Public Rental Housing as Housing Delivery Strategy in Addis Ababa: The Case of Apartments Constructed by Agency for Government Houses (AGH)
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Date
2016-06
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Addis Ababauniversity
Abstract
Rental housing takes the biggest share in Addis Ababa’s housing stock; above 50 percent. 37% is the share of the private rental sector; which is characterised by continuous rise in rent price and is becoming unaffordable for many poor households. Contrary to this is the public rental housing sector (PRH); it provides the most affordable housing units so far. With unrevised rent price and contract the sector has become permanent affordable shelter for many. Government policy that promotes home ownership has frozen the production of new PRH units.
The study examines existing PRH stock in Addis Ababa in search of potentials and lessons for further developing the sector in the future. It focuses on apartments constructed by Agency for Government Houses (AGH); and studies development process, target group and management. Based on findings the study also proposes a strategy for developing the sector anew.
For the purpose of in-depth understanding of the sector a Case Study method is used; cases were selected based on availability of data and rational of the study. Purposeful random sampling was used for selecting interviewed tenants. Data are collected through interview, questionnaire and reviewing archival materials; tenant satisfaction survey was used to shed light on the management performance of AGH. Additional data were also collected from secondary sources as part of contextual and background study. Data on development process were analysed in comparison with current housing development trend.
The study came up with three basic findings; first, it was the decisions made at different times by the central government that had led to the construction of the apartments rather than pre-planned consistent strategy. The central government (Ministry of Urban Development and Construction) played the major role in the development process. All involved actors were public institutions; including those who participated in the design and construction. AGH financed the construction of the apartments with money collected from rent; which makes AGH financially self-sufficient back then. Second, Current tenants are mainly high and middle income households, opposed to low income households which are considered to be the right target group of such PRH programs . The units are also rented for different purposes; for housing, office and shop. Third, the management is found to be satisfactory in some aspects and unsatisfactory in others; with big problem on repair and maintenance. The study also found potentials for further developing the sector, such as huge underdeveloped land in the city centre; occupied by low-rise and poor quality PRH units and rent money collected from these units. Current institutional structure of AGH and government housing policy and strategy are challenges for further developing the sector. Based on the findings the study provides detail strategy proposal. Program design, land acquisition, financing mechanisms, target group and management are discussed in detail in the strategy.
Key words: Public rental housing, tenant, Agency for Government Houses, housing management, tenants‟ satisfaction, development process, Addis Ababa
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Keywords
Public rental housing, tenant, Agency for Government Houses, housing management, tenants, satisfaction, development process, Addis Ababa