Publication: Mexico - Low Income Housing : Issues and Options,
Volume 2. Background Studies
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2002-09-16
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2013-08-26
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This report evaluates the shortcomings of current housing policies, and provides a framework for analysis of alternative policies. Its message is threefold: First, housing has a significant role in terms of basic social support, where the housing unit is a source of capital accumulation, thus a key to expanding Mexico's middle class, from a minority to a majority. Second, the country is facing a two-tiered housing market, those that can afford formal housing, and the near majority who are not served by current federal programs. Third, the housing finance system has amalgamated into multiple institutions, with unclear accountability, and divergent criteria for subsidized credit. The report further reviews the significant challenges facing housing demand, supply, and government intervention, stating that in the absence of viable alternatives, many Mexicans households are under-housed, and suffer from insecure tenure, crowding, and poor quality of housing. This weakness exacerbates poverty, by limiting capital formation, and the role of shelter in improving the asset base of the poor, and, adversely impacts the national economy. The country requires a substantial program of support for low-income housing over the next two decades. In the formal market, reform is necessary to increase effectiveness of current programs so as to open the market to a wider range of private mortgage originators, and investors. And, given the limited fiscal capacity, trade-offs between the scope and depth of support to different segments of the market must be made. Public financial support to the middle market should be incrementally withdrawn, and focused more directly to the poor, requiring a coordinated strategy among public and quasi-public housing agencies to strengthen the market, where a major role for the new Housing Commission would be to oversee implementation of such strategy. Moreover, demand-side subsidies are necessary to support the poor, as well as norms and practices adjusted to foster progressive housing.
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“World Bank. 2002. Mexico - Low Income Housing : Issues and Options,
Volume 2. Background Studies. © World Bank. http://hdl.handle.net/10986/15357 License: CC BY 3.0 IGO.”
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Publication Mexico - Low Income Housing : Issues and Options, Volume 1. Main Report(Washington, DC, 2002-09-16)This report evaluates the shortcomings of current housing policies, and provides a framework for analysis of alternative policies. Its message is threefold: First, housing has a significant role in terms of basic social support, where the housing unit is a source of capital accumulation, thus a key to expanding Mexico's middle class, from a minority to a majority. Second, the country is facing a two-tiered housing market, those that can afford formal housing, and the near majority who are not served by current federal programs. Third, the housing finance system has amalgamated into multiple institutions, with unclear accountability, and divergent criteria for subsidized credit. The report further reviews the significant challenges facing housing demand, supply, and government intervention, stating that in the absence of viable alternatives, many Mexicans households are under-housed, and suffer from insecure tenure, crowding, and poor quality of housing. This weakness exacerbates poverty, by limiting capital formation, and the role of shelter in improving the asset base of the poor, and, adversely impacts the national economy. The country requires a substantial program of support for low-income housing over the next two decades. In the formal market, reform is necessary to increase effectiveness of current programs so as to open the market to a wider range of private mortgage originators, and investors. And, given the limited fiscal capacity, trade-offs between the scope and depth of support to different segments of the market must be made. Public financial support to the middle market should be incrementally withdrawn, and focused more directly to the poor, requiring a coordinated strategy among public and quasi-public housing agencies to strengthen the market, where a major role for the new Housing Commission would be to oversee implementation of such strategy. Moreover, demand-side subsidies are necessary to support the poor, as well as norms and practices adjusted to foster progressive housing.Publication Egypt - Next Step Recommendations for Affordable Housing Policy and the National Housing Program : Mortgaged-Linked Subsidies and Housing Supply considerations(Washington, DC, 2008-06)At the request of the Government of Egypt (GOE), the objective of this brief note is to provide concise recommendations on next steps for the National Housing Program (NHP). These recommendations and policy analysis are an elaboration of the framework for housing policy reform in urban areas in Egypt, a draft of which was endorsed by the Ministry of Housing, Utilities and Urban Development (MHUUD) and the Ministry of Investment (MOI) in the high-level policy workshop held in September 2007. The Framework, an evolving strategy building blocks document, proposed a set of comprehensive housing sector reforms and improvements to the NHP consisting of five action channels - unlocking the vacant housing stock, creating a fluid rental market, enhancing affordability through improved access to housing finance and reduction of formal housing supply cost, improved targeting of subsidies, and transforming the government's role into an enabler of the housing market. During the Ministerial workshop in September 2007, it was agreed that the four priority actions were: (i) the design and implementation of a housing information system; (ii) mainstreaming the use of demand-based mortgage-linked subsidy instruments; (iii) set up of a high-level housing policymaking body to coordinate and rationalize the interventions of the different concerned stakeholders; and (iv) expansion of the Housing Demand Study to other areas of Egypt. United States Agency for International Development or USAID Second Technical Assistance for Policy Reform, or TAPRII has completed the design of the housing information system and has made significant progress in the expansion of the housing demand survey. 