory acquisition may be used with- ernment plans a new road through a resi- in a land readjustment project in several dential area. Using compulsory acquisition situations: to buy land to put in a road (top of the • To acquire land from holdouts Land- figure) has different outcomes for different holders who do not wish to collaborate classes of landholders:

10 1 Introduction

and who refuse to include their land in Planned road the readjustment.

• To acquire land from landholders who wish to sell it in the period after 4 2 the readjustment has been announced but before it has been implemented. The municipality may reserve the right to purchase such land in order to prevent 3 3 speculation.

• To allow the municipality to acquire more land than the contribution per- 3 2 mitted under law (see Chapter 8) or 1 agreed with the landholders.

LAND MARKETS 2 4

Land markets mediate the transfer of land from one party to another through rental, Compulsory acquisition lease or sale. These arrangements provide land that individuals, real estate companies, cooperatives and governments can use for 2 housing, infrastructure and other purposes. The land that changes hands may be ser- 4 viced or unserviced. Market-based mechanisms of accessing land and property are 5 widely used in developed countries and 3 most cities in developing countries. Both 3 formal and informal land markets exist. 1 An investor (usually an outsider with sufficient capital, or perhaps an existing land- 3 2 holder or group of landholders in the area) can use the markets to acquire all the plots 4 in the area. The investor can then seek planning permission and redevelop the site. 2 This has various advantages and disadvantages from the municipality’s point of view: Land readjustment

Figure 4 Alternative land acquisition approaches for a new road

11 Remaking the urban mosaic

• The cost of acquiring land and con- the investment. By planning ahead, the structing buildings is borne by the inves- municipality can guide expansion and de- tor, not the municipality. ter settlement in environmentally sensitive or inappropriate areas. Areas suitable for • The cost of installing roads and other in- settlement can be prepared in advance. Ac- frastructure may be borne by the inves- quiring rights of way for roads and other tor alone, or in certain situations by the infrastructure helps ensure that roads – es- investor and the municipality together. pecially secondary roads – are not under- • The municipality can exert a degree of supplied. It makes sense to acquire these control over the development because it rights of way and prepare basic infrastruc- has to conform to urban plans and be ture investments while land prices are still granted planning permission. relatively low (World Bank, 2011). • The area involved is fairly small, especially in built-up areas. Private investors do not have the capital or capacity to negotiate with large numbers of individu- RELATED LAND TOOLS al landholders or to buy up large areas. For this reason, speculation is restricted mostly to high-value city-centre sites or Land readjustment may be used in conjunc- to larger, greenfield sites on the edges tion with other land tools, including those of the city. in the GLTN toolbox (www.gltn.net). Relat- ed tools include: • The social component is weak. Investors have no incentive to cater to the needs • Land-use planning of existing residents. They will want to • Slum upgrading maximize their returns, so are unlikely to • Land sharing. invest in social housing.

LAND-USE PLANNING GUIDED LAND DEVELOPMENT Land readjustment may relate to land-use Most urban development in the developing planning in three ways: world occurs at the urban fringes where rural land is converted to urban uses. The • The city’s overall land-use plan may in- municipality can guide the conversion of form and guide the land readjustment privately-owned land so that development approach and goals. It can determine occurs less haphazardly and informally. where development is desired or permitted, and direct its character, level and Guided land development indicates where intensity. future infrastructure will be installed. The infrastructure itself may not be built until • Planning is an important part of the re- later when the population density justifies adjustment process itself. Detailed plans

12 1 Introduction

of the area are developed and used to LAND SHARING guide the location of infrastructure and Land sharing enables poor commmunities the boundaries of plots (see Chapter 5). (often informal residents) who occupy land • Land readjustment can also help in the and private or government landowners to development of an overall land-use plan share an area. The interested parties nego- (if none exists), revise the existing plan, tiate an agreement in which the community or pioneer approaches to develop plans is given, sold or leased one part of the land in the future. for reconstructing their housing (usually the least commercially viable part of the land). The rest of the land is returned to the land- SLUM UPGRADING owner to develop. How much land the peo- Slum upgrading is a way of gradually imple get and how much land goes back to the proving slum areas, formalizing them and owner is decided during the negotiations. incorporating them into the city. It provides Land sharing can be a long and complicat- slum dwellers with the economic, social, in- ed process and does not work in all situa- stitutional and community services available tions, but it is becominig more common. to other citizens. These services may include (UN-Habitat and UNESCAP, 2008). legal (land tenure), physical (infrastructure), social (crime or education, for example) or economic improvements.

Slum upgrading usually includes the provision of basic services such as housing, PARTICIPATORY AND streets, footpaths, drainage, clean water, sanitation, and sewage disposal. It often INCLUSIVE LAND also improves access to education and READJUSTMENT health care. A key element is legalizing or regularizing properties and bringing secure This book describes an adaptation of land land tenure to residents. readjustment that aims to improve the out- Slum upgrading also stimulates the eco- comes for people who live in the project nomic, social, institutional and community area – especially the poor. Known as Par- activities that are needed to reverse down- ticipatory and Inclusive Land Readjust- ward trends in an area. These activities ment, or PILaR for short, this uses the same should be undertaken cooperatively among idea as conventional land readjustment all parties involved – residents, communi- (swapping land for improved services), but ty groups, businesses as well as local and does so in a participatory and inclusive way national authorities. The upgrading aims to (Box 4). boost the community’s sense of ownership, entitlement and inward investment in the area (Cities Alliance, 2015).

13 Remaking the urban mosaic

HOW PILAR IS DIFFERENT FROM STAKEHOLDERS CONVENTIONAL LAND READJUSTMENT Conventional land readjustment involves PILaR differs from conventional land read- a small group of stakeholders in making justment in various ways: decisions: the municipal authority and the formal landowners. PILaR involves a much • It emphasizes a participatory process, wider range of stakeholders (see Chapters 3 rather than only the technical or finan- and 7 for details): cial results (Figure 5). It engages with all community members, not just the formal • The municipal authority, including the landowners, maximizing the likelihood units responsible for planning, finance, of consensus, reducing the risk of dis- public works, the cadastre and land reg- ruption, and protecting weaker groups. istry, the environment and communication. • It aims for inclusive outcomes that benefit all, including the poor and vul- • The city legislature and politicians. nerable. • Relevant branches of the provincial and • It is based on human rights and aims for national government. a pro-poor, gender-sensitive outcome. • Professional specialists: architects, • It aims to distribute the burdens and surveyors, lawyers, property appraisers, benefits more equally among the private and public sectors. It does this through public-private partnerships, legal reforms and capacity building. Box 4 Definition of PILaR • It strengthens governance through a

preliminary urban legal assessment and Participatory Inclusive Land Read- by building the capacity of government justment (PILaR) is a land assembly authorities. mechanism in which land units, with different claimants, are combined in • It improves land administration – the a participatory and inclusive way into a contiguous area, for more efficient systems of land records and valuation – use, subdivision and development. making it possible to share the value of This is done through participatory the land more equitably. By identifying and inclusive approaches which in- the claimants to the land, it can be a first clude mechanisms, processes, and institutions through which local au- step to regularizing their tenure. thorities, citizens and groups articulate their interests, exercise their • It integrates land readjustment with legitimate rights, meet their obliga- other urban development and planning tions, and mediate their differences. initiatives. PILaR projects are undertaken to meet the broader economic, social • It can be varied to suit a particular con- and environmental objectives of the text and situation. country, including poverty reduction.

14 1 Introduction

ate oc el R Re Temporary lo ca housing t e

Lab our, inve Residents La stm bo en ur t L P a la b n

Area before Reassign Install Demolish Rebuild readjustment parcels infrastructure

Figure 5 Role of residents in PILaR

financial analysts, urban designers, and PARTICIPATORY AND INCLUSIVE planners. PILaR is participatory inclusive land read- • The community: justment. What exactly does that mean?

oo Formal and informal landholders Participatory concerns the process that is followed. It means that people have a say in oo Tenants and informal residents decisions that affect them. This is not just oo Community members: women and lip-service. It means ensuring that all the men, youth and elderly, the poor and stakeholders – and not just the municipal- vulnerable ity and formal landowners – have a say in oo Community groups and NGOs what happens in the project, from initiation to implementation. It means engaging oo Local businesses and service provid- with the local community to help them get ers organized, inform them about the project oo People in neighbouring areas. possibilities, make sure they know their • Neighbouring local authorities. rights, and build their capacity so they can express their interests and interact with other stakeholders.

15 Remaking the urban mosaic

Inclusive refers to the outcomes of the pro- The principal way of ensuring participation ject. It means ensuring that all stakeholders and inclusiveness is through close engage- share in both the costs and benefits in a fair ment with the community affected by the and equitable manner. One way to do this is project (Chapter 7). to identify the formally recognized rights of each stakeholder, such as a right to property or the right not to be forcibly evicted. Coun- WHAT PILAR IS NOT tries or cities may recognize rights that go PILaR is a land-readjustment tool – not a beyond those provided for in international comprehensive solution for urban develop- law. The stakeholders’ needs or interests ment. PILaR assembles land into viable, val- can then be considered. These relate to the uable plots. It is not a housing solution: it particular project objectives, such as improv- ends when the plots have been reallocated ing public space, enhancing connectivity or and the infrastructure built. It is up to the greater economic opportunities. individual landholders to develop their plots Once the rights and needs have been iden- – or to sell them to someone else. tified, they can then be analysed for equi- PILaR is not a way to pay for major infra- ty or fairness. Does the project adequately structure such as bridges and roads, mass protect and advance rights? Does it address transit systems or trunk sewerage systems. needs in an equitable way? It is unlikely The infrastructure built should be confined to do so for all the needs or interests that to that needed within the project area it- might be identified. But by comparing the self. Even then, the project may not be able outcomes against a list of priorities, it is pos- to cover all the costs, so additional funding sible to check how each group or individual may be needed. fares.

We don’t treat people as “beneficiaries but as investors. They have something to offer, and that will be realized through equitable sharing of benefits

and costs among all the Photo: Rainer Müller-Jökel stakeholders.”

Solomon Haile, Human Settlements Of- ficer, UN-Habitat

tinyurl.com/pilar-haile

16 1 Introduction

HOW HAS PILAR BEEN USED free to use them as a basis to develop your own, locally adapted, methodology. PILaR is a new approach to urban development. It is being tested and promoted by UN-Habitat, the branch of the United Na- BUILDING BLOCKS OF PILAR tions that deals with human settlements, and the Global Land Tool Network, an al- A PILaR project draws on various fields and liance of organizations focusing on land types of expertise: governance, policy, law, reform, improved land management and planning and design, land administration security of tenure to alleviate poverty. and valuation, data gathering and analysis, community work, finance, communication, There is no standard method of applying PI- engineering and monitoring and evaluation. LaR, for two reasons: Specialists in some of these areas (such as • The approach is still experimental, so engineering) will not need additional skills there is not enough experience to draw to work on a PILaR project (though they on to provide a firm set of recommen- may need to adapt to a new workflow and dations. the involvement of the community in mak- • Each situation is different, and the par- ing decisions), so we do not need to focus ticipatory nature of the method anyway on them here. Others will need new skills or demands that the approach be adapted will have to learn and adapt to new proce- to suit local conditions. dures. This book offers some guidelines on what to do. The methods suggested in this book build on experiences in land readjustment in vari- The degree of involvement of each of these ous developing countries around the world, fields will depend on the situation. Where especially Colombia, Angola, India and Tur- a clear policy on land readjustment already key. These experiences have applied the exists, for example, there may be few pol- conventional land readjustment approach in icy issues to address. Where a policy does a participatory and inclusive way. Most have not yet exist, more work in this area may not been labelled “PILaR” as such. Never- be needed. In a slum-upgrading project, a theless, each of them has certain elements lot of effort will be needed to engage the that would fit well in a PILaR project. We community. In an urban expansion project have drawn the best elements for these ex- on the edge of the city, there may be few, if periences and used them as building blocks any, residents, so less effort will be needed to show what a full-blown PILaR project in this aspect. The timing and order in which might look like. We have drawn on other the fields are needed will also depend on aspects of land administration to fill in any the situation. remaining gaps. We can therefore think of each of the fields This book therefore provides guidelines, as a building block or component. Select based on the best current knowledge. Feel those blocks that are required at each stage

17 Remaking the urban mosaic in the project in order to design a project tions and recommendations, you should that will fulfil its goals (Figure 6). not take these as absolute musts. A solution that works well in one country or city may not work in another. You should adapt and revise the approach to suit your own situation. Build on the experience of others WHO THIS BOOK IS FOR where appropriate. See the Acknowledge- ments for a list of organizations and individuals with expertise in PILaR. This book describes PILaR for people who are new to the process. Because PILaR draws on many specialist fields, each with its own technical terminology, it is written in a way that avoids jargon and is easy to understand for a wide range of professionals, and in- WHAT IS IN THIS BOOK deed for people without a background in land issues who wish to understand the This rest of this book is divided into 10 chap- approach. We frequently speak directly to ters , each focusing on a particular thematic “you”, the person who coordinates or man- area in the PILaR process. ages the PILaR process. Chapter 2, Using PILaR, describes when Conventional land readjustment is a com- PILaR is a useful approach and which types plex process, and the addition of participa- of organization have implemented it. It then tory and inclusive elements in PILaR makes summarizes the stages in a typical PILaR it more so. While we have offered sugges- project.

Chapter 3, Governance, looks at the governance and management issues that will Planning and design Chapter 5 affect the project. It lists the relevant principles of good governance and human rights, describes ways of improving governance to support a PILaR approach, and outlines ap- Law Chapter 8 Chapter 10 proaches to evaluation. Communication Chapter 4, Land management, gives Land Community some general policy guidelines to support management engagement Chapter 4 Chapter 7 the PILaR project. It discusses the choice of site, the condition of the land records, and

Data gathering Governance Finance ideas on who has a say in the project plan- and analysis Chapter 3 Chapter 9 Chapter 6 ning and who is entitled to benefits. It then focuses on the issue of land contributions Figure 6 The main building blocks and how these are decided. of PILaR described in this book

18 1 Introduction

Chapter 5, Planning and design, de- es especially on how to deal with women, scribes how to turn the general policies and youth and other vulnerable groups. agreements into plans and maps. It covers Chapter 8, Legal issues, looks at the vari- the planning and design objectives, and de- ous legal concerns that can support or hin- scribes how to take into account both the der a project. It covers both the legal basis planning guidelines and the real situation for land readjustment and the detailed legal on the ground in order to produce a plan mechanisms needed to implement a project. that will be realistic and will result in an improved urban environment. Chapter 9, Finance, describes the principles that guide the financial aspects of the Chapter 6, Collecting and analysing project. It suggests sources of funding for data, describes various techniques for gath- the municipality and the residents, and out- ering information about the area, its land lines how to calculate the costs and benefits tenure types and residents, and the various of the project and the amounts of land that legal and financial requirements that will each stakeholder must contribute and will guide the PILaR project. It outlines the vari- get back in the end. ous phases of data collection, with particular emphasis on participatory enumeration Chapter 10, Communication, summarizes and mapping techniques. the major audiences that the PILaR project must serve and how to reach them. Chapter 7, Engaging with the community and other stakeholders, describes Chapter 11, Way forward, suggests how the various stakeholder groups and explains you can begin to put the guidelines offered how to involve them in the project. It focus- in this book into practice.

19 Remaking the urban mosaic

20 2 USING PILAR

ike conventional land readjustment, PILaR High land prices Holders of rural land on Lis most useful in large or medium-sized the edge of cities are often farmers with lit- cities. They are often growing rapidly and tle capital. They cannot afford to put in the need to use their scarce land more effi- infrastructure needed to raise the value of ciently. The difference in value between un- their land. Speculators buy up small plots at serviced and serviced land gives landholders low prices and consolidate them into larger an incentive to participate in the land read- plots. They get the area rezoned for residen- justment. Smaller municipalities, on the oth- tial or commercial use, often by greasing of- er hand, are less likely to need a readjust- ficials’ palms. They may sell the land at a ment process, and are unlikely to have the higher price, wait for the value to rise, or budget or personnel required to manage it. develop it by putting in infrastructure and constructing buildings. That is profitable PILaR can be used in at least four broad (though risky) for the speculator, but has situations: several disadvantages from others’ point of • Urban expansion (on the edge of cities) view:

• Urban renewal, infilling and densifica- • The original landholders gain little: they tion sell unimproved land at a low price, then • Improving poor neighbourhoods watch as someone else makes a big profit. • Linear projects. • It is in the speculators’ interest to sell or rent out the land for as high a price as possible – to wealthy or middle-income clients. They have little incentive to pro- URBAN EXPANSION vide housing for the poor. • Only small amounts of land come on Many cities in developing countries are the market, so this approach does little growing fast, and municipalities need to to open up large tracts of land for the bring new land on the edges of the city into city to expand. The price of serviced land residential and other uses. Two main prob- stays high, pushing rents up. lems are associated with this.

21 Remaking the urban mosaic

• Land is one of the most corrupt sectors PILaR helps solve both these problems (Box in economies throughout the world. 5). It creates an incentive for the original landholders to participate in the scheme Unplanned, haphazard growth Rural as it increases the value of their holdings. land is converted to urban use through a se- By selling part of their land, they can earn ries of uncoordinated negotiations between enough to build housing on the rest. If the individual landholders and the municipal- planning regulations permit, some may de- ity (or the neighbouring local authority as cide to build apartment blocks, augmenting the built-up area spills over the municipal the housing supply. The municipality can boundaries). A lack of overall planning for allocate its share of the reallocated land to the city and coordination among local gov- low-cost social housing. And because the ernments makes it hard to provide adequate project is self-financing, it frees up funds infrastructure and services. that the municipality can use to build low- The photograph at the beginning of this cost housing elsewhere. chapter shows what can happen. At the top Small-scale land readjustment projects will is an orderly residential area with adequate probably not have a marked effect on land road access. At the bottom, the local au- prices in the city as a whole. But if done on thority failed to establish rights of way and a large scale, as in South Korea and Japan public spaces on time, and the settlement while they urbanizing rapidly, it can sub- has spread in an unorganized way. That stantially increase the rate at which subdi- means a poorer living standard for residents vided, serviced land comes on the market, and much higher development costs in the pushing prices down. future to retrofit the required rights of way.

In conventional land con- “version, developers convert individual parcels into urban subdivisions. It makes a windfall for them but it has very little impact upon the prices and affordability for Photo: Rainer Müller-Jökel the poor.”

Robin Rajack, housing and urban development lead specialist, Inter-American Development Bank tinyurl.com/pilar-rajack

22 2 Using PILaR

Box 5 When might PILaR be used in urban expansion?

• When the existing urban area is al- tive infrastructure and environmental ready dense enough to be served by management. public transport cost-effectively. • When the periphery is not already • When peri-urban land is not prime densely occupied. agricultural land yielding a high re- • When the peri-urban land is held turn. mostly by relatively few, large private • When the topography around the city landholders. is not a major constraint to cost-effec-

Because PILaR is a new approach, it is in- higher-density housing. To make this pos- advisable to use it at a large scale straight sible, it may be necessary to upgrade the away. It is better to try it out on a small scale infrastructure and services, and to find lo- first (perhaps only a block or two) and learn cations for parks, squares and shops. how to apply it. Once you have built the ca- • Inner city transformation If the pacity and got the necessary laws in place, municipality wants to modernize a run- you can go to scale. down city centre, it may have to plan new roads, shopping centres, offices and car parks.

• Disasters An earthquake, fire, tsuna- URBAN RENEWAL, INFILL mi or war that devastates an area is an opportunity to “build back better”. AND DENSIFICATION It is important to check the economic justification for such plans. Can revitalization It may be desirable to redevelop already justify the process and expense of recon- built-up areas within the city (Box 6). This figuring the physical space and building or may occur in various circumstances: upgrading the infrastructure? For prime lo- • Changes in land use One use be- cations such as city centres, the economic comes defunct and new uses emerge, return should drive the urban form, and not but the urban fabric has not caught up. the other way round. This is because city For example, small businesses may have centres are normally the engines of employ- taken over a formerly residential area, ment generation. but the roads are too narrow and wind- Do the current layout of plots, permitted ing, causing traffic jams. densities and internal infrastructure connec- • Changes in development rights A tions restrict the economic opportunities in low-density area may be earmarked for that part of the city? If so, PILaR may be the

23 Remaking the urban mosaic right choice. For example, plot sizes or road them informal residents with no legal rights frontages may be too small for large com- to the land where they live. Most are poor mercial buildings or offices to be built. Or and have limited education; they rent their former industrial land may be too large for housing from landholders, or sublet from start-ups or residential uses. other tenants. They have little or no tenure security. PILaR may also be a way to redevelop a city after a disaster, especially if: Even if land ownership is clear, poor neighbourhoods may be segregated spatially, • Much of the original occupation was economically and socially from the rest of informal or irregular. PILaR can lead to the city. They are considered a blight that replacing rickety structures with bet- must be eradicated or dramatically changed. ter-planned, more robust buildings. But such areas are also often very dynamic: • Transport accessibility was poor, adding residents can offer a lot to the rest of the to casualties and hindering evacuation city if their area is better integrated physi- or emergency vehicles. PILaR makes it cally (through better streets and transport), possible to plan for wider roads that al- socially (through mixed-use development) low better traffic flow and emergency and economically (via improved employ- access. ment opportunities). This would benefit the • The surviving landholders are physically municipality and government too, through scattered, making it hard and costly to higher tax receipts. restore the original infrastructure. Various approaches to improving poor • Many stakeholders want to rebuild their neighbourhoods exist, from gradual im- homes and businesses at the same time. provements to wholesale clearing and redevelopment. Unfortunately it is often done with little or no consultation with the people affected. But when done well, it regularizes tenure, provides infrastructure (roads, IMPROVING POOR sewers, piped water, electricity) and services (garbage disposal, schools, health care, NEIGHBOURHOODS etc.), and replaces single-storey shacks with multi-storey housing. In many poor neighbourhoods such as “in- PILaR can make a major contribution to a formal settlements”, “slums”, etc., land slum-improvement effort. It would identify ownership rights are unclear or disputed. the formal and informal rights to the land, There are often only a few formal landown- redraw plot boundaries, allocate a propor- ers (often the state or the municipality), but tion of the land for roads, public space and a very large number of residents and other municipal ownership, facilitate the sharing people with informal rights. Such settle- of the increase in land value to ensure fi- ments house thousands of people, many of nancial sustainability, and build the basic

24 2 Using PILaR

Box 6 PILaR in built-up areas

Doing a land readjustment in an area repeat the process in the next area. that is already built up is a lot more com- • Involve the local residents in the plicated than on the edge of the city project activities. They should be in- where there are few or no houses and volved in the planning, of course, but residents. may also contribute labour for clear- Built-up areas subject to land readjust- ance, installing infrastructure and re- ment probably have a lot of poor resi- building. dents, many of whom may be tenants • Assist the residents to invest in re- or informal residents. Landholders may building their houses in accordance have unclear or disputed titles to their with the planning standards. Encour- plots, or may lack documents specifying age them get organized into mutu- their rights to the land. al-help groups to build each other’s The land readjustment must find solu- houses. tions to these issues: • Help them to avail of government • Large numbers of poor residents, and private housing assistance pro- many with unclear or disputed ten- grammes such as cheap loans and ure. subsidies. Work with microfinance organization to set up savings schemes • Existing buildings, many of which for residents. The savings accounts need to be upgraded or replaced. can be linked with mortgages so resi- While everyone may agree on the end dents can buy their property. point of the readjustment (a rebuilt area • Allocate part of the area to social with better services, occupied by the housing for renting out to residents. same people), getting there can be difficult. Buildings will have to be demol- • Allocate part of the area to high-val- ished, and people will need somewhere ue commercial use (such as shops). to live in the meantime. This will generate tax income for the municipality to offset the costs of re- Some possible solutions: development. Require the shop own- • Undertake the demolition and re- ers to prioritize local residents for building gradually. Start in one area, jobs. move the residents to temporary ac- Where the project area has fewer or no commodation, demolish the build- residents – as on the edge of a city – the ings, reassign plots, install infrastruc- procedure will be simpler and easier. ture, and build new housing. The residents can then move back in. Then

25 Remaking the urban mosaic infrastructure. At the end of the process, it landholders have a strong incentive to con- would provide clear formal land documents tribute land. On the other hand, if it creates to the landholders, and clarify the tenure a nuisance (such as traffic noise, environ- status of tenants. This would help create a mental damage, visual detriment or a risk market for affordable housing, so reducing of accidents) they may oppose the project the creation of new slums. – even if the value of their land rises.

PILaR seeks the maximum consensus of the For land readjustment to work in such linear people affected and with minimum disrup- projects, the aim should be to develop the tion to the local community. It makes spe- area along the route. The strip of land on cial efforts to reach vulnerable stakehold- either side of the new route has to be wide ers such as widows, orphans and women enough for there to be land to redistribute. household heads, and to ensure that their Projects with a narrow objective of provid- property rights are not overlooked or mis- ing linear services without such develop- represented in the reconfiguration. ment (for example, merely widening a road) are not suited to land readjustment.

LINEAR PROJECTS WHO IMPLEMENTS PILAR? Municipalities need land to upgrade or build linear infrastructure such as roads, railways The most common initiator and implement- and pipelines. Such infrastructure may fol- er of a PILaR project is the local government low existing alignments (such as when a road or municipality (Figure 7). It usually has the is widened), or they may follow completely power to deal with land management and new routes (for example, when building a urban planning issues, and has the proxim- motorway). They may cut through a range ity and resources to lead the process and of different land types: built-up, derelict, interact with the stakeholders. green space and rural, with different own- But other organizations may also take the ership and tenure situations. Such projects lead, either because they have the requisite may considerably enhance the desirability expertise or because the municipality lacks and value of certain plots (for example, by the necessary resources: a branch of the na- improving access), and make others unde- tional or provincial government, the private sirable or unsuitable for certain types of use sector, an association of landholders, an (e.g., because of increased traffic or noise). NGO, or an international agency. An indi- Land readjustment may be a way to obtain vidual organization may take the lead role, the land required. If the infrastructure sub- or the project may be jointly run by a con- stantially increases the value of the land, the sortium (such as a housing association and

26 2 Using PILaR a firm). The implementing organization may records. If it does not have these capabili- vary from country to country or even within ties, it may have to hire private consultants a single city. For simplicity, we refer to the or collaborate with partners that do. One “municipality” throughout this book. possibility is for the government entity to work with a private company, an NGO (or The implementing organization must have both); the government provides the political the right skills and experience to undertake support, the company offers the technical a PILaR project. Both technical and social skills, while the NGO handles the engage- skills are needed: they include the demarca- ment with the community. tion and re-demarcation of plots (land surveying), urban planning, civil engineering, Land readjustment is already a complicated participatory planning and consultations, process, and adding participatory and inclu- real-estate valuation, land documents and sive aspects in PILaR adds further complexity.

Germany: City South Korea: Seoul government/land city government readjustment board

Japan: majority of Turkey: Istanbul (local land pooling/readjust- government, central ment projects government)

Kaohsiung, Taiwan: Colombia: 2 or more city government private landowners; municipal administra- tions Taiwan: small commercial projects Medellin, Colombia: Municpal government Indonesia: Directo- rate-General of Agrar- ian Affairs / National Angola: Development Land Agency Workshop

Thimphu, Bhutan: Gujarat, India: city Ministry of Works and governments Human Settlement

Nepal: Kathmandu Valley National government Local government Cooperative associations of landowners Private landowners Civil society

Figure 7 Who leads land readjustment in different countries?

27 Remaking the urban mosaic

cated law may not be required, but it may THE PILAR PROCESS be necessary to amend existing laws or local authority regulations. Questions include (see Chapter 8 for details): The PILaR process consists of five major steps (Figure 8). Note that the steps may overlap • Is the executing agency empowered by or be repeated, and the number, details and legislation to perform the tasks required order may vary according to the situation. for PILaR? Reality can be much more complex (Figure • Does the urban planning legislation in- 9). At each step, some tasks are done by the clude statutory provisions for participa- implementing organization, while others in- tory planning, voluntary land contribu- volve engagement with the community and tions, development rights trades or land other stakeholders. swaps?

• Is there a sufficiently functional system 1 CONCEPTUALIZE for accessing and updating property rights? This consists of several substeps. • Would key authorities be bypassed in Identify the legal framework the PILaR process, or are their complementary roles duly recognized? PILaR requires a suitable legal framework; without it, the process can easily become Choose the location bogged down in lawsuits brought by un- happy stakeholders who feel their interests The general location and extent of the pro- are not being taken into account. A dedi- posed project area should be selected. Its location (edge of city, within city, slum) and

The PILaR approach builds “on consensus and dialogue between different, potentially conflicting parties. This model is interesting now for replication across

the country.” Photo: Rainer Müller-Jökel Allan Cain, Development Workshop, Angola

tinyurl.com/pilar-cain

28 2 Using PILaR

Stakeholder Administration and legislation engagement

1 Initial Conceptualize presentation Initiation

2 Participatory Gather data enumeration

3 Discuss and Develop draft plan get approval Design

4 Final Finalize plan approval

5 Collaborate

tation Implement Implemen-

Figure 8 Simplified steps in a PILaR process

the title/tenure situation (few formal own- Check the status of land records ers with clear titles vs many owners and Land readjustment requires information on tenants with unclear or disputed tenure) who holds what rights where. This includes will determine the nature and complexity of (but goes beyond) cadastral parcels. If such the process followed. It is not necessary to records do not exist, of if they are seriously fix the exact boundaries at this stage – that out of date, land information for the whole can come later. It may be advisable to select area must be created before the project several candidate areas for consideration. can proceed. This may include participatory enumeration and forms of adjudication. The Determine the desired land use project should include turning this informa- Much will depend on what type of land tion into land records. Creating or updating use is envisaged for the area. Is the area the information and records can be includ- earmarked for single-family dwellings, ed as part of the land readjustment project. multi-storey residences, social housing, industrial or retail use, low- or high-density Set up the project management buildings? This will depend on the location, The project is managed by a small, multi- the city’s needs, and the overall urban plan. disciplinary management team, hosted and supported by an implementing agency, and

29 3

B. Land Pooling Process in Thimpu

4. LP will be undertaken in four areas of southern Thimphu extended areas namely: Babesa, Changbangdu, Lungtenphu, and Simtokha. The total area required for establishing urban infrastructure facilities (roads, drainage, water supply, and sewerage connections), public amenities, and green areas is 99 hectares (ha).

5. The LP process followed in Bhutan is shown in Figure 1. LP in southern Thimpu was initiated in 2001. To illustrate the LP process, a summary of major processes followed in the most advanced area (Lungtenphu) is in Figure 2. The complete timeline is in Appendix 2.

Remaking the urban mosaicFigure 1: Land Pooling Flowchart

Source: Department of Urban Development and Engineering Services. 2006 Figure 9 Land readjustment can be very complex: A flowchart from a project in Bhutan

30 2 Using PILaR advised and supervised by an advisory com- holders’ buy-in. This meeting (or meetings, mittee. The management team coordinates as several may be needed) aims to get the with, and draws support from, various units stakeholders’ initial reactions, gauge their within the municipality. See Chapter 3 for expectations, answer their questions and details. allay their fears, and invite them to nomi- nate representative to join the manage- Conduct a feasibility study ment team and advisory committee. After A feasibility study can reveal whether the this presentation, it may be necessary to go proposed location is indeed suitable. If on back to reconceptualize the whole project. the edge of the city, is it suited for development, or would it be better left as open 2 GATHER DATA space? Is it feasible to upgrade a slum, or would it be better to relocate the residents Gather data elsewhere? The feasibility study should take into account aspects such as topography, The management team organizes the col- hydrology, existing infrastructure in neigh- lection of data about the proposed project bouring areas, and the overall urban de- area. The types of data and how to gath- velopment plan. It should also determine er them depend on the situation. The data whether the proposed development will be gathering may fall into three phases: feasible financially – whether the expected • Baseline study This may have been increase in land values will be enough to done earlier as part of the feasibility attract landholders to participate. Feasibility study. studies of several candidate areas can select • Stakeholder mapping to identify which one should be prioritized for land re- stakeholders and institutions. adjustment. See Chapter 3 for more. • Detailed enumeration of each plot, Make initial presentation formal and informal claims to each plot to stakeholders (land documents, tenancy, tenure, oc- At some stage during the conceptualization, cupancy), the identity of the claimants, the project proponents and the manage- their socioeconomic situation, etc. ment team introduce the idea of the project The data may be gathered in various ways, to the major stakeholders – landholders, including the inspection of formal records, tenants and occupiers. They describe the interviews and focus groups with residents, PILaR process and how it might work in the surveys, participatory enumeration, and area, and explain what the next steps might mapping of plots using GPS devices. A lot of be. It is also important to share information information will also emerge through partic- with all stakeholders on the current and ipatory enumeration and consultations with estimated future values of the plots after the stakeholders. See Chapter 6 for details. the readjustment in order to get the stake-

31 Remaking the urban mosaic

Participatory enumeration • Unstructured Opinions, feelings, needs, etc., which are harder to summarize. This is an important part of the data-gathering process. It involves local people in col- The team must make sense of all this in- lecting information about the community formation in order to come up with a draft and its members, and mapping the location plan. and boundaries of each plot. Parallel to this are discussions to diagnose the current sit- Fix the boundaries of the area uation, and to develop suggestions for the If the boundaries of the project area have readjustment. Several iterations may be not yet been fixed, now is the time to do needed to draft an initial plan. so. Considerations will include the interest The discussions may consist of meetings of the landholders and other stakeholders in with all stakeholders or with subgroups participating, the feasibility of providing in- (such as formal landowners, tenants, infrastructure and services to particular areas, formal residents, community organizations and the financial situation. and local businesses), individual interviews, visits and electronic interaction, for example Draw up a physical plan through social media. See Chapters 7 and This means deciding where roads, sewers 10 for details. and other infrastructure will go. This in turn determines how much land will be needed for such things. The team will need to take 3 DEVELOP A DRAFT PLAN the desired land use and existing norms and In conventional planning, professionals regulations into account, for example, for draw up a plan and then present it to the road widths, building heights, open space authorities and other stakeholders for ap- requirements, etc. See Chapter 5 for details. proval. In PILaR, the stakeholders are involved throughout the planning process Plan finances and land contributions in a continuous series of meetings and This involves calculating the costs of the consultations. project and the revenues (primarily from the increase in land values) it is expected to gen- Analyse data erate for the landholders and municipality. The management team analyses the data to The land is divided into three categories: understand the local situation and develop • Land to be reallocated back to the orig- realistic alternatives. The data will consist of inal landholders (or to others with legit- two types of information: imate rights). • Structured Names, areas, locations, • Land required for infrastructure, roads values, tenure status, etc., which are and public space. easy to put in a spreadsheet or on a map.

32 2 Using PILaR

• Land reserved for the municipality to law then forces any dissenters to go along cover the cost of the project or to allo- with the majority. cate to social housing or other uses.

