Slum Upgrading and Affordable Housing Framework

Introduction

Monrovia, the capital of Liberia, faces significant challenges in providing adequate and affordable housing due to a combination of historical, economic, and environmental factors. This document, “Facilitating increased access to affordable housing through inclusive market approaches,” examines these challenges and proposes interventions to improve the housing situation in greater Monrovia. It highlights the need for a comprehensive approach involving policy changes, market interventions, and community engagement to address the complex issues.

Historical and Environmental Context

Years of civil war and the Ebola crisis have severely damaged Liberia’s infrastructure and economy, leaving the majority of urban residents in inadequate and hazardous conditions. The financial system collapsed, and urban infrastructure was virtually destroyed by the civil war. Moreover, Monrovia is the wettest capital in the world, with poor citywide drainage systems leading to frequent seasonal flooding that disrupts livelihoods. This flooding is compounded by locational hazards such as sea erosion, river flooding, informal land reclamation, and non-climatic hazards related to poor hygiene and inadequate housing. These issues are further exacerbated by the effects of climate change, with Liberia being the second most at-risk country in West Africa due to rising sea levels and storm surges.

Housing Market Dysfunction

The Liberian housing market is highly complex and dysfunctional, characterized by an uneven delivery of housing-related products and services, as well as a high level of informality. There is a significant discrepancy in housing quality and cost between high- and low-income households. The majority of the urban population, 70%, lives in informal settlements with no secure tenure or basic services on public or private land that is either legally or illegally occupied. The housing mandate is fragmented across multiple government agencies, with no single ministry prioritizing housing at a national level10. Current housing policies focus on subsidized mortgage housing for the small percentage of the population who are employed and can afford a mortgage of around US$20,000, leaving out the needs of low-income households and slum communities.

Affordability and Capacity Issues in Slum Upgrading

Affordability levels are very low, with 64% of Liberians living below the national poverty line. Low-income households allocate only around 15% of their expenditures to housing, much lower than the accepted standard of 40%. This is because they must prioritize other essential needs like food, education, and healthcare. Additionally, both public and private sector capacity in Liberia is limited and weak due to limited resources and challenging economic and social conditions. The land administration system is also weak and fragmented due to the years of civil war, further complicating the issue.

Key Constraints in the Housing Sector Addressing Slum Upgrading

The main dysfunctions in the housing sector center on several key areas:

• Affordability: More than 80% of the population in greater Monrovia derives its income from the informal sector, and incomes are generally low, making it difficult for low- and middle-income families to afford quality housing.
• Land Access and Tenure Security: The land administration system is in disarray after years of civil war, and tenure security is highly insecure15. Much of the prime land is privately held, and the transactional costs of acquiring and registering land are often prohibitive1.
• Basic Services and Infrastructure: Serviced land is rare, and developers and contractors are usually responsible for providing the necessary infrastructure, greatly increasing the cost of new construction16.
• Access to Finance: The mortgage market is underdeveloped, and formal financing options are largely out of reach for most of the population, with the majority relying on informal means of self-financing.
• Construction Services and Materials: Most construction supplies are imported, and import and excise duties add to their costs19. Local manufacturing is limited, and the skill level of local construction artisans is low.

Proposed Interventions for Slum Upgrading

To address these issues, the framework proposes a series of interventions at the policy, market, and community levels, that can lead to a systemic change to create an enabling environment.

Policy-Level Interventions:

• Consolidation of the Housing Mandate: The housing mandate needs to be consolidated and prioritized, with a clear allocation of funding to support slum upgrading and affordable housing.
• Land Reform: The Land Rights Bill of 2014 needs to be passed to clarify land ownership and procedures.
• National Housing Policy: The National Housing Policy must be updated to include slum upgrading, affordable rental housing, basic services provision, and support for incremental housing.
• Building Codes: Building codes and standards need to be updated to incorporate alternative materials and address the construction of incremental housing.
• Government Subsidies: Government subsidies must be targeted at low-income and vulnerable households rather than middle- to high-income earners.
• Housing Trust Fund: A “housing trust fund” should be developed using public taxation mechanisms to support funding of subsidies.

Market-Level Interventions:

• Private Sector Engagement: Encourage private sector innovations to lower costs and increase access to quality housing.
• Construction Skills Training: Expansion of vocational courses and firm-led training initiatives to improve the skills of construction workers.
• Financial Sector Strengthening: Development of a regulatory framework for the microfinance sector, capacity building for microfinance institutions, and establishment of a credit reference bureau.
• Long-term Funding: Exploration of a guarantee fund to mitigate the risk for financial institutions entering housing finance and identification of sources of long-term funding.
• Innovative Financial Products: Development of housing microfinance products and expansion of the mortgage market.

Community-Level Interventions:

• Hazards and Risk Awareness: Education and awareness programs to help communities understand and mitigate prevalent hazards and risks.
• Community Infrastructure Improvements: Implementation of small community infrastructure works to improve drainage, waste management, and sanitation.
• Diversified Shelter Solutions: Implementation of incremental construction and improvement approaches, including skills training programs….
• Land Tenure Continuum: Conducting land surveys to inform casework for households to regularize tenure.
• Institutional Capacity Building: Development of specialized units within government entities to support knowledge transfer and the implementation of community-level interventions.
• Livelihood Support: Integrating livelihood development with shelter initiatives by community contracting schemes and cash-for-work programs.

Metropolitan-Level Interventions:

• Relocation and De-densification: Relocating households in high-risk areas and considering densification policies46.
• Infrastructure Development: Construction of new infrastructure and improvement of existing systems for stormwater drainage, sanitation, and coastal protection.
• Climate Change Adaptation: Implementation of adaptation measures across various sectors, with particular focus on transport and housing7.

Conclusion

The proposed framework emphasizes that policy-, market-, and community-level interventions are essential to create a systemic change and an enabling environment that supports affordable housing solutions at scale48. It is imperative to address underlying issues of land access, infrastructure, and finance while fostering community participation and private-sector innovation. By adopting a holistic and integrated approach, Monrovia can work towards improving the living conditions and quality of life for its low-income residents22. This requires collaboration amongst public, private, and community actors, which is paramount for creating sustainable and scalable housing outcomes.