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The housing sector also has substantial indirect environmental impacts associated with extended commuting distances from residents of housing developments and their resulting greenhouse gas emissions.The housing sector in Brazil offers substantial opportunities to improve enviromental performance. Housing developments, particularly large-scale low-cost programs, provide opportunities to minimize local and global environmental impacts through the use of energy efficient materials, design and construction guidelines, as well as performance standards. Many of these technologies and practices are appropriate to Brazilian conditions, and a number of them are already in use. Low-cost housing programs can be designed to incorporate sustainable materials and guidelines, with potentially large-scale impacts. With the launch of the Minha Casa, Minha Vida (MCMV) economic stimulus program to subsidize the construction of 1 million low-income housing units (and recent approval of a second round of subsidies for 2 million homes), Brazil is in a unique position to achieve the triumvirate of sustainable growth the social goal of reducing the national housing deficit, the economic stimulus goal of creating jobs in the construction industry, and the environmental goal of developing healthy homes and communities. Centralized funding sources like MCMV provide can be also used as models for other assisted housing programs and, potentially, market-rate housing developments as cities, developers and construction product manufacturers become more experienced in green housing technologies.Many green construction and technology programs are already in place. Brazil has a history of promoting programs and policies related to sustainable housing design construction and maintenance, such as product certification, supply-chain, research and development, and Green Building programs. The Selo Azul Program, launched by CAIXA in 2010 with the goal of promoting green housing development in Brazil, is particularly promising. Enhancements to current programs can greatly improve sustainability of housing sector. With increasing awareness on sustainable construction, there are currently major opportunities to promote the incorporation of green construction technologies, as well as hazard-resistant technologies for climate adaptation, within formal and informal low-income housing in Brazil. Based on a review of current practices at the national and international level, as well as on interviews with public and private sector practitioners, this Policy Note presents recommendations aimed at enhancing the sustainability of low-income housing approaches in Brazil, through the provision of high quality, energy-efficient housing with minimal environmental impacts.Publication Urbanization and Housing Investment(World Bank Group, Washington, DC, 2014-11)This paper provides the first systematic empirical assessment of the pace at which housing investment has responded to rising demand from urbanization. The assessment used National Accounts Statistics to build a data set of residential housing investment for more than 90 countries. The data set explicitly accounts for investment by households, the government, and the private sector. The analysis finds that housing investment follows an S-shaped trajectory taking off around per capita GDP of about $3,000 (US$2005) and tapering down at per capita GDP around $36,000 (US$2005). The analysis also finds that between 2001 and 2011, housing investment in low-income economies averaged 4.56 percent of gross domestic product and 9.12 percent in upper-middle-income economies. An important finding is that countries in Sub-Saharan Africa have housing elasticities similar to comparable low-income and lower-middle-income economies. In financing housing investment, the paper finds that developing countries tend to rely much more on domestic savings and government debt, whereas high-income Organisation for Economic Co-operation and Development countries lever capital markets by tapping foreign savings. Not only does excessive reliance on domestic savings and government debt increase the sensitivity of housing investment to the cyclicality of growth of gross domestic product, it also can potentially crowd out investments in health and education.Publication Housing Finance(World Bank, Washington, DC, 2016-04-20)Access to adequate housing is critically important to the health and wellbeing of the world’s population. Yet, despite the fact that this statement is part of the United Nations Universal Declaration of Human Rights and has been on the global policy agenda for many years, hundreds of millions of people continue to live in inadequate conditions with little or no access to decent housing. The demand for housing solutions will increase as urbanization and population growth persists. The United Nations Human Settlements Program (UN-Habitat) has estimated that the number of people living in slums around the world will rise to 900 million by 2020 if nothing is done. Asia and Africa will face special challenges, because urbanization in those regions is proceeding rapidly. Housing is frequently unaffordable to all but the top earners. A recent report estimates a housing affordability gap affecting 330 million households, with 200 million households in the developing world living in slums (McKinsey Global Institute 2014). Research has shown that more and better housing increases the welfare of occupants. Homeownership may increase stability and civic engagement, and provide financial security in old age. Improvements in housing also have important benefits to the economy. Housing construction and home improvement generate demand for professional, skilled, semi-skilled, and unskilled labor; and allow many micro and small businesses to flourish. The housing market is an important component of national economies and housing booms and busts can have significant effects on the macro economy and financial sector. The core purpose of this learning product is to generate knowledge and provide lessons learned from World Bank Group support to housing finance. Lessons were derived primarily from evaluated interventions in the form of World Bank loans or International Finance Corporation (IFC) investments and advisory services. World Bank technical assistance and knowledge products and interventions on housing finance matters were considered when provided in the context of lending operations. One limitation faced in preparation of this learning product was the lack of coverage of stand-alone World Bank advisory services.
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Climate change and policies affect jobs through impacts on productivity, energy and material efficiency, and physical, human, and natural capital. They can also transform employment opportunities, especially through complementary measures that help workers and firms adapt to and benefit from new technologies and production practices. Prepared by the World Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA), CCDRs integrate country perspectives, climate science and economic modeling, private sector information, and policy analysis to assess how countries can successfully grow and develop their economies and create jobs despite increasing climate risks and while achieving their climate objectives and commitments. 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