The proportion of land in each category, 4 FINALIZE PLAN along with the expected gain in land values, will determine whether the project will be It is now possible to prepare the final plan self-financing (from the municipality’s point and submit it to the stakeholders and the of view) and whether it is attractive for the appropriate authority (usually the municipal landholders. See Chapter 9 for details. council) for approval. If the council requires changes, the revised plan must again be Fix boundaries of individual plots submitted to the stakeholders for their scru- tiny and approval. Based on the physical and financial plans, the team can determine the size and boundaries of individual plots. Plots may be of dif- 5 IMPLEMENT ferent sizes, with each landholder receiving a plot in proportion to the size (or value) of Mark new boundaries on the ground his or her original holding. Or the plots may be a uniform size; small landholders get a This involves driving wooden (or preferably single plot, larger landholders two or more. concrete) markers into the ground to mark plot boundaries. This is easy in rural areas on Discuss and get approval the edge of cities where there are few buildings or current residents. It is much harder in The management team presents the draft areas that are already built up, such as in in- plan to the stakeholders, and get their com- ner cities or slums. Here, it may be necessary ments and suggestions. They are unlikely to clear the existing structures first, before to approve the first draft; they may want marking out the new plots. Local residents radical or minor revisions, or may reject it can assist with the various tasks. entirely. Several rounds of discussion and revision may be necessary before the stake- Assign plots and manage holders agree to the plan. In general, the compensation more stakeholder involvement in the planning, the better. Each of the stakeholders who are entitled to a plot gets possession of that plot and Depending on the legal framework, com- the relevant documents (a title or other doc- plete consensus may not be necessary. In ument specifying their rights). Some stake- countries with land readjustment laws, the holders may receive a smaller plot than they law specifies what percentage of landhold- are entitled to; they must be compensated ers (holding what percentage of the total financially. Others may receive a bigger plot; area) are required to approve a plan. The they must pay the difference. The land registry formalizes the transaction by record-

33 Remaking the urban mosaic

Box 7 Critical factors for PILaR

PILaR is not an easy process. To make it Calculate each landholder’s contribution work, it is necessary to consider a range based on the plot size or value of aspects. Here is a summary. Plan readjustment and infrastructure development Political Secure support from stakeholders and all Stakeholders and community levels of government Profile the community and other stake- Sign memorandums of understanding for holders the process and outcomes Map the stakeholders’ interests, risks, opportunities and mitigation measures Governance Ascertain capacity and knowledge on Assess governance structures, strengths community engagement and weaknesses Determine land value and capture options Legal Identify ways to support vulnerable Assess legislative and regulatory capacity groups (women and others) and links between legislation and planning Financing Ascertain legislative flexibility on land rights Calculate the financial costs and benefits Check key land laws and capacity for reg- Decide how to distribute burdens and ularization benefits Be ready to use the law to force holdouts Fund infrastructure development by sell- to cooperate ing a portion of the land or using other funds Land Project management Select a suitable location Ascertain technical capacity, especially to Assemble enough plots to make readjust- deal with pro-poor aspects ment worthwhile Ensure robust and insightful project man- Prevent speculators from capturing the agement. gains in land value Calculate the area needed for public amenities

34 2 Using PILaR ing the new location and size of the plot the infrastructure and building new accom- received by each stakeholder. modation before allowing the residents to return. Only then is it possible to move on Build infrastructure to the next area. Again, local residents may This is when the heavy equipment can be be able to do much of the work. brought in, holes dug and concrete poured. Sell or develop reserved plots It means putting in roads and drainage ditches, laying pipes and cables, erecting The municipality reserves a certain propor- utility poles, and establishing parks. Slum tion of the land to sell or develop. It can upgrading projects typically also include cover the part or all of the project costs by the rebuilding of dwellings. Here it may selling plots; it may also choose to use it for be necessary to work in stages, clearing a desirable uses such as social housing, shops, small area first and finding temporary ac- public buildings or open space. commodation for residents, then putting in

35 36 3 GOVERNANCE

oncrete lasts a long time; road patterns of decision-making relating to land (Box 8). Clast even longer. Ancient Roman roads These processes involve many stakeholders, still affect the shape of cities in today’s Eu- not just the municipality or the manage- rope, long after the buildings that lined ment team. them have disappeared. To an overwhelm- Getting the governance right is important ing degree, the physical environments and for several reasons: settlement structures of cities are the result of the policies of municipalities and other • Land represents wealth and power. tiers of government. So today’s urban areas Rich, powerful people, such as large reflect decisions made in the past, and to- landholders and speculators, have a day’s decisions will shape tomorrow’s cities. much better chance of getting their interests served than the poor and weak Governing a city is an incredibly complex – such as the residents of slums. PILaR process: it covers everything from economic tries to ensure that the interests of all development, housing, transportation, the stakeholders are taken into account, and environment, and a whole lot in between. that one group does not capture all the These spheres are intimately related. A de- benefits. cision to build a road in one place can lead to congestion somewhere else. Designate an area for housing, and you automatically create the need for transport, recreation facilities and employment opportunities, as well as stimulating demands to change ad- Box 8 Land governance ministrative boundaries, solve land-ownership disputes and preserve nature. Land governance concerns the rules, processes and structures through So it is not just how the decisions are made, which decisions are made about the but also what is at stake if they are not use of and control over land, the manner in which the decisions are made properly. implemented and enforced, and the way that competing interests in land Improved land governance is vital to avoid are managed. repeating the mistakes of the past. Land More information: Palmer et al. governance (Box 8) refers to the processes (2009)

37 Remaking the urban mosaic

• Because urban land is valuable, it is a magnet for corruption. Individuals use RIGHTS AND PRINCIPLES their wealth and connections, and use THAT UNDERLIE PILAR illegitimate means to divert income into their own pockets. In the extreme case, a few wealthy individuals or companies manage to “capture” the state: they im- HUMAN RIGHTS plement policies to benefit themselves Human rights (Table 2) must inform each and to transfer land to their ownership. stage in a land readjustment project. Dur- • Land administration is the province of ing the project conceptualization, hu- professional specialists. There is a man rights must be included in the project danger that they ignore the interests of agenda and should underlie the approach one or more groups of stakeholders. The followed. The project partners should sign poor are the most likely losers. Good memorandums of understanding recogniz- governance makes it possible for their ing the rights of the people affected and the voices to be heard. indicators to be used to ensure these rights • Decisions on how the land is used af- are respected. fect not just the immediate vicinity, but During the project formulation, it is nec- also the city as a whole. A poorly im- essary to identify key vulnerable groups, plemented project may make land and evaluate the risks to human rights in each housing unaffordable, stimulate rather thematic area (legal, governance, communi- than reduce the growth of slums, en- ty, land, etc.), and find ways to avoid these courage sprawl, worsen congestion, risks. Arrangements must be made to en- produce roads that are too narrow, re- sure suitable social housing during and after strict public space, foster inappropriate the project. It is also necessary to identify usage, and a catalogue of other sins. A indicators to monitor progress and measure project that takes all stakeholders’ inter- outcomes, and to ascertain capacity devel- ests into account is less likely to suffer opment needs in each thematic area. from these ills. While the project is being implemented, • City governments are strapped for key groups must be engaged and consult- cash. Good governance can ensure that ed, the social housing component must be a PILaR project is self-financing (or nearly designed and financed, and capacity built to so). That frees up funds to be used on ensure that human rights are addressed. other priorities. The monitoring and evaluation procedures must be designed to measure success, identify problems, and take human rights into account.

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TABLE 2 IMPLICATIONS OF HUMAN RIGHTS ON LAND READJUSTMENT

Key areas Implications

Commitment to relevant governance and legal reforms Agreement to a set of minimum standards of engagement and outcome Political Signing of a “minimum standards” memorandum of understanding Memorandum of understanding with key stakeholders

Devolution of powers Decentralized systems Respect and engagement of all key stakeholders, particularly vulnerable and Governance poor Optimal use of land resources and planning capacities. Memorandum of understanding with key stakeholders Agreement on key indicators

Legal Suitable legal frameworks and structures (legislation, regulation etc.)

Capacity to regularize land tenure, provide security of tenure to all rights holders, sustainable pro-poor development Land Recognition of a “continuum of land rights” Use of pro-poor land information and record management models (e.g., the Social Tenure Domain Model)

Stakeholder engagement strategy to inform all phases of the project Participatory and inclusive process for all stakeholders, especially poor and marginalized Stakeholders Sustainable, mixed community development that is pro-poor and gender sensitive Use of established mechanisms for engagement Engagement memorandum of understanding to be signed by all stakeholders

Clear links with other frameworks that have non-discriminatory planning for Planning housing and other infrastructure Universal provision of infrastructure, improved public spaces

Minimum basic requirements Housing Pro-poor sustainable housing with universal design Specific strategy to address social housing component

Funds secured for necessary community infrastructure and social housing Finance Funds secured for participation and engagement

Monitoring Clear and transparent monitoring and evaluation process and Process captures pro-poor and participatory dimensions evaluation Process offers a template for future projects

Source: Melissa Permezel, UN-Habitat

39 Remaking the urban mosaic

TABLE 3 APPLYING THE PRINCIPLES OF GOOD URBAN GOVERNANCE TO PILAR

Principle and explanation Examples of how it applies in a PILaR project

Sustainability The PILaR project must be clearly committed to Cities must balance the social, economic reducing urban poverty and based on a long-term and environmental needs of present and strategic vision for both the project area and the city future generations. as a whole.

Subsidiarity Decisions are taken locally so that community members can have a say. Services (shops, transport, etc.) Decisions should be taken, and services must be planned so that people can get them close provided, at the lowest appropriate level. to where they live.

Equity The project must ensure that disadvantaged groups All must have equitable access to shelter (women, the poor, young and old, minorities, people and services, and should be able to par- with disabilities) are consulted, have their voices ticipate as equals in decision-making. heard and needs catered to.

The project must be financially sound: it must either Efficiency be self-financing or not impose an undue burden on the municipality or the stakeholders. Tasks should be Services must be delivered efficiently and undertaken by the municipality, private sector, com- cost-effectively. munity or nongovernment groups based on their comparative advantage.

Stakeholders are able to participate in decision-mak- Transparency and accountability ing and be informed about decisions. Officials Decisions must be made transparent- should be held to high standards of professional ly, and decision makers must be held and personal integrity. The project must be free of accountable. corruption. Laws and policies must be applied in a transparent and predictable way.

The project should encourage the community and Civic engagement and citizenship other stakeholders to participate and help guide the People have a duty to engage for the work. Preparing and designing the land reallocation common good. should help build social capital. The reallocation itself should avoid disrupting social networks.

Involving people in planning is the best way to avoid Security conflicts and to improve their living conditions. The People are entitled to a safe environ- readjustment should reduce risks of e.g. flooding ment, free of conflict and hazards. and improve people’s living conditions. It should avoid forced evictions and improve tenure security.

40 3 Governance

PRINCIPLES OF GOOD countries, the state may formally own the URBAN GOVERNANCE land, while the “owners” merely have strong user rights over it. PILaR is grounded in the principles of good urban governance. It both depends on At the other end of the continuum, land these principles and can help improve how rights are more tenuous and insecure. Infor- the urban area is governed (Table 3). mal residents’ rights to live in a particular place may be recognized by their neighbours or an informal landlord, but not by CONTINUUM OF LAND RIGHTS the person who is formally registered as Land rights are rarely clear and never abso- owning the land. Such informal land rights lute. A whole range, or continuum, of land are surprisingly commonplace: over 60 per- rights exists, from formal to informal (Figure cent of people living in Nairobi reside in 10). Even in those places where individuals informal settlements, and several high-rise have a clear legal title to the land (“regis- buildings are not legal. Such situations may tered freehold”), their rights are restricted: also prevail for decades or longer. they cannot do whatever they like on it. In between these two extremes are a wide For example, they still have to conform to range of rights. In reality, the rights do not building and other regulations, and others lie on a single line, and they may overlap may have the right to use the land in certain with one another. Tenure can take a variety ways – for access, to harvest fruit, or graze of forms, and “registered freehold” (at the animals. The state may retain the right to formal end of the continuum) should not confiscate the land for particular purposes be seen as the preferred or ultimate form (such as to build a road), with or in some of land rights, but as one of a number of cases even without compensation. In some appropriate and legitimate forms. The most

Figure 10 The continuum of land rights

41 Remaking the urban mosaic appropriate form depends on the particular situation. STAKEHOLDERS IN PILAR PILaR recognizes that such a continuum exists, and tries to preserve and improve the A PILaR project may generate opposition rights of people at all points along the con- from any of the stakeholder groups, espe- tinuum. The continuum of land rights ap- cially if they feel disadvantaged or do not proach works with what is already in place understand it. However, each group also and incorporates it into a land information has reasons to support the PILaR approach. management system that caters for the Active stakeholder engagement (see Chap- whole spectrum of rights. It aims to give se- ter 7) and a well-thought-out communica- cure, formal recognition to landholders who tion strategy (Chapter 10) can help reduce have informal rights, and to regularize the misinformation, allay fears, win over oppo- tenure of illegal residents. sition and achieve consensus. See Figure 39 in Chapter 7 for more details on the Taking this continuum of land rights ap- stakeholders. proach to tenure is an important component of the PILaR process. Because of this, it can add considerably to the time and effort LANDOWNERS needed to implement a land readjustment. Why landowners may be opposed In many countries, land ownership plays a big role in wealth accumulation. Few things are as lucrative as the windfall that comes from urban land development: the rezoning of

It is vital to facilitate the “relationships between the different stakeholders – between the community and the local authority, the urban governance struc-

tures and rural governance Photo: Rainer Müller-Jökel structures.”

Clarissa Augustinus, Land and GLTN unit, UN-Habitat tinyurl.com/pilar- augustinus

42 3 Governance farmland for urban use, the allocation of laborate or may hold out for a bigger share extra development rights to prime urban of the gains. Others try to remove the res- land, or the provision of infrastructure to idents and develop the land on their own. unserviced plots. That poses a risk for land Sometimes entire communities have been readjustment: a project may benefit a few evicted for this reason. private landowners or speculators rather Landowners may also object to contributing than achieving its intended social objectives. to the cost of infrastructure by accepting Unsurprisingly, landowners want to protect smaller portions of the redistributed land. their property rights. They are wary of ini- They may well do so if they see the munic- tiatives that may reduce the value of their ipality subsidizing the cost of infrastructure property or deprive them of it through in other parts of the city (especially in mid- compulsory acquisition. Many landowners dle-income and wealthy neighbourhoods). are wealthy and have considerable political On the other hand, a landlord may see the sway. They may object to a development land readjustment project as a way of evict- proposal on various grounds, attracting ing the current tenants and constructing public sympathy and judicial support. Poli- new accommodation to rent out at a higher ticians are aware of this power and often price. This is not the objective of PILaR. withhold support from an urban development project that is likely to be controver- Incentives for landowners Neverthe- sial or stymied by opposition or litigation. less, land readjustment (and especially PI- This is especially so if it involves compulsory LaR) can be very attractive for landowners. acquisition. • It can convert a plot that is worth little Many landowners are attached to their land on its own into a valuable plot with road for sentimental reasons: it is where they access, drainage, sewerage, piped water were born or raised, it belonged to their and building permission – all for no cap- grandparents, they have invested a lot of ef- ital outlay. fort in building their house, they are elderly • It can speed up the process of rezoning and cannot contemplate moving, etc. They and the allocation of permits. may value their land much more highly than • It is likely to give them a bigger profit its market value might suggest. Such sen- than compulsory acquisition. timental attachments should be taken into account as far as possible. For example, try • It gives the landowners a major say in to make sure that people can stay on the how the land is developed. same plots and in the same houses. • It makes it possible to reach agreement Landowners are often unwilling to share the with all the parties involved: the munic- gain in land value with the municipality, and ipality, residents and owners of neigh- do not see why the tenants and informal bouring plots. In slum areas, it may be residents should benefit from a land read- the only practical way for the landowner justment project. Some may refuse to col- to benefit financially from a holding.

43 Remaking the urban mosaic

TENANTS AND INFORMAL RESIDENTS security of tenure and perhaps legal documents or rights to land they currently occu- Why tenants and informal residents py illegally. may be opposed They may fear the loss of their homes and businesses and disruption to their lives that redevelopment may COMMUNITY ORGANIZATIONS bring. For slum dwellers, a shack, however small and insanitary, is their home and Why community organizations may be probably their biggest asset. They cannot opposed Community organizations try risk losing it. to represent the views of their members, so they may be opposed to aspects of the The urban poor have few reasons to trust project for the same reasons as landowners, officialdom. They may be suspicious of at- tenants and informal residents (see above). tempts by outsiders, however well-meant, to help them. They may fear the transition In addition, they may fear the project will between when they move out of their cur- disrupt the organizations themselves, for rent accommodation and into the new. example by breaking up networks, or de- They may not believe that the promised im- priving them of a meeting place or a raison proved housing will materialize, or if it does, d’être. It is easy to understand a sports club they worry that the rents will be unafforda- opposing a project that might break up its ble. They may fear the loss of valued ties to team, or a gardening association that fears friends and neighbours. losing its allotments.

Informal settlements are rarely uniform; just Incentives and roles for community or- like any other neighbourhood, they are di- ganizations Community social groups vided socially, ethnically and economically, can gain from the project if they get new with different concerns and interests. Con- or improved facilities (a new football field, flicts, mutual suspicion, jealousies and ru- a meeting room). Because they bring to- mours abound, so it can be hard to reach gether friends with common interests, they agreement on a plan. Individuals or groups can become a foundation of support for the may oppose a land readjustment initiative project. because they suspect that someone else is Certain types of community groups, such as getting a better deal than they are. housing associations, cooperatives of resi- Incentives for tenants and informal dents or landholders and community land residents Nevertheless, tenants and in- trusts, may take the initiative in land read- formal residents have much to gain from a justment, or they may be important partners well-managed PILaR project. It aims to pro- and interlocutors in the process. See Box 32 vide them with tenure security. It promises in Chapter 8 for an example. them new, better accommodation in the same area. Unlike the alternatives, it gives them a say in the process. It offers them

44 3 Governance

LOCAL BUSINESSES Incentives and roles for NGOs If they are convinced of the value of the project, Why local businesses may be op- NGOs can be important supporters, and posed Owners may fear the loss or dis- may even take a lead role in implement- ruption of business; employees may worry ing a PILaR project. They can also provide about losing their jobs. Many local busi- valuable expertise, especially in organizing nesses are extremely local: they sell only to community members and helping in data an established clientele who live in the few collection and analysis. They can also act nearby streets. Land readjustment, with its as a watchdog to hold the municipality and disruption, relocation, demolition and re- other project partners accountable and en- building work, may mean these businesses sure that the project acts in the interests of lose their customer base. the community and does not damage the Incentives for local businesses Land environment. readjustment can offer businesses better facilities, improved services, and a more attractive location. They can make it possible THE PRIVATE SECTOR for a business to expand and attract more Why the private sector may be op- customers. The project may have to offer posed Many private-sector actors from loans to help businesses bridge the difficult outside the project area have legitimate period of readjustment and to invest in new interests in land: builders and building sup- premises. pliers, developers, real estate agents, banks, Businesses that are located outside the area transport firms and local businesses, etc. may also be interested in the land readjust- They may see a land readjustment project ment, for example if lots of their workers as unwarranted official interference in their live there, or if the land readjustment will business model. A property developer who create new business opportunities. plans to redevelop an area, for example, is unlikely to welcome the municipality com- ing in with another plan that eliminates a NONGOVERNMENT ORGANIZATIONS profit opportunity. Even if they welcome Why NGOs may be opposed NGOs the project as a whole, they may fear bu- from outside the project area may suspect reaucratic delays and red tape, restrictions the municipality or private developers of try- on their freedom to act, and requirements ing to take advantage of residents. Where to engage with the community. Parts of the the municipality sees only problems (insan- private sector may not welcome greater itary living conditions, crime, congestion, transparency and will try to prevent it. etc.), an NGO may see a vibrant local com- Incentives and roles for the private sec- munity that should be preserved rather than tor Nevertheless, land readjustment of- disrupted. fers significant opportunities for the private sector. Companies are often indispensable

45 Remaking the urban mosaic partners in land readjustment projects. In PEOPLE IN NEIGHBOURING AREAS some countries they may even initiate and Why neighbours may be opposed Res- lead a project, or manage it under contract. idents and businesses in neighbouring are- They may be involved in other ways: financ- as may fear the negative impact of a PILaR ing investments, providing expertise, build- initiative. They may fear increased traffic, ing infrastructure, developing property, etc. flooding, noise, pollution or crime. They Municipalities are typically short of money may oppose plans to build social housing or and lack in-house capabilities, so such pri- to turn part of the area over to commercial vate-sector involvement may be vital to en- use. Such nimbyism (“not in my back yard”) able a project to go ahead. is not unique to PILaR projects. If anything, The municipality needs to engage with PILaR gives more opportunity than other the private sector in a formal, transparent approaches for the affected stakeholders to way, rather than through ad-hoc relations voice their opposition and to mobilize resist- based on who-knows-whom. In all cases, ance to the proposals. the municipality or an independent party Incentives for neighbours By facilitat- should ensure that minimum standards are ing a rational land-use plan, PILaR can in adhered to, especially that the project ben- fact lead to better outcomes than the al- efits the poor and that decisions are made ternatives – less traffic and flooding, bet- transparently. ter waste-collection services and access for If the private sector initiates and manag- emergency vehicles, etc. Unlike the alterna- es the project, the municipality can help tives, PILaR gives the neighbours an oppor- reduce the risks (for example, the risk of tunity to express their concerns and ensure holdouts or of lawsuits delaying the pro- they are taken into account. cess). One option is for the municipality to subsidize the preparation phase (planning, consultations, decision-making), in return MUNICIPAL ADMINISTRATION for a guarantee that the project will ensure Why the municipal administration may the interests of the poor are included. The be opposed Just because one unit within municipality must also guarantee that it will the municipal government supports a PILaR not arbitrarily change the rules during the initiative does not guarantee that others project. Close collaboration between the will do so. Even if they do not express out- public and private sectors is necessary to right opposition, they may hinder the pro- avoid misunderstandings and unpleasant cess, find bureaucratic hurdles and refuse surprises on both sides. An independent, cooperation. neutral arbiter may be necessary to mediate A PILaR project may challenge political inter- disputes that arise. ests, or fail to get support from politicians or municipality staff. Within the municipal legislature, elected representatives may be

46 3 Governance opposed to the PILaR approach, or to using these and other organizations. The choice the approach in this particular place. They of implementing agency may be affected may be listening to concerns expressed by by the legal framework and location. The their constituents; they may be following a implementing agency hosts the manage- party political line; or they may be acting in ment team, provides its core staff, manages their own interests (many politicians are also the project budget, and is responsible for large landowners or property developers). those project activities that fall within its competencies. Incentives and roles for the municipal administration Strong coordination is necessary to overcome such opposition. A MANAGEMENT TEAM high-ranking public official or “champion” (such as the mayor) who supports the ap- This is a small group that coordinates the proach is indispensable to ease its passage project and runs day-to-day operations. This through the legislature and bureaucracy. team (Box 9) should be chaired by the mu- Some steps may require a decree or regula- nicipality and include key members of the tion issued by the appropriate official. implementing agency itself, along with staff from other government units and commu- The municipality often takes the lead role nity representatives. The community rep- in a land readjustment project (see Project resentatives should include landholders as management below). If someone else (such well as tenants and occupiers. The team as the private sector) does so, the munici- may also include staff from the various local pality still has an important role as a partner government agencies and NGOs involved. and regulator. Team members who are government employees will be paid by their official units. Remuneration for community representatives and other technical personnel should come from the project budget. PROJECT MANAGEMENT

The project management typically consists SPECIALISTS of four key elements: the implementing The management team will need to draw agency, the management team, specialists, on specialists, for example to handle fi- and an advisory committee. nancial and legal aspects, interact with the community, and gather and analyse data. These specialists may be municipal or NGO IMPLEMENTING AGENCY staff, or come from the private sector. You This may be the responsible branch of the may also wish to get advice from other mu- municipal government, an NGO, an associa- nicipalities that have implemented PILaR tion of landholders, or some combination of or from individuals and organizations with

47 Remaking the urban mosaic experience (see the list of contributors at plementing agency, management team and the end of the book). advisory committee in order to take advantage of their accumulated expertise. Some changes may be needed:

Box 9 The management team • Community representatives and other stakeholders in the management team The management team should consist and advisory committee must be drawn of people with these skills: from the new project area. • Land surveying and valuation • The rules and procedures must be ad- • Planning/architecture justed in the light of experience – and • Urban or property law informed by the evaluation. • Economics, finance If the municipality decides not to contin- • Sociology, community organizing ue with the PILaR approach, the manage- • Environment. ment team and advisory committee will be dissolved.

In either case, the implementing agency ADVISORY COMMITTEE may keep its role of organizing the commu- This is a broader group with representatives nity in the neighbourhood. The municipality from the funding agency, relevant govern- takes over responsibility for maintaining the ment units, political leaders, elected lo- public infrastructure and services. A proper- cal residents and other local stakeholders, ty tax, fee or local “sweat equity” may be NGOs, community organizations, the pri- needed to finance and deliver these. vate sector and professional groups. Its purpose is to supervise, advise and guide the management team, generate broad support for the project, and assist in implementing the process. It may be useful to include a IMPROVING GOVERNANCE neutral “honest broker”, such as UN-Habi- tat or another organization with experience in implementing PILaR. Improving land governance is not easy, but it is possible. PILaR can help improve land governance by establishing procedures that fol- MANAGEMENT STRUCTURES low the principles listed above. The relation- AFTER THE PROJECT ship is mutual: a PILaR project also depends on and benefits from good governance. After the project ends, if the municipality wishes to continue and expand its land Traditionally, urban development was in the- readjustment activities, it should retain the ory dominated by municipalities and their project management structures – the im- professional staff. In practice, of course,

48 3 Governance landowners, developers and others had a a wide range of stakeholders to discuss con- major effect: municipalities were too weak crete issues. It forces them to be practical, to coordinate their activities, and so much so may lead to a change in mind-set. That development was haphazard. may in turn lead to legal and policy reforms.

Throughout the world, this traditional hier- archical and dysfunctional approach is be- POLITICAL VISION ing replaced by more networked forms of governance with greater collaboration be- Responsible land governance means man- tween the private and public sectors, as well aging the politics and power associated as the involvement of civil society. This is in with land. The municipality has to be strong part because of the recognition that gov- enough to regulate the private sector and ernments alone cannot do everything – and ensure that the rule of law, rather than bu- should not try. Plus, various government reaucratic whim or personal favour, is para- functions have been privatized, and more mount. A strong political vision is needed to private capital has been flowing into urban do this. That requires both support from the development. The growth in importance of top and champions within each unit in the the private sector in turn raises questions municipality. about how decisions are made and about democratic legitimacy. ADMINISTRATIVE SYSTEMS PILaR is a complex intervention in a complex environment: urban space. It is not pos- Administrative systems must be transpar- sible for any one of the actors involved to ent, participatory and accountable. They handle it all. At the same time, the actors must be suited to the local situation. For ex- are dependent on each other. When inter- ample, they should take both formal and in- actions are open and regular, and expecta- formal and customary forms of tenure into tions are set correctly, the stakeholders will account; they should be easy to keep up- be able to influence each other’s decisions to-date; and they should make it possible and agree on the project’s direction. A high for stakeholders to contribute and obtain level of participation must involve not only information. the community, but all stakeholders. When Most current administrative systems fall stakeholders feel that their ideas can shape short on these counts. They recognize only the collective decisions, they will commit to formal ownership while ignoring the infor- and take ownership of the project. When mal rights of the people who actually live in this is achieved, a workable local govern- an area. They are often hopelessly outdated ance structure has emerged. because land transactions have not been Initially at least, PILaR focuses on just a sin- registered with the system. They are open gle area. But it can have a wider impact on only to the professionals who maintain the city in two ways: as more PILAR projects them. New approaches, such as the Social are implemented, and by bringing together Tenure Domain Model (Box 10 in Chapter 4)

49 Remaking the urban mosaic combine participatory methods with digital out the project cycle. These tasks should technology to overcome these limitations. not be delegated to a community specialist alone; instead they should also involve the Significant gaps still remain. For example, technical staff who are directly responsible conventional land valuation systems usual- for the activity under discussion. These staff ly do not cover the whole urban area, and may need training in negotiation and me- there are too few specialists with the skills diation skills. The community specialist can required. The poor often find the land they facilitate the interaction. occupy is expropriated and they get inadequate compensation because its value is set The interests of the community (or parts too low. A valuation system for unregistered of it) may clash with those of the munici- land based on local approaches would alle- pal government or other stakeholders. It is viate this. more fruitful to have a calm, informed negotiation rather than violent confrontation Another example is in planning standards. fed by rumour and misunderstanding. To Building codes and standards for things like maintain such a conversation, it is necessary road widths are often designed for an ideal to build the capacity of community mem- situation – such as a smart middle-class sub- bers and groups, and to design a commu- urb. They have to be adjusted to suit poorer nication strategy to keep them informed. areas. Two-way communication also enables land professionals to learn from the community. STAKEHOLDER ENGAGEMENT Only then will the various stakeholders be able to interact in a meaningful way. Com- Robust civic engagement creates a vital bul- munity organizations and NGOs can play a wark against corruption. It can strengthen key role in facilitating this. the city’s governance structures by holding the municipality to account, requiring trans- The goal of community engagement is not parency and ensuring good governance. to present a plan to the community and expect them to agree to it with minor chang- Some municipalities already have a close es. Rather, it is to build a plan together – dialogue with civil society organizations – one that reflects the interests of all and that NGOs, religious institutions and local busi- a large majority can agree on (see Chapter nesses. This dialogue may be collaborative 7). or combative. Other municipalities have fewer such ties. And organized groups may Broad-based engagement takes time, ef- represent only part of the community – usu- fort and money. The project staff must be ally the more vocal and powerful individu- patient and willing to hold repeated discus- als. It is necessary to ensure that women, sions, modify plans and adjust decisions. the poor and vulnerable also have a voice. Participants in meetings must be made to feel that their time is well spent and their The municipality needs to ensure meaning- feedback is taken seriously. A skilled mod- ful consultation and negotiation through- erator is needed to facilitate such meetings.

50 3 Governance

CAPACITY DEVELOPMENT For more information, see the Global Land Tool Network’s capacity development strat- The municipality will need to develop the egy, tinyurl.com/q3omnn5. capacity of the relevant departments and its partner organizations to handle a PILaR project. Some key considerations include: SETTING RULES • Assess the capacity needs for the land Engagement with the community and oth- readjustment process to be implementer stakeholders makes it possible to make ed, and the current capacity of the vari- decisions collectively. Because they are col- ous staff, units and partners. Design and lective, such decisions have a good chance plan a capacity development programme of being accepted by all concerned. The key to build on this and fill any gaps. rules concern: • Consider both “hard” (technical, func- • Voting eligibility Who gets to vote? tional, tangible and visible) capacity and In a conventional land readjustment, it “soft” (social, relational, intangible and is only the registered landowners who invisible) capacities. have a say (though in some countries, • Promote learning and capacity devel- the municipality can overrule them). In opment in all aspects of the land read- PILaR, other stakeholders who occupy justment process, including follow-up land (tenants, informal residents) also support. have a voice. Efforts are made to ensure • Enhance skills of both the municipal that both rich and poor, and both men staff and other stakeholders (e.g., law- and women, can vote on a proposal. yers, planners, surveyors, community Some decisions may be voted on by all mobilizers). stakeholders; some by landowners only.

• Incorporate capacity development into • Vote weights What weight should be all relevant aspects of the PILaR project. given to each vote? Possibilities include one-household-one-vote, votes weight- • Establish learning partnerships, included according to the amount of land ing with other actors or institutions that owned, and votes for landowners given have implemented PILaR. more weight than tenants or occupiers. • Use existing local knowledge and techni- • Approval criteria What is the major- cal capacity and experience. ity required to approve a decision? Pos- • Monitor and evaluate the capacity de- sibilities include unanimous consensus velopment process and adapt the pro- (not practical as it gives disproportionate gramme as necessary. power to holdouts), a supermajority of, say, 75%, and a double majority (the • Encourage continuous learning to keep majority of voters holding the majority abreast of emerging issues. of the land area).

51 Remaking the urban mosaic

• Land contributions What proportion than that without access. Other valua- of land should each landholder be re- tion approaches will have to be devel- quired to contribute? This will depend oped for land that is not in the cadastre. on the amount of land needed for infra- • Eligibility for benefits Who is eligi- structure and public space, the amount ble to benefit from the project? In con- the municipality will need to as a reserve, ventional land readjustment, only the and the expected gain in land values. In landowners and municipality can claim the interests of fairness, it may be ad- benefits: the landowners get a smaller visable to set minimum amounts and a but more valuable piece of land, while sliding scale: holders of small plots do the municipality gets a land reserve it not have to contribute anything; holders can sell or develop. Tenants and illegal of medium-sized plots contribute a cer- occupiers may be forced out. In PILaR, tain percentage of their area; holders of by contrast, they may be granted legal bigger plots must give up more. tenure or be given formal documents for • Basis for land contributions Should a plot. the land contributions be based on the • Holdouts What should be done if area of land, or its current market value? some people refuse to participate in the If there is no information on the market project? Can they be legally required to value, the current cadastral value (the cooperate – for example, forced to sell value noted in the cadastre, which is at the current market price? Every effort used as a basis for taxation) may be used should be made to persuade holdouts instead. Land that currently has a road to cooperate; compulsory acquisition frontage is likely to be more valuable should be a last resort. Extremely poor

Currently not so many “countries are able to undertake a PILaR intervention. Capacity development is needed so they are effectively able to implement

the project.” Photo: Rainer Müller-Jökel Rebecca Ochong, UN-Habitat

tinyurl.com/pilar-ochong

52 3 Governance

households should be given alternative MANAGING EXPECTATIONS accommodation and assistance to relo- PILaR is not a quick fix: it takes time to de- cate. sign the project, reach agreement with the • Relocation If people already reside in stakeholders, work through the bureaucra- the area, will they need to move? Will cy and actually allocate the new plots. It will the municipality provide them with new take even longer to build infrastructure and permanent or temporary accommoda- put up new housing (if the project aims to tion? What about farmers who cultivate do this). rural land? Will they be offered a new The implementing agency must help all area to farm? stakeholders to have a realistic expecta- There is no one best answer to these question on how long the process will take. It tions. International, national and customary will be useful to set some interim dead- law may specify answers or provide guidelines: for holding public consultations, for lines. For example, national laws may pro- signing agreements with the majority of tect tenants from eviction and give informal households, and for completion of the land residents the right to occupy land. Such allocation. Progress should be reported laws give them at least some power in ne- to the stakeholders periodically to assure gotiations with the landowners and the mu- them that the project is moving in the right nicipality. Similarly, some countries set the direction. amount of land that each landowner must Many things can happen in the meantime: contribute. some predictable, others not. The real es- However, a pre-existing law may make tate market may be volatile; political com- things more difficult. For example, a large mitments change; governments come and land contribution may be needed to make go; global and national finances change. way for roads and to cover the costs of The community changes as well: people providing infrastructure. If the contribution change jobs or become unemployed; chil- specified in the law is less than this, it will dren are born; couples get married or sepa- not be possible to put in the facilities re- rated; people grow older and die. quired without finding outside funds. All these changes make planning and imple- Ideally, the rules should be determined col- menting a PILaR project challenging. Only lectively as a result of repeated discussions the willingness of the participating parties with the stakeholders, and taking the local to stick together during uncertain or even situation into account. Once decided, the bad times will ensure success. Close collab- rules must be made clear to all. See Chap- oration and relationships built on mutual ters 4, 5, 8 and 9 for further discussion on trust are crucial for this. these issues.

53 Remaking the urban mosaic

PREVENTING SPECULATION PREVENTING CORRUPTION

Engaging all stakeholders early on may open Land is associated with corruption all over the door for some to engage in land spec- the world. Tricks include: ulation. As soon as they hear of a potential • The theft and illegal subdivision of public project, such opportunists start buying up land. plots of land or properties in the neighbourhood with the expectation that land prices • Falsifying documents. will rise. This use of inside information is un- • Public officials using their inside knowl- fair on those who have not yet heard of the edge of the project plans to buy land project – who are likely to be poor. It also cheaply. tends to make it more difficult to negotiate • Public officials working unofficially for the land exchange. private-sector land speculators for gain. In addition, the situation in the field is con- • The alteration of project sites for private stantly changing: people move in and out; individual gain (shape of the site, num- plots are transferred from one person to an- ber and width of roads, non-adherence other; buildings are constructed, modified to building regulations). or demolished. • Soliciting and accepting bribes from Possible solutions include: landholders, developers and suppliers. • Moratorium Set a date after which • Poor standards of infrastructure and ser- no changes are permitted in the list of vices. people who are eligible for reallocated plots, or in the size of plot they are en- • Changing project objectives (such as the titled to. aim to protect all residents) for individual private gain. • Right to purchase land In addition, the implementing agency may ask law- • The use of public money to build infra- makers to give the municipality the right structure on private land. to buy land or properties from landown- There should be zero tolerance of such ers or residents who want to sell after ploys. Approaches include: the project is conceptualized. • Maintaining transparency in records and • Construction freeze Prohibit con- decision-making. struction in the area after the project • Ensuring the community is engaged has been announced. See Chapter 8 for throughout. more. • Setting clear rules for officials – and publicly disciplining those who transgress.

54 3 Governance

• Inviting an independent third party (such • Interdepartmental coordination commit- as an NGO specializing in anti-corrup- tees and task forces. tion measures) to monitor activities. • Appropriate legal frameworks. • Inviting the media to scrutinize the pro- • Financial arrangements such as tax shar- ject. ing.

• Capacity development and sharing of INTRA- AND INTER-GOVERNMENTAL knowledge and data. COORDINATION

Bureaucracies are not monolithic. Munic- ipal governments have various units, each with its own interests, priorities, work programmes and budget. They may have dif- EVALUATION ferent understandings of the law. Managers and staff are only human: friendships and At key stages during and after the project, jealousies may help, hinder or bias bureau- it is important to evaluate progress and cratic functions. achievements. It is best to have an evaluation by an independent entity. It should Similar concerns affect collaboration with include: other levels of government and with neighbouring local authorities. An overarching • A review of the project outcomes com- strategy is needed to deal with this, and pared to the objectives established at to make sure that weaker bodies are not the start (or as revised during the pro- steamrollered – for example, to ensure that ject) (Table 4). the offices responsible for the environment • A review of the procedures followed. or social issues are not overwhelmed or ignored. • Discussions with the members of the management team, implementing agen- Coordination can be improved in various cy and advisory committee to reflect on ways: the process and outcomes. • Top-level coordination of competing • An exit survey of households to assess units in the municipality. their satisfaction with the project. • The identification of an agency with the • Interviews with key members of the executive authority to undertake the municipality: the mayor, departmental function. heads, key staff and politicians. • A clear division of functions among gov- An evaluation is useful at three stages in the ernment units to reduce overlap and process: eliminate gaps.

55 Remaking the urban mosaic Long term 5 years after completion What changes in institutional arrange - ments have been made? Have informal land rights been incorpo - and cadastre? rated into the land register been done else - Have similar projects where? What changes have been made to the law and regulations? How have land markets and prices in the changed? area (or costs) How much additional revenue generate for the munici - does the area pality? now? better or worse off residents Are How has the urban fabric changed? Who has invested in the area? End of project After the plan has been implemented Did the institutional arrangements work as expect - ed? the ap - needed to replicate What changes are elsewhere? proach have been encountered? What legal problems Have they been resolved? laws Have any changes been made to the relevant or policies? What did each household in fact contribute? did they gain? financially are How much better (or worse) off they? What have been the actual costs to municipal - ity? (if necessary)? been cleared Has the area been installed? infrastructure Has the promised been allocated to Have the new plots or properties landholders and residents? SAMPLE QUESTIONS FOR EVALUATION

Interim plan is com - When the land readjustment plete public and private agen - Have the relevant cies been involved in developing the plan? Have they accepted it? the necessary institutional arrange - Are ments in place? Does the plan conform to law? to change the Have any recommendations law been made? Does a grievance mechanism exist? Does the plan show how much each household will contribute? How much each will benefit? Will the plan be self-financing? How much will it cost the municipality? What other needed and availa - of funding are sources ble? Does the plan cover whole area? - will be pro Is it clear what infrastructure vided? Does it say how big the new plots will be they are? and where

Governance Legal Financial Planning TABLE 4 TABLE

56 3 Governance - Long term 5 years after completion are How many of the original residents How many of the vulner still in the area? able residents? Has social capital been strengthened? End of project After the plan has been implemented been satisfactorily covered? Have all residents Have their needs and wishes been taken into account? they with the results? How happy are Has everyone been satisfactorily relocated? Have they taken up occupancy of their new plots or properties? evictions? been any forced Have there

Interim plan is com - When the land readjustment plete Does the plan cover all residents? needs and wish - Does it take the residents’ es into account? Does it consider vulnerable groups? the involved in creating residents Were plan? Do they know about it and how will them? affect to it? Have they formally agreed Stakeholders

57 Remaking the urban mosaic

• An interim evaluation after the readjust- and judge whether PILaR was a good ment plan has been completed but be- use of funds and an appropriate way to fore implementation has begun. plan and implement land readjustment.

• An end-of project evaluation after the • It can help the municipality decide plan has been implemented. whether to repeat the PILaR approach in another area, or to scale it up to cover • A long-term evaluation after several the whole city. years. • It can guide the design of new legisla- The evaluation framework will depend on tion or the revision of planning and land the specific situation. Table 5 suggests some laws. broad questions. • It should be documented to inform the The evaluation has several uses: design and implementation of future ac- • It can help the municipality and other tivities. stakeholders learn from their experience

TABLE 5 EVALUATION FORM TO COMPARE THE SITUATION BEFORE AND AFTER A PILAR PROJECT

Before After

Number of residents

Number of households

Number of housing units

Number of other structures

Renters

Average plot size

Land value per square metre

Number of businesses

...

58 4 LAND MANAGEMENT POLICIES

onventional land readjustment involves While policy guides the PILaR process, the Ccombining the plots of different own- process may also help to develop new poli- ers into a contiguous area, then dividing it cies, especially if it is new or unfamiliar in a up again so it can be used more efficiently. country. PILaR takes this basic idea and uses it in a The land management policies discussed pro-poor way: it aims to balance the inter- here are different from the broad, nation- ests of the municipality, the landholders and al-level policies that govern land ownership, vulnerable groups such as tenants and in- access and use. Such national-level policies formal residents. include whether land is held by the state, The implementing agency needs clear whether foreigners may own land, and guidelines on what to do and the type of whether customary rights are recognized. decisions it should take. This chapter considers the following policy issues:

• What are the general policy guidelines for a PILaR project? GENERAL POLICY • What criteria should be used in selecting a PILaR site? GUIDELINES

• How will the needs and interests of registered landowners, landholders and Below are some land management policy other residents be balanced? guidelines to consider in a PILaR project.

• How will the land contributions be fairly determined? OVERARCHING

• How will the community be engaged Related to the national urban plan The in making decisions? How to deal with land readjustment should conform with and people who do not agree? contribute to the overall national urban plan • How will land be valued? – for example, supporting the development of particular cities in the desired direction. • How will the land be transferred? Part of a city plan Wherever possible, it should fit with a city-wide policy for urban

59 Remaking the urban mosaic development. This will allow for economies the poor. Inclusive cities require better reg- of scale in institutional and legal structures ulated markets which are transparent and and will create planning and financial ad- competitive and also provide housing, secu- vantages for the municipality and the city’s rity of tenure and community facilities for inhabitants. the poor, women and the vulnerable.

Improving efficiency The PILaR project Urban–rural links The project, especially should make the city more efficient, so if it is on edge of the city, should try to cre- contributing to sustainable urban develop- ate more coherent linkages between the ur- ment. Currently many cities and towns are ban and rural areas in terms of connectivity, dysfunctional because they do not have governance, food security, environmental enough public space, their inner cores are management, economic growth and pover- decaying, a lack of streets cause congestion, ty reduction. Urban and rural areas do not slums are dangerous and insanitary places operate in isolation but instead are linked to live, and urban growth is unplanned. The by the flow of people, goods and services. project should try to alleviate such problems. These linkages should be strengthened and made to work better to develop the econo- Building communities The project my and reduce poverty. should result in a new configuration of formal plots and increased social capital of the local community. It should be used to build GOVERNANCE communities rather than to displace them through gentrification. That means involv- Inclusiveness and equity Landown- ing the affected residents through participa- ers, other landholders and all types of res- tory mechanisms throughout. idents (owner-occupiers, tenants, informal residents) should be beneficiaries. Wom- Strengthening the public sector The en, young people and indigenous groups public sector’s role in regulating the private (where appropriate) and the vulnerable sector should be strengthened. Too often should be accommodated in the project the private sector takes all the gains from plan, and their requirements and wishes urban development projects, while the taken into account. All forms of legitimate public sector uses public money to pay for tenures should be accepted, both formal the infrastructure and other costs. Instead, and informal. All forms of non-criminal gov- the private sector should take on more of ernance structures should be included as the project burdens and the public sector stakeholders, both formal and informal. should get more of its benefits. Stakeholder engagement A participa- Balancing the market and social objec- tory approach with the affected community tives Economic distortions should be min- should be part of the entire project cycle. imized by using the market, but balancing This aims to ensure that the project’s pro- it with social objectives. Neither centralized poor objectives are met. It helps the pub- planning nor unregulated markets benefit lic-sector agencies to mediate the power

60 4 Land management policies relations between the community and asso- Mixed use Mixed rather than single use ciated the private sector. See Chapter 7 for should be considered (except for noxious more. uses).

Governance Decisions should be made Density The project should aim to create a transparently throughout. Corruption must compact, dense, well-connected urban area. not be tolerated. See Chapter 3 for more. Improvement over time It is not nec- Communication The project should in- essary to put in all the infrastructure from vest in communicating with the stakehold- the start. But it should include at least a ers in order to keep them informed, get their minimum of infrastructure and services opinions, and avoid the risk of rejection by in order to encourage the stakeholders to one or more stakeholder groups. See Chap- collaborate. ter 10 for more. Avoiding relocation The project should minimize the relocation of residents out of the project area. This is because the project LAND is pro-poor and aims to prevent the growth Land rights The project must recognize of slums elsewhere. that a continuum of land rights exists (Fig- Environmental protection The project ure 10) to ensure that the land tenure of should protect environmentally sensitive ar- tenants and informal residents is enhanced. eas such as rivers, upper river catchments, Alternative land records Where the steep slopes and wetlands. conventional land administration system Protecting farmland Agricultural pro (cadastre, land records, valuation) does not ductivity, food security and land degradation exist or is too expensive, alternative, pro- issues should be taken into account when poor forms should be considered. planning the expansion of the city.

See Chapter 5 for more. PLANNING

Appropriate standards Where conven- LEGAL AND INSTITUTIONAL tional planning standards for plot size are not appropriate, smaller plot sizes that fit Strengthening the rule of law The pro- with occupation patterns should be consid- ject should be based on the existing legal ered. Road widths, community facility space framework. It should use the law rather and other public space should be optimized than trying to bypass it. Procedures should (UN-Habitat recommends a maximum of 30 be predictable, applied fairly and impartially. percent of the land; countries may specify Developing new law If no suitable le- more or less than this). Future needs must gal framework exists, a new law should be be taken into account in setting planning passed to provide the legal basis for the rules. project.

61 Remaking the urban mosaic

Developing regulations Appropriate Self-financing As far as possible, the pro- regulations should be developed and pilot- ject should pay for itself. ed to implement the policy objectives. This Compensation for relocation The will also help the national and local govern- amount of compensation for relocation ments to think through the steps required, should be predictable, and managed improve coordination among the institutions through a due process. For non-legal involved, and manage the project cycle. landholders, the compensation should be Strengthening institutions The institu- weighted to low-income residents. tional framework of the municipality and See Chapter 9 for more. other local authorities, as well as agencies such as the water and electricity boards and the roads department should be reviewed. These institutions should be strengthened if necessary to improve their efficiency, CHOOSING THE LOCATION clarify their functions and increase their coordination. PILaR is a useful approach if the plots in See Chapter 8 for more. a particular location are an inappropriate shape or size for the desired land use. For example: FINANCIAL • An area earmarked for low-rise housing Diverse financial options The finan- that currently has lots of small, irregular- cial model should include diverse financial ly shaped plots. options, such as whether the project will be self-financing, require public subsidies, • An area on the edge of the city that is di- require sales of land or housing to non-res- vided into several fields, each with a dif- idents, or include low-interest loans or guar- ferent landholder. These fields must be anteed loans. The financial aspects should be combined in order to put in roads that considered early because of the cost associ- link with the nearby main thoroughfare. ated with any form of land readjustment. • A run-down inner-city area that needs Sharing of costs and benefits The sharing to be redeveloped and more space given of the land value and the costs of infrastruc- over to public parks. ture should be integral to the design. The ben- In all these cases, the individual landholders efits should be shared equally, but the poor have no incentive to redevelop their land should bear a smaller proportion of the costs. separately – or if they do, the result would Social benefit Impact investment (invest- not be in the interests of the local residents ments that produce a social benefit) should or the city as a whole. No one wants to sac- be encouraged. Speculation should be rifice their land to put in a road or park that discouraged. will only benefit other landholders.

62 4 Land management policies

CRITERIA FOR SITE SELECTION SITE SIZE AND BOUNDARIES

The site selection must be subject to the There is no optimal size for a PILaR project. usual criteria for land development: But keep it manageable. Split a large site into several smaller projects to make it easier • The site must be accessible and con- for the implementing agency to handle the nected to trunk infrastructure (roads, planning, work with the local community, sewers, water pipes, etc.). and achieve the objectives. What is “large” • It must have suitable topography for and “small” here depends on the situation. building (e.g., not on steep slopes or a The project area should ideally be contig- swamp). uous. It is possible to have enclaves and • It must allow for the intended (and per- exclaves to deal with specific situations. mitted) land uses and densities. For example, parks and public spaces and • It must have minimal costs for the envi- other areas that are to be retained (such as ronment and heritage. cemeteries) may be excluded from the area subject to readjustment. An exclave may be • It must fall in the jurisdiction of the pro- useful to use as a temporary or permanent posed implementing authority. resettlement area for people displaced by Additional criteria that are specific to PILaR the project (Figure 11). may include: The boundaries should be fixed early on • It should be possible to redraw the plot in the project. This is to prevent specula- boundaries without having to demolish tion and to avoid the free-rider problem, too many existing buildings. The build- where landholders refuse to have their land ings have to be spaced so as to allow included in the project, but benefit from it the permitted “setback” (the minimum because of the improved infrastructure or distance a building must be from a road rising property values associated with the or boundary). project.

• The social situation must be suitable: for The municipality may wish to use land re- example, do not try to do a first-time PI- adjustment over a large area of the city. It LaR project in an area with sky-high lev- is best in such cases to divide the area into els of crime. more manageable sections, and deal with • The majority of local landholders and each in turn (Figure 11). Start with the residents must be in favour of the land smallest and simplest to manage, and then readjustment. move onto the next section when the first is complete. • The current land records must be reasonably accurate and it is reasonably clear who the landholders are.

63 Remaking the urban mosaic

PILOT PROJECTS A If this is the first PILaR project in the municipality, keep it simple. That may mean choos- A, B, C: Project ing a site on the edge of the city that is easily B phases C accessible, has only a few landholders, and Project boundary has few or no informal residents. Check the prospect of getting consensus on redraw- ing the boundaries. If some landholders Phase boundary are reluctant to join, consider changing the project boundaries so their land is excluded. When they see the benefits of the project, they may decide to join in – as occurred in Enclave: Area excluded from a land readjustment project in Thimphu, readjustment Bhutan. Exclave: used for temporary Figure 11 It may be advisable to doresettlement the project Aim for simplicity, but not for over-simplici- in stages ty. The pilot project site must be reasonably representative of other locations where PI- LaR might be used. The pilot site should allow the implementing agency to learn how the registration authority being informed. to implement the approach and adapt it and The land may have been subdivided or built scale it up in other, more complex locations. on. It may be occupied legally or illegally. The records may overlap or contradict one another – and they may have been falsified.

If the cadastral records are incomplete or out-of-date, you need to obtain any evi- LAND RECORDS dence that is available on property rights. You then use a series of public consultations Once you have chosen a potential site, and formal notification processes to update check the condition of the land registration the list of claimants and claims. You will records and other information about the need information on: current owners, landholders and residents. • The extent and location of each plot.

The formal land records show the bound- • Any claims on the plot, such as ease- aries of each plot and who the registered ments, court judgments or mortgages. owners are. In some places, these records are reasonably complete and up-to-date. In • The current land use, including any per- others, they are patchy, inaccurate, wildly manent structures as well as long-term misleading or even non-existent. A plot may crops and fruit trees. have changed hands several times without • The current land-use zoning, if any.

64 4 Land management policies

If land records do not exist at all, they need istrative work, and maintains records. The to be built from scratch. You can do this fair- municipal council must approve key stages. ly quickly by using non-conventional meth- The municipality may itself already own land ods: combining global positioning system in the project area – perhaps discrete plots, equipment, satellite images, interviews with or the streets and other rights of way. This local people, various types of documents, land should be included in the overall area and a mechanism to resolve disputes. The for reapportionment. Social Tenure Domain Model is one way to do this (Box 10). The municipality will require a certain amount of land for roads, open space and Such methods would need to be recognized other infrastructure. It may also need to re- by the authorities (to provide legal cover) serve some land to build social housing or to and the community (to give social legiti- sell to cover the project costs. macy). Agreement is needed on the types of evidence that are acceptable to back up PILaR brings many potential benefits to the a claim of long-term occupation. Ideally, municipality: when the exercise is complete, the records • PILaR can help improve the urban fabric in the cadastral and registration offices will and realize the urban plan. It results in a be updated to match the newly created and more pleasant, safer and more efficient validated de facto records. If this cannot be environment. done immediately, a legal instrument (such • The improvements result in higher land as a decree) will be needed to recognize the values and so greater income from taxa- records in the meantime. tion and land-related fees.

• It is cheaper and involves fewer legal hurdles and social problems than alternative ways for redeveloping land, such WHO HAS A SAY? as compulsory acquisition. WHO GETS WHAT? LANDOWNERS

Formally registered landowners have the THE MUNICIPALITY strongest rights to the land. In conventional land readjustment, they are the only group The municipality is normally the organi- (apart from the municipality) to have a say in zation in charge of the land readjustment the readjustment process. In PILaR, howev- process (though it may call on NGOs or er, the views of other groups are also taken contractors to help with aspects such as into account. Typically, each landholder (not community engagement, land clearance just the formal landowners) gets a readjust- and infrastructure provision). It coordinates the process, manages the legal and admin-

65 Remaking the urban mosaic

Box 10 Social Tenure Domain Model

The Social Tenure Domain Model is a Like all geographical information sys- way of recording who has what rights to tems, the Social Tenure Domain Model what piece of land. It is a pro-poor, gen- stores information in layers: one layer for der-responsive and participatory land each type of information: land use, risk, information system developed by the transport routes, etc. That makes it possi- Global Land Tool Network. It helps create ble to monitor the situations before and land records quickly and cost effectively. after the readjustment. The approach is based around a comput- The Social Tenure Domain Model has var- er program that shows a map (or aerial ious attributes: photograph) of an area. Local people • It takes advantage of the continuum (the party in Figure 12) can draw bound- of land rights concept. aries on the map to show plots; they can also point out buildings and other fea- • It uses participatory enumeration tures (such as ponds or trees). For each methods. plot or feature (the spatial unit), they • It ensures that gender issues are re- can add annotations on who owns, rents, flected. occupies or is allowed to use it (the social tenure relationship). These claims • It is affordable because it uses free, can be supported by various types of ev- open-source software idence: sketches, audio, video, scanned documents such as utility bills (the sup- • It is flexible to use: it can be applied in porting documents). All this informa- various situations and complements tion can come from various sources, in- other tools cluding participatory enumerations. • It is simple to use: non-technical peo- The computer program makes it possible ple can use it. to deal with overlapping and conflicting • It is inclusive: it can be used by com- claims. For example, herders may have munities such as slum dwellers, small the right to graze their animals on a landholders, as well as in formal sit- piece of cropland during the dry season. uations. The Social Tenure Domain Model can show this; conventional land information Source: GLTN/UN-Habitat or see www. systems have a hard time doing so. stdm.gltn.net/

66 4 Land management policies

Social tenure relationship Party

Person(s) Use rights

Family has Occupancy

Community Ownership

Group of groups Informal

Customary tenure

Common land

Spatial unit Tenancy with Land Hunting

Property

supported by Structure

Natural resource Supporting documents

Objects Sketch

etc. Audio

Video

Scanned documents

Photos

Figure 12 How the Social Tenure Domain Model relates elements with one another etc.

67 Remaking the urban mosaic ed plot proportional to the size (or value) of Tenants of agricultural land usually cannot his or her original plot. stay in the project area because the area will be built on. The project should try to find Landowners fall into different categories, ways to ensure they are not disadvantaged each with different interests. Owner-occu- by the land readjustment. For example, it piers and landowners who reside in the area might transfer their rights to other plots in may have different views from absentees. the municipality, compensate them with a Large landowners may have different opin- residential plot in the project area, or find ions from smallholders. other forms of compensation.

LEASEHOLDERS INFORMAL RESIDENTS Leaseholders usually have very strong long- Options for informal residents include: term rights to use a plot or buildings. De- pending on the age and type of the property, • Offer them low-income housing fi- they may get a leasehold to the readjusted nanced by the municipality in apart- plot and the building on it, or compensation ments built in the project area. Part or all if the building has to be demolished. of the costs of building such apartments can be covered by the increase in land values after the land readjustment. TENANTS • Offer them long-term leases for land or Long-term tenants have stronger rights; housing. they may be granted the right to rent prop- • Offer them a low-interest, long-term erty on the readjusted plot at a similar rent, loan so they can buy a plot or a house. or the municipality or landholders may find them an equivalent place to rent elsewhere. • Use the land readjustment as the first stage in slum upgrading. Here, the area Short-term tenants have weaker rights, but is cleared gradually, and the existing it is important to find a solution for them slums are replaced with higher-densi- too so they do not end up as victims of the ty housing. The informal residents get redevelopment process. One possibility is the right to rent one of the newly built to reach an agreement with landholders apartments. for such tenants to rent accommodation at similar terms to their current arrangements.

People may rent land or buildings for residential purposes, or to use as workplaces such as shops. It is important to take their interests into account in order to maintain employment in the area.

68 4 Land management policies

LAND CONTRIBUTIONS close together that there is simply no room for such things. Adequate space must be al- AND REPARCELLATION located to make the area attractive to live and work, to allow the free flow of pedes- You have selected the potential site, iden- trians and traffic, and to enable residents to tified the plots, and identified who has a relax. Land may also be needed for protect- legitimate interest in each plot. You have ed areas along river banks and steep slopes, worked out a way to accommodate the in- utility lines (electricity, gas, water, sewer- terests of other stakeholders. You can now age), and to conserve natural and heritage move on to the design part of the project. sites. The proportion of land to be allocated You will need to answer these questions: for such uses may be set in the law.

• How much land is needed for roads, public space and other infrastructure? LAND RESERVED FOR MUNICIPAL USE

• How much land must be reserved for The municipality may decide to reserve a municipal use – to sell or for social hous- certain proportion of the land for its own ing? use. It may use this land in various ways:

This will give you the amount of land that • To build social housing for residents needs to be subtracted from the total pro- (usually tenants and informal residents) ject area. displaced by the land readjustment, or • How should the contribution of each for low-income people from elsewhere. landholder be calculated – according to • To sell to cover the costs of the project. its area, or its value? • To redevelop (for example, as a shopping • Should larger landholders be required centre), then sell or rent out. to contribute more than smaller landholders? • To use for administrative buildings or other municipal services. This will enable you to calculate how much land each landholder will be required to • To hold for future needs. contribute.

LAND CONTRIBUTION RATIOS

LAND REQUIRED FOR ROADS, PUBLIC How much land is needed for these pur- SPACE AND INFRASTRUCTURE poses depends on the situation. It is often Enough land must be made available for 40% or more (Table 6). In some countries or roads, walkways, parking spaces, parks, jurisdictions, the proportion is set by law. It squares and other public uses. The lack of may also vary within a country, depending public space is one of the things that makes on the type of project and the site’s physical a slum a slum: the houses are huddled so constraints. For example, if the site has very

69 Remaking the urban mosaic small plots and few or no vacant plots, it may not be feasible for residents to contrib- Box 11 Thimphu, Bhutan: ute 40% of their land, as the resulting plots Setting the contribution ratio too low would be too small. In reality, the contribution percentage will be the result of a series In a Land Readjustment Project in of negotiations with the affected landhold- Lungtenphu, part of Thimphu, the ers and residents. negotiated land contribution ratio ranged from 15% to 30%. This rate Do not set the contribution ratio too low, as was popular, but was very low. When this will leave too little land for public space detailed calculations were done, 26.7 ha was needed for roads and a pro- and municipal use (Box 11). tected zone. This was twice as much as had been contributed for these In a multi-phase project (Figure 11), the purposes (14.3 ha). land contribution amounts from each area Fortunately, the municipality owned may differ, depending on the situation and land within the site, and some was requirements in each. To avoid misunder- used to make up the shortfall. But this subsidy compromised the pro- standings (and unless there are compelling ject’s financial viability. Such subsidies reasons not to do so), it is best to calculate also limit the replicability, a major a single level of land contributions for the issue in cities where many sites need readjustment. whole project, and then use this throughout (see later in this chapter).

TABLE 6 LAND CONTRIBUTION RATIOS AROUND THE WORLD

Proportion Where

30% Bhutan

About 40% Japan, Thailand, Israel, Turkey, Germany

Up to 50% Taiwan under modified Zone Expropriation approach

About 55% South Korea

100% Lebanon (compensation in the form of shares in the Redevelop- ment Co.)

Variable Gujarat, India

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• Can be used to assess the relative contri- ASSESSING THE bution of each landholder. VALUE OF LAND • Is attractive to all the landholders. • Is accepted as fair by the majority of Land readjustment always means making landholders. judgments about the value of land. The val- • Can be used to configure and allocate ue of land can be defined in a number of final plots after readjustment. ways. The value of farmland is often (but not always) determined by the amount of The share of value that each landholder agricultural products it can yield. But the contributes should be maintained when value of urban land is always determined configuring and allocating the final plots. socially – it can vary for many reasons: the Value is a relative concept and is subject type of actual and permitted use, the attrac- to judgment and interpretation. For PILaR, tiveness of the location, the availability of there are three viable approaches to value: services, etc. by land area, market value, or using mar- Furthermore, land values are never static. ket-like alternatives. In addition, it may be Sometimes they change because of explic- advisable to use a sliding scale for contri- it decisions or actions by the municipality. butions, with large landholders contributing Or they may result from changes in the de- a larger proportion of their land more than mand for land. For example: small ones. The basis to be used may be defined in the law, or it may be possible to • The municipality may decide that an decide it to suit the local situation. area designated for farming may now be built on.

• Better pedestrian access makes certain LAND AREA plots more attractive for retailers. This is the most straightforward approach • The population increases, meaning more and is the easiest to implement. The area people are competing for a limited land of each plot in the project area is calculat- area. ed, and the proportion of the total area is worked out. The landholder will receive a • A particular part of the city becomes a similar proportion of the final private land popular place for professionals to live. area (after deducting the area needed for PILaR and other land readjustment process- public space and the municipal reserve). So es assume that the land values will go up as if a landholder contributes 10,000 m2, and a result of the readjustment. This rise in val- the contribution ratio is 40%, he or she is ue is main reason landholders are interested returned a plot measuring 6,000 m2 (10,000 in the process. So it is necessary to quantify m2 minus 40%). land values in a way that:

71 Remaking the urban mosaic

The area method is used if the initial land to consult professional valuers or appraisers, values are quite homogeneous, or if it is not or use informal networks that can provide possible to calculate the market values of the information needed. To get systematic the land. This may be the case if no infor- access to land market information is likely mation on land prices is available. to need professional specialists (Boxes 12 and 13). While it is easy to do, this approach does not take into consideration any variations in If the land has buildings or other permanent the current value of the existing plots. One improvements on it, it is still possible to use plot may have more commercial potential, market transactions to estimate the value or better access to public infrastructure. The of the land itself. A normal transaction will holders of these plots will probably want reflect the combined value of the land and this to be taken into account. As a result, all the improvements. You just subtract the the land area will likely be used as a starting depreciated construction costs from the to- point, and variations from the basic propor- tal price to get the land value. tions should be considered during the ne- Market transaction data can give an initial gotiation process. The process for approving estimate of the value. One or more inde- such variations should be agreed upon in pendent professional appraisers can be advance by all participants. asked to assess the value of each plot. Even then, the landholder may object to the estimate, so negotiations may be required. If MARKET VALUE these fail to resolve any differences, it may Here, the amount of land each landholder be necessary to go to the courts. The land gets back depends not on the size of his or readjustment law should specify a speedy plot, but on its value. So a small plot that procedure to avoid having the entire project currently has road access or a building on being tied up in the courts for years. it may be more valuable than a larger one Judgments about market value are always away from the road and with no building. subjective. Estimating the value for a par- If there is an active land market in the area ticular plot is as much art as science, even if and the prices are recorded, the prices paid a wealth of data on market transactions are can be used to measure the value of land. available. Estimating the value of a plot after The value of each plot can be estimated readjustment is even more difficult. The val- from the prices paid for similar plots in the ue should be higher – but how much high- same area. er will not be known until after the project Enough information has to be available is completed. By then new plots will have for this to work, and it has to be accurate been defined and allocated to landholders. enough. Some municipalities have valuation Further adjustments to achieve equity will agencies that monitor land market values be difficult or impossible. for tax or other purposes. It may be possible

72 4 Land management policies

If the transaction data are available, the • It is where they were born; it has been in market value may be the best way to deter- the family for several generations mine value. But do not expect it to resolve • They have invested a lot of money and all valuation concerns. labour in improvements

• It contains sites they want preserved, MARKET-LIKE ALTERNATIVES such as a cemetery, religious buildings or trees What if market data does not exist or is inadequate? It may be possible to use proxies • They fear the disruption of moving to estimate the values, such as: • They fear they will be separated from • The distance to a major business district valued friends or neighbours, or the loss or city centre. of convenient access to nearby facilities (shopping, transport, recreation, etc.). • Proximity to public transportation, parks or other public infrastructure. The land readjustment should take these concerns into account where possible. For • Other known favourable location fac- example, it may be possible to minimize tors. moving people off their ancestral land, The choice of factors will be subjective, but and to preserve valued sites. However, it they should if possible be directly observa- is important to treat people equally: avoid ble. It can be difficult to predict how the reallocating a higher value to one plot than adjustment will affect the final values. Many another simply because of its sentimental of the factors will not change as a result of value. readjustment. Owners and residents may sometimes value Broad agreement, achieved through partici- land at less than its market price (or lower patory discussions, is needed on the factors than the figure arrived at by a professional used. It may be necessary to use the courts valuer). They may do so because they are to settle certain disputes. ignorant of the current market price, or they GLTN is currently developing a way to value do not realize that with a little investment, unregistered land. When it is complete, this their land would be worth much more. tool will be useful to resolve issues concern- In such cases, the project should not try to ing such land. take advantage of the landholders’ igno- rance. It should treat them fairly. If they get rich because of the land readjustment pro- PERCEIVED VS ASSESSED VALUE ject, they are much more likely to want to The value of land is in the eye of the behold- participate, and people in other areas will er. Owners or residents may attach a greater also be interested in future projects. value to a plot than the value it is assessed at. For example:

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Box 12 Using betterment charges to fund infrastructure in Ahmedabad, Gujarat, India

In land readjustment projects, the state • The gain in value for that landhold- of Gujarat uses betterment charges (Box er’s plot, as a proportion of the total 14) to finance public infrastructure. gain in value for the whole project area. For each plot, the market value is estimated both before the readjustment and • The cost of investing in infrastructure afterwards, based on a proposed design. for the whole area. After an initial design stage, the infra- Landholders have the opportunity to re- structure costs are estimated. view and respond to the proposed plan and financing scheme. Several iterations The municipality charges each landhold- may be needed to modify the initial plan er an amount based on: in response to public inputs and to resub- mit it for further comments.

SLIDING SCALE Such a sliding-scale approach was used in “town planning” schemes in the city of Here, the contribution ratio depends on the Bhuj, India, as part of the reconstruction size of the landholding. People who hold a after the devastating 2001 Gujarat earth- lot of land are required to contribute a larg- quake (Table 7). er proportion than those who have a small plot. This has three justifications:

• Pro-poor Richer landholders have to MUNICIPAL LAND CONTRIBUTIONS contribute more than poorer ones. The municipality or other public bodies may • Practicality If small landholders give already own land in the project site – such up a large proportion of their plots, they as existing roads and public space or dis- may be left with a piece of land that is crete plots of land. too small to use. The municipality will have ideas on how this • Regulations Small plots may be be- land should be treated in the readjustment. low the minimum size on which it is per- Options include: mitted to build. • Equal treatment Treat it in the same If one landholder has several plots in the way as privately held land: it is subject project area, the areas of all those plots are to the same rules for contributions and added together to calculate that person’s compensation as land held by other contribution. landholders.

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Box 13 Land values in Germany

In Germany using land values for land • The municipality gains the increase in readjustment started in 1960. It is now land value as a result of the land re- used in almost all projects. This is because adjustment (e.g., for readjusting the the plots usually have very different val- plots and allocating space for roads, ues before the project. open spaces, etc.). It treats the plots after readjustment as building land. The urban development laws create a win–win situation for both landholders • The building of roads and other pub- and the municipality: lic infrastructure usually is not included in the land readjustment project. It • The initial value of the plots is set is financed separately: the landhold- taking the detailed urban plan for ers pay 90% of the costs; the munic- the project area, even if it is still a ipality, 10%. draft. The landholder’s profit is thus the planning gain – the difference between agricultural land and land with planning permission.

• Separate treatment for public space • It may be desirable from a planning point Carry over the area covered by existing of view to have evenly sized plots in the roads and public space into the adjusted reapportioned land. area for these purposes. Treat discrete • The plot may have constraints such as to- plots in the same way as private land. pography, a river or an irregular bound- • Use as a subsidy Use the municipal ary that makes it impossible to mark out land to reduce the contributions from plots of exactly the right size. other landholders. This was done in the In such cases, the difference can be made Thimphu case (Box 11). Such subsidies up in cash: are naturally popular among landholders, but reduce the municipality’s finan- • If a landholder gets a plot that is smaller cial gain and may endanger the project’s than agreed, he or she gets a cash pay- financial viability. out to make up the difference. • If the landholder gets a larger plot than agreed, he or she must pay the value of COMPENSATION the difference to the project.

In practice, it may not be possible to return The compensation (or obligation) rate per precisely correct areas of land to the land- square metre must be agreed beforehand. holders. This may be because: Compensation can also be made in the form of a plot of land elsewhere.

75 Remaking the urban mosaic

TABLE 7 SLIDING SCALE FOR LAND HOLDERS OF SMALL PLOTS CONTRIBUTIONS IN BHUJ, GUJARAT, INDIA Many countries specify a minimum size for plots that may be developed. Some enforce Original plot size Land contribution this limit strictly; others do not. In Istanbul, (m2) (%) for example, the minimum plot size is 400 0–30 0 m2. 31–100 10 Some landholders may already have plots 101–200 20 that are below the limit, and the readjust- 201–500 30 ment may leave others that are too small to

> 500 35 build on. Here are options for such cases:

Public land 50 • Purchase beforehand The munici-

Source: Draft town planning schemes for walled city pality buys the plots from landholders at of Bhuj, prepared by Environmental Planning Collabo- the current market rate before the land rative, Ahmedabad, India. readjustment.

• Sliding scale Do not require any land contribution (or require a smaller con- Many land readjustment projects have tribution) from such landholders. Other buildings already on them. Where possible, landholders must give up a larger pro- these buildings should be taken into ac- portion of their land to make up the count when drawing the boundaries of the deficit. new plots. The building owner gets to keep the building (and the lessee or tenant has an • Cash payment Do not require any option to stay in it). land contribution (or require a smaller contribution), but ask for a cash pay- In some cases, though, it may be necessary ment from those landholders. In effect, to demolish buildings. If this happens, there they pay for the extra land they receive are two possibilities: above their entitlement.

• The holders of the reconfigured plots • Joint assignment of plots The hold- must cover the demolition costs. ers of small plots contribute their entire • The municipality can compensate the area, and in return are jointly assigned a holders for the demolition costs. It can plot for their common use – for example raise money by reserving a larger area to build multi-storey apartments. Or they that it can sell, or find the money from may be given “sectional rights”: rights other sources. to part of a plot or building, plus shared rights to common areas such as stair- Informal residents whose houses are demol- ways, entrance areas and gardens. See ished should be compensated for their loss. Table 17 in Chapter 8 for more. In general, compensation should be fair, adequate and prompt.

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VALUE OF PLOTS AFTER CALCULATING LAND CONTRIBUTIONS READJUSTMENT AND COMPENSATION

It is also possible to take the value of plots The calculations for contributions and com- after the readjustment into account. Some pensation can quickly get complicated and of the readjusted plots will be particularly fiddly. They have to take a wide range of valuable because of their location (e.g. close concerns into account: the opinions of the to a park, a favourable street position, or landholders and residents, the planning an attractive view); others will be less valu- rules, the site constraints, decisions by the able. In general, the holders of more valu- municipal council, etc. They may have to be able plots before the readjustment should adjusted frequently as negotiations proceed, be awarded the more valuable plots after- the situation changes and people change wards. Working out the value of plots after their minds. For example, a landholder may the readjustment requires the skills of a pro- die during the negotiations, and the heirs fessional land valuer. may want a different arrangement. Or a landholder may sell a piece of land, bringing a new holder into the negotiations. LAND PURCHASES DURING To handle these changes, create a master THE PROJECT spreadsheet showing all the plots, their ar- The land readjustment process can take eas, values (if applicable) and landholders. time, and some landholders may sell their Agree on the key parameters early on: land before the process is complete. In such • The amount of land needed for public cases, all the obligations and rights enjoyed space by the holder at the start of the project are transferred to the new holder. Any values • The amount to be reserved for the mu- assigned to the land at the start continue to nicipality apply to the land, regardless of the actual • The contribution ratio sale price. • The compensation rate. The buyer should be informed beforehand Once these parameters are set, they can be about the land readjustment project and used as a basis for negotiations. how it will affect the plot, including any contributions that may be required.

To prevent speculation, the municipality may retain the right to veto sales that are overpriced. This right should be built into the law governing the land readjustment.

77 Remaking the urban mosaic

6 EXAMPLES OF 500 m2 5 2 REPARCELLATION 2,000 m 4 4,000 m2 3 2,500 m2 AREA-BASED, NO MUNICIPAL RESERVE 2 1,000 m2 This is the simplest scenario. The site is held by five landholders. It is on the edge of the Before land readjustment city, and is currently unoccupied. A uniform 2 - 6 private landowners price per square metre is assumed; all the Figure 13 Original ownership of area to be landholders are involved, and all agree to readjusted the reparcellation plan. No residents have to be relocated. The municipality requires 30% of the total area for a road and a park, but does not need any land reserved for its own 3 5 6 1 use. 1,250 m2 1,400 m2 350 1,000 m2 m2 Park Figure 13 shows the original layout; Figure 14 shows the final layout; Table 8 shows 1 New road 2,000 m2 the calculations. All the landholders give up 30% of their area. In return, they get a 3 2 4 500 m2 700 m2 2,800 m2 smaller plot with road frontage and services, and permission to build on it. After land readjustment • Landholder 3, for example, starts off Land contribution ratio: 30% 2 with 2,500 m . He ends up with two 1 municipality 2 - 6 private landowners plots totalling 1,750 m2. Figure 14 Land readjustment plan based on land area, with no municipal reserve

TABLE 8 LAND AREAS BEFORE AND AFTER READJUSTMENT – NO RESERVE Land contribution = 30% for all landholders Before Land contribution After Landholder Area m2 Area m2 Area m2 1 Municipality public space 0 0 3,000 2 1,000 300 700 3 2,500 750 1,750 4 4,000 1,200 2,800 5 2,000 600 1,400 6 500 150 350 Total 10,000 3,000 10,000

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AREA-BASED, WITH MUNICIPAL RESERVE 3 5 6 1 1,500 m2 1,200 m2 300 1,000 m2 m2 Park Here, the municipality needs to reserve 2 another 10% of the land (1,000 m ) for a 1 New road 2,000 m2 building plot that it can develop and sell to cover the costs of putting in the road and 2 4 1 infrastructure. 600 m2 2,400 m2 1,000 m2 Reserve Figure 15 shows the original and final lay- outs; Table 9 shows how the areas are cal- After land readjustment Land contribution ratio: 40% culated. All the landholders give up 40% of 1 municipality 2 - 6 private landowners their area.

Landholder 3, who started out with 2,500 Figure 15 Land readjustment plan based on land area, with municipal reserve m2 ends up with a 1,500 m2 plot.

TABLE 9 LAND AREAS BEFORE AND AFTER READJUSTMENT – WITH RESERVE Land contribution = 40% for all landholders Reserved land = 10% Before Land contribution After Landholder Area m2 Area m2 Area m2 1 Municipality public space 0 0 3,000 1 Municipality reserved 0 1,000 2 1,000 400 600 3 2,500 1,000 1,500 4 4,000 1,600 2,400 5 2,000 800 1,200 6 500 200 300 Total 10,000 4,000 10,000

The key factor, remember, “is that land value is determined socially. Land values increase or decrease based on what is happening in the broader community.”

Larry Walters, Brigham Young University Photo: Rainer Müller-Jökel

tinyurl.com/pilar-walters

79 Remaking the urban mosaic

CALCULATING COMPENSATION 3 4 5 1 1,000 m2 1,000 m2 1,000 m2 1,000 m2 Here the readjusted plots are standard sizes; Park each landholder gets one or more plots depending on their original landholding (Fig- 1 New road 2,000 m2 ure 16, Table 10). If someone gets less land back than the entitlement, that landholder gets a cash payout from the municipality. If 2 2 3 4 4 4 4 5 1 1 400 400 400 400 400 400 400 400 400 400 the landholder gets more land back than the m2 m2 m2 m2 m2 m2 m2 m2 m2 m2 Reserve claim, he or she has to pay the municipality. After land readjustment Land contribution ratio: 40% 2 • Landholder 3 gets only 1,400 m af- with building plots allocated 2 ter the readjustment: 350 m less than 1 municipality 2 - 6 private landowners he is entitled to (see the “Entitlement” Figure 16 Readjustment based on area with column in Table 10). So the municipality compensation for excess or shortfall must pay him compensation of $35,000.

• Landholder 2 gets 100 m2 more than readjusted land, but after negotiations, he is entitled to, so must pay the munic- decided instead to take cash compensa- ipality $10,000. tion instead. She gets $35,000.

• Landholder 5 gets exactly the right area • The municipality reserves an extra 800 of land back, so pays nothing. m2 of land to sell to raise the $80,000 • Landholder 6 started off with the small- needed to cover the compensation costs. est plot. She was entitled to 350 m2 of

TABLE 10 LAND AREAS BEFORE AND AFTER READJUSTMENT – WITH COMPENSATION FOR SHORTFALL OR EXCESS AREAS Land contribution = 30% for all landholders Reserved land = 8%, used to pay for compensation; compensation rate = $100/m2

Contri- Land Entitle- Differ- Compen- Before bution actually ment ence* sation* Landholder required assigned Area Area m2 Area m2 Area m2 Area m2 $ m2 1 Municip. pub. space 0 3,000 1 Municip. reserved 0 0 800 800 80,000 2 1,000 300 700 800 100 10,000 3 2,500 750 1,750 1,400 –350 –35,000 4 4,000 1,200 2,800 2,600 –200 –20,000 5 2,000 600 1,400 1,400 0 0 6 500 150 350 0 –350 –35,000 Total 10,000 3,000 7,000 10,000 0 0 * A positive number means the landholder has received more than his or her entitlement, so must pay for it. A negative number means the opposite: he or she gets less than the entitlement, so gets compensation.

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CONTRIBUTIONS BASED what proportion that is of the total value of ON LAND VALUE the whole project area. It is then possible to convert these proportions into land entitle- All the examples above use the land area as ments. People with more valuable plots at the basis for calculating the areas each land- the start end up with larger plots at the end. holder is apportioned. They also assume that no tenants need to be included as ben- In the example in Table 11, the land values eficiaries. But some of the original plots may vary from plot to plot. Plots 2 and 3 are be currently more valuable for some reason: more valuable because they are next to a they already have road frontage or services; road; they are valued at $60 per square me- they are close to a park or shopping centre; tre. Plots 5 and 6 lack road access; they are they already have buildings on them. The worth only $40 per square metre. holders of these plots will want this value The entitlement area depends not on the taken into account in the land readjustment area of each plot but on its value. It is calcu- process – otherwise they may refuse to take lated like this: part. Entitlement = Basing the readjustment on the initial value is more complicated than using the land (Value of plot) / (Total value of project land) area alone. The idea is to find out how much × Total project area each plot is currently worth, and work out × (1 – Contribution ratio)

TABLE 11 LAND AREAS BEFORE AND AFTER READJUSTMENT, BASED ON LAND VALUE

Land contribution = 30% for all landholders Reserved land = 8%, used to pay for compensation; compensation rate = $100/m2

Land Entitle- Differ- Compen- Before Value actually ment ence* sation* Landholder assigned Area $ per $ Area m2 Area m2 Area m2 $ m2 m2 1 Municip. pub. space 0 3,000 1 Municip. reserved 0 800 800 80,000 2 1,000 60 60,000 824 800 -24 -2,400 3 2,500 60 150,000 2,059 1,400 -659 -65,900 4 4,000 50 200,000 2,745 2,600 -145 -14,500 5 2,000 40 80,000 1,098 1,400 302 30,200 6 500 40 20,000 275 0 -275 -27,500 Total 10,000 510,000 7,000 10,000 0 -100 * A positive number means the landholder has received more than the area to which he or she is entitled, and must pay for it. A negative number means the opposite: the landholder receives less than the entitlement, and will be compensated for the shortfall.

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For Landholder 3, this works out as: ants (and receiving the payment from Landholder 5), it earns a small profit of Entitlement = $100. $150,000 / $510,000 Note that the compensation amounts are 2 ×10,000 m × (100% - 30%) different from the previous example, where = 2,059 m2 land area, not value, was used as the basis. Landholders 2 and 3 are better off as they The actual land allocations can be approxi- had more valuable plots. But Landholders mated to the entitlements, or the differenc- 5 and 6 are worse off than in the previous es can be made up by compensating the example because their plots were worth rel- landholders in cash. atively little. • Landholders 2, 3 and 4 get compensa- The municipality could earn more by setting tion in addition to their new plots. the contribution ratio higher. That would • Landholder 5 gets a bigger plot than give it a larger amount of reserved land. But she is entitled to, so has to pay the mu- it might run into opposition from the land- nicipality the difference. holders, who will want to capture as much • Landholder 6 was entitled to a plot of the value of their land as possible. measuring 275 m2, but she decided to take cash instead. SLIDING SCALE • The municipality sets up a fund to pay Table 12 shows an example of using a slid- the compensation amounts. It sells the ing scale of contribution ratios to calculate 800 m2 of land it has reserved for this the plot entitlements. The stakeholders purpose. After paying off all the claim-

The land readjustment in “Bhuj was extremely pro- poor. For the landowners who had very small parcels, very minimal or zero contributions were taken. For

public land and larger land Photo: Rainer Müller-Jökel parcels, higher contributions were taken.”

Shirley Ballaney, HCP Design, Planning and Management, Gujarat, India tinyurl.com/pilar-ballaney

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TABLE 12 LAND AREAS BEFORE AND AFTER READJUSTMENT, SLIDING SCALE OF CONTRIBUTIONS

Land contribution = variable according to land size. Overall = 30%

Before Land contribution After Landholder Area m2 % Area m2 Area m2

1 Municipality public space 0 3,000

2 1,000 15% 150 850

3 2,500 30% 750 1,750

4 4,000 40% 1,600 2,400

5 2,000 25% 500 1,500

6 500 0 0 500

Total 10,000 3,000 10,000

agree that the smaller landholders need to ensure that the readjustment reflects their contribute a smaller proportion of their land needs and wishes. See Chapter 7 for ideas than larger landholders. The holders of the on how to do this. smallest plots do not have to contribute any PILaR aims to ensure that all the stakehold- land at all. ers are better off as a result of the readjust- The scale is set so landholders with over ment process. That includes informal resi- 3,000 m2 contribute 40% of their area, and dents and other people with informal rights. those with smaller plots contribute progres- As a guide: sively smaller proportions. Those with 500 • No-one (or as few people as possible) m2 or less contribute nothing. Over the should be forcibly evicted. whole project area, the landholders contribute 30% of the land for public use. • Everyone with a recognized formal or informal claim to the land is compensated either by an equivalent plot or in cash. STAKEHOLDER ENGAGEMENT • Everyone who resides on the land has the right to continue residing there after All the stakeholders have different interests. the reapportionment, in housing of an The success of a PILaR project depends on equal or higher quality, and at the same gaining their support and finding a solution rent. that is acceptable to all (or to as many people as possible). It is important to engage the stakeholders to win this support and to

83 Remaking the urban mosaic

NEGOTIATING LAND CONTRIBUTIONS The negotiations must also take the project’s financial model into account (Chapter 9). The level of land contributions depends on This includes a professional estimate of the negotiations with the stakeholders involved costs of the readjustment process and the – principally the existing formal landholders. public goods (roads, parks, public buildings) The negotiations must take the project ob- that it creates. It also identifies and quanti- jectives into account, and must be transpar- fies the sources of funding for these expens- ent and open. The municipality will need to es, such as the municipality’s capital budget, set aside a certain amount of land for public national government funding, income from space; this amount may be specified by law. the sale or renting of reserved land. It may also need to reserve a certain area, for example for social housing. Make sure If these sources are insufficient, it will be the stakeholders understand this. necessary to scale back the public goods that can be built, or to find other ways of paying Use visuals (images, plans, maps and charts) for them – such as through a higher tax on to illustrate various scenarios and to show the readjusted land, charging a betterment the additional space requirements. Show levy (Box 14), or by increasing the amount possible locations for public facilities such as of land reserved for the municipality. parks, schools and social housing, and make sure these are thoroughly discussed.

Advise the stakeholders on the implications HOW MANY LANDHOLDERS of the choices. Do they want a solution MUST AGREE? that satisfies their immediate needs, or that Not all the landholders may agree with complies with the minimum standards set having their land included in the readjust- by law? Or should they think of the longer ment. Some may refuse to have anything term, when there may be more people and to do with the process; others may disagree vehicles to accommodate? Fulfilling current with the way the reparcellation is done, needs may permit smaller land contribu- the amount of land they get in return, or tions but may stifle development and limit the compensation they receive. Requiring the land value; planning for the future will 100% agreement is a recipe for inaction. probably require larger contributions. Laws vary from country to country and The stakeholders may reasonably expect to among municipalities. In Germany, the mu- contribute less land if roads already exist nicipality can make a unilateral decision: and just need widening. If only part of the none of the landholders have to consent for infrastructure is to be constructed, or if it the project to go through. In others, the law will be delayed, this should also be factored sets a minimum threshold: at least 50%, into the negotiations. Municipal land, if it and usually two-thirds or more, of the land- exists, may be used to make up a shortfall holders must agree before the readjustment from lower private land contributions. can proceed; the other landholders are then obliged to collaborate (Table 13). In prac-

84 4 Land management policies

HANDLING HOLDOUTS Box 14 Betterment If a large number of landholders refuse to cooperate, there may be something wrong Betterment is the difference between with the readjustment terms, or with the the value of a piece of land before and after an action by local govern- whole project concept. It may be necessary ment that results in an increase in pri- to revise the terms considerably, revamp vate land values. the whole concept, develop the land in a Here is an example. You own a piece of land. The municipality builds a different way (such as using compulsory ac- road along one side of it. The value quisition), or drop the development project of your land instantly increases (you altogether. now have road access) without you having done anything. The increase What if only a few landholders do not in the land value is called betterment. agree? The legal framework may deter- A betterment tax (or charge or levy) is mine how such holdouts are handled. Some where the municipality taxes you for the gain in value. It is also known as a options: land value increment tax. • Try to persuade them of the advantages of the project.

• Sweeten the deal to win them over. tice, a scheme seldom proceeds against the Note that any such changes must be ap- wishes of a sizable minority. plied fairly to all landholders, not just for In PILaR, the plan must be prepared in a those who are most influential or tena- participatory manner and supported formal- cious. ly by a supermajority of landholders (e.g., >50% of the landholders holding >50% of the land). It must also be endorsed by more vulnerable residents such as short-term ten- TABLE 13 CONSENSUS RATIOS ants and informal residents. The law may AROUND THE WORLD require this; if not, try to get their endorsement anyway. Proportion Where

Why a supermajority? This is needed to pre- 85% Indonesia vent a large number of holders of small plots Two-thirds Bhutan, Japan, South Ko- from making decisions if they control only a rea, Taiwan minority of the land area. Similarly, it pre- 51% of Colombia vents a few large landholders from deciding land area the fate of an area where thousands of peo- None Taiwan (Zone Expropriation ple live. The municipality must ensure that model that combines land readjustment with expro- the rights of the majority are not harmed by priation) the decisions of a few people who happen Germany, Turkey, some to hold the land. other European countries

85 Remaking the urban mosaic

• Redraw the project boundaries to ex- mitted building heights. It can also use clude the holdouts’ land. This is possible mechanisms such as the transfer of de- only if their plots are on the edge of the velopment rights (Box 16) to encourage project area and the changes can be ac- or prevent building in an area. commodated in the urban development • It can adjust the plans for providing in- concept. But it is not a good idea as it frastructure – such as the road layout, can lead to a “free-rider” problem that pavement width, provision and location gives people an incentive to refuse coop- of green space, and the location of bus eration: they stand to gain the benefits stops, railway stations and retail space. of the readjustment without having to contribute to its costs. Others in future • It may adjust the amount, quality or lo- projects will learn from this and also re- cation of social housing it plans to build. fuse to participate.

• Force them to cooperate. That re- RESOLVING DISPUTES quires the force of law and courts that Disputes are inevitable in situations with adjudicate cases speedily. non-existent, incomplete and outdated land • Expropriate them. This also depends records. Several parties may all lay claim to on there being a law that allows this. the same piece of land. Some parties may be unknown, absent or deceased. Some plots may be held by organizations with unclear BARGAINING CHIPS

The municipality can sweeten the deal for landholders or other stakeholders in various Box 15 Floor area ratio ways. Some examples:

• It can grant (or withhold) permission to The floor area ratio is the amount of develop a particular piece of land – for floor space in a building, divided by the area of the plot the building oc- example to convert it from farmland to cupies. urban use, or to zone it for uses such as A multi-storey building with 300 m2 industry or retail. of floor space that occupies a plot of 100 m2 has a floor area ratio of 3.0. • It may own land in the project area that Municipalities can set maximum or it can throw into the pot, so reducing minimum floor are ratios for buildings the contribution required of other land- in a particular area. A high floor area holders. ratio means the area will have dense housing or high-rise buildings. A low • It may be able to adjust the regulatory ratio will have single- or two-storey buildings with space between them. framework, for example by specifying The floor area ratio is also known as different plot sizes, the amount of public the floor space ratio, floor space in- space required, the floor area ratio (Box dex, site ratio or plot ratio. 15), or the maximum or minimum per-

86 4 Land management policies or very slow, bureaucratic decision-mak- • Use the court system. ing procedures. Some people are tempted Depending on the situation, it may be ad- to falsify claims so they can gain from the visable to: increase in land values. Disputes may also arise over the layout, size and assignment • Try to resolve all the disputes and un- of the new plots. clear titles as part of the land readjustment process. Disputes can be resolved in various ways: • Carry the disputes over. Do not at- • Community mechanisms are usually tempt to resolve such issues; the land quicker and easier than using the court readjustment is done and the disputes system. are merely carried over to the reappor- • A land-readjustment committee can tioned plots, to be resolved later, per- adjudicate the disputes. This committee haps through the courts. An unresolved should include professionals (such as a dispute of fairly limited scope should not surveyor or planner), a municipal repre- hijack the broader land readjustment ob- sentative, and substantive representa- jective. tions from the affected community. • Exclude the problematic plots from the project area.

Box 16 Transfer of development RELOCATION rights In urban areas, it may be necessary to demolish certain buildings and relocate some The transfer of development rights is residents or businesses. Ways to deal with a way of encouraging development in one area while discouraging it in this: another. • Compensate those affected in cash or For example, a landowner owns land in an environmentally sensitive area. provide them with rental assistance. She transfers the development rights to another plot she owns on the oth- • Find temporary housing or premises for er side of town, in a location desig- those affected. Rebuild the facilities, nated for development. She can then then allow them to move back in. put up denser housing on the land than would otherwise be permitted. • Find permanent alternative accommoda- The landowner may also sell the de- tion for those affected. velopment rights to another landowner, or to a bank, which sells them The costs of relocation and rebuilding must on to someone else who wants to be covered either by the project itself or by build on their land. other funds. Laws regulating the transfer of development rights exist in some states in the United States.

87 88 5 PLANNING AND DESIGN

his chapter describes how to turn the gen- This chapter covers the following topics. eral policies and agreements described T • Setting the planning and design objec- in chapters 3 and 9 into maps and plans. tives (Box 17) This is the province of urban planners and architects. But it should not be dominated • Recognizing the development and ten- by technical considerations. As with all stag- ure situation es of PILaR, the community should have a • Conforming to and adapting the local major input into the planning process, and planning system and guidelines their approval is needed before the plans • Setting planning principles and polices can be put into effect. Indeed, that is a big difference between PILaR and conventional • Planning the project area land readjustment: PILaR aims to help the • Stakeholder involvement in planning. poor. It recognizes the rights of all stakeholder groups – landowners, tenants and occupiers – and the community has a big say in what happens.

Box 17 Planning vs design

Planning and design differ in their scale, orientation and how they treat space.

Planning Design

Scale Region, community, activity Street, park, transit stop… centre

Orientation Utility Aesthetic, functional

Treatment of Two-dimensional, uses plans Three-dimensional, uses models, space sections and elevations

Adapted from Ewing (undated).

89 Remaking the urban mosaic

• To create infrastructure and encourage SETTING PLANNING AND employment creation that benefit the city as a whole. DESIGN OBJECTIVES • To provide land for social housing that is well integrated into the area, thereby The planning objectives depend on the creating a social mix. overall project’s economic and social objectives. Examples to consider and adapt to • To reserve enough land to finance infra- your situation: structure costs, enabling the project to be self- financing. • To provide enough land for streets, public facilities and other public space. • To renew and densify the city centre.

• To provide enough serviced land in a timely manner.

• To improve access to public basic services and to make the access more equitable. Built-up

Edge of city, urban expansion

Linear Existing development Open Slum Urban inﬁll or renewal upgrading

Clear Unclear or disputed

Title or tenure situation

Figure 17 Land readjustment in various development and tenure situations

90 5 Land-use planning

CURRENT PLANNING SYSTEM

RECOGNIZING THE Most countries have legislation on urban DEVELOPMENT AND planning and organizations that deal with it. Before starting to design the land read- TENURE SITUATION justment, find out what the rules say and get to know the organizations and key staff The design will depend on the situation. involved. Identify any likely points of friction An area that is already built up will impose or conflict. Find out how the PILaR process more constraints, and require a very differ- can be implemented within the system, and ent plan, from a greenfield site. The tenure whether any changes are needed to let it situation is also important: one where there run smoothly. are only a few freeholders will be different Specific laws on land readjustment, or pro- from a situation with many landholders and visions in other laws, may exist. If so, they tenants, or where land ownership is unclear will guide how the project proceeds. or disputed, and where many residents are informal. Figure 17 summarizes the likely Traditional or customary rules for land man- situations – though in reality, things may be agement may also be important. Find out more complicated than this. what they are and who (such as the local chiefs or clan heads) implements them.

If there is no formal or customary planning system that can be used for land readjustment, or if the system has gaps, you may CONFORMING TO have to develop one. The PILaR project can AND ADAPTING THE create the basic planning and legal formu- lations to fill the gaps. Try to avoid creating PLANNING SYSTEM new organizations or ad-hoc rules. Instead, help the existing organizations implement The objectives and approach used in PILaR the PILaR process, and try to develop provi- will have to be combined with the plan- sions that can be used elsewhere – in other ning system used in your municipality. That parts of the municipality or in other cities. means working with the existing organi- Test the approach in the pilot area, then use zations and tools, and complying with the it as the basis for countrywide legislation current legislation and planning guidelines, and policies. norms and standards. It may be necessary to adapt the legislation and guidelines, especially if PILaR is new to the country or PLANNING GUIDELINES, POLICIES, municipality. NORMS AND STANDARDS National legislation or local rules on a wide variety of subjects are likely to affect the

91 Remaking the urban mosaic

PILaR plans. These may come from a wide Consider modifying the planning norms to variety of national and local government reduce the cost, improve their feasibility and bodies. Table 14 gives a partial list. make them more socially acceptable. Keep in mind the need for public health and safe- It may be necessary to develop new guide- ty. For example, it may be possible to reduce lines for use in the PILaR project. Where the amount of space needed for roads in a possible, these should be designed so they densely populated area by designing path- can incorporated into national guidelines ways for pedestrians between the houses. and used elsewhere.

While it is important to comply with current laws, most national standards and norms REGULATORY VS provide recommendations rather than strict DISCRETIONARY PLANNING rules. They may be set too high for some Countries have either regulatory or discre- situations, such as for slum upgrading. That tionary planning systems. makes them impractical, too costly or too socially unacceptable to enforce. In regulatory planning systems, development rights are assigned in advance, and

TABLE 14 EXAMPLES OF POLICIES, LEGISLATION, STANDARDS AND GUIDELINES THAT MAY AFFECT A PILAR PROJECT

Urban, land, spatial and environmental policies Land laws – cadastre, transfer, change of use, subdivision, amalgamation, etc. Development adjoining water courses Development of industries Regulation of coastal and forest areas Policies Laws on the protection of agricultural and pastoral areas and kegislation Urban renewal laws Development along high-tension power lines Development abutting highways, airports, defence areas Slum improvement Heritage Environment laws

Proportion of open space, road widths, building heights, floor area ratios, densities, setbacks, dimensions of plots/sizes, etc. Standards Per capita open space and amenity requirements Parking standards Per capita water consumption norms, treatment norms

Valuation Guidelines Open space design Street design

92 5 Land-use planning planning and implementation are administrative procedures. Land readjustment has Box 18 Encumbrances and to comply with a hierarchy of existing plans, clearances and local planners have little possibility to adapt them. If they try to do so, the courts In land administration jargon, an encumbrance is a claim on land or prop- may stop them. erty that diminishes its value but does In discretionary systems, the planners have not prevent ownership from being transferred. far more room for manoeuvre. The project An encumbrance may be financial can make decisions, and these can be in- (such as a mortgage) or non-financial corporated into the larger urban plans. The (such as a right of way that crosses the land). disadvantage of such systems is that they involve a lot of uncertainty for all involved, and A clearance is an official permit from the authorities to do something that there is a risk of municipal decision-makers would otherwise not be allowed. For ignoring the rights of other stakeholders. To example, an environmental clearance may give a landowner the right to cut avoid this, it is necessary to negotiate agree- down trees on the land. ments with the people affected.

• The contribution ratio and basis of calculating this (land area or value) (Chapter 9). SETTING PLANNING • The valuation method to be used (land PRINCIPLES AND POLICIES area, market value, market-like).

• The treatment of small plots (e.g., a sliding scale, minimum plot size). PLANNING POLICES • The treatment of encumbrances and You will need to decide on policies to gov- clearances (Box 18). ern the land readjustment planning process. • The types of infrastructure to be provid- These include: ed, and how it will be built and main- • The physical, topographical and socioec- tained. onomic surveys required. • The financing model to be followed • The land records and other requirements (Chapter 9). needed to create a base map showing the original plots.

• The rights of owners, landholders, tenants and informal residents.

93 Remaking the urban mosaic

Box 19 UN-Habitat’s five principles for sustainable neighbourhood planning

Adequate space for streets and an efficient street network. Streets should occupy at least 30% of the land. There should be at least 18 km of streets per km².

High density. Aim for at least 15,000 people per km², or 150 people/ha or 61 people/acre.

Mixed land use. Allocate at least 40% of the floor space for economic use.

Social mix. Make houses available in different price ranges and tenure types to accommodate different incomes. Allocate 20– 50% of the residential floor area for low-cost housing. No tenure type should occupy more than 50% of the total.

Limited land-use specialization. Limit the number of single-function blocks or neighbourhoods. Single-function blocks should cover less than 10% of the neighbourhood. Source: UN-Habitat (2014)

PRINCIPLES OF SUSTAINABLE PROVIDE ADEQUATE SPACE FOR NEIGHBOURHOOD PLANNING STREETS AND AN EFFICIENT STREET NETWORK UN-Habitat’s five principles for sustainable neighbourhood planning are a useful basis The street network should accommodate for planning (Box 19). Use these as guid- vehicles and public transport, as well as pe- ance; you may need to adapt them to the destrians and cyclists. It should have both ar- local situation and your project objectives. terial routes and local streets where speeds are lower. The street network shapes the urban structure: it determines the location and shape of the blocks and of open spaces.

94 5 Land-use planning

1,000 m

333 m Distance between arterial roads

111 m Distance between local roads

Total length of roads = 18 km

Source: UN-Habitat

Figure 18 Example of a street network covering 1 km2

UN-Habitat recommends that at least 30% PROMOTE HIGH DENSITIES AND of the land in a neighbourhood should COMPACT DEVELOPMENT be allocated to streets. This figure is for Urban sprawl has many drawbacks: it eats high-density, mixed-use urban areas, of the up valuable farmland, causes traffic con- sort that result from a PILaR project. Anoth- gestion and pollution, increases the costs er 15–20% is needed for open public space. of providing services, increases dependency When planning the street layout, make sure on cars and the need for parking, and en- that the network is highly interconnected, courages segregation into richer and poorer and that the streets are walkable and cyclist areas. friendly. Encourage public transport, and The most desirable density depends on the provide enough parking space. situation. UN-Habitat recommends a densi- A “walkable” neighbourhood means that ty of at least 150 people per hectare, but everywhere is within about 400–450 m of higher densities are common: in some Asian key services, such as a bus stop. That means countries, 400 to 600 people per hectare that there should be about 800–1,000 m are being encouraged. Developed countries between two arterial routes, with a network or those with a lot of land may want to set of smaller local streets between them. Fig- a lower target and work progressively to- ure 18 shows an example of such a street wards increased density. network. Some people worry that higher densities mean more crime or other social problems. This is not so. A well-designed and organized high-density neighbourhood can be safe and comfortable.

95 Remaking the urban mosaic

Figure 19 Street network created through land readjustment in Ouagadougou, Burkina Faso

PROMOTE MIXED LAND USES A rich social mix is healthier for city life. It results from a mixed land use: jobs are cre- Separating people from their work forces ated for residents of different backgrounds them to commute – with the problems of and with different income levels. People live congestion, pollution and waste that this and work in the same neighbourhood and brings. Mixed land uses allow people to live form a diverse social network with greater near where they work. That creates local cohesion and services available for all. jobs, promotes the local economy, reduces car dependency, encourages pedestrian and UN-Habitat recommends making a range of cyclist traffic, reduces landscape fragmenta- housing available at different price ranges tion, allows public services to be closer, and and suited for different types of tenure. Be- supports mixed communities. tween 20 and 50% of the residential floor area should be allocated for low-cost hous- UN-Habitat recommends that at least 40% ing. No tenure type should occupy more of the floor space should be allocated to eco- than half of the total. nomic use. Mixed land use means a combination of residential, commercial, industrial, office, educational, recreational and other LIMIT SPECIALIZED LAND USES uses. Noise and pollution should be kept to Specialized land uses are the opposite of a minimum to protect the well-being of the mixed uses. Zoning one area for residen- community and to keep the area pleasant. tial purposes and another to industrial use Noxious uses should be prohibited. forces people to commute from one to the other twice a day. Putting retail areas out of PROMOTE SOCIAL MIX town makes it hard for people without cars to go shopping, and leaves the rest of the A problem in many cities is the increased city as a “food desert”, served only by fast- segregation of social classes. This results food chains and convenience stores. in ghettos occupied by the disadvantaged, alongside gated communities where the Restricting the size of specialized land uses privileged few reside. The ghettos are can prevent such problems. UN-Habitat rec- starved of services, while the rich can safely ommends that single-function blocks should ignore the needs of the poor. cover less than 10% of the neighbourhood.

96 5 Land-use planning

al or slum improvement, it may mean up- PLANNING THE grading existing routes to and through the PROJECT AREA area, taking the existing urban fabric into account.

Once the planning principles have been decided, it is time to start planning the area. DEFINE A FUNCTIONAL You will need a map (or series of maps HIERARCHY OF STREETS at different scales) showing the boundaries of the current plots and the existing It is easier to plan a new network of streets infrastructure. on open land at the edge of a city (Figure 22). It is harder in inner city or slum renewal projects, when existing streets, buildings LINK THE PROJECT AREA WITH and residents must be considered. THE REST OF THE CITY

The project area will need adequate links RESPECT THE NATURAL TOPOGRAPHY with the rest of the city – in terms of roads, public transport and utility lines. For an area The design for infrastructure must be on the edge of the city, this will mean plan- aligned to the natural topography: roads ning new roads and other infrastructure must avoid steep gradients, and drains must links to connect it with the urban area Fig- run downhill (Figure 23). ure 21). For areas subject to urban renew-

97 Remaking the urban mosaic

Source: Improvement Scheme Kirmiti for Nagpur Improvement Trust, prepared by HCP Design, Planning and Management (HCPDPM), Ahmedabad, India. Courtesy HCPDPM

Figure 21 Connectivity to the city and major transport networks, improvement scheme, Nagpur, India

ENSURE ACCESS TO WATER, SEWAGE, CREATE WALKABLE BLOCKS ELECTRICITY AND OTHER UTILITIES This is closely tied to creating an adequate Utility lines must be located on public land street network (see above). The size of the – typically under or above streets or pave- blocks (and so the distance one has to walk ments (sidewalks) – to enable easy access to the nearest bus stop or park) will depend for maintenance and repair. The topography on the situation; they are likely to be small- will influence the layout of water, sewage er in urban renewal and slum improvement pipes and drains: they have to avoid uphill projects than in edge-of-city developments stretches and kinks that would impede flow. (Figure 24). Water networks must have enough pressure to supply users in the tallest permitted buildings, and to feed strategically placed PLAN FOR THE ENTIRE RIGHT OF WAY fire hydrants. The utility grid must link up The project may build only a minimum of in- with the key nodes in the city, such as wa- frastructure to begin with, and fill in the rest ter mains, sewage treatment facilities and later. That usually means putting in roads, electricity substations. Each plot has to be drains, piped water, sewerage and electric- serviced by all the relevant utilities. ity – but not necessarily surfacing the roads or building pavements (sidewalks) (Figure 25).

98 5 Land-use planning

Figure 22 Hierarchy of streets in the Nagpur Improvement Scheme Source: see Figure 21

Figure 23 Topography and infrastructure, improvement scheme, Nagpur Source: see Figure 21

Figure 24 Creating walkable blocks in the Nag- pur improvement scheme Source: see Figure 21

99 Remaking the urban mosaic

Of course, you should allow for the whole CONSOLIDATE OR SUBDIVIDE PLOTS right of way when planning and marking BELONGING TO THE SAME OWNER out the plots. Leave enough space for the Plots held by the same landholders may be roads to be widened and pavements built. consolidated to permit large-scale develop- Make sure that streets and other public ment. Or they may be subdivided into small- space takes up the proportion of the area er plots to ease the construction and sale of agreed on with the community. smaller buildings. Consult the landholders and other stakeholders on their preferences.

LOCATE THE READJUSTED PLOTS OVER THE ORIGINAL PLOTS

You can now sketch in the readjusted plots over the original ones. Landholders are of- STAKEHOLDER ten very concerned about the location of INVOLVEMENT IN the plots they get after the readjustment. Try hard to displace each landholder as lit- PLANNING tle as possible. This is particularly important if the plots contain buildings that have to be preserved. Draw the plot boundaries to BALANCING CONCERNS avoid having to demolish such buildings. Planning must take a range of concerns into In Figure 26, for example, compare the area account: currently owned by landholder 132 (in blue) to the area he or she is allocated after the • Policy For example, the municipality readjustment (in red). This landholder has may aim to create mixed-used neigh- to endure very little dislocation, apart from bourhoods having to give up a proportion of the origi- • Technical Roads must allow for ade- nal plot (like all of the landholders). quate draining and access to all plots

Keep the shape of the new plots regular so • Legal Roads must be so many metres they can be developed easily. Make sure that wide each plot has road access and can be served by infrastructure such as water and drains. • Financial The project must stay within Take the location of existing infrastructure its budget. into account (if it is to be preserved). • Stakeholders’ interests The different In Figure 27, landholder 44 starts out with stakeholders will have different interests. an elongated plot without road access. He The municipality may want to minimize or she ends up with a nearly square plot on the costs and maximize its tax receipts. the road. Landholders may want to maximize their profit. Business owners may want

100 5 Land-use planning

Figure 25 Street design for the Nagpur improvement scheme Source: see Figure 21

Blue = original boundaries Figure 26 Locating final plots in the Nagpur improvement scheme Source: see Figure 21

Figure 27 Regularizing the shapes of plots in the Nagpur improvement scheme Source: see Figure 21

101 Remaking the urban mosaic

to give way on their non-priority wishes. to minimize disruption or get a frontage It may be possible to reinterpret planning on a busy road. Residents may want low rules, find legal compromises or additional rents and spacious apartments, away sources of funding. Ideally no one should be from traffic noise. Of course, individual forced to accept a solution that they find stakeholders may have different inter- intolerable. ests from their neighbours.

It can be difficult to balance between all ENSURING STAKEHOLDER these interests. In general, policy will indi- INPUTS INTO PLANNING cate the general direction. The law will give a general framework for what is permitted; Faced with the need to achieve a difficult financial and technical considerations will balance, planners may be tempted to work limit what is feasible. Within these restric- alone, produce a plan, and present it as a tions, the stakeholders’ interests should fait-accompli. That is a mistake. While the guide the outcome of the plan. planners are responsible for coordinating the production of professional plans, they It may be possible to find one or more must ensure that the stakeholders are in- “sweet spots” that satisfy all the concerns volved in determining both the overall lay- (Figure 28). More likely, there will be no out and the details. See Chapters 4 (Poli- clear overlap among all the concerns, so cies), 6 (Collecting and analysing data) and compromises will be needed. This is possi- 7 (Engaging with the community) for ideas ble because the boundaries of the interests on how to do this. are not as hard as Figure 28 implies: they are in reality fuzzy. Stakeholders may be ready

The very first step is to create “consensus on the vision. This consensus, this idea of the future, will strengthen the participatory process in the next phases.”

Salvatore Fundaro, urban planner and Photo: Rainer Müller-Jökel designer, UN-Habitat

tinyurl.com/pilar-fundaro

102 5 Land-use planning

Municipality

Landholders Legal echnical T Financial

Residents Land management policy

“Sweet spot” where everyone is satisﬁed

Figure 28 Finding the “sweet spot” that serves all interests

One approach is to gather the stakeholders’ VISUALIZING THE PLAN inputs as part of the enumeration process It is vital that the stakeholders involved can (Chapter 6), then produce a series of overall visualize the plans. Use maps and draw- scenarios, all of which conform to the legal ings to show them how it works, and invite technical, financial and other constraints. their comments. This builds understanding Present this to the various groups of stake- and trust, and helps everyone avoid nasty holders to get their comments (Figure 29). surprises. Get them to choose one or more scenarios to develop further. Elaborate these plans People in some cultures (and levels of edu- and again present them to the stakehold- cation) are not familiar with maps and find ers for further comments and selection. Be it difficult to understand them. But they may prepared to change the plans, several times find satellite images or “image maps” (a if necessary, in order to accommodate peo- combination of a map and a satellite image) ple’s opinions. Continue tweaking the de- easier to use. You can annotate such images tails until everyone is happy. to show existing and planned features.

103 Remaking the urban mosaic

Initial scenarios

Rejected Selected for elaboration

Elaborated plans

Rejected Selected for Rejected elaboration

Final plan

Figure 29 Be prepared to create several options at each stage for the stakeholders to consider

104 COLLECTING AND 6 ANALYSING DATA

and readjustment projects need a lot of in- • The opinions and needs of all stake- Lformation about an area: holders, including formal and informal residents, tenants, private-sector devel- • The policy framework: the objectives of opers, absentee landholders, and resi- the project and how it relates to the larg- dents of neighbouring areas. er situation. • More detailed information on the social, • The legal framework: the laws that gov- cultural and economic aspects of the ern the reallocation of land. community, including the community • The planning rules that must be applied character, social capital and vulnerability. to a redesign of the area and its links to These extra types of information are needed the city as a whole. for several reasons: • The financial situation, the costs of re- • The P in PILaR stands for a participa- adjustment and infrastructure provision, tory process. The stakeholders take and the potential income to be gained part in making decisions: their opinions by the municipality and landholders. count. The needs and opinions of all • The land administration aspects: the stakeholders need to be understood: not location and boundaries of each plot, just formal landowners, but also other the identity of the landholders, and the landholders, tenants, informal residents, physical characteristics of the site. and other disadvantaged and vulnerable • The community: the people who live individuals. and work in the project area. • The I in PILaR stands for inclusive out- • The opinions of the landholders. comes. PILaR ensures that all the stakeholders, and especially the poor, benefit PILaR needs all these types of information, from the land readjustment. It tries to and adds some more: conserve and build communities rather • The tenure situation: who actually lives than disrupting them. on the land, including tenants and infor- • PILaR projects often occur in areas where mal residents as well as the formal land- the formal records are incomplete or owners. out-of-date. The only way to obtain the

105 Remaking the urban mosaic

information needed it to collect it from other utilities, employment opportunities, the community. schools, recreation and retailing facilities, as well as the area history, the local community • PILaR aims for long-term, sustainable, and social capital. large-scale urban development. The information will help ensure that the Plots. This concerns the characteristics of in- project can overcome dysfunctional as- dividual plots: the location and boundaries, pects of the city and can improve legal, the identity of the formal owners or other planning and financial frameworks. landholders, the type of rights they claim to the land and buildings, existing utilities and You will need a larger amount of informa- buildings on the site, trees or permanent tion in areas with small plots, existing build- crops, and the presence of formal tenants ings and a lot of residents (as in slum up- or informal occupiers. grading projects) than in a project on the edge of a city with larger plots and fewer Households. Here we are concerned about houses and residents. the people who own or hold land or live in the area. You will need to know about the This chapter discusses the various types of household makeup, financial situation, ten- information you will need, how to get it, ure status, etc. and how to analyse it. Information on the plots and households is of interest for three reasons:

• The information must be aggregated to give a picture of the project area as a INFORMATION AT whole. For example, summing the num- DIFFERENT SCALES ber of owner-occupiers, renters and informal residents lets you calculate how much land will be needed for individual- You will need to get information at various ly owned plots, and how much has to be scales: reserved for public space, social housing National. This includes information about and other uses. the national laws and policies that apply. • You also need to disaggregate the in- City. This is information on the city as a formation into categories such as gen- whole: the overall urban plan, the major der, age, wealth, ethnicity and religion transport and infrastructure links, growth to make sure that the project takes into trends, and the municipality’s planning account the needs of disadvantaged rules. people.

Project area. This covers the project area • The project will have to deal with each as a whole, or major parts of it. It includes plot or household individually. Each things like information on the topography, plot will be numbered, and an equiv- current infrastructure such as roads and

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alent (smaller but more valuable) plot ipality staff are comfortable dealing with it, designated in the final plan. Similarly, and documents like land records have legal each household must be allocated a status: a land title gives the holder a strong new plot (or for tenants and informal claim to a piece of land, even if it is occu- residents, the right to rent) in the new pied by thousands of informal residents. So plan. You need data on the individual formal sources often reflect what should be plots and households to keep track of (according to the authorities) rather than these changes. the actual situation on the ground.

Informal sources include various types of stakeholder engagement: household surveys, discussions with stakeholders, opinion surveys and participatory mapping. Munici- INFORMATION- pality staff are less comfortable dealing with GATHERING METHODS information from such sources, and it may not be recognized by the law. But this type of information tends to reflect better the ac- Unlike conventional land readjustment, PI- tual situation on the ground. LaR seeks out informal as well as formal sources of information. The project will You will need to gather three types of data: need a mix of the two. • Quantitative: numbers, names, loca- Formal sources include the official land tions records, census information and the official • Qualitative: descriptions, stories, opin- urban plans. The municipality already has ions, reports, analysis most of this information on file – though it • Images: maps, diagrams, photographs, may be inaccurate and out-of-date. Munic- etc.

In PILaR we gather a range “of data that reflects people’s formal situation but also people who might not be officially recognized in normal datasets.”

Melissa Permezel, urban specialist, Photo: Rainer Müller-Jökel UN-Habitat

tinyurl.com/pilar- permezel-data

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You can gather information in various ways: each household. For other types, you can desk research, household surveys, spatial use a smaller sample. mapping, discussions and interviews, and Many interviews focus on the head of the other methods. We describe each in turn. household – who is often taken to be an adult man. Make sure you also gather infor- DESK RESEARCH mation from and about women (and children and the elderly): they may have differ- Documents and records contain the formal ent opinions from the men. And make sure information that has already been gathered. the survey design includes the poor and vul- They will be in the files of various municipal nerable: minority ethnic groups, disadvan- agencies, other government organizations, taged castes, people with disabilities, etc. academic and research institutions, and NGOs. You will need to get access to them; Previous surveys may have already collect- you may need high-level backing to per- ed some of the information you need. If so, suade the organizations involved to open check it to make sure that it is valid. their archives. Such surveys are good for gathering quan- Desk research is good for gathering formal titative information on: information: policies, laws, plans, census • Personal details Age, gender, ethnic- data, municipal finances and land records, ity, amount of time living in the project as well as previous reports and analysis of area, disability. the situation. • Individual and household socio-economic situation Employment status, income, benefits, loans. HOUSEHOLD SURVEYS • Tenure status, whether formal own- The best way to get information on the er, landholder, renter or person living households in the project area is to inter- informally in the household, as well as view them using a standard questionnaire. the property size and size and status of This should be as short as possible: gather buildings. only the information you will need and can analyse. The questionnaire will have several sections, each dealing with one particu- DISCUSSIONS AND INTERVIEWS lar aspect of the household: the household members, residence location, income and Various types of meetings are also useful for employment, education levels, tenure type, generating the information required. These disabilities, etc. Don’t forget to include as- include plenary discussions with community pects such as intra-household relations and members, focus group discussions, and in- social capital. dividual interviews with knowledgeable individuals such as local leaders, shopkeepers For some types of information, you will and employers (Figure 30). need to interview a representative from

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Box 20 Intra-household relations

Go into a middle-class neighbourhood, of all residents. and you are likely to find a single family To find out about intra-household rela- occupying each house or apartment. But tions, you need to ask the right questions the neat arrangement breaks down in and use several sources of information. poor, overcrowded areas. In such places, Standard questions include: a single household may include members of an extended family, or even people • How many people live in a house? who are not related to each other. For • How are they related to each other? example, a group of friends or work- mates may get together to rent accom- Additional questions to include in the modation under one of their names, or standard questionnaire might include: a couple might sublet a room to another family. Only the principal tenant is visible • Where do people in this household to the landlord or the authorities. cook? The local housing office and other mu- • How many people (or groups of peo- nicipal bodies may not recognize or un- ple, including your own household), derstand such relations, or they may ig- cook in this house? nore them. For example, water supplies • How many rooms in this house are or school places may assume a much used only for sleeping? smaller number of residents than the real figure. That perpetuates slums and poor Cross-check the results with other sourc- housing conditions. es of information. For example, check utility connections such as electricity and PILaR seeks to recognize the full range water meters for the building. If there of living arrangements, both formal and are two electricity meters, there may be informal. Doing so makes it possible to more than one household. plan and provide for the housing needs

Such methods are especially suited to gath- PARTICIPATORY ENUMERATION ering qualitative information on: In conventional land readjustment, the data • Perceptions or positions on community are gathered largely by the professionals: a issues team of specialists and trained interviewers using a household survey. In PILaR, howev- • The history of the area and the people er, the stakeholders themselves can (indeed, who live there, their reasons for living should) help collect the information. This there and their occupations participatory enumeration includes the • Tenure, including intra-household rela- whole range of data-gathering methods tions (Box 20). described here (desk research, household • Community character and social capi- surveys, discussions and interviews, spatial tal (Box 21). mapping, other methods). As its name suggests, it involves the community members themselves in designing, managing, implementing, analysing and using the data.

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Box 21 Community character and social capital

Community character family, close friends, neighbours, col- leagues. It helps people “get by” in This is the makeup and history of the their daily lives. These links tend to be neighbourhood and the people who live informal, small scale and local. They there, and (just as important), local peo- include informal support mechanisms ple’s perceptions of these. A community such as the networks that care for may be tight- or loose-knit, youthful or children, the sick and elderly. elderly, transient or enduring, poor or • Bridging social capital This is the well-off, composed of owner-occupiers network of weaker ties, also with or tenants or informal residents, safe or individuals sharing similar economic dangerous. and political positions but who are This character is shaped partly by the outside the area, have a different built environment: a well-designed envi- type of occupation, or belong to a ronment will help create a positive com- different ethnic group. It helps peo- munity character. ple “get ahead” in their daily life. These ties also tend to be informal, A PILaR project needs to understand the but link across networks. An example community character in order to pre- is informal networks that enable peo- serve it (where desirable) and improve it ple to do business or find a job. (if necessary). • Linking social capital These are peo- Social capital ple’s vertical ties with formal organizations, such as the government or Social capital is the network of linkag- a bank. These ties enable people to es within the community. It tends to be get services or influence the powers highest in areas with owner-occupiers that be. They tend to be formal and and with longstanding renters and infor- remote. mal residents. A PILaR project will be interested main- We can think of three types of social cap- ly in maintaining the “bonding” and ital: “bridging” types of social capital, since • Bonding social capital This is the they are important for people’s day-to- network of strong ties with one’s day survival.

Participatory enumeration is not an end in Completeness and accuracy Local enu- itself. It has various advantages. merators have local knowledge. They know whom to ask and what to ask, and they can Richness and flexibility Participatory tell if the responses are correct. They can enumeration uses more tools than only a gather information (such as on informal standard household survey. It can gener- tenure and relationships within a house- ate a much richer picture of the area and hold) that would be difficult or impossible its people than conventional techniques, to get otherwise. Respondents are less likely and it can be adapted as new aspects are to be suspicious of local enumerator than uncovered.

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Box 22 Building trust in La Candelaria

Gathering information (this chapter), stakeholder engagement (Chapter 7) and communication (Chapter 10) are three closely related parts of a PILaR project. They help build the stock of community trust that enables the project to run smoothly and achieve the desired outcome. Trust is vital as the project engages individuals and communities who are often very vulnerable. They are naturally wary of any change and may feel they lack the power to improve their lives. Ascertain- ing their formal legal status can make Figure 30 PILaR project workers in La them worried. They want, and deserve, Candelaria explaining the next steps of the enumeration process to the community clear assurances and evidence that their information will be used in a way that helps rather than harms them. The PILaR project in La Candelaria, Me- dellin, Colombia, built trust through a series of meetings to validate the information collected, explain how it would be used, and describe what the next steps would be.

of an outsider, and are more likely to give Empowerment Because residents are accurate answers. involved in designing the information collection, implementing it and analysing the Trust and ownership People do not data afterwards, they retain control of the want to divulge information about them- process. They collect the information on selves if they do not trust the enumerator, behalf of the project, but also on behalf of know what will happen to their informa- the community as a whole. Collecting in- tion, or understand how it will be used. The formation can stimulate the formation of local enumerators can help respondents un- community groups; they can use the infor- derstand and trust the project’s intentions mation to determine their priorities and to and feel more ownership for it (Box 22). advocate with the municipality and other Capacity The enumeration team build official bodies. their capacity – one of the goals of a PILaR Cost It may be cheaper to hire and train project. Women, in particular, gain both by local people than to put together an enu- being involved in the data gathering and meration team made up of outsiders. because their voices are heard.

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Benefits for outside organiza- Some of the maps will already exist. You tions Both the municipality and NGOs may have to update them, fill in the gaps, get up-to-date, validated information and or confirm their validity with fresh surveys. in-depth knowledge of the local social dy- An important aim of the data gathering is namics. That makes it easier to lobby for, to create a land information system of the design and deliver services. A common da- current occupants. This demarcates the ex- taset makes it easier for the community, isting landholdings of all households, and is municipality and other groups to agree on used to regularize their tenure. priorities and activities. Mapping techniques include the use of tri- Local enumerators are particularly useful for angulation equipment (as in traditional sur- collecting detailed data on land, property, veys), global positioning equipment (such tenure and households. They are less likely as GPS-enabled tablets, Box 23) and aerial to be useful for the initial baseline or feasi- and satellite photographs. In PILaR it is best bility study, when you need to understand done in a participatory way (see below). the context and identify the stakeholders. Spatial mapping is good for gathering infor- The local enumerators should be coordinat- mation on: ed by technical specialists who help design questionnaires, train the local team, guide • Plots The location and boundaries of the data gathering, and ensure that it is sys- plots. tematic and sufficiently rigorous. • Improvements The location of infra- Overall, participatory enumeration can help structure and buildings. make the land readjustment more inclusive • Claims to land The ownership and and sustainable as the affected communi- other claims to each plot. ty gather information about themselves, and it throws light on all tenure rights and Participatory mapping situations. The mapping is best done in a participatory way, with community members, government planning staff, religious leaders and SPATIAL MAPPING students organized into teams and trained A lot of the information you will need is spain map reading. The mapping team meets tial in nature – so you will need to put it on with the stakeholders in a particular area a map. You will need a base map showing to explain the process, register their names, the entire area, and maps at larger scales and organize them into groups. The team showing the layout of plots. Nowadays the interviews longstanding residents, and then mapping can be done on a computer, with each group accompanies the team into the a series of layers showing different features: field to map the boundaries of each plot. topography, existing infrastructure and The boundaries are marked onto a high-res- buildings, plot boundaries, etc. olution satellite image or directly into a dig-

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Box 23 Participatory mapping in Angola

Development Workshop, an NGO in An- data can be cleaned by a supervisor in gola, collects household data using mo- the field or back at the office. bile-enabled Android tablets. These are Development Workshop has adapted equipped with global positioning capa- tools from the Social Tenure Domain bilities and can plot the data in Google Model (Box 10) to create cadastres in maps. The methodology is based on an bairros (neighbourhoods) or municipal- enumeration approach developed by ities using evidence of land occupation. Shack/Slum Dwellers International. It The enumerator uses the tablet’s voice engages both community members and and video recording functions to capture municipal authorities in the production testimonies. He or she can photograph and ownership of data. official documents and take photographs The enumerator collects and maps the of residents and the houses they occupy. geo-referenced household data on a tab- When such co-produced data is mapped, let, and then uploads them immediately validated and stored by the local admin- through the GSMA cellular network to istration it gains legitimacy even if the an online database. The tablet automat- land occupation has not been formally ically stores an offline version for further legalized and titles issued. These meth- verification if needed. If there is no cellu- ods assist occupants and communities to lar coverage, the data can be transferred move towards a more secure position in by USB, Bluetooth or WiFi to a computer the continuum of land rights (Figure 10). and then loaded to the cloud-based serv- er. This technology bypasses the need to More information: Development Work- transfer data from paper forms, which shop, www.dw.angonet.org/ is cumbersome and prone to error. The

ital map using a global positioning device. this mapping. It records who claims what Where global positioning devices are not rights to what piece of land, and permits available, the team can pace out distances such overlaps to be noted. It uses a combi- and mark the boundaries on paper maps (or nation of interviews and global positioning on high-resolution satellite images). If a ca- equipment to plot boundaries, features and dastre already exists, the mapping process claimed rights on a base map. Box 23 de- can be used to validate it (Figures 32 and scribes how Development Workshop used 33). this for participatory mapping in Angola.

Most people have very good knowledge of The degree of precision required depends where the boundaries are. Where overlap- on the location. For a rural area where plots ping claims exist, an intermediary tries to are relatively large, it is enough to set the resolve the issue. If this is not possible, the global positioning device to register a point claims are marked on the map anyway. every 10 metres. In built-up areas, plots are smaller, and greater accuracy is needed to The Social Tenure Domain Model (Box determine the boundaries. 10 in Chapter 4) is one way to organize

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Figure 31 Baseline mapping team in Angola

Figure 32 Ground truthing in Angola Source: Development Workshop

This mapping results in a cadastre showing the land claims of each stakeholder. The PHASES OF DATA land occupation documents that have been COLLECTION AND agreed on earlier can be used as an intermediary proof of rights to the land. ANALYSIS

A PILaR project will have four phases of data OTHER INFORMATION- collection and analysis (Figure 34): GATHERING METHODS • Feasibility study Consider other techniques, including the • Stakeholder and institutional mapping following: • Detailed data collection • Direct observation and surveys of land use and the state of buildings • Analysis, validation, storage and maintenance. • Email, telephone and online surveys

• Social media

• Counts of traffic and pedestrians.

114 6 Collecting and analysing data 4 Use alidation Storage Analysis and us e V Analysis Maintenance Desk research 3 Legal Finance Land & housing Planning Other methods Governance collection Stakeholders Environment Detailed data 2 major or cancel Participatory enumeration redesign, mapping Change site, Make changes Stakeholder Discussions and interviews & institutional s mapping No Ye Participatory Maybe Feasible? Household surveys METHODS Spatial mapping Data gathering stages and methods 1 Legal study echnical Finance T PHASES Governance Stakeholders Environment Feasibility Figure 33 Figure

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1 FEASIBILITY STUDY • Delineate the ownership of public and private land. The feasibility study aims to gather enough information to choose a site of the land re- • Check whether the land records are ac- adjustment and to determine whether it is curate, and how informal tenure must feasible. It is not necessary to go into de- be handled from a legal point of view. tail at this stage, but it should identify the • Determine whether major property dis- additional types of information that will be putes and the mechanisms to resolve needed later. It must cover both the pro- them exist. posed project area and the adjacent areas that may be affected by it. • Review the content and enforcement of laws governing land management. In some countries, the law does not require a feasibility study: the municipality can de- • Check whether there are antiquities or cide to implement land readjustment at its natural resources beneath the area. own discretion. Even so, a feasibility study The feasibility study should identify relevant should be done anyway as it will reveal legal instruments and institutions and cast valuable information (especially about the its net widely to capture even tangentially community) for the detailed design of the relevant instruments. If a timely and rele- project. vant baseline study is already available, or The feasibility study should cover at least a lawyer with specific experience is easily five components: legal, technical, financial, available to the project on demand, then it community and environmental. may not be necessary to do a formal baseline study. Governance and legal Technical This will determine whether the proposed project can be implemented within the This will include: existing governance arrangements, legal • A survey to ensure that the topography framework, and land tenure system. It will: and soil are suited to redevelopment.

• Check whether existing governance ar- • A review of the overall urban plan and rangements permit a PILaR project, what plans for adjoining neighbourhoods. problems are likely to arise, and what • An initial outline of the type of infra- changes will be needed. structure and buildings that will be con- • Verify whether the project will fit into structed. the broader vision for the city and the national urban development plans. Finance

• Check whether the existing laws will This aims to predict the financial implica- permit a land readjustment project. tions of the project. It will include:

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• An estimate of the initial capital invest- • A negative finding in a critical area may ment needed for the project. be enough to not continue with the project. For example, if no suitable legal • The projected cash flow for all construc- framework exists, the project will have tion stages. to wait until a specific law can be passed • The sources of financing. – which can take years.

• An assessment of the financial risks. • It may show that the project concept has to be radically changed. For example, Stakeholders the environmental feasibility study may This will explore: force the size or boundaries of the site to be altered dramatically. The financial • The number and types of people likely to study may mean changing the type of be affected by or interested in the pro- development envisaged. Social challeng- ject. es may also require significant rethinking • The tenure arrangements of residents. of the project.

• The willingness of landowners, other • It may indicate that the project is broad- landholders and residents to participate ly feasible, but that minor changes will in the project. be needed. The project can proceed, • Arrangements for households that either but the details need to be filled in and do not qualify for the project or who do changes made during the next steps. not wish to participate in it.

• Ways to minimize any unintended ad- 2 STAKEHOLDER AND verse effects of the project on current INSTITUTIONAL MAPPING residents. If the feasibility study shows that the project Environment is indeed feasible, the next stage is to determine who the stakeholders are. Questions This will try to predict the environmental in this phase include: constraints on and the consequences of the project. For example, the area may be • What is the structure of the commu- close to a waste dump or in a floodplain, or nity? What other groups of stakehold- developing it may cause flooding or other ers exist? Landowners and landholders problems elsewhere. (absentee or resident), owner-occupiers, tenants, informal residents, elderly, After the feasibility study young people, women, disadvantaged, recent arrivals, longstanding residents, The feasibility study may have various etc. outcomes: • Who are the leaders in the community and of each of the stakeholder groups?

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• What are their interests and the risks? • Community What might they have to offer the proe- • Finance jct? • Planning • What NGOs and community organizations exist? How about faith-based • Land and housing organizations? • Environment.

• What private sector organizations We deal with each of these aspects below. may have an interest? What roles might Because these areas are closely interrelat- they play? ed, there is a considerable overlap among • What are the services and facilities in them. For example, the legal, financial, the site and nearby areas? planning, land and community specialists on the project team will all be interested • What government departments or ac- in the current land-tenure situation in the tors are involved? What is their potential area. Such information should be collected interest or involvement in the project? only once, through a participatory enumer- • What are the relationships between ation. All team members should collaborate the different stakeholder groups? How on designing the enumeration so it gener- do the communication channels work? ates the information they require.

• How might the project engage with Governance the various groups? What might be the opportunities and challenges for com- You will need to understand how the in- municating and working with them? stitutional framework operates and how it will affect the project. By “institutional For each of the stakeholder groups, you can framework”, we mean the ways in which identify their goals and interests, the degree government works and how people and de- of power and influence they have, their level partments connect. of vulnerability, and their role in the project.

See Chapter 7 for a discussion of the various Key questions stakeholders. • What are the institutional and governance arrangements around urban development? Who usually drives the ur- 3 DETAILED DATA COLLECTION ban projects? Which departments are This is when you collect the detailed data involved, and how are they integrated? on each of the aspects of the project. It will Does the government manage projects, need to cover these aspects: and who does it engage with to do so?

• Governance • What are the formal arrangements for • Legal issues land management, and how do these work in practice? Does the government

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have the capacity to benefit from captur- academics, urban practitioners, real es- ing land value? tate practitioners or associations.

• How is the private sector involved in ur- Legal ban development projects? What role does it play, formally and informally, es- Theory is often different from practice. Just pecially on land values and speculation? because a law or rule exists does not mean that it is applied in reality. In addition, many • How pro-poor are urban development stakeholders may reside or hold land in the projects? Do they include vulnerable area “illegally” – outside the formal system. groups? Do they recognize different You will need to understand both the writ- land, property and tenure rights? How ten law and what happens in practice, and do they deal with informal residents? whether it is possible to change the law • How does the local authority engage (or other rules) to fit the needs of the land with and involve the community and readjustment. other stakeholders in urban develop- This means gathering information from for- ment projects? mal sources (existing policies, laws and regulations) and cross-checking this with reality Types of information needed on the ground. Some of the answers to these questions will emerge from the other aspects covered be- Key questions low. You will need to find out about: • Are there any current legal mechanisms • Policy and legal frameworks related to support the PILaR project? Are there to topics such as urban development, land readjustment laws? If so, what are housing, land and land management, the legal requirements? Are there laws treatment of informal settlers and plan- in relation to site selection or contribu- ning. tion requirements?

• Formal institutional arrangements and • Which institutions may initiate a land how these work in practice. readjustment project? Which other in- • Community engagement records and stitutions must be involved, and what past practices. are their roles? Which are responsible for overseeing the project? What are the Approaches formal legal arrangements for managing the project? • Desk mapping of institutional arrangements, and studying background re- • What is the legal situation regarding ports. property and tenure of key stakeholders? How does this compare to reality? • Field research: interviews and discussions with officials, local organizations,

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• Are there any mechanisms to regularize given existing practice, and how much dis- rights or interests to housing and land cretion do you have to change the proce- for informal settlers? dures. You will need to know about:

• What mechanisms exist for government • Existing laws, rules and regulations that to control land for development? What might affect the land readjustment pro- if some landholders do not want to par- cess. ticipate? Is expropriation an option? • The institutions, both formal and infor- • What planning, financial and environ- mal, that are relevant. mental laws and legal instruments can • Customary law and existing practices re- be used? How effective are they in sup- lating to land in the area. porting the proposed land readjustment project? • The procedures for cadastral and property registration. • What is the legislation on low-cost housing mix and social housing? Are there • National or municipal regularization ini- legal mechanisms to manage gentrifica- tiatives to regularize informal occupants. tion? Approaches • What are the legal arrangements for relocation? Do they fit within the PILaR • Legal baseline study This enables human rights framework? you to work out the possible legal paths in detail, based on what is both legal • What are the city’s land management and feasible (Box 24). arrangements? If this is a city-extension project, how does the law handle • Interviews and discussions with land changes to the city boundaries and the professionals, lawyers, academics, local conversion of land from rural to urban leaders, NGOs and community groups. use? • Review of official land information • What legal mechanisms exist for capital system to determine the tenure types gains and land value sharing? What are on each plot, and the legal status of the the means of valuation and exchange unit in terms of claims, occupiers and values: area-based (land or built space) governance structure. or price-based? What controls exist to • Participatory mapping If land re- manage land speculation? cords do not exist or are out of date, you will need to build new land records, Types of information needed compare them with the official records, The law provides a framework for what is and get them legal coverage. This is par- and is not permitted. You need to get clarity ticularly important in jurisdictions where early on about what is possible under the customary and informal interests have letter and spirit of the law, what is feasible formal protection or are important in

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practice. See the sections below on com- Key questions munity and land and housing for more. • What is the cost of the project for the municipality (and other organizations), Finance and how is it to be financed? The financial model to be followed depends • What costs and benefits can landown- on the costs of the project and its expected ers, landholders and residents expect? financial benefits both for the municipality Can they afford to bear the costs? (or the implementing organization) and for the stakeholders involved. This will deter- • What external resources will be availa- mine the area that needs to be reserved by ble? the municipality to cover the project costs, • What land-based financing tools are per- and hence the amount of land that each mitted by law? Which will be employed? landholder will have to contribute. • What and how much of the required in- Financial considerations are closely related frastructure will be included in a project? to legal issues. Land-based financing such • What standard of fairness will be used in as land contributions, taxes and fees must dividing project costs among stakehold- be expressly provided for under the law, ers? What protections will be afforded rather merely implied.

Box 24 Conducting a legal baseline study

1. Legal mapping. Identify all national, done, who may do it and any terms or local and municipal laws that might conditions that apply. This gives you be relevant in implementing PILaR. the theoretical picture of what the law says should be done. 2. Institutional analysis. Describe the institutions mentioned in the relevant 5. Comparison with practice. Compare laws, their mandates, institutional the process analysis with actual prac- capacities and deficiencies, conflicts tice. This highlights possible challeng- of interest with other institutions or es that the project must address. For internally among the institution’s dif- example, a procedure may exist in ferent functions. law but not be feasible in practice. An institution may exist on paper that 3. In-depth review. Once the basic has not been established or that lacks shape of a project is identified, re- skilled staff. view specific instruments and institutions in greater depth. Describe their 6. Possible legal path. Identify a pos- principal functions, the mechanisms sible legal path, probably based on they contain and the processes they more than one instrument, which establish. could be used for PILaR. Map out the path step by step. Describe for each 4. Process analysis. Use this information step the key actors involved and the to develop a “process analysis” that key decisions required. sets out, step by step, what must be

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the most vulnerable residents in a pro- should be able to provide price informa- ject area? tion.

• Getting personal financial informa- Types of information needed tion This can be difficult: poor, vulner- • The project costs for the municipali- able people may be especially reluctant ty: for design, data collection and anal- to share such information. Make clear ysis, land acquisition and clearing, infra- how the information will be used, who structure provision and maintenance, will get access to it and why? Use a com- relocation, rebuilding and marketing, bination of conventional sources such as borrowing costs, etc. census or questionnaire data, welfare • The project income for the munici- and social support records, and partici- pality from the sale of land, higher tax- patory enumeration. Poverty score cards es, external funding sources, etc. (Box 25, Figure 35) are a way to find out people’s capacity to pay for services and • The current market price of land, and to absorb the costs of land readjustment. the expected price after the project.

• The financial situation of landown- Stakeholders ers, landholders and residents: their Understanding the situation and needs of income levels and sources (formal and all stakeholders is vital to design a land re- informal), loans or mortgages, percent- adjustment project that will benefit them age of income on rent, subsidies re- and that they will support. ceived and assets.

• The costs and benefits for landown- Key questions ers, landholders and residents: the • What are the characteristics and aspira- costs that they can expect to incur, and tions of each stakeholder in relation to the benefits they will gain from the land the site? readjustment. • What are the major characteristics of each household? How many people are Approaches there, what are their ages, sex, educa- • Determining costs and income for tion levels, income, occupation, etc? the municipality Check for informa- • What plot or building does the house- tion available in the public domain and hold claim? What is the nature of the from the applicable municipal depart- claim (legal ownership, occupancy, use ments. Check other infrastructure pro- rights, etc.)? Where are the plot bound- jects to get realistic costings. aries? • Estimating market prices of • What are the needs, wishes and aspi- land Check records of land transac- rations of each household? What are tions. Banks and real-estate developers their attitudes towards the possibility of

122 6 Collecting and analysing data

land readjustment? What type of land or frastructure, buildings), the situation de- housing do they require? sired by the municipality, the planning rules, and the needs and wishes of the current • What vulnerable groups or individuals landholders and residents. exist, and what are their characteristics?

Key questions Types of information needed • What types of people live in the site? Table 15 lists some of the variables you will What are their social, cultural, econom- need to collect on each stakeholder house- ic and environmental needs, challenges hold and the plots they claim rights to. and aspirations?

Approaches • What housing structures and arrange- While participatory enumeration and ments exist? mapping (see above) can be useful for • What are the planning rules? How appli- other aspects of the project, this is where it cable are they in this situation? Do they comes into its own. Table 16 lists the steps have room for flexibility? to follow. You may need to adapt these suggestions to suit your own situation. Types of information needed

You will need a combination of physical in- Planning formation, demographic and field-based in- The planning approach will depend on the formation, as well as the relevant rules and existing physical situation (topography, in- procedures.

Box 25 Poverty scorecards

How to determine which people in the have roofs made of tiles or concrete. project area are poor? Conventional Each response has a point value: zero ways of collecting poverty data ask peo- for poor households, more for better-off ple about their income and expenses. But ones. The enumerator visits the house- they take time, and include questions hold to ask the questions (or observes that are difficult to answer and may be the situation directly), fills in the poverty intrusive. Using a poverty scorecard is scorecard and adds up the points to get easy and accurate, and takes only 5–10 a poverty score for that household. This minutes per household. The information score can range from 0 (poorest) to 100 is easy to verify. (wealthiest). The scorecard contains 10 simple indi- Poverty scorecards have been developed cators that reflect the probability that a for over 60 countries. It is easy to adapt household is poor (Figure 35). For exam- them for a participatory enumeration. ple, “What is the main roofing material?” Poorer households in the area may have More information: www.microfinance. thatched roofs; wealthier households com

123 Remaking the urban mosaic

Simple poverty scorecard for Colombia Entity Name ID Date (DD/MM/YY) Member: Joined: Field agent: Today: Service point: Household size:

Indicator Value Points Score 1. How many household members A. Four or more 0 are 18-years-old or younger? B. Three 5 C. Two 11 D. One 17 E. None 23 2. What is the highest educational A. None, or pre-school 0 level reached by the female B. Primary or middle school 3 head/spouse? C. High school 6 D. No female head/spouse 8 E. Post-secondary or college (1 to 4 years) 9 F. Post-secondary or college (5 years or more) 17 3. How many household members spent most of the past week A. None 0 working? B. One 9 C. Two or more 14 4. In their main line of work, how many household members work A. None 0 as wage or salary employees for a private firm or the B. One 4 government? C. Two or more 11 5. What is the residence’s A. No class or zero (no connection, pirated connection, 0 rate class for or generator), one, or two electricity? B. Three 4 C. Four, five, or six 9 6. What fuel or energy A. Firewood, wood, charcoal, coal, electricity, gasoline, 0 source does the petroleum, kerosene, alcohol, or waste material household usually B. LPG from a cylinder or tank 2 cook with? C. Natural gas from a public network 3 D. Does not cook 6 7. Does the household have a working clothes washing machine? A. No 0 B. Yes 4 8. Does the household have a working refrigerator or freezer? A. No 0 B. Yes 3 9. Does the household have a working DVD? A. No 0 B. Yes 4 10. Does the household have a motorcycle A. None 0 and/or a car for its own use? B. Motorcycle only 3 C. Car (regardless of motorcycle) 9 Microfinance Risk Management, L.L.C., http://www.microfinance.com Total score:

Figure 34 Example of a poverty scorecard from Colombia Source: www.microfinance.com

124 6 Collecting and analysing data

• Physical situation Maps and docu- records and participatory enumeration and ments showing the topography, hydrol- mapping. See chapters 4 on Land manage- ogy, environment, and current layout ment and chapter 5 on Planning and design and design of the area, current building for more. quality and conditions. Key questions • Plans and planning rules Current zoning plans, formal legal planning in- • What is the formal and informal land struments, rules on building types, areas, and tenure situation in the proposed project site? • Demographic and social information Numbers of households and peo- • What laws apply to the land and prop- ple, occupation density, erty, and how will they support the project? • Needs and aspirations of landowners, landholders and residents. • What are the governance arrangements around land and housing (including the Approaches history of the land and property in the city)? • Desk research to gather reports and plans from the municipal government, • How will the needs and interests of reg- laws and regulations. istered landowners and other residents be weighed and balanced in terms of • Participatory enumeration to gather who gains what? information on the community and their needs. • How will required land contributions be fairly determined? • Site visits to gather technical information. • How will land be valued? How much is land currently worth? Land and housing Types of information needed The formal records for land ownership and boundaries may be very different from the • Community or customary land laws, situation on the ground, and from what lo- local land disputes or historical issues of cal people say. Even where the formal re- significance. cords are in reasonable condition, they may • Reports and maps: reports and maps not recognize the land, tenure and proper- of local land and environmental issues ty rights of informal settlers, informal resi- and transactions between buyers and dents, or women. Formal titles are only one sellers of land. of a wide range of types of tenure reflected in the “continuum of land rights” (Chapter • Evidence for informal claims to land – 3). You will need to gather information from such as occupancy, traditional use rights, various sources, including both the formal etc.

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TABLE 15 INFORMATION ON HOUSEHOLDS IN THE COMMUNITY

Category Variables

Basic household Number of family members profile Age of household members Gender of household members Educational levels of school age children Educational attainments of adult household members Civil status of household heads Length of residency in the community Tenure status (house owners, renters, sharers, etc.) Type of structure (concrete, semi-concrete, wood, other light materials)

Physical profile Size of plot Location of plot Size of housing Number of rooms Quality and building material of housing Number of persons in the house Connection to services and infrastructure (water and sanitation, electricity)

Social profile Province where household comes from Ethnicity Religious affiliation Relatives in the community Access to or sources of basic services

Economic Occupation, employment profile Type of work (regular, contractual, seasonal, etc.) Primary income source Other income sources Amount of monthly income Major household expenses (as percentage of monthly income) Access to sources of credit/lending facility or institutions (government and private)

Organizational Membership in community organization affiliation Position in the organization Length of membership in the organization

Perceptions or Knowledge/understanding of issues affecting the community positions on Opinions on issues affecting the community community Position/s on the issue/s affecting the community issues Recommendations to address community issues

Adapted from UN-Habitat (2010). Originally from Felomina Duka, DAMPA/ Huairou Commission

126 6 Collecting and analysing data

TABLE 16 STEPS IN PARTICIPATORY ENUMERATION AND MAPPING FOR PILAR

Prepare

1. Identify Identify community groups who may be interested, and explain what partners and you want to do. Make sure the groups represent a wide spectrum of build trust people in the community.

Decide on the tasks and allocate responsibility to particular organiza- 2. Allocate tasks tions and individuals.

A small core group steers the enumeration and trains and manages a larger number of enumerators who go from door to door to gather 3. Build and train information. Train these enumerators on the purpose of the enumer- a team ation, as well as techniques such as measurement, interviewing and recording responses.

4. Inform and Make sure that people know that the enumeration will take place, its mobilize the purpose, how the information will be used, as well as issues such as community privacy.

Collect background materials, other data sources, maps, aerial photos, 5. Gather etc. You can use this to guide data-gathering or as a basis for com- secondary parison (for example, to contrast official figures with the enumeration information findings).

6. Design the Design and pretest the questionnaire, develop interviewing procedures, enumeration and design the mapping exercises. Divide the area to be surveyed into instruments manageable areas that one enumerator or a small team can cover and procedures within the time allocated.

These may be as simple as paper, pencils and chalk, or they may include 7. Obtain more sophisticated items: surveying equipment, global positioning materials and equipment, tablets or mobile phones, computers and printers. You will equipment also need the right software, and to train people how to use it.

Implement

This may take one day, several days, or longer. The teams of enumerators visit their designated areas, knock on doors and interview people. 8. Conduct the For mapping, they work with the owners and residents of each plot or enumeration building, record its boundaries and characteristics (number of storeys, rooms, etc.), and record the ownership and tenure information.

Report and analyse

9. Capture the Transfer the data from the original paper forms (or tablet computers or data maps) into a computer or into the cloud.

Check the data for errors and missing information. Cross-check where possible with other data sources (such as other questions in the ques- 10. Verify the data tionnaire). Where possible, go back to collect missing items. Display or present the data in public and invite people to discuss the preliminary findings.

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Once the data are reasonably free of errors, you can start analysing it. Calculate totals (e.g., number of residents) and averages (e.g., mean 11. Analyse number of people per household). Tabulate or graph data to reveal relationships (e.g., tenure status of female-headed households), or do more sophisticated statistical analysis.

Apply

Convert the analysis into a form that can be used: reports, maps, post- 12. Report and get ers, graphics, etc. feedback Present to the local residents, municipality and other stakeholders.

13. Develop Use the information to develop the land readjustment plan. Use the the land information to allocate each landowner, landholder or resident a new readjustment plot (or rights to rent a property) that is the right size and in the right plan location.

14. Store and Make the non-confidential information available to all stakeholders. access the Store the information in a way that is secure, protects confidentiality (if information required), and can be updated if required.

People are born, move into or out of the area, and die. Tenure situations may change rapidly. Keep track of these changes so you know who is eligible for a plot or social housing, and who is no longer 15. Update the eligible. information You will need to impose a moratorium after which no more changes in certain types of data (for example, eligibility for reallocated plots) are not allowed to change.

16. Monitor As the land reallocation progresses, use the data as a baseline for mon- progress itoring progress.

After the project is over, do another survey to check whether people 17. Evaluate are now better off. Again, use the enumeration data as your baseline.

Adapted from UN-Habitat (2010)

Approaches Environment

• Desk research to gather and analyse The law may require a formal environ- documents such as laws and rules. mental impact assessment to predict the environmental positive and negative • Interviews and discussions with land consequences of the project before it can professionals, government officials, aca- proceed. This follows a standard set of pro- demics, local land groups and NGOs. cedures (Figure 36), and may have its own • Participatory enumeration to deter- rules for public participation and documen- mine the situation on the ground. tation of decisions, and may be subject to judicial review.

Many slums are built in difficult areas – on steep slopes subject to landslides, in low-ly-

128 6 Collecting and analysing data ing areas that are easily flooded, or close to • How might the project be designed to noxious sites. A project may impinge on an reduce harm to the environment and area that should be conserved for environ- maximize benefits to it? mental reasons – for example to preserve bi- • Are there particular groups or individuals odiversity or open land, or to protect water who are currently harmed by the envi- supplies. The environmental assessment can ronmental situation, and how might the indicate whether it is advisable to do the project improve the situation? project in such areas, and if so, how to miti- gate the potential problems and reduce the Types of information needed risk of disasters. It should take into account the sensitivity to climate change – which • Laws relating to the environment and may lead to more flooding or changes in the man-made environmental hazards water table, for example. • Information on geography, topography, The impact assessment weighs the environ- climate change risk, biodiversity, endan- mental risks against the project’s objectives. gered species, etc. It may recommend whether to proceed with • Opinions of local people on environmen- the project or propose measures to reduce tal issues. environmental impacts to acceptable levels. Approaches Even if a formal environmental impact assessment is not needed, you must still con- • Employ an environmental specialist sider environmental issues. An assessment to conduct the assessment. will inform the site selection, tell you what • Formal environmental impact assess- the relevant environmental laws are, and ment. suggest how to deal with environmental issues. • Desk study to analysis local and national policies, laws and regulations and to Key questions review the status e.g., of endangered species. • What are the relevant environmental laws and regulations affecting the pro- • Field visits to assess the situation on ject? the ground.

• What environmental consequences (pos- • Stakeholder engagement to gain itive or negative) might the proposed feedback from stakeholders. project have? How might the environment affect the viability or design of the project?

• Are there any environmental considerations that may mean the project cannot proceed?

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Environmental or social baseline studies

Terms of reference for assessment t Studies and impact analysis

Management and monitoring plans Stakeholder engagemen Government review Government decision

Source: www.njv.com.fj/wp-content/uploads/EIA_process.jpg Figure 35 A typical environmental impact assessment process

4 ANALYSIS, VALIDATION, USE, Some of this analysis requires the skills of STORAGE AND MAINTENANCE specialist professionals (such as lawyers or financial experts). But where possible, Analysis the analysis should be done together with Once the data have been gathered, they representatives of the community. This will must be analysed and validated. This avoid creating the impression that the pro- includes: fessionals are making decisions in secret, and will increase community ownership of • Aggregation and summary of house- the project. hold- and plot-level data to give an overall picture. Validation

• Segregation of the data by gender, age, Once the information has been summa- income, disability/vulnerability, etc. to rized, it should be presented to the commu- ensure the interests of each group are nity and to the organizations involved in the taken into account. project. This is an opportunity for them to • Analysis of the governance, legal, finan- assess whether the information accurately cial, planning, land and environmental reflects the current situation, and to make aspects to determine an appropriate ap- any corrections needed. Three types of vali- proach. dation are needed:

• Analysis of the community information • Checking the information against offi- and stakeholders’ opinions to ensure cial records and other sources of infor- that the plans will fulfil people’s needs mation. For example, what the commu- and expectations. nity says about the ownership of each plot (or claims to each plot) must be • Checking and cross-validation of the checked against the official records, and data to eliminate errors. any differences reconciled.

130 6 Collecting and analysing data

• An overall presentation (or series of cords after the land readjustment has taken presentations) to familiarize people with place. Because these records will carry legal the broad outlines. weight (for example for claims to particular plots), you will need to ensure that changes • A detailed checking of the information can be appropriately validated. with individual households or groups of neighbours to ensure that no errors have Other types of information (such as demo- been made. This is also an opportunity to graphics) carry less legal weight but are use- resolve conflicts or update the data with ful nonetheless. Here, the community can changes (e.g. in tenure or land owner- play a big role in keeping the data up to ship) that have occurred in the mean- date. Perhaps a local NGO or community time. Get people’s signatures to show group can be entrusted with maintaining that they concur on particular items (for the records. example, that a particular plot belongs Keeping the data in the “cloud” permits to a particular person). This helps pre- trusted individuals to make changes and at vent them backtracking later. the same time allows others to have access Information is not neutral: it may be con- to the information. flicting or politically sensitive. It may be nec- Data collection is not a one-off activity. Some essary to have an arbitrator to help resolve types of data will be updated automatically conflicts along with representatives of the if the administrative systems are functioning community and other stakeholders. It is best well. The cadastre, for example, will be up- to avoid using the courts if possible because dated continuously through the process of of the expenses and delays this entails. registering land transactions. Even so, it is advisable to check a sample periodically to Use monitor whether the registration system is Once the information has been gathered working properly. analysed and validated, it can be used to Other types of data, such as income levels plan and implement the PILaR project. See or numbers of tenants, are not updated au- the other chapters in this book on how to tomatically because the municipality does do this. not keep track of them. Depending on the pace of change in the area, such records will Storage and maintenance quickly become out of date. It may be nec- How should the information be stored? essary to conduct periodic sample surveys to Who should be responsible for keeping it refresh the information so it can be used in updated? planning. Part of the information will need to go into the official records – the cadastre and land records system. Consider ways to keep the community involved in updating these re-

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• Analysing mountains of information CONSIDERATIONS IN takes time. The full analysis may not be ready in time, making the baseline use- DATA GATHERING less for planning or evaluation.

Some suggestions to overcome these problems: COST OF INFORMATION GATHERING Decide if you really need it. For each type How much does information gathering of data, ask yourself why you need to col- cost? Collecting information can take a lot lect it, who will use it, and for what pur- of staff time, energy and money, especially pose. Then divide up the information into if conventional survey methods and profes- categories: sional staff are used. Make sure that these • Must know costs and the time required are built into the project budget and timelines. • Should know

Participatory approaches and gathering • Nice to know. data in digital form can reduce the costs. Top priority goes to the must-know data; You will have to invest in training and su- you can probably avoid collecting the “nice- pervising members of the local community to-know” information altogether. and in the digital equipment and software Split the data collection into manage- required. Bear in mind that local community able chunks. Design separate surveys to enumerators should be reimbursed. gather information on different topics. Do an initial survey to gather the information AMOUNT OF INFORMATION you need to start the project. Then do additional surveys to gather information on It is tempting to collect a lot of information specific subjects. in order to get a complete picture of the situation, or in case it comes in useful. That Use samples. It may not be necessary to has two big disadvantages: question everybody in the population. To measure poverty levels in the project area, • It requires a major effort, both on the for example, it may be enough to take a part of the enumerators and from the random sample of residents. people interviewed. That increases the time required and cost of gathering the Use proxy measures. Gathering certain information. Faced with lengthy ques- types of data can be very time-consuming. tionnaires, interviewees may refuse to To count the number of households in the answer (or give unreliable responses), area, The Medellin project supported by and the enumerators may be tempted to UN-Habitat counted the electricity meters skip questions or fill in dummy respons- on the outside walls of the buildings. That es. saved having to knock on doors and hope

132 6 Collecting and analysing data there was someone in who was willing to that they may prefer to keep confidential. answer the enumerators’ questions. It as- Indeed, they may divulge such information sumed that each household had its own only if they are confident that it will stay a meter (a reasonable assumption in this secret. Examples are incomes and relation- area). ships within the household, and the precise amount of compensation that each household receives. The types of sensitive infor- PRECISION mation may vary from place to place.

Some data have to be precise: for example, Such sensitive information should remain the list of people who are to receive real- confidential. In principle, each individual or located plots must be definitive (no one household should be able to view and cor- missed out; no one mistakenly included). rect their own information, but not that of Other types of data do not have to be as others (see Ownership below). But at the precise. Examples include the area of the same time, participatory enumeration and original plots and the income levels of peo- mapping rely on neighbours’ cross-checking ple affected. It is not necessary to measure each other’s statements and claims. This is these to the nearest square centimetre or to prevent people claiming more land than shilling. Trying to do so will raise expecta- they are entitled to, or conversely, claiming tions that cannot be fulfilled. to be poorer than they really are in the hope Bear this distinction in mind when planning of preferential treatment. to gather data. It is quicker and easier to col- The project team, in conjunction with the lect rough data than it is to measure things local people, should decide what types of precisely. And it is better to be roughly right information should be kept confidential and than precisely wrong. what should be open.

TRANSPARENCY VS CONFIDENTIALITY OWNERSHIP

What information should be open, and Who “owns” the data about individuals and what should be confidential? In general, it the community? “Data ownership” means is best to be as transparent as possible. That two things: the authority to allow or deny means that all decisions should be made access to the data, and the responsibility for openly, with the participation and approval the data’s accuracy, integrity, and timeliness. of the people who will be affected. Maps, In general, data should belong to the sourc- plans and statistics should be made avail- es it came from (Figure 37). So individuals able so people can understand the project should own data about themselves: they goals and details. must be able to allow or prevent other peo- But the project will also need to gather in- ple from seeing and using it. The communi- formation about individuals or households ty (or a representative body of community

133 Remaking the urban mosaic members) must be able to do the same for information, and how to manage such aggregated, anonymized data. But this data access. should be made more widely available.

It is vital that information not be appropriat- USE BEYOND THE PROJECT ed by the municipality, some other government body or the private sector and used The information gathered will be useful against the local people. That would breach not only for the project, but also for oth- the trust between the project agency, mu- er purposes – for maintaining the cadas- nicipality and the community that is vital for tre and land register, monitoring progress, project success. and planning further interventions in the community. Some information, such as land registration information (the location and boundaries of Make sure that using the data in such ways plots, and the identity of the people who does not violate the principles of ownership hold rights to it), has legal implications and (see above). must be maintained by the relevant author- The information should also be used to ity (such as the municipality’s land registra- change how official systems work – to tion office). But this office cannot change make them more responsive to the needs it without the express permission from the and aspirations of local people. Gathering landowner – so the ownership is joint. data in a participatory way helps people get While designing the data collection, the organized and gives them the awareness project implementing agency should discuss and information they need to lobby other these issues with the community members stakeholders and the municipality. A trusted and reach an explicit agreement with them local organization can help the community on who has access to and control over the to make the most of the information.

134 6 Collecting and analysing data

Where does the Examples of Who owns it? information come information types from?

Individual Land registration Individual households information households

Responses to survey questions

Aggregated Community responses to Community survey questions representatives, trusted community organization

Government, Government, Plans municipality municipality

Laws, rules

Figure 36 Where does information come from? Who owns it?

135 136 ENGAGING WITH 7 STAKEHOLDERS

ne hundred percent public agreement! into the plans. Ultimately, some of the peo- OA complete success for the land re- ple who had originally taken the govern- adjustment project in Lungtenphu, on ment to court became staunch supporters the edge of Thimphu, the capital of of the land readjustment. Bhutan (Figure 38). But the agreement did not come easily. It was the result of intensive stakeholder engagement by Many people have a legitimate interest in the project. a land readjustment project. They may be affected directly – as the owners or land Landholders were very sceptical at first. or buildings, as residents of the area, or as Some had already had to give up land people who own businesses or work there. through compulsory acquisition orders in They may provide services to the area or order to build an expressway, sewerage fa- depend on it for their livelihood. They may cilities, a housing project and schools. When hope to gain something from the readjust- the land readjustment project was pro- ment and the subsequent redevelopment. posed, some were bitterly opposed: they did not trust the government, and they had the You cannot keep everyone happy all of the law and parts of the government on their time. But you can try to keep as many peo- side: neither the Ministry of Agriculture nor ple as happy as possible. A PILaR project the National Environment Commission sup- does this by engaging actively with the com- ported the idea of land readjustment. munity and other stakeholders at all stages. It seeks their opinions, involves them in the But the government wanted to avoid the planning and design, and provides them complicated and expensive process of ac- with the information they need to make in- quiring land. So it engaged in a series of formed decisions and choose among a se- consultations with the local community. It ries of technical feasible options. It aims to established a public consultation unit, held build consensus, trust and support among public meetings, used to media to inform the stakeholders. It tries to ensure that they and conduct debate, invited landholders to all benefit from the project, and that no one visit the planning offices, and held one-on- is harmed. one meetings with individual landholders. These initiatives worked: they enabled the Doing this takes time and effort. But the risks landholders’ concerns to be incorporated of not doing so are greater: a high-handed

137 Remaking the urban mosaic

Before land readjustment

After land readjustment

Figure 37 Cadastral maps before and after the land readjustment in Lungtenphu, Thimphu

138 7 Engaging with stakeholders approach, where professionals make all the aries of the “community” are fluid: it can decisions and present them as a fait accom- be hard to tell whether someone is part of pli to the other stakeholders, is much more the community or not (and it may not mat- likely to lead to dissatisfaction with the mu- ter much – more important is whether the nicipal government, protests and a break- person has a legitimate interest in the area). down in social order. The most important groups include:

This chapter gives an overview of stakehold- Landowners and landholders These are ers and community engagement, focusing the people who hold formal or in some cas- on the nature of the engagement and as- es, informal land rights and claims to land pects such as human rights, power relations, and/or buildings. They may be residents, or gender, youth and capacity development. they may rent out some of their land and See also Chapter 6 on data gathering and property to others. Their claims may over- Chapter 10 on communication for ideas on lap; several individuals may claim the same how to deal with these issues. plot, and they may disagree about the plot boundaries. Some may not actually live in the project site: they may have moved away and be hard to contact. They may have died, and their heirs may disagree over who WHO ARE THE owns the land. The documents for some plots may be unclear. In some countries, the STAKEHOLDERS? government may formally own the land, but individuals have leasehold or other forms of The stakeholders in a PILaR project consist land rights. of a wide range of actors. They include the Tenants Tenants are residents who pay local residents, businesses, service providers the landowners or landholders for the right and organizations (the “community”), ab- to use the land or might sublet a room or sentee landowners and landholders, as well part of a house from another tenant or via as people in neighbouring areas, NGOs, some other arrangement. They may have a the municipal government, neighbouring formal contract or an informal agreement local authorities, local land professionals, with the landowner or landholder. Their academics, project partners, property de- rights may be protected by law. Tenants velopers, banks and donors and the media may sublet all or part of their properties to (Figure 39). sub-tenants. Informal residents occupy the land illegally, though in some countries they may have certain formal legal rights. Even THE COMMUNITY where they are not protected by law, they The community consists of a wide range of still have basic human rights that must be stakeholders, who may have different and respected. conflicting views and interests. The bound-

139 Remaking the urban mosaic

Absentee landowners/ Policymakers landholders Schools PROJECT AREA National and Media provincial governments Landowners, Housing landholders associations

CommunityC ty NGOs Academics organizationsns Young people Women PROJECT PARTNERS Tenants Local land Donors Disadvan- professionals taged Informal residents Banks Municipality Elderly

Local Property businesses Service developers providers Neighbouring communities

Figure 38 Stakeholders in a PILaR project

Women Women are often disadvantaged to express their views in public. And young when it comes to land rights. They may lack adults are the perpetrators of much of the formal legal rights: in some countries they crime that occurs in urban areas. are not allowed to own or inherit land by Older people The elderly and infirm have tradition or law. They may traditionally not special interests and needs: such as green be permitted to appear or speak in public, space where they can sit and meet their or may have to defer to their husbands’ or friends. They may be unable to attend com- male relatives’ decisions. Single women and munity gatherings, and unwilling to swap widows are particularly at a disadvantage their current housing, however unsatisfac- here. tory, with newer accommodation. In some Young people Children and young peo- cultures, the elderly are respected and privi- ple have their own interests that their el- leged; in others, they are instead neglected. ders may ignore. Adults may not realize the Other disadvantaged groups These importance of facilities like schools, parks, include the disabled, ethnic and religious playgrounds and sports facilities. Young minorities, lower castes and legal and illegal adults may be more interested in renting immigrants. Because they tend to be poor, housing than ownership. Children and they often live in the sorts of areas subject young people typically lack the opportunity to land readjustment schemes.

140 7 Engaging with stakeholders

Community organizations These in- OUTSIDE THE COMMUNITY clude a wide range of organizations: faith- People in neighbouring areas may stand based groups, educational and lobbying to benefit from the land readjustment pro- groups, sports clubs and special interest cess because of improved access and servic- associations, as well as organizations spe- es. Or they may fear the disruption caused cifically interested in land and accommoda- by the redevelopment. tion issues. They are important partners in a land readjustment project. If the project NGOs Two types of NGOs may be inter- approaches them in the right way, they can ested in the project: those already working be important allies; if not, they can be tena- in the area, and those with an interest in cious opponents. land issues. Those working in the area can be a valuable source of information, advice, Housing associations These may play a organizational skills and connections with lead role in the land readjustment, or they the community. Those with an interest in can play a major role in organizing land- land issues can be vital partners in designing owners, landholders and residents – espe- and implementing the project. NGOs may cially the poor. If an association does not be suspicious or hostile to the project, and already exist, consider helping form one to they can be effective opponents if they disa- represent their views. gree with it. Or they can be equally effective Local service providers These include supporters. So it is important to work with health, welfare, social services and schools them, get their inputs and ensure their con- in or around the PILaR site. cerns are taken into account.

Local businesses In slums, many local Local and municipal government and residents may own, run or be employed in policymakers Various branches of the businesses within the project area. Retail municipal government need to be involved is often a big source of employment, with in the project: the units responsible for plan- shops, retail stalls and mobile vendors sell- ning, land registry and cadastre, finance, le- ing a wide range of items. Other common gal issues and infrastructure, as well as the types of employment include food prepa- mayor’s office (or its equivalent). Managers ration and sale, construction, transport, and key staff of these units will need to security, small-scale manufacturing and re- understand the project’s goals and contrib- pair, and services such as hairdressing and ute to the design and implementation (see entertainment. The government itself may Chapter 3). Support is also needed from employ people – in things like administra- elected officials such as councillors and the tion, construction and waste disposal. In local member of parliament. rural areas (and in urban areas too), crops, Neighbouring authorities These will be livestock and horticulture may be sources of interested in a PILaR project on the edge of income and food. the city, especially if a boundary change is proposed.

141 Remaking the urban mosaic

Academics Universities and research in- stitutes can provide the academic support COMMUNITY needed to design and implement a land ENGAGEMENT readjustment project (for example, in designing an enumeration or assistance with planning the readjusted area). They can also Community engagement (Box 26) lies at the offer independent assessments or media- heart of a PILaR project: it is what enables it tion where required. to be participatory, inclusive and equitable. Without proper community engagement, a Project partners Other potential project PILaR project would be little different from a partners include professionals such as law- conventional land readjustment project. yers, surveyors, valuers and architects. The project will typically hire these to provide The engagement must be genuine. It gives advice or to perform specific tasks. the community a significant say in the project decisions. It keeps the community in- Property developers These can provide formed, solicits their opinions, and ensures expertise in designing and building infra- those opinions are taken into account in the structure and buildings. But they may have planning and implementation. a commercial interest in the redevelopment, so care is needed in dealing with them. The engagement takes power relations into Contracts should be put out for open, com- account (see below). It ensures that people petitive tender, in accordance with the law. who are vulnerable or tend to be left out are given the opportunity to make their voice Banks and donors These may lend (or grant) money to the project, so they will want a say in how it is invested and need to be kept informed about the goals and activities. Landowners, landholders, residents Box 26 Community engagement and businesses affected by the project may also want to borrow money from banks to “Community engagement is a process purchase plots, invest in new building, cover that requires power sharing, main- the costs of relocation, or bridge over the tenance of equity, and flexibility in period of disruption. pursuing goals, methods, and time frames to fit the priorities, needs, and Media Local radio and television stations capacities within the cultural context of communities. Community engage- and newspapers can also be either support- ment… is often operationalized in ers or critics of the project. Find out who the form of partnerships, collabora- the relevant journalists are and keep them tive, and coalitions that… help mobilize resources and influence systems, informed throughout. The media can also change relationships among partners, be a valuable conduit for keeping the local and serve as catalysts for changing policies, programs, and practices.” community informed about the project’s progress and for soliciting their inputs. Source: Ahmed and Palermo, 2010

142 7 Engaging with stakeholders heard. It is necessary to get local people’s gagement must run throughout the project trust, support and acceptance. life and must be coupled with an effective communication strategy (Chapter 10). Fig- The engagement runs through all com- ure 40 lists methods at each stage in a PILaR ponents of the project: planning, legal, fi- project. nance, plot allocation, etc. It must involve not only the team of community workers, but also the technical specialists. These spe- MANAGING COMMUNITY cialists will need to adjust how they work ENGAGEMENT and may need to learn new skills in working with local people. Conventional land projects often allocate the task of community engagement to a Community engagement is not just a “nice team of community organizers or social thing to do”. It is also a vital aspect of the workers, or even subcontract it out to an PILaR project. For example, where official NGO, leaving the specialist technical teams land records are incomplete, disputed or do working on finance, planning, law etc. to not reflect the current land use, communi- work independently and undisturbed. The ty engagement can provide vital informa- technical teams deliver their plans to the tion on who actually lives on the land and community for approval, and are often un- their tenure status. It makes it possible to willing (or unable because of deadline or map the location and boundaries of plots. budget pressure) to make any significant It helps quickly resolve disputes that would changes or listen to the community. The re- otherwise take years through conventional sult is plans that reflect technical considera- legal procedures. tions rather than the wishes of local people. A PILaR project needs to work with local res- This is a mistake. Community engagement idents. They have to be organized in some is central to a PILaR project: the technical way to make this possible. If local organiza- work must be informed and guided by the tions do not already exist – or if they are not community, who should be closely involved representative – the project will have to help in the project design and decision making. create them. In urban expansion and city-centre projects where relatively few residents are affected, COMMUNITY ENGAGEMENT the amount of effort needed for community THROUGHOUT THE PROJECT engagement is fairly small. But for land readjustment in slums, thousands of residents The most important way to understand may be affected, and lot more attention is the local reality and the stakeholders’ re- required. lations to land, property and tenure is the participatory enumeration and map- In such situations, consider setting up a ping (Chapter 6). But this is only part of the project office in or near the land readjust- community engagement process. The en- ment site, staffed by a team of community

143 Remaking the urban mosaic

• Preliminary meetings with community leaders Conceptualization • Initial feasibility study • Initial presentation to introduce the land readjustment idea

• Meetings with community leaders • Baseline study (if separate from feasibility study and detailed enumeration) • Stakeholder mapping • Engaging with existing community groups Data gathering • Organizing new community groups if necessary • Identifying and training the enumeration team • Participatory enumeration • Participatory mapping of plot boundaries • Validation meetings to check the accuracy of the enumeration and mapping findings

• Focus group discussions with particular groups in the community Plan development • Meetings with landowners, landholders and community representatives to plan the readjustment • Community meetings to present and discuss the plans

• Interaction with individual households to discuss their particular situation and to allocate suitable Plan finalization plots (or other solutions, such as social housing) • Community meeting to approve the plans

• Involvement of local people in marking new boundaries, clearing land and installing infrastructure Implementation • Assistance with relocation and temporary accommodation • Advice on and supervision of construction

• Face-to-face liaison with individual community members • Communication via the mass media (see Chapter 10). Throughout • Communication via website, social media and mobile phones • Involvement in monitoring and evaluation

Figure 39 Community engagement at each stage in a PILaR project

144 7 Engaging with stakeholders specialists. These act as the liaison between process itself. Powerful stakeholders include the rest of the project team and the local the municipality itself (or certain units with- community. They present the project to the in it), donors, banks, and land professionals local people, coordinate the participatory such as planners and valuers. Within the enumeration, organize meetings, answer community, landowners and property own- questions and act as a conduit for feedback. ers with formal titles are likely to have more The community specialists collaborate close- influence than those with informal or cus- ly with the technical specialists, and ensure tomary rights and claims, or tenants and in- that the community is closely involved in formal residents. Men tend to have a bigger and informed about the technical work. say than women; older people’s voices carry The more people affected by the project, more weight than those of the young, and the stronger the communication effort will so on (Figure 41). have to be (Chapter 10). The powerful are more likely to have their interests reflected in the planning and implementation than are the weak. The PILaR POWER RELATIONS approach tries to even out the power im- A land readjustment project brings into balances and ensure that the weak are also sharp focus the power relations within the heard. The principal method of doing this is community and outside it, and within the through community engagement.

Banks, donors Planning and finance departments of municipality Land professionals Borrowers Men Social services department Landowners Non-formal landholders Adults Community members Long-time residents Women Majority ethnic or religious Tenants, squatters groups Young people, elderly Well-educated Recent arrivals, temporary Employed residents …have Well-off Minorities more Outside the community Illiterate power Unemployed than… Poor Inside the community

Figure 40 The powerful and the less powerful

145 Remaking the urban mosaic

People who tend to be neglected tend to fall into two categories: DISADVANTAGED GROUPS • Those who are willing but unable to participate for a variety of reasons such as cultural or language barriers, WOMEN AND GIRLS geographical distance, disability or socio-economic status; and Women and girls face several disadvantages when it comes to land: • Those who are able but unwilling to participate because they are not very in- • They may be prevented by formal or cus- terested in politics, do not have the time, tomary law from owning, inheriting or or do not trust government to make renting land or property. good use of their input. • The land or property may be registered It is important to consider these questions: into their husband’s or father’s name rather than their own. • Who is initiating the change and why? • They have little voice in discussions and • Who are the beneficiaries of the change, decisions about land: they tend not to and what will they gain? be invited to meetings, or to attend • Who is vulnerable to the change and even when invited (perhaps because of why? household duties); they are expected to • What are the impacts, both positive and keep quiet or defer to men; they tend to negative, short or long term. be less well educated and less articulate than men.

PILaR wants to engage “people across the spectrum of the stakeholders and the communities involved. This involves understanding about everyone and including everyone.” Photo: Rainer Müller-Jökel Melissa Permezel, urban specialist, UN-Habitat

tinyurl.com/pilar- permezel-stakeholders

146 7 Engaging with stakeholders

Box 27 Gender evaluation criteria

The Global Land Tool Network’s gender evaluation criteria are a flexible framework to test the gender responsiveness of land readjustment and other land 1 A training package tools. Improving gender equality and grassroots goodparticipation land governance through The six criteria relate to women’s and men’s access to land: • Equal participation Designing and Evaluating • Capacity building Land Tools with a Gender Perspective A Training Package for Land Professionals • Sustainability • Legal and institutional considerations • Social and cultural considerations • Economic considerations. The criteria include a series of questions to pose and suggestions for ensuring that both women and men included in Figure 41 Training materials produced by the process. The gender criteria have the Global Land Tool Network on applying been tested and applied in Brazil, Ghana, the gender criteria Nepal, Rwanda, Tanzania, Togo, Uganda and Zimbabwe. More information: tinyurl.com/pvy5xt3

• They are less likely than men to be able press their needs and concerns. It must in- to enforce their rights in the courts or volve both in identifying infrastructure pri- through the traditional justice system. orities, and provide mechanisms for both to resolve disputes. It should ensure that Because of these problems, the PILaR pro- women benefit from the project’s capacity ject must pay special attention to gender development efforts. issues. The gender evaluation criteria developed by the Global Land Tool Network let you systematically assess and increase YOUTH women’s land rights (Box 27). Young people – or in UN language, “youth” Applying the gender criteria to PILaR will en- – are major users of public space in cities. sure that the interests of both women and But they have little say when it comes to men are taken into account. For example, making decisions about land. Surveys often the project must take into consideration question only the head of the household – how women earn their livelihoods. It must usually an adult male – and ignore the in- ensure that both men and women can ex-

147 Remaking the urban mosaic terests of younger people in the household of such crimes. Better urban design (wider (and women, of course). Many recent mi- roads, street lighting), improved services grants to cities are young, so they tend to (youth facilities, security and policing) and be recent arrivals and have insecure tenure greater employment opportunities can help rights to their homes. This means special ef- reduce crime rates. forts are needed to ensure that their voices At the same time, young people should are heard and cater to their needs (Box 28). not be seen as a problem, but as part of Young people have different needs and in- the solution. They are an important part of terests from their elders. They tend to be the future of the city, and can provide ener- more interested in things like sport and rec- gy and resourcefulness for the neighbour- reation facilities, education and entertain- hood to grow and adapt. They can also play ment. They may be interested in low-cost a vital role in the project – for example, by rental housing so they can set up an inde- gathering information during the participa- pendent household and start a family. They tory enumeration, or clearing land and con- may prefer to seek employment locally. So structing infrastructure. a redeveloped area needs to provide adequate recreation and educational facilities, as well as low-cost housing and opportuni- ELDERLY ties for small businesses to set up and grow. In some cultures, older people have dispro- Young people are often the perpetrators portionate amounts of power: committees of a large proportion of urban crime, espe- of elders make the key decisions. Elsewhere, cially muggings, murder and gang violence. older people may still be treated with re- But they also tend to be the main victims spect, but the true power lies elsewhere.

We are developing a ren- “ovation process in La Can- delaria, and the PILaR approach will allow us to retain all the community in the place and avoid dis-

placement of people.” Photo: Rose Kipyego, IIRR

Maria Buhigas, urban and planning development specialist, Urban Facts

tinyurl.com/pilar-buhigas

148 7 Engaging with stakeholders

readjustment process to them and how Box 28 Youth and land they and their children (and grandchil- dren) will benefit. Youth is one of the cross-cutting is- • Ensure that they have the opportunity to sues (along with gender and several other topics) addressed by the Glob- express their wishes and influence the al Land Tool Network in developing direction and details of the land reallo- tools to manage land. The network has developed and tested an ap- cation. proach to check the actual and potential role of youth in Brazil, Kenya and • Ensure that the planning and design Zimbabwe. This may also be useful in takes their needs into account. For ex- PILaR projects. ample, housing, streets and open space More information: tinyurl.com/ should be designed with the elderly and pm9xa5n people with disabilities in mind. Design features can range from the macro (easy access to shops and public transport, And in some societies, elderly people have open space where elderly people can little say and tend to be forgotten, especially relax) to the micro scale (pathways sepa- if they are infirm. rated from traffic, ramps to allow wheel- The elderly may feel they have a lot to lose chair access, etc.). and little to gain from land readjustment. They may be attached to their current land OTHER DISADVANTAGED GROUPS or housing and reluctant to move, even if there are promised significantly better ac- These may include religious and ethnic mi- commodation. They may fear the disruption norities, recent lower castes, people with of moving, the noise of construction and disabilities, people living with HIV/AIDS, the the break-up of familiar networks of friends sick, etc. Some of these individuals have few and neighbours. Younger people may ex- social contacts outside their own group. perience similar emotions, of course, but Others may have few links with others in a they generally find it easier to adapt to new similar situation to themselves. They may be situations. excluded from services that others take for granted. That makes them especially vulner- Elderly people may have less access to the able. Special efforts are needed to listen to media and other communication channels their views and to ensure that they benefit than their younger neighbours. They may from the project. be less literate and numerate; this applies especially to older women.

PILaR should ensure that the interests of the elderly are taken into account. In particular:

• You may need to make special efforts to contact them and to explain the land

149 Source: Town Planning Schemes in Ahmedabad, presentation by Environmental Planning Collaborative (EPC), Ahmedabad, India. Image courtesy – EPC.

150 8 LEGAL ISSUES

and readjustment involves a change in This chapter is dived into two parts: people’s legal relationships in the same L • The first part considers the legal basis of way that it alters their physical ones. This land readjustment. It includes identify- means that there are three fundamental ing the legal framework and, where this considerations: may be absent or weak, options for how • To provide the framework within which to work around it. relationships can be changed in a clear • The second part considers the more de- and predictable manner that causes the tailed mechanisms to implement a pro- least stress possible. ject. • To ensure that the framework is fair and Throughout, we emphasize practical experi- will treat individuals and groups equita- ence rather than legal theory. bly, particularly the poor, women and the vulnerable.

• To provide the vehicle for the implementation of government policy on the ground. STRATEGIC ISSUES In developing or reforming legal frameworks, efforts should focus on the specific challenges and objectives. It is best to de- PRINCIPAL ACTORS sign a framework that channels existing be- haviour in the desired direction. Avoid trying Who may initiate a land readjustment pro- to impose or force, particularly if the gov- ject? The law may specify that only pub- ernance is weak, as this will make it more lic-sector bodies (such as the municipality) likely that the law will become irrelevant to may do so. If so, the public sector should people’s lives. be willing to initiate projects on behalf of other actors. In many countries that want to undertake land readjustment, a specific legal frame- The law may also specify who is responsible work is not in place. But it is usually possible for managing and for regulating the project. to adapt a range of existing legislation to The lack of a clear lead regulatory agency produce the desired results. can lead to lack of accountability, and the

151 Remaking the urban mosaic

Box 29 Policy and law

What comes first: policy or law? ment agencies and municipalities have to decide how to implement it. In general, policy should determine the law: the government decides what the Laws may be unclear or may conflict with policy should be, and then passes a law one another. For example, a law on prop- reflecting this. erty development may conflict with one on environmental protection. In such However, the relationship may also be cases, the concerned authorities must de- the other way round: laws determine cide which law has precedence, or must policies. This happens particularly at low- try to find a compromise that does not er levels of government: the national violate the principles of both laws. government passes a law, and govern-

National government policy

National laws

Municipality Land adminis- Land readjust- Other policies policy tration policy ment policy

Figure 42 The relationship between policy and law

relationships between the regulator and the rived from policy and established as ad-hoc project implementation need to be well un- legal instruments through administrative derstood to avoid conflicts of interest and decision or by contract. promote a healthy public–private balance. Using a contract to do this is an attractive The regulatory responsibilities must be well approach as it can engage the full range of grounded in policy: the criteria to apply in stakeholders and empower them as active making decisions must be clearly specified, participants early on. This can be particular- otherwise the implementing agencies will ly important if the project area has a lot of have almost complete discretion on detailed tenants and informal occupiers whose inter- standards and decisions. Where this is the ests have not been adequately considered in case, more transparent standards can be de- development decisions. Such an approach

152 8 Legal issues can enable all stakeholders to play a role in dysfunctional or not used (Box 30). The spe- the project oversight and management. cific responsibilities and processes should be mapped out and, if there is any experience in implementing land readjustment or a APPROPRIATE LAW AND POLICIES similar type of project, this should be docu- The appropriate laws and policies to use will mented and any weaknesses analysed. depend on the situation. Because land readjustment is a complex • A city extension will require specific procedure, any law will require a set of legal interventions that cover the city implementing regulations. The project’s boundary and the conversion of rural to experience with using these should be doc- urban land. umented and shared with the responsible authority to enable the law to be developed • An infill is likely to involve housing legis- further. If no such regulations exist, the law lation, including social housing, building can be used as a basis and the project can law, and appropriate bylaws. be used to develop the regulations. • If vulnerable groups reside in the area, The written law and actual practice may more emphasis will be needed on the vary. Having a pre-existing law does not al- protection of rights. ways help with the design and implementa- • If there are informal tenure arrange- tion of land readjustment if the legal provi- ments, mechanisms will be needed to sions do not reflect realities on the ground. regularize the residents’ rights or inter- Key characteristics of existing practice that ests, or to offer them alternatives. should be identified include:

• If the majority of landholders and resi- • Legal structure (principal instruments dents are better off, the emphasis will and their relationships) be on market mechanisms and potential for capital gain.

WHERE LAND READJUSTMENT IS ALREADY RECOGNIZED IN LAW Box 30 Getting the law used

Where land readjustment is a regulated Legal regimes sometimes take time to method of land management, it will be cov- develop in practice. In Colombia, land ered by a national law on urban policy and readjustment has been explicitly regulated since 1989. In 1997, the regula- urban development issues, or by specific tion of land readjustment was effec- acts regulating the different aspects of the tively integrated into planning tools method. (partial plans). But it is only recently that the main municipalities (Bogota, If there is a specific law, this should be the Medellin, Barranquilla) have begun to use and promote these tools. basis for discussion and analysis, even if it is

153 Remaking the urban mosaic

• Types of actors implementing land read- participate in the readjustment, or are justment projects they expropriated?

• The nature and levels of required partici- • Is it possible to freeze property values or pation by landholders development permits within an area formally designated for land readjustment? • Cost-recovery mechanisms • Is it possible to set cut-off times for par- • Requirements for land contributions ticipation in a given project? • The role of the public sector • Are there any rules or criteria to define • The procedures used by the government the location of the plots or properties for calculating costs and doing financial that a landholder receives as a result of analysis the land readjustment? • The means of valuation and exchange values: area-based (land or built space) or price-based? WHERE LAND READJUSTMENT IS NOT RECOGNIZED IN LAW Check whether the law covers only specific geographical areas or situations. If so, If the law does not directly provide for land what conditions are required before it can readjustment, it may be impossible or very be applied? difficult to do it. Nevertheless, check other regulations and practices to see wheth- Other questions: er they could be reasonably adapted. For • What does a mandatory scheme imply: example, laws or regulations on property are the reluctant landholders forced to rights (e.g., rural land management), urban policy frameworks or previous projects may

PILaR places great promi- “nence on the legal framework – to ensure that everyone has a right to participate fairly and equally, to also ensure that everybody has a stake in the outcome Photo: Rainer Müller-Jökel of the project.”

Robert Lewis-Lettington, UN-Habitat

tinyurl.com/pilar-lewis- lettington

154 8 Legal issues

Box 31 Notice and publication measures: Borrowing related legal mechanisms

A project has to make the public (and es- tailed planning process, so the same no- pecially people who are directly affected) tice and publication standards that are aware that it exists and about what it is required for detailed plans might be ap- doing. The law will specify how it must plied. But land readjustment also affects do this. The requirements may depend property rights – a particularly sensitive on how important the project is: strict area – so the standards associated with for big projects, less so for smaller ones. expropriation might be more appropriate. A land readjustment project is like a de-

offer precedents or analogous approaches. • Foreign and local investment equity re- You may be able to build an argument for quirements the legal feasibility of land readjustment, or • Regulatory instruments such as master at least start a debate on the need for new plans and building codes regulation or amendment of the rules. • Administrative procedures for public In practice, land readjustment relies on a communication and notification series of actions that are generally possible even if no explicit law exists. You may be • National, regional and municipal devel- able to compile such a set of actions from opment policies. generic mechanisms and processes (Box 31). The critical issues tend to be the deter- NON-OWNERS mination of common action and the ability to address holdouts. In most conventional land readjustment, the landowners are the principal benefi- Where there is no explicit legal framework, ciaries and decision makers, and they have you should consider the following: a major interest in participating. But PILaR • The constitution aims to benefit a wider group, including all • Laws covering planning, land acquisi- landholders and current residents no matter tion, expropriation and compensation, what their formal rights to the land. condominium The types of solutions for these stakehold- • Laws covering cooperatives, land trusts, ers must be defined, and the formal owners, real estate development corporations, the landholders, residents and the project community organizations and joint management team must formally endorse schemes for private–public–community the arrangement that is agreed to. participation

155 Remaking the urban mosaic

THE POOR OWNERSHIP TRANSFER

Legislation may specify who must be re- Two options exist for the formal transfer of garded as “poor” and the types and levels land titles (Figure 44): land readjustment of benefits they are entitled to. If this is not and land pooling. specified in the law, you can use the com- Both are formal legal processes which in- munity enumeration to determine who in volve cadastral and registration offices as the area is poor and should be allocated well as professional services such as lawyers special treatment. and land surveyors. The capacity to conduct these exercises and the quality of the cadastral and registry records probably mean that DEALING WITH HOLDOUTS in many developing countries, the former If some formal landowners do not agree to approach (land readjustment) is preferable. the land readjustment, the law will deter- The process of marking out the land, build- mine what the project can do: a negotiated ing infrastructure and issuing formal land buyout or compulsory acquisition (eminent documents may take some time. If the ca- domain) power to acquire the land. If nei- dastral and registration offices are not able ther of these is possible, the project will to take on these tasks, the implementing have to reach agreement with 100% of the agency must be legally empowered to do landowners. so. One of the reasons for land readjustment Land readjustment. Here, the individual is to avoid the expense and legal hassle of plots are only notionally consolidated. The expropriating land for development. De- implementing agency is given the right to spite this, the threat of expropriation in the design services and subdivide the land on last resort is a useful weapon to discourage a unified basis. The landholders then ex- holdouts. change their original plots for specified plots.

HANDLING DISPUTES AND GRIEVANCES Land pooling. The individual plots are all transferred to the ownership of a communi- Disputes and grievances are inevitable. They ty land trust (Box 32). In return, the trust is- are best resolved through community mech- sues shares to the landholders in proportion anisms or an arbitration committee; the to their shareholdings with each landhold- courts should be a last resort because they er owning a percentage of the area of the take time and are expensive. See Chapter 4 consolidated plots. The trust then divides for more. up the consolidated land into newly config- ured plots, and transfers ownership to the individual landholders. Here, two distinct transactions are needed: from the individu-

156 8 Legal issues

Land readjustment

Trust ownership

Land pooling Figure 43 Options for the formal transfer of titles

al owners to the implementing agency, and during the project process, so include an back again. arbitration mechanism in the contract that must be used before going to conventional The contractual agreement among all the courts. All residents and landholders should participants needs to be set up in a way to subscribe to it before the project starts. allow them to pool/transact all their property rights together. The contributors are all the holders of disposable land rights and PLANNING claims. The beneficiaries will include the contributors, plus other stakeholders (such Land readjustment needs to take into ac- as tenants and informal residents) who oth- count the planning instruments (such as the erwise would not receive any legal protec- city plan) that are established in the legal tion and entitlement. framework. Depending on the law, such plans may offer considerable flexibility, or The trust can be structured so it can perform very little. Similarly, the planning institutions its mandate only when a minimum voting and individual planners may be responsible threshold, based on land area, persons, land for producing plans according to their own value (or some combination of these criteria) technical judgement, sometimes with mini- is reached. Disputes and claims may emerge mal oversight. The resulting plans therefore

157 Remaking the urban mosaic

Box 32 Community land trusts

A group of individual owners could de- Houses might revert to the individual cide to pool their plots and create a com- owner or landholder or stay with the munity land trust (or housing cooperative trust, as the owners or holders might rec- or real estate development corporation) ognize the advantages of the trust work- to manage them jointly. The trust is set ing for their benefit. up for the benefit of the owners (or in The community land trust is based on the this case, owners, other landholders and idea that the value that can be derived tenants). It may sell part of the land, or from land within a community should rent it out in the short or long term. be protected and made available for the Because it controls more land, the trust long-term benefit of that community. It can do certain things more effectively achieves this by separating rights over than the individual owners. For example, the use of land from the freehold own- it may be able to raise a bank loan for ership. its members, using the land as collateral. Adapted from Barlow et al. 2002 The borrowers repay the loan by paying rent until the debt has been reimbursed.

depend on the technical expertise and in- to link these with higher-level policy direc- tegrity of the individual planners. You need tions. Using subdivision plans in isolation to understand how much discretion they from each other will not help achieve wider have, how much flexibility there is in the policy goals. For example, the redeveloped plans they produce, and how the planners area may end up being poorly linked to the will be accountable, and respond, to other major roads, cut off from retail centres or stakeholders. underserved by public transport.

The law may specify a hierarchy of plans, from the national down to the city, neigh- SPECULATION bourhood and local scales. But some of these may not exist, they may be out of Land speculation can be a major challenge date, overlap or contradict one another, or in a land readjustment project. When inves- be ignored in practice (Box 33). So you must tors realize the area is to be redeveloped, identify the most suitable planning instru- they buy up land cheaply, hoping to sell it ment for the project’s needs, and find out later at a higher price. Some residents may whether it is feasible to use it in terms of be encouraged, or even forced, to leave the its legal relevance, its relevance to existing area, making the project less inclusive. practice, and the possibility of changing it. Some ways to minimize this risk (some of If a master plan exists but is ignored, it may these depend on an appropriate law being be a waste of time trying to follow it. Often, in place): plans at the subdivision or neighbourhood are the most used, so it is worthwhile trying

158 8 Legal issues

LAND CONTRIBUTIONS Box 33 A patchy hierarchy of Land readjustment relies on landholders giv- plans ing up a portion of their land and getting a smaller, but more valuable piece of land in The planning hierarchy established in law is often not reflected in practice. return. But how much should they give up? For example, in Mozambique and The amount may be hotly debated, and de- Rwanda, the law recognizes six or more levels of plans, cascading from ciding can be a big hurdle to getting broad the national down to the project lev- approval. el. But in both countries only one or two levels are consistently developed, From a regulatory point of view, the choice and these serve as the main instru- is between a fixed contribution of (say) ments for action by the public and private sectors. Land readjustment 30%, or to set the amount in some other projects need to accommodate such way. realities. Fixed contribution levels have several advantages:

• Communicate to the community the • They can be established according to na- benefits of not selling early on, and of tional policy staying in the area to take advantage of • They are objectively applicable to all pro- the improvements of the area. jects and individuals

• If the land value is chosen as the basis • If widely accepted and consistently ap- of calculating the land contributions plied, they remove a contentious issue (Chapter 9), use the value at the start of from the list of points to be agreed. the project, regardless of the sale price However, they may also provide a focus of agreed to by the landholder and the objection and prevent projects from being new buyer. developed. They may also lead to perverse • Consider freezing land prices before the outcomes. Historically privileged areas that project intervention. are relatively well supplied with public space • Do not compensate for any new devel- may be required to surrender more land opments after the project is launched. than is necessary. Less privileged areas may not obtain the land necessary to develop • Allocate the right of first refusal to the vital services and infrastructure. Fixed con- municipality if a landholder wishes to tribution levels tend to be set as minimum sell. contribution levels, because of political ex- • Use the national expropriation regula- pediency, and then become maximum con- tions to prevent speculation. tribution levels because of resistance to going beyond what is legally required. • Explore the use of taxes and fees to discourage speculation. Not having a fixed contribution level opens up various possibilities, including devolving

159 Remaking the urban mosaic the decision to the municipality, and allow- rather than the project’s public objec- ing contribution levels to be negotiated case tives. by case. Such approaches also have several Overall, the use of case by case variable land advantages: contributions seems to be both vulnerable • The contribution level can be set for a to manipulation and to lead to levels of particular city, area or project, preferably contribution that are too low to meet pub- according to transparent criteria lic needs. Unless they are supported by very clear and robust criteria and strong public • Politically and socially acceptable levels oversight, they will be inadequate. Nation- of contribution can be agreed ally imposed fixed contribution levels will • They may avoid entrenched objections probably be the most practical, particular- by allowing other aspects of a project to ly in resource-poor settings. If the munici- develop while the contributions are dis- pal governments are reasonably capable, cussed. devolving decisions on land contribution But a variable approach can present major standards to this level may be the most ap- obstacles. propriate approach.

• Contributions too low The level of contributions may be set fairly low: enough to address immediate local needs but not enough to address broader public objectives. This will undermine PROJECT-LEVEL ISSUES a large part of the rationale for land readjustment, because the land necessary to achieve public purposes will not be SITE SELECTION available. Sites for land readjustment projects are gen- • Free riders Some subdivisions will be erally identified either ad hoc or on the ba- developed with almost no land contribu- sis of municipal-level plans. This approach is tions and will seek to rely on neighbour- flexible, sites can be identified quickly, and ing initiatives for public space or finance, there is relatively little risk of delays due to or the idea that the public will be forced legal challenges. However, flexibility must to expropriate anyway. be balanced with accountability. It is best to • Preferential treatment Those with consider the objectives of the intervention knowledge and resources may try to ne- using predetermined criteria and a transpar- gotiate preferential treatment. ent prioritization. Deviation from the criteria • Lack of transparency and risk of elite should be allowed, but only on the basis of capture Land contributions may be broad agreement and written justification. used to further the interests of the elite The criteria should be published. Shortlist- ed sites should be kept confidential until a

160 8 Legal issues

Figure 44 Fragmentation of land tenure in La Candelaria, Medellin, Colombia speculation strategy has been decided. This • Is it possible to improve the land infor- approach applies whether or not the law mation and administration system? specifically requires it. Usually there is no • Is it possible to rezone the land from ru- bar to the authorities exceeding minimum ral to urban or from lower to higher den- requirements in this type of issue. sity, so as to increase its value? When identifying project sites, legal factors that should be considered include: LAND AND PROPERTY • Can the legal criteria be met for choos- REGISTRATION AND TENURE ing the site, embodied in policy or otherwise? The legal side of the process of registering, consolidating and subdividing land needs to • Is land tenure not too controversial? Are be considered. The land registration process there not too many conflicting rights itself contains the relevant mechanisms. over the same land? Tenure types You will have to decide • Is it possible to regularize the tenure at how to recognize various types of tenure: the end of the readjustment? the documents or other types of evidence

161 Remaking the urban mosaic that can be accepted (such as title deeds, sible to take advantage of the land readjust- utility bills, actual occupancy, say-so of ment process to correct this by giving for- neighbours). The continuum of land rights mal land documents for the new legal plots (Chapter 3) is relevant here. Understanding as a joint holding. the nature of the tenure may be more important early on in the project than trying to address the challenges revealed. LAND CLASSIFICATIONS

Overlapping interests These may need The size and boundaries of the site are im- to be recognized. At first, it is more important. The legal requirements for infra- portant to map out the interests that exist structure, public space and green areas may rather than trying to resolve any conflicts. depend on the size and location of the site. The land readjustment process itself may be Check the approved urban plan for how used to resolve the conflicts in a non-con- land in the site is classified. It should allow frontational way. the land use types (residential, commercial, Absentee and non-responsive owner or services) and densities needed to make the landholder You will need to decide early project financially viable. The existing plan- on how to treat unidentified or non-respon- ning standards on densities, zoning, mini- sive owners. For example, a non-responsive mum plot size, road widths and public space owner could be deemed to consent to a requirements may prevent the planning pro- project after a fixed period of time. Non-re- posal from being financially viable or ade- sponsiveness may be used as a justification quate for the community’s needs. It may be for expropriation provided there is evidence possible for the municipality to adjust these of efforts in good faith to contact the indi- standards, providing minimum technical, vidual concerned. safety and due process standards are met. If the area contains public land, the agency Rights of informal residents National responsible may be able to determine how law may give tenants and informal residents it is used and whether it can be included in rights to be part of the project approval the readjustment. Similarly, external factors, process. Or it may give them nothing more such as the environmental situation or prox- than a right to more than compensation imity to important public facilities may have for disturbance. However, international law significant legal impacts on particular pieces guarantees prohibits forced eviction – and of land. this is often reflected in national laws too. That gives the municipality and landowners a strong incentive to try to achieve consen- TYPES OF DOCUMENTS sus with the informal residents. What kind of documents to allocate to the Rights of women Land and property is owners of the reapportioned land? Table 17 often vested in the name of the man (the shows some possibilities. “head of household”) alone. It may be pos-

162 8 Legal issues

TABLE 17 TYPES OF DOCUMENTS

Type of Description When useful in PILaR documenta

Individual Granted to an single per- Where the original plot was in a single person’s son or organization (such name as a company)

Joint Granted to two or more For couples: ensures that the woman and man people jointly have equal rights to the land For families where the original document holder has deceased

Group Granted to a group of When allocating an undeveloped plot for unrelated people. Owner- building. Useful if plots would otherwise be too ship is shared small to build separate houses; the group can construct a multi-storey dwelling and subdivide it into apartments. Ownership may then be converted into sectional titles

Sectional or Granted to a group of un- When allocating buildings to a group. Each condominium related people. Individual individual or couple gets a separate title to ownership of apartments; an apartment, along with a share of common shared ownership of spaces such as entrances, hallways, a garden common spaces and playground

Other rights Rental or usage rights People may be granted the right to rent or use property for a set amount (e.g., for no more than the amount they had been paying until now) a This is not an exhaustive list

The land readjustment should aim to en- tion about the legal status of the land. For hance (or at least maintain) the rights of the example, they may be able to alert the pro- people affected. For example, it may regu- ject to fraud by powerful individuals, or the larize informal documents as formal titles, identity of the owners of particular plots. or convert them into sectional rights. See Legal issues must be communicated in a also the section on the continuum of land simple and clear manner to community rights (Chapter 3). members and other stakeholders. Mech- anisms include presentations, discussions, individual meetings, the internet and the LEGAL COMMUNICATION AND ADVICE mass media. A legal clinic – perhaps run by The project has a responsibility to ensure an organization other than the implement- that the community and other stakeholders ing agent – could be established to provide are aware of their rights and can contribute independent advice and resolve disputes to decisions that affect them. And commu- over titles. nity members are a vital source of informa-

163 Remaking the urban mosaic

FINANCE MITIGATING GENTRIFICATION

You will need to ensure that the financial as- A PILaR project aims to benefit the area’s pects of the project are legal. For example: current residents. But rising land prices and better infrastructure can push up rents and • Is it permissible to impose the intended attract people from outside, pushing out to- taxes and fees? What are the mecha- day’s residents, especially the poor. Possible nisms for ensuring they are paid? legal mechanisms to prevent this include: • Can certain financial instruments be ap- • Limit the right to sell properties for a cer- plied for the project? Can a particular tain number of years. source of funding be used? • Allocate a proportion of the new devel- • What taxes and fees must be paid (and opment for low-cost housing. by whom) for the land transactions? • Ensure that an adequate amount of low- • What financial rules must be followed rent accommodation is available, and in dealing with property developers, pri- allocate it to current residents. Include vate investors and other private sector rent controls to prevent the residents companies? from being priced out.

• Ensure that the regulatory framework does not hinder the development of small businesses and semi-formal enter- prises.

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inance is vital for a successful PILaR pro- • Guiding principles for finance ject. Get it right, and everyone has an F • The possible sources of finance for the incentive to participate in and contribute municipality and residents to the process. Get it wrong, and both political and financial problems can be • Calculating total costs and benefits of overwhelming! the project

PILaR should benefit everyone financially. • Calculating the amounts of land that Landowners and landholders should get a each stakeholder must contribute and more valuable piece of land. Informal resi- will get back dents and tenants should get some form of • Organizing the finance function of the legal land document. When there is large project. scale informality, everyone should get a better place to live, including a more pleasant pleasant urban environment, with more services and amenities. Informal settlements should reap the benefits of regularization. GUIDING PRINCIPLES For the municipality, land readjustment will ideally pay for itself – or it should at least FOR FINANCE not impose unacceptable costs. It should be cheaper (and politically more acceptable) Here are some guiding principles for a PILaR than expropriation or forced land sales. project from a financial point of view.

The most successful land readjustment efforts are cost-neutral to the public sector in SHARE BENEFITS AND COSTS the short term and make it possible to gen- FAIRLY AND EQUITABLY erate revenue in the long term. But PILaR differs from conventional land readjustment It is not possible to prescribe a univer- in that the financial benefits to the public sal standard for who pays what and who sector must not undermine the participatory gets what. But the burdens and benefits process or social inclusivity. should be allocated as fairly and equitably as possible. This chapter covers five topics:

165 Remaking the urban mosaic

This may be taken to mean different things. more of the overall costs. Landholders may be willing to cover the costs if they get more • It could mean that each person or or better development rights. household receives benefits that are directly proportional to their contributions. When assigning final plots, allocations ENSURE THAT EVERYONE BENEFITS should be based on the landholder’s original proportion of the land. The project should aim to benefit everyone involved, so all have an incentive to partici- • Or it might mean that costs should be pate and reach agreement. distributed based on the ability to pay or contribute. If so, better-off groups will Each landholder should receive a plot that bear a greater share of the costs: large is smaller but worth more than his or her landholders will be asked to contribute original plot. more, and small landholders less. Ten- Residents of the area who choose to par- ants and informal residents may receive ticipate should benefit, regardless of their housing or land rights that they did not tenure status. They should not be displaced have before. through forced eviction or by overt or cov- • Residents (and especially those who are ert market forces. Remaining in the project vulnerable) might receive proportionate- area should be a viable option for them. ly greater benefits than absentee land- That means they should be able to afford holders or external stakeholders. the contributions and investments needed, and will not have to pay more rent than at What is meant by fairness and equity should present for a fixed period. Ways to do this: be determined early on in the project, agreed by all concerned, and made public. • Have the municipality construct social They can then be used to calculate the con- housing in the area, and reserve it for tributions that each person or household current tenants and informal residents. makes and the benefits they can expect. • Grant land documents to informal res- Even so, equity can be hard to maintain. idents. Some landholders may be able to continue • Require landlords to continue renting using their property, while others will not. out property to their existing tenants at Businesses may be disrupted or have to re- the current rent. locate. They may have to be compensated • Designate some reserved land to build for such upsets. social housing. How should costs be divided between the • Encourage private developers or non- municipality and the landholders? That will governmental agencies to invest their depend on the policy goals and available capital and knowhow in the project for funding sources. Protecting the most vul- social good with a reasonable return on nerable may require the municipality to bear investment. For example, grant a density

166 9 Finance

bonus as an incentive to build affordable INCLUDE INFRASTRUCTURE housing for low-income families. AND CONSTRUCTION COSTS

Some countries (e.g., Germany and Turkey) do not include the cost of infrastructure and MAKE THE PROJECT SELF-FINANCING building in the project cost. Others do in- Land readjustment costs money. The munic- clude these costs (e.g., Gujarat, India). In- ipality will have to pay for: cluding the costs reduces the burden on the • The project administration costs, in- municipality’s finances and may speed up cluding purchasing land that has to be the project. acquired compulsorily, compensation for Not including the infrastructure in the pro- landholders who receive less than their ject costs creates two risks: agreed plot, and compensation for busi- • Delays in building infrastructure If nesses disrupted by the project. the project itself does not cover the in- • Infrastructure such as roads, sewers frastructure costs, the municipality will and electricity have to find the money from other • Any building needed, such as for social sources. That may lead to delays. housing. • Plots are worth less The increase in The trick is to ensure that these costs are land values depends at least in part on covered by the project itself (Figure 46). the infrastructure being installed. A plot That will depend on: with a paved road, sewer, water supply and electricity will be worth more than • The area that landholders contribute as one without these services. If landhold- “reserve land” that the municipality can ers are not confident they will get them, sell. they will be less interested in taking part • The increase in the price of land as a re- in the project. sult of the readjustment and servicing. It may be that infrastructure is not included • Other sources of funding (see below). because of the municipality’s financial limitations. If so, this should be made clear to all If land values in the area are not expected stakeholders early on. A plan and schedule to rise significantly after the readjustment, for raising the needed funds should be com- the municipality will not be able to cover its pleted as well. costs, and landholders will not be interested in participating. If infrastructure is to be installed as part of the project, a plan to fund it must be part of At a minimum, the municipality should re- the project design. Options include: ceive the land required for roads and public spaces without cost. • The municipality can retain “reserve” land beyond that required for roads and

167 Remaking the urban mosaic

Initial land value

Gain in value for contributors Increase in total land value Land from contributors

Final land value

Land returned to contributors Land for Infra- Project Building infrastructure admin & structure construc- imple- etc. tion mentation

Sale of reserve land

Land value

Figure 45 Ideally, the cost of land readjustment project will be covered by rising land values

public spaces. It can sell this to raise from it. Some costs may be included that some or all of the needed funds. can be self-financed. Others may be important investments to meet other policy • A share of the infrastructure costs can objectives and may be financed from other be assigned to each landholder in pro- sources. Still others may be deferred. Trans- portion to the increase (“betterment”) parency and clarity are essential on what is in their land values. included and what is not. • If the project includes housing, then a portion of the new housing can be sold to generate revenue. UNDERSTAND STAKEHOLDERS’ • Other land-based financing options (see FINANCIAL SITUATIONS below). In order to develop a viable financial plan, Of course, this is not an “either–or” situa- you will need to understand the stakehold- tion. Infrastructure and other construction ers’ financial situation. This will tell you: costs need not be either completely included in the project or completely excluded

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• Which stakeholders are poor enough to Gather information qualify for support – for example, for so- The participatory enumeration and other cial housing? techniques should gather information on • How much (if anything) can the stake- the financial situation of local residents (see holders afford to invest, for example in Chapter 6). This will indicate their needs rebuilding their houses after the land re- and what they can and cannot afford. adjustment? Develop several scenarios • What types of financial assistance might they need? Based on these initial exchanges, the finance specialists draft several possible sce- You can gather this information from a narios for the project. These could be based range of sources, including the census, wel- on different parameters: different levels of fare records, participatory enumeration and land contribution, different development poverty scorecards (see Chapter 6). densities, various amounts and types of in- You will need information on: frastructure investment, and land allocation • Employment status for different uses such as commercial development, open space and public facilities. • Formal and informal income levels, per- Each scenario should include the financial haps through household assets costs and benefits for the stakeholders. • Outstanding loans or mortgages. Prepare preliminary site designs

The planners use this information to pre- INCLUDE THE COMMUNITY IN pare a series of sketches for each scenario FINANCIAL AND PLANNING DECISIONS – with inputs and advice from local people. In conventional land readjustment, finance The cost estimates are refined based on specialists collect information, do their planning considerations. sums, and come up with a proposal that they present to the stakeholders as a fait ac- Present to the stakeholders compli: take it or leave it. There is little op- The team presents the designs and associ- portunity for consultation, and the experts ated financial plans to the community and make the decisions. other stakeholders, and asks for their com- In PILaR, the finance specialists work closely ments. The team should explain that more with the local community (and with other and better facilities (e.g., a bigger park) will team members), try to understand their sit- have financial implications: the landhold- uation and needs, and develop a financial ers may have to give up more of their land plan that the community can support. Here in order to pay for it. A series of meetings is one way to organize this. with different groups in the community

169 Remaking the urban mosaic may be needed in order to solicit everyone’s comments. SOURCES OF FINANCE The community chooses one of the plans for further development and refinement. The team incorporates their comments and FINANCE FOR THE PILAR PROJECT presents it to them again. Several rounds may be necessary before a final plan can be A PILaR project may be financed in various agreed. ways: • One-time fees and charges

• Ongoing revenue sources

• External funding.

The first two of these use the land in the project area to generate funds. The options

TABLE 18 REVENUE SOURCES FOR PILAR

One-time fees and charges

Development fees and charges

Development or Betterment charges intended to recover specific costs redevelopment Betterment charges intended to share in land value gains beyond cost recovery

Residential Land sales Commercial

Ongoing revenue

Annual taxes on land and buildings

Land-related Supplemental tax on land (improvement district)

Land lease payments

Rental income from public facilities (markets, parking, social housing) Other Public–private partnerships

External funding

Public subsidies from the municipality

Transfers from other levels of government or government departments

Development partners (most likely for pilot projects)

Debt

170 9 Finance are summarized in Table 18 and below. Ad- tax on land (and buildings) earmarked to ditional information on each can be found fund specific improvements. Such taxes are at the toolkit on land-based financing (to be limited to specific “improvement districts” made available at www.gltn.net). within the city. Rates are set to recover costs over time rather than all at once (as in a Development or redevelopment fees betterment charge). The approach makes Developers are often assessed charges to cost sharing much more affordable for the offset the impact of their proposed devel- residents. opment on the larger community. Such charges are called “developer exactions” If the government owns all or a significant or “impact fees”. In many countries the fee percentage of the land, land lease reve- structure is limited to the actual estimated nues are a potentially important source of cost of the development impact. In some, revenue. Leases should be structured so municipalities are not allowed to accept de- they can be reviewed regularly and adjusted velopment or redevelopment fees. to reflect current market conditions.

Betterment charges (Box 14, Chapter 4) Other ongoing revenues Two other can be assessed in two ways. Most com- potential sources are worth noting even monly, they are levied to recover the cost though they are not directly tied to land. of specific infrastructure investments by the The first is the rents from letting public municipality. A second, less-common, ap- property such as markets and social hous- proach levies a percentage of the increased ing. If there are such properties in the PILaR land value resulting from public investments. area, the revenues could provide additional funding for site improvements. Land sales If the municipality has retained “reserved” land beyond what is Second, some municipalities contract with needed for roads and other public spaces, it private entities to install or manage public can sell it to generate revenue. Commercial infrastructure. Such public–private part- land tends to be more valuable than resi- nerships can be an important source of dential land. If the land readjustment sites investment capital with a very low up-front happen to be in a good location, residential cost to the municipality. The terms of the housing can also attract buyers and can be a contract need to be reviewed carefully to source of funding. The municipality also has assure that the long-term results for the the option of promoting affordable housing municipality are acceptable. by selling residential land at below-market External sources The PILaR project may prices. also receive funding from external sources. Land-related ongoing revenues The These may come directly from the munici- annual tax on land and buildings is an im- pality, from other levels of government, portant potential source of revenue. It is of- or even come from development partners ten underused, but can be strengthened. It (though such funds are most likely be for is also possible to impose a supplemental a pilot project). Project managers should be

171 Remaking the urban mosaic cautious in relying too heavily on such subsidies since priorities and fiscal constraints TRACKING TOTAL change frequently. COSTS AND BENEFITS Debt A final possible source is debt. Ma- jor infrastructure investments can pose a substantial burden on both governments and residents in a land readjustment area. CASH FLOW SHEET Long-term borrowing may make it possible A cash flow sheet is simply a calculation of to spread the costs over a number of years. the project’s costs and revenues. It shows Care must be taken to match the debt ser- the types of costs and revenues and their vice requirements with a stable revenue expected levels. More complex cash flow source, such as the annual property tax or a sheets break this information down by year supplemental property tax. or month, geographic area, beneficiary group or household (Box 35).

FINANCIAL ASSISTANCE FOR RESIDENTS The cash flow sheet must be compiled by the public agency in charge of implemen- Various options exist to provide financial tation. Depending on the implementation assistance directly to residents. Some ju- arrangements, it may also need to be done risdictions have subsidized or guaranteed for private firms or developers for the sake loan programmes for low-income residents of public–private partnership or feasibility (see Box 34 for an example). Such loans are analysis. obtained directly from local banks or government agencies. The residents repay the Box 36 lists possible types of costs to the loans to the lenders. If the loans are subsi- project. The exchange model (see below) dized, the borrower receives a below-mar- and the urban design will determine wheth- ket interest rate on the loan. If they are er these costs should be included in the cash guaranteed, a government agency steps in flow sheet. if necessary to repay the loan.

Box 34 Housing subsidies in Ethiopia

Ethiopia has several government-spon- Bank of Ethiopia. This deposit earns an sored housing-subsidy programmes. The above-market interest rate for up to 5 Ministry of Urban Development and Con- years. The borrower then gets a loan at struction has introduced one such pro- a below-market rate, repayable over 17 gramme as a saving scheme for low-in- years, to use to pay for the house. come home seekers. About two-thirds of the total cost of the A buyer deposits a percentage of the house comes from the government in the cost of a house with the Commercial form of a direct subsidy.

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Box 35 Data needed for a cash flow sheet

Minimum data needed: • Specific social characteristics of project beneficiaries (e.g., family size, • Willingness/ability to pay for neigh- income level) bourhood upgrades • Market value of land in project area • Number of project participants and households • Market value of new units to be built under project • Cost of desired neighbourhood upgrades • Rents currently paid by renters • Amount of buildable land and exist- • Qualification of project participants ing built space in the project area for specific government subsidies • Government taxes, fees, and subsidies • Estimates of the specific costs and that may apply to the project benefits calculated in the model • Tenure status of participants Acquiring the above data may be time-consuming or costly. Have a clear Additional data needed will depend idea of precisely how the data will be upon the structure of the exchange mod- used before going to collect it. el. It may include the following: • Size and value of residential and non-residential units

Box 36 Types of costs incurred by a project

• Project design and management through expropriation costs, including cost of data collec- • Costs of temporary housing for pro- tion and analysis ject participants • Stakeholder engagement and com- • Demolition and clearing munication • Building costs for new residential and • Infrastructure capital costs (roads, non-residential units for existing resi- public space, drainage, lighting, elec- dents, including social housing trical, communications, sewerage, etc.) • Building costs for new residential and non-residential units for external rent • Ongoing public sector costs (opera- or sale, including social housing tions and maintenance of infrastructure, service provision including solid • Marketing and sales of new units, waste management, public transport, and management of new rental units electricity, etc.) • Taxes, fees, and public obligations • Costs to acquire land, including • Interest and borrowing fees.

173 Remaking the urban mosaic

COSTS AND BENEFITS Box 37 Covering costs in La It is also important to consider the distribu- Candelaria tion of costs and benefits between the municipality and landholders. Table 19 shows How to cover the cost of neighbour- how these costs are generally divided and hood upgrades? In La Candelaria, Me- the likely benefits for each. Beyond the fi- dillin, one possibility was to have the project participants pay fees or bet- nancial costs and benefits, both the munici- terment charges. The fee would de- pality and the landholders should enjoy sig- pend on the difference between their nificant social benefits from PILaR. current value of the land or building and the new, higher value after the You can use benefit–cost analysis and other project. fiscal analysis methods to evaluate a PILaR But people in the district are poor, and they have little cash to spare. So project. The costs will fall on the city, the it was decided that they should con- landholders and all residents. The land- tribute land instead of cash. holders may seem to benefit most financially, because of higher land values. But the municipality also gains because PILaR In some countries, a formal economic and is cheaper than other ways of redeveloping financial analysis (including a cost-benefit the area, such as land acquisition and ex- analysis) by an independent consultant is propriation. Both the municipality and the necessary. Other countries permit govern- local community benefit from strengthened ment-employed professionals to do such an communities, better services and improved analysis. urban governance.

TABLE 19 THE COSTS AND BENEFITS OF PILAR

Municipality Landholders Other residents

Direct project support Participation costs Participation costs Infrastructure investments Land value contribution Relocation costs Relocation costs during Betterment charges Possibly increased housing Costs construction Relocation costs costs Expropriation costs Land registration and land Disruption Operation & maintenance documentation fees Disruption

Increased revenue from Increased unit land value Improved infrastructure land tax and fees Improved infrastructure Improved urban services Efficiently serviced land Improved urban services Enhanced engagement Benefits Stronger neighbourhood Enhanced engagement and support and community and support Improved urban governance

Coloured: Financial costs and benefits; black: non-financial

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manner. As the stakeholders discuss the ap- ASSESSING INDIVIDUAL propriate exchange model, the financial implications can be shown through the cash OUTCOMES: THE flow sheet and become part of the criteria EXCHANGE MODEL for deciding how the exchange model will function.

The exchange model shows what each type Box 38 and Table 20 show the exchange of stakeholder contributes to and can ex- model agreed on in the La Candelaria pro- pect to obtain from the project. It should ject in Medellin. clearly spell out:

• What project participants give LAND VALUES AND LAND • What project participants receive CONTRIBUTIONS • What criteria are used to determine the The assumption is that land values will be two points above. higher as a result of the PILaR process. But The exchange model will determine the dis- there are limits to how much land the mu- tribution of costs and benefits, and there- nicipality can required without harming the fore must be designed with fairness and landholders. The practical limit is set by mar- social equity in mind. The ability of the ket conditions. If the city requires a larger stakeholders to pay for the project out- share of the land than will be offset by incomes (which you will have checked as part creased land values, at least some landhold- of the participatory enumeration) will help ers will be worse off as a result of the pro- determine the exchange model. ject. The greater the likely gain in property value, the higher the percentage of land the The cash flow sheet reflects the financial im- city can require. plications of the exchange model. The two can be developed together in a participatory

Box 38 Example of an exchange model: La Candelaria, Medellin

Key features of the exchange model for • Renters retain the right to contin- La Candelaria include the following: ue renting for a period of years; this right supersedes the right of absen- • The size of the house beneficiaries re- tee owners to make a profit from the ceive depends on the size (in m2) of project. their original house, not the property value. The categories within the exchange model were based on each family’s ten- • Large families are entitled to a house ure status (Table 20). that can accommodate them without overcrowding.

175 Remaking the urban mosaic

Figure 46 shows the relationship between 43% in order to assure that all landholders the required land value contribution and gain in value. If the final price increase is less the increase in land value needed to ensure than 43%, landholders will be worse off. If that all landholders gain from the readjust- the price rises above 43%, they will be bet- ment. The horizontal axis shows different ter off. percentages of required land contribution. Box 39 gives a hypothetical example that The vertical axis shows different land price makes the same point. In determining the increases that follow the readjustment pro- amount of land to require for public pur- cess. The line on the graph is the break-even poses, you cannot ignore overall market level. conditions if you expect support from the For example, if the required level of required landholders. land contribution is 30% (red line in the graph), land prices must increase by at least

TABLE 20 EXCHANGE MODEL USED IN LA CANDELARIA

Beneficiaries What they get

Informal and formal owners living in A house of a size comparable to the one A their homes where they are living now

A house of a size comparable to the one they Informal and formal owners who rent B currently rent out, with the obligation to rent out their homes to the current tenant for a fixed time

Informal and formal owners who A house of a size comparable to the one own additional property outside La where they are living now. They must pay to C Candelaria, so are ineligible to receive the project the amount of the subsidy they a government subsidy receive in the form of housing

A right to one of these: • Buy a house in La Candelaria of a size comparable to the one where they are living now D Renters of all types • Lease a house in La Candelaria of a size comparable to the one where they are living now, with a later purchase option • Rent a house in La Candelaria, paying what they are paying now

All people in A, B, and C above who E choose not to participate in the project Compensation based on the property values at People purchasing property in La the time of the official project announcement Candelaria or entering groups A, B, F and C above after the official project announcement

176 9 Finance

ORGANIZING FINANCE

This chapter has given an overview of principles and selected methods that will likely form the financial plan of a PILaR project. Each project is different: each has a unique context and financial implications.

However, a reasonably trained finance specialist (accountant, public finance expert, etc.) should be able to develop a good financial plan for a PILaR project using the guidance provided in this chapter.

120%

100%

eakeven Br 80% Above line Landowners will gain from land readjustment 60%

43% Below line 40% Landowners will lose

Increase in land value from land readjustment

20%

0% 15% 29% 25% 30% 35% 40% 45% 50% 55% Required land value contribution

Figure 46 Relationship between land value increase and land contribution required

177 Remaking the urban mosaic

Box 39 Balancing land contributions and the expected land value increase

A municipality wants to do a PILaR pro- too small for development, according to ject on a one-hectare piece of land. The the planning bylaws) will be completely area consists of 15 plots of varying sizes, exempted from any contribution. each with a different owner. The munici- To arrive at a total 40% contribution to pality owns no land in the area. the municipality, each landholder will Several landholders have small plots and contribute the amount of land shown in very low incomes. Several others are well- Table 21. off and have large plots they would like In this situation, land values must increase to subdivide and develop. The municipal- by at least 75% if all landholders are to ity needs 30% of the area for roads and be protected from loss. If values increase public spaces. It also wants an additional by that amount, all but two landholders 10% to sell in order to cover some infra- will be better off. If prices increase by structure costs. only 50%, most will be worse off. To distribute the costs equitably, it is Note also that because of the contribu- agreed that not all landholders will con- tion ratios chosen, landholder M ends tribute the same proportion of their up with a slightly smaller plot than land- land. Small plots will contribute less, holders N and O. large plots more. The smallest (already

TABLE 21 FICTIONAL EXAMPLE OF PLOT SIZES AND LAND CONTRIBUTIONS

Initial plot Change in land value if land Final plot size size Contribution price increases by Landholder ratio m² m² 75% 50%

A 3,000 43% 1,713 0% -14% B 2,000 43% 1,142 0% -14% C 1,000 43% 571 0% -14% D 750 43% 428 0% -14% E 500 43% 285 0% -14% F 400 37% 251 10% -6% G 350 37% 219 10% -6% H 350 37% 219 10% -6% I 300 37% 188 10% -6% J 300 37% 188 10% -6% K 300 37% 188 10% -6% L 250 32% 171 20% 2% M 200 32% 137 20% 2% N 150 0% 150 75% 50% O 150 0% 150 75% 50% Municipality 0 4,000 Total 10,000 40% 10,000

178 10 COMMUNICATION

ommunication is important at all stages of cate with. Who are we communicat- Ca land readjustment project. In the pre- ing with? liminary and planning stages, it is important • Determine the messages to be commu- to keep all the stakeholders informed about nicated. What are we communicat- the project’s aims, how the project may af- ing? fect them, and how they can contribute to it. During implementation, people need to • Describe the communication channels it know about the achievements, the current will use. How are we communicating? status and plans for the future. • Break the communication effort into In a participatory and inclusive land read- steps that support each stage in the pro- justment, communication has an additional ject. When do we communicate? role: it is vital for participation and stake- • Monitor its effectiveness and adjust it as holder engagement. It enables stakehold- required. Are we communicating in ers to learn about the project, share their the right way? knowledge, and participate in the decisions We will discuss each of these in turn. made and follow up of the project. This means that communication is not just one way, from project to stakeholders. Rather, it should be two-way, both help the stakeholders to understand the project’s goals and activities, and to enable them to partic- COMMUNICATION GOALS ipate in and help design them. AND OBJECTIVES The project will need a communication strategy to guide its work. This should: The communication goals may include:

• State the project’s communication goals • Clarifying the role of the stakeholders and objectives. Why are we commu- within the project. nicating? • Generating trust among the stakehold- • Identify the major stakeholders and au- ers. diences the project needs to communi- • Informing and persuading stakeholders about the project’s goals and activities.

179 Remaking the urban mosaic

• Ensuring the stakeholders can make the vulnerable groups, who may be in no their views heard. position to seek information themselves.

• Facilitating the exchange of information There are, however, exceptions to the prin- and coordination of activities among the ciple of transparency: stakeholders. • One is the need to prevent land spec- • Facilitating the stakeholders to make de- ulation. Certain decisions, such as the cisions about the project. location of the site, should be withheld until a formal announcement is made in • Informing other interested parties – such order to prevent speculators from buy- as the national government, other mu- ing up plots in the location in the hope nicipalities and the wider public – about of making a quick profit (see Chapters the project’s achievements. 3 and 8). Good communication is a tool to improve • Another is the need for privacy. The the project management and governance. project may gather information on Communication is fundamental for ac- things like family size and income. It may countability, to enable stakeholders to not divulge this information without the check on the activities and results and en- permission of the individuals concerned sure that the project is achieving its goals. (see Chapter 6). Transparency should be a major aim. Infor- mation should be freely available to anyone who needs it. The project should make active efforts to reach its audiences, especially

Communication does not “just mean transmitting information but establishing an interaction process with all the stakeholders involved in the project.”

Oihana Cuesta, Coordinator, PILaR pilot Photo: Rainer Müller-Jökel project, UN-Habitat, La Candelaria, Me- dellin, Colombia

tinyurl.com/pilar- cuesta

180 10 Communication

• Policymakers and donors at the mu- AUDIENCES nicipal and national levels, as well as foreign sources of funding.

From a communication point of view, we • The community: the landholders and can identify six main audiences in a PILaR residents in the area to be redeveloped. project (Figure 48): • The media: the press, television and • Project implementing agency: Inter- radio, plus social media, who serve as nal communication within the project channels to all the other stakeholders group itself. and audiences.

• Collaborating organizations, such as • Others, including the public in other other units in the municipality and other parts of the city and elsewhere in the branches of government. country, and other organizations that are interested in doing land readjustment, perhaps abroad.

Others Policymakers and donors

Project Collaborating Media implementing agency organizations

Landowners, landholders community

Figure 47 Stakeholders for communication

181 Remaking the urban mosaic

All these have a direct interest in it and are • Exploratory workshops to enable staff involved in various aspects of it. to present and learn about the issues related to the project. The staff share their Below we discuss each of these audiences professional experiences, learn about in turn, and suggest some communication land readjustment in other situations, channels that may be useful for each one, learn about each other’s skills and com- drawing examples from a PILaR project in petencies, share information about reg- La Candelaria, Medellin, Colombia. This list ulations, etc. is by no means exhaustive. Projects may identify additional audiences, and different • Planning and coordination work- techniques may be useful in different situa- shops to plan, exchange information tions. Some techniques (such as websites or and develop proposals. newsletters) can be useful to reach several • Evaluation workshops to review the different audiences. process of the project, communicate progress and make adjustments as appropriate. PROJECT IMPLEMENTING AGENCY (INTERNAL) • Online platforms to enable document exchange and continuous consul- This is communication within the organiza- tation. tion or team that is charged with developing the project. The management staff needs to • Documentation of activities and out- communicate among themselves the pro- comes to record and share project chal- ject goals, rules, working procedures, cur- lenges and lessons, and make recom- rent status, etc. Lawyers, finance specialists, mendations to stakeholders to inform planners and community workers have dif- decision making. ferent skills, backgrounds and priorities, and they sometimes find it difficult to talk and learn from each other. Techniques include: COLLABORATING ORGANIZATIONS

• Working together as a team The The project agency will need to collaborate team should share an office, or at least with a wide range of other municipal and work in close proximity to each other. government organizations: cadastral of- This helps the members get to know fices, the legal department, finance office, each other and understand their tasks infrastructure development agency, local and roles. Many aspects of PILaR require land professionals, the police, etc. It also simultaneous inputs from several team needs to communicate with NGOs active in members. The project will work much the area, private-sector organizations such more efficiently if they ae all in the same as contractors, service providers, banks and room. lawyers, and academics. All these need to know what the project aims to do, the procedures it follows, and the type of collabo-

182 10 Communication ration required. Many will have (or want) a the value of the project and the approach say in particular aspects of the project, so that is proposed. Policymakers are often they have to be part of the decision-mak- elected officials who may be voted out of ing process. Their collaboration may not be office at the next election. They may wish to automatic: it may be necessary to win their leave a strong legacy in the form of a suc- support for the project. cessful project. After the election, it may be necessary to educate an incoming batch of Some useful communication techniques for officials about the project and its activities. this category of audience include: Donors will want to monitor their invest- • Negotiation workshops at the start of ment and ensure that it is being put to good the project to improve the initial propos- use. They will require a series of reports at al. Such forums should involve techni- regular intervals throughout the project to cal representatives and decision makers detail progress and alert them to any major from the institutional stakeholders. Each problems. organization agrees on the role it will to play in the project. Both policymakers and donors need concise information about the project’s work, focus- • Regular executive meetings with sen- ing on its benefits, impacts and costs. ior managers to make strategic decisions and cooperation agreements and to Useful techniques for these audiences guide and monitor progress. include:

• Coordination workshops to give and • Presentations and workshops to in- receive feedback on project progress, troduce policymakers and donors to the and obtain information on decisions project’s goals and approaches and get made by the different institutions in- their guidance on the direction to take. volved. • “Champions” (respected individuals • Specialist workshops to present and with good contacts) who can promote discuss particular aspects of the project. the project approaches. These involve the specialists in that area; • Regular reports giving updates on the they aim to foster partnership and find project status and alerting them to is- ways of working together smoothly. sues that need attention. • Internal reports and website to make • Booklets and information sheets key information available in real time. summarizing the project’s work.

• Site visits and meetings with benefi- POLICYMAKERS AND DONORS ciaries so the policymakers and donors can see the problems for themselves, The support of policymakers and donors hear local people’s opinions, and see is vital if the project is to be approved and what the project is doing on the ground. funded. They may need to be convinced of

183 Remaking the urban mosaic

Box 40 La Candelaria project website

The Medellin project website sends clear, consistent and up-to-date messages about the project to a wide range of audiences in a user-friendly way. It improves communication and saves staff time because they can refer people asking about the project to the website. Journalists use it to get accurate information and quote it in their articles. More information: www.pilarlacandelaria.org/ Figure 48 The La Candelaria project website

• Public events on site with visiting their knowledge about the community and dignitaries can be very effective in cre- the location and make decisions that affect ating support among officials and visibil- them. ity among the public. A wide range of communication methods • A regularly updated project website can be used to engage with these audiences. can carry brief news items about the • Workshops, participatory enumera- project (Box 40). tion and other techniques to gather information from local people and enable them to give their inputs into the plans. THE COMMUNITY • Capacity development workshops so The community may include formal land- community members understand how owners, other landholders, tenants and in- land readjustment works and to prepare formal residents, the owners of local busi- them for the process. nesses and residents of neighbouring areas. Particular attention is needed to ensure that • Focus groups with different interest vulnerable groups, such as women and the groups in the community to facilitate di- elderly, are fully informed and can partici- alogue, negotiate and consensus. pate on an equal basis with other communi- • Collaboration with existing commu- ty members. Community organizations, for- nity organizations, and helping organ- mal or informal, are important interlocutors ize new organizations if necessary. in this effort. • Community assemblies to bring to- The community members need to know gether residents to consider different what the project aims to do in general, and aspects of the project. how they will be affected. The project also must give them a voice so they can share

184 10 Communication

Box 41 Community information centre in La Candelaria

The PILaR project in La Candelaria, Me- wall newspapers take into account the dellin, set up a community information community’s interests, wishes and con- centre in the project area. This acted as cerns. The information came from a a source of information and provided a workshop with local residents, who posed place where people could find out about questions wuch as “How would you like the project and express their views. La Candelaria to be?” and “What should we remember about this place?” A local Wall newspapers were one way to keep artist, assisted by residents, painted a the local community informed and in- design on the façade of the community volved. The content and design of the liaison office.

Figure 49 Communication activities at the information centre in La Candelaria, Medellin

• A community liaison office located in You cannot control the media. Journalists the intervention area to provide direct are trained to seek and report on various and personal assistance to community sides of an argument. Conflict, controversy members. and failure are newsworthy; smooth, efficient, uneventful success is not. Neverthe- • Wall newspapers, created in collab- less, supportive media coverage can be a oration with local people, in strategic great help in persuading people to support locations. Postings can be updated each and collaborate with the project (Box 42). week; they give details on meetings, Hostile coverage (or reporting that gives the workshops, the various project compo- impression that the project is secretive or nents, and updates on progress (Box 41). not working in the interests of local people) can have the opposite effect.

THE MEDIA Useful methods include:

The media include the local newspapers, • Developing a relationship with re- television and radio stations. They digest, porters and editors and inviting them to rework and transmit information about the cover key events. project to various audiences, both inside and outside the local area.

185 Remaking the urban mosaic

Box 42 La Candelaria project in the media

On 29 May 2014, PILaR was featured on the front page and two inside pages of El Colombiano, a national newspaper. The articles were comprehensive and fairly objective.

Figure 50 El Colombiano features the land readjustment project in La Candelaria

• Organizing press briefings and tours is considerable interest in learning from pro- to show them what the project is doing ject experiences. and to introduce them to beneficiaries. Useful methods include: • Producing press releases with news • Press releases and media events to about significant activities. generate coverage in the national and • Producing a press kit with information international media. about the project, contact details, etc. • Academic research on the project, leading to working papers, research articles and theses. OTHER AUDIENCES • Videos, presentations and posters Other audiences include the general public at professional conferences and events in the city and elsewhere in the country, the (Box 43). managers and staff of other organizations that may be interested in implementing a • Brochures, information sheets and land readjustment project, academics and briefing papers summarizing the pro- land professionals worldwide. While land ject or highlighting particular aspects of readjustment is a fairly old and well-estab- it. lished practice in some countries, there is still little experience in doing it in a participatory and inclusive way. That means there

186 10 Communication

Box 43 La Candelaria project at international events

The World Urban Forum is a biennial event convened by UN-Habitat. In April 2014 it was held in Medellin, Colombia. The PILaR project in La Candelaria took Forum participants on a tour of the intervention area and the community liaison office. The project was also featured in the Medellin municipality stand and during the Forum’s launch. More information: wuf7.unhabitat.org/

In June 2014, the Medellin project par- ticipated in the launch of Connective Cities, a platform supported by GIZ and other German organizations to spread good practices in urban development. Two representatives from the Medellin project presented the PILaR idea at the platform launch in Leipzig. More information: www.connective- cities.net/en/

Figure 51 Communication activities by the La Candelaria PILaR project

187 Remaking the urban mosaic

cific types of products can be designed for INFORMATION PRODUCTS more specific audiences. For example, you may need one factsheet with information for landholders and another for tenants. The project should consider producing a range of information products aimed at its Here are some of the main types of informa- various audiences. Each type of product is tion products you might consider producing. suited to a different type of audience, but • Elevator pitch This is a short summa- if designed carefully, they can be used with ry of the project, in conversational lan- several. For example, a booklet outlining guage, that you can use to introduce the the project can be used both with local res- project (Box 44). idents and with outside visitors. More spe-

Box 44 Elevator pitch

An elevator pitch is a short, persuasive Here’s an example of an elevator pitch: and informative summary of the proj- We are trying to improve the infrastruc- ect’s goals and activities. It is so called ture and housing in XXX. The roads are because it is brief enough – between 30 too narrow, so they are always clogged. seconds and 2 minutes – to deliver to Most of the houses are tiny, and they someone during an elevator ride. It is in don’t have mains water or sewerage. The conversational language, without jargon only way to improve the situation is to or lots of numbers. Elevator pitches are do a “land readjustment”. That means especially useful to introduce the project treating the whole area as a single unit idea to policymakers and others who are so we can plan new streets, water pipes pressed for time and who are not land and drains. We are working closely with administration specialists. the landholders and the residents. All You will need to tailor the elevator pitch the landholders contribute land into a to the person you are talking to and your big pot. The municipality demolishes any reason for talking with that person. Try buildings that are in the way, and puts to relate it to that person’s own interests in the infrastructure. The plots are then and experiences. For example, you can divided up among the landholders again. vary the start: talk to a commuter about Each one gets back a more valuable traffic problems, to a financial specialist piece of land because it has road access about costs, an environmental specialist and services. The residents – both the about the need for green space – as a tenants and the informal residents – get way of leading into the main pitch. The an apartment for the same rent as they contents of the pitch will also change were paying before. We expect it to be depending on the stage that the project finished in 3 years, and people can look has reached. forward to much better living conditions. The idea of an elevator pitch is to create 168 words – a little over one minute interest in and support for the project. when spoken Be ready to back it up with more detailed Of course, you should come up with your information – such as a handout or pre- own elevator pitch – don’t just copy the sentation. one above!

188 10 Communication

• Public announcements The law may • A website is a good way to make infor- require that certain types of information mation readily available to a wide range (such as plans and building proposals) be of people on demand. announced publicly on noticeboards or • Social media such as Facebook and in newspapers, giving people a chance Twitter enable you to give frequent up- to express their views or to object to it. dates on the project, and make it possi- • A monthly newsletter in electronic or ble for people to ask questions, express print form can provide regular informa- their own views, and get organized. In tion on the project to the community places where many people have smart- and to other stakeholders. phones, this is a valuable way of keeping in touch with them and allowing them • Booklets and information sheets pro- to express their views. vide information in a brief, easily understood form. They can be handed out to • Exhibits and events may be local community members through the com- (aimed at the community), or national munity assistance office, and at work- or international, public or within institu- shops and other events. tions, to inform people about the project and its work (Box 45). • Videos can be extremely effective in communicating the key objectives of the project. They can also help explain who is involved and what an inclusive outcome means. See www.pilarlacandelaria.org/videos for an example.

Box 45 Announcing an agreement on PILaR in Medellin, Colombia

On 18 April 2013, the city of Medellin signed an agreement with UN-Habitat to implement a PILaR project in the city. The agreement was signed by the director of ISVIMED (the Medellin Social Institute for Housing and Habitat) and UN-Habitat’s Executive Director. The official announcement online underlines the commitment of both organizations at the highest level. Six months later, the district of La Cande- laria was selected as the project site. Figure 52 Announcement of the Medellin agreement on the UN-Habitat website

189 Remaking the urban mosaic

STAGES IN ORGANIZING COMMUNICATION COMMUNICATION

The communication effort should support In one sense, communication is the respon- the other activities at each stage in the sibility of everyone in the project team. But project. depending on the size of the project, it may be a good idea to have one or more staff • In the conceptualization stage, it members with the relevant skills to coordi- should inform the relevant stakehold- nate the communication work. In a small ers about the goals and process of land project, the communication work can be readjustment, and help motivate and handled by the staff responsible for com- organize community members to partic- munity liaison. Larger projects may need a ipate in the project. dedicated communication unit. • During the data-gathering stage, Some of the communication functions can it should raise community awareness be subcontracted out to specialists: ex- about the project and gain their coop- amples include video production, website eration in the participatory enumeration. design, and the design and production of • In the draft-planning stage, it should printed materials. Others are best kept in- ensure that people can contribute to the house, such as liaison with the community plan and make suggestions for improve- and the press, conceptualizing and writ- ments. ing documents, and making presentations • When the plans are being finalized, it about the project. should ensure that community members The communication effort is not a stand- understand and can suggest revisions to alone component: it must be an integral the plan, and approve it when it is com- part of the project. In particular, it must plete. work hand-in-hand with the stakeholder • During implementation, it should en- engagement strategy. sure that all concerned are aware of current activities, how they will be affected and how they can contribute.

190 11 WHAT NEXT?

ook at a a map of plots in a city, and it Lappears to be made up of a patchwork. APPLYING PILAR IN Many plots are small and irregularly shaped. YOUR COUNTRY Land rights are often unclear and disputed. That means that growth is haphazard, streets are narrow and clogged, and the res- If you think PILaR is worth exploring further idents are starved of vital services. Sustain- (and we hope there are many of you), the able cities need to be able to readjust the following suggestions may prove useful. patchwork so they can grow and develop in • If the options fit the situation in your an orderly way. country, you should adapt them as re- But cities are also made up of the people quired. You will need to fill in the gaps who live and work there. To make cities a and get the expertise you require. Start better place to live, it is not enough to rear- small. Document your experience and range the plot boundaries or their physical share them with others. If it works, scale layout. It is also necessary to work with the it up: repeat the process in another, big- people to make sure the new arrangement ger area. fulfils their needs and gains their support. • Do not adopt the approaches described This book has outlined some ways of doing here without first testing them and this involve stakeholders in decision-making adapting them to the particular condi- and that address the needs of the poor and tions in your country. Contact UN-Habi- vulnerable. tat or another organization with experience in PILaR for advice.

• Begin by assessing the legal environment. Find out whether land readjustment is permitted under current law. If so, how are such projects initiated, and by whom? What special provisions govern the process? If land readjustment is not specifically permitted, will it be difficult or impossible to carry out land

191 Remaking the urban mosaic

readjustment under current law? What changes, if any, may be required? DEVELOPING PILAR • It is probably premature at this stage to FURTHER attempt to identify a specific project. But you should organize political support Although land readjustment is more than a for a participatory approach to land re- century old (Chapter 1), PILaR – participa- adjustment. Form a coalition of senior tory and inclusive land readjustment is a municipal and community leaders to new technique that is still being developed. support a PILaR pilot project. Quite likely, Some ways of developing it further include a “champion” will be required to pro- the following. vide the sustained energy to carry the project forward. • Develop the capacity of organizations in interested countries, as well as of inter- • When the legal environment permits national organizations, partners in the and supportive leadership is identified, Global Land Tool Network, NGOs, con- organize an advisory committee. The sultancies and individuals. committee should arrange for any technical assistance required, propose a pre- • Conduct pilot projects in various coun- liminary budget, and beginning training tries, monitor and evaluate them care- and soliciting inputs from community fully, and document the lessons. Ad- groups to increase awareness of PILaR just successful approaches in cities and ideas and to seek a possible pilot site. countries with similar conditions.

• The work of the advisory committee • Introduce PILaR to national and munici- should then proceed as outlined in the pal governments. governance chapter. • Facilitate peer-to-peer learning among • You can apply land readjustment in a countries and municipalities for example city in several stages. Start off with a through joint meetings and cross-visits. small, simple project to develop, test • Communicate successful PILaR cases and and learn the procedure. Adapt the pro- techniques at global events, through cess as necessary, then proceed with a Global Land Tool Network partners and series of PILaR projects to readjust land other activities. in neighbouring areas of the city, in con- • Create links between PILaR and other formity with the urban plan. Consider land tools being developed by the Global dividing up a large area into smaller pro- Land Tool Network. For example, a tool jects to make the task manageable. for valuing unregistered land (expected to be ready in 2016) will be a useful complementary technique.

192 11 Way forward

• Update this document with new lessons countries have not yet succeeded in imple- as they emerge. menting this approach at any scale because of inappropriate approaches. Doing so will Sustainable cities urgently require a range require committed leadership, sustained of tools and instruments to better manage commitment and creativity. But the goal of their land, avoid displacing people during building better communities within cities is urban development, and be inclusive for well worth the effort in time and treasure. all, including vulnerable groups. PILaR could be one of these tools. Cities in developing

193 194 GLOSSARY

his glossary explains some of the technical Community The people living and work- Tterms used in this book. The explana- ing in a neighbourhood. tions given here aim to be clear and easily Community character The makeup and understandable, and apply to the context of history of the neighbourhood and the peo- land readjustment. They should not be seen ple who live there, along with their percep- as formal definitions. tions of these. It is shaped partly by the built Cross-references to other terms in the glos- environment. See Box 21. sary are given in small capitals. Community engagement The process of working together with people in the community to plan and implement a project. See Betterment The rise in value of a private Box 26 and stakeholder engagement. landholding as a result of an action by the government or local authority (not by the Compulsory acquisition Compulsory landowner). For example, improving the in- purchase, expropriation, eminent domain, frastructure or building a new road may in- resumption. The process by which the gov- crease the value of a piece of land without ernment acquires land without the consent the landowner having to do anything. The of its owner or occupant in order to benefit government or local authority may charge a society. It includes a procedure to compen- betterment tax to capture some of the gain sate the owner or occupant for the loss of in value. See Box 14. rights to the land.

Cadastre A map of the land parcels in an Compulsory purchase See compulsory area, showing their location and bounda- acquisition. ries. Each parcel has a unique identification Consensus ratio The proportion of land- number which is linked to a land register holders who must agree to a land readjust- showing who owns or controls the parcel. ment project before it can go ahead. See Clearance An official permit to do some- Table 13. thing with a landholding that would oth- Continuum of land rights Rights to ac- erwise not be allowed. For example, an cess, use, occupy and transfer land come environmental clearance may permit the in many forms. They lie on a continuum: landowner to cut down trees on the land. at one end, full ownership with clear ti- See Box 18.

195 Remaking the urban mosaic tle (“registered freehold”) gives the holder Expropriation See compulsory acquisition. strong rights, recognized by all. At the other Formal tenure The documented right, end, people may occupy the land informal- recognized by the state, to occupy a ly, without any title. In between lie a range landholding. of possibilities, such as adverse possession (rights acquired by someone holding the Freehold Private land ownership. The land for a minimum period), customary ten- right to full, private ownership of land, ure, group tenure, etc. See Figure 10. free of any obligations to the state other than paying taxes and observing land-use Customary tenure The communal pos- controls imposed by the state in the public session of rights to use and allocate land by interest. a group sharing the same cultural identity. A single person, often a family or lineage Gender evaluation criteria A frame- head, may be responsible for allocating and work developed by the global land tool net- administering the land rights on behalf of work to test the gender responsiveness of the group. land-related procedures. See Box 27.

Eminent domain See compulsory purchase. Gentrification The buying and renova- tion of buildings in a rundown urban area Encumbrance A claim on land or prop- by wealthier people. This increases property erty that diminishes its value but does not values but can displace poorer residents and prevent ownership from being transferred. small businesses. If the land is sold, it will be bound by the encumbrance unless the party holding the Global Land Tool Network An alliance encumbrance releases it. It is therefore im- that aims to develop a set of techniques to portant for a purchaser to enquire if there promote pro-poor land reform and improve are any encumbrances on the property be- land management and security of tenure. fore purchasing it. For example, someone The alliance is coordinated by un-habitat. other than the owner may have the right Guided land development Acquiring to graze livestock on the land. See Box 18. rights of way and providing infrastructure Environmental impact assessment A (or indicating where it will be provided) as a procedure to assess the likely impacts on way to guide urban development. the environment of a particular project. See Holdout Someone who rejects the terms Figure 36. of an agreement negotiated with the ma- Exchange model A table showing the jority, often in the hope of getting a better contributions that each type of stakeholder deal. is required to make to a land readjustment Inclusive Refers to the outcomes of a project, the benefits that he or she will re- project: all stakeholders share in both the ceive, and the criteria used to determine costs and benefits in a fair and equitable these. See Box 38. manner. See also participatory.

196 Glossary

Informal resident Someone who resides It includes landowners, formal and informal on a piece of land without formal authoriza- residents and tenants. It covers land that is tion. Some informal residents are squatters; in parcels and un-parcelled land, and plots others base their right to occupy the land on which are legal and non-legal. See Box 3. customary tenure or other rights. Landowner The person or entity that Informal settlement A settlement where have the recognized legal right to a particu- the housing is built on land that the occu- lar piece of land. See Box 3. pants have no legal claim to, or occupy Land planning Determining the locations illegally; or an area where housing is un- and layout of buildings, streets, open spaces planned or does not comply with current and infrastructure in an area. See Chapter planning and building regulations. Some 5. (not all) informal settlements are slums. Land pooling A form of land readjustment Institutional mapping Identifying the where the landowners and landholders trans- organizations and institutions within the fer their land to a community land trust. neighbourhood (or that are relevant to it), Each owner and holder receives a share in along with the relationships between them. the trust. The readjusted plots are allocat- Land administration The procedures ed back to the landholders and landowners used by the state to supervise the tenure, in proportion to the amount that each one value, use and transfer of land. Land admin- contributed. See Figure 44. istration functions include juridical (man- Land readjustment Conventional land aging tenure and transfers and resolving readjustment is a way of reallocating the disputes), regulatory (controlling use), fiscal ownership of land. A group of contiguous (collecting tax) and information manage- land parcels belonging to different owners ment (recording, maintaining and making are brought together and treated as a unit available information). for the planning of new buildings and infra- Land contribution ratio The proportion structure. The unit is re-divided into parcels of land that a landhold is required to give and re-allocated to the owners according up in a land readjustment project. See Table 6. to the size or value of the land that each has contributed. The costs and benefits are Land governance The rules, processes shared equitably among the landowners. and structures through which decisions are See Box 1. made about the use of and control over land, how the decisions are implemented Land register A public register main- and enforced, and how competing interests tained by the government that records the in land are managed. See Box 7. title deeds to each parcel of land. It is often linked to the cadastre through a unique Landholder The person or entity that has identification code for each parcel. a substantive claim (often based on customary tenure or occupancy) to a piece of land.

197 Remaking the urban mosaic

Land-use planning For a large area such Participatory mapping Making a map of as a region or a city, the systematic assess- an area with the participation of the people ment of physical, social and economic fac- who live there. tors to enable land users to choose how to PILaR participatory and inclusive land use the land productively, sustainably and in readjustment a way that meets the needs of society. Plot An area of land held by a particular Land valuation The determination of the landholder, or with a particular land use or value of a landholding or property. It may be other characteristic. It may be legally recog- determined in various ways: on the basis of nized or not. See also parcel. the area of the landholding, on its market value, or using proxies such as accessibility. Poverty scorecard A short checklist used Land valuation is normally done by a profes- to judge quickly whether a household is sional appraiser. See Chapter 4. poor. See Box 25.

freehold Leaseholder Formal tenant, someone Private land ownership See . who has made a contractual agreement Renter tenant with a landowner to occupy or use a piece of Reparcellation In conventional land read- land for a specified period. justment, the division of a consolidated area Linear project A project that builds or ex- into individual plots and their allocation to pands linear infrastructure, such as a road, specificlandowners . railway or pipeline. Reserved plot A plot of land reserved Municipality The municipal administra- for use by the municipality – for example tion, or that branch of it that is responsible for rental, sale, or for building affordable for land readjustment. housing.

Parcel A plot of land that is recognized Resumption See compulsory purchase. legally and entered into a cadastre or land Slum An area with a large number of registration system. households who lack at least two of these Participatory Refers to the process fol- elements: access to improved water, access lowed by a project: the people have a say in to improved sanitation, security of tenure, decisions that affect them. See also inclusive. durable housing, and an adequate living Participatory and Inclusive Land Read- area. justment PILaR. A land readjustment pro- Slum improvement slum upgrading cess that uses participatory methods and aims Slum upgrading Slum improvement. A for inclusive outcomes. See Box 4. way to improve the housing and living con- Participatory enumeration A data ditions in a slum by involving the people gathering process which is to a significant who live there. See Chapter 1. extent jointly designed and conducted by the people who are being surveyed.

198 Glossary

Social capital The network of linkages Stakeholder mapping Identifying the within a community. See Box 21. stakeholders in a project, along with the relationships between them. Social Tenure Domain Model A participatory method of recording who has what Stakeholders Individuals and organiza- rights to what piece of land. See Box 10. tions that are affected by a project or who have an interest in it. Spatial mapping Plotting locations and boundaries of an area on a map. Subsidiarity The principle that decisions should be taken and services provided at Squatter Someone who takes unauthor- the lowest appropriate level. ized possession of an unoccupied piece of land or building. Regarded as derogatory Tenant Renter, leaseholder. Someone in some locations; this book uses the more who pays a landowner or landholder to occu- neutral term informal resident. py or use a piece of land or building.

Stakeholder engagement The pro- Title deed A formal document, recog- cess of working together with landowners, nized by the state, giving rights to the hold- landholders, people in the community and er to occupy and use a piece of land. other stakeholders to plan and implement UN-Habitat The branch of the United a project. See Chapter 7 and community Nations that deals with human settlements. engagement. Headquartered in Nairobi.

199 200 REFERENCES

CHAPTER 1, INTRODUCTION CHAPTER 3, GOVERNANCE

Cities Alliance. About slum Andersson, M. 2014. Metropolitan upgrading. www.citiesalliance.org/ governance study: Part A. Review of About-slum-upgrading literature and SWOT analysis for GIZ and UN-Habitat. Unpublished report. Lipman, B. and R. Rajack. 2011. Memo UN-Habitat, Nairobi. to the Mayor: Improving access to urban land for all residents: Fulfilling Palmer, D., S. Fricska, and B. the promise. Urban Development Series Wehrmann. 2009. Towards improved Knowledge Papers11. World Bank. land governance. Food and Agriculture tinyurl.com/qcypjlm Organization of the United Nations and UN-Habitat/GLTN. UN-Habitat/GLTN. 2013. Huambo land readjustment. Urban legal case studies. United Nations Human Settlements CHAPTER 5, PLANNING AND DESIGN Programme, Nairobi. tinyurl.com/ nemtv52 Ewing, R. undated. Urban design vs. urban planning: A distinction with UN-Habitat and UNESCAP. 2008. a difference. Research you can use. Housing the poor in Asian cities: Land-A tinyurl.com/neovjd2 crucial element in housing the poor. tinyurl.com/pf3maxj UN-Habitat. 2014. A new strategy of sustainable neighbourhood planning: Five principles. Discussion note 3. UN- CHAPTER 2. USING PILAR Habitat, Nairobi. tinyurl.com/ppwpw3g

Department of Urban Development and Engineering Services. 2006. CHAPTER 6, COLLECTING Bhutan: Urban Infrastructure AND ANALYSING DATA Development Project. Draft resettlement framework for land pooling related- Participatory enumeration works of component A (Thimphu). tinyurl.com/ntdrak4 GLTN. 2010. Tackling tenure security in slums through participatory

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enumerations. Brief 1, Global Land CHAPTER 7, ENGAGING Tool Network, UN-Habitat. tinyurl.com/ WITH THE COMMUNITY AND olhmt94 OTHER STAKEHOLDERS

Karanja I. 2011. An enumeration and Ahmed, S.M. and A.-G.S. Palermo. mapping of informal settlements 2010. American Journal of Public in Kisumu, Kenya, implemented by Health. 100(8): 1380–7. tinyurl.com/ their inhabitants. Environment & omun7bc Urbanization Journal, International FAO. 2013. Governing land for women Institute for Environment and and men: A technical guide to support Development 22(1): 217–39. tinyurl. the achievement of responsible gender- com/pzjb969 equitable governance of land tenure. Slum/Shack Dwellers International. www.fao.org/3/a-i3114e.pdf Enumeration and community mapping UN-Habitat. 2009. Towards improved approaches www.sdinet.org/tags/ land governance. Land Tenure Working Enumerations/ Paper 11. UN-Habitat/GLTN. 2010. Count me in: UN-Habitat/GLTN. 2011. Designing and Surveying for tenure security and urban evaluating land tools with a gender land management. tinyurl.com/pybpl74 perspective: A training package for land professionals. UNON, Publishing Environmental impact assessment Services Section, Nairobi. International Institute for Environment and Development. Profiles of tools and tactics for environmental CHAPTER 8. LEGAL ISSUES mainstreaming 1. tinyurl.com/pmobr7a Barlow, J., K. Bartlett, A. Hooper and C. UNEP. Environmental impact Whitehead. 2002. Land for housing, assessment. tinyurl.com/qcpq43y Current practice and future options. Joseph Rowntree Foundation. tinyurl. UNEP. 2013. The social dimension of com/o98rsej eco-based environmental adaptation. UNEP Policy Series 12. United Nations Environment Programme. tinyurl.com/ ng8klhb

202 Remaking the urban mosaic Remaking the urban mosaic Remaking the Participatory and inclusive land readjustment urban mosaic Participatory and inclusive land readjustment, or PILaR for short, is a way of reorganizing the ownership of land in and around cities in a pro-poor way. It brings together land parcels belonging to different owners and treats them Participatory and inclusive as a single unit for planning and infrastructure provision. The municipality reserves a portion of the land for roads and other public infrastructure, land readjustment and returns the rest to the original owners. Each owner gets back a smaller parcel, but it is worth more because it now has road access and other services. PILaR involves all the stakeholders – landowners, the municipality and residents – in planning and managing this process. Everyone has a say, and everyone benefits. This book describes how to implement PILaR. It guides the reader through the various aspects of this complex process: governance, land management policies, planning and design, collecting and analysing data, engaging with stakeholders, legal issues, finance and communication. It will be of interest to urban managers, land professionals, landowners, representatives of residents and other stakeholders who are considering or are involved in land readjustment projects.

HS Number: HS/006/16E

ISBN Number: 978-92-1-132699